“When discussing Rate Parity issues, we have to differentiate between those within the Revenue Manager’s immediate control and those that are caused by other powers.
There are straightforward Rate Parity issues that the Revenue Manager can directly impact, e.g., because of technical issues or incomplete setup in the channel manager. These issues can be resolved relatively easily by establishing channel, rate or room type or the pattern at which the mismatch occurs and fix it in the setup of the channel management tool. The rate parity report in the rate shopping tool will be of great help.
More difficult to tackle are mismatches caused by bedbanks or OTAs that distribute availabilities and rates out to online platforms who then modify the rate at cost of their own commission or markup to obtain a competitive advantage by selling at the lowest rates and benefit from better visibility on meta sites.
Once you have established the channel that causes the parity breach (in most cases you will need to make a test booking) and challenged your direct distribution partner with it, they will say that it’s the fault of the platform pulling the content from them and that they don’t tolerate such practice.
To get them into motion though you will need to provide some bulletproof evidence and this is what you need srceen shots from a test booking for. Best-case scenario now is that the channel causing the parity breach will be refrained by your distribution partner from selling your hotel after a few days or weeks.
For escalation it is advisable to agree a clause or an addendum to the distribution agreement which defines;
- What is the process of reporting a parity breach?
- What needs to be provided to prove a parity breach?
- How much time does the distribution partner have to get the issue resolved?
- What are the penalties?
Depending on the country of operation you may not be able to penalize your distribution partner for Rate Parity breaches.”