Rate parity is the agreement that a hotel offers the same room price across all distribution channels and does not undercut the agencies.
Rate parity is the agreement that a hotel offers the same room price across all distribution channels and does not undercut the agencies.
Also called: Price parity.
How it works#
The clause explains why comparison shopping for the identical room so often returns identical prices. Competition shifts to whatever parity does not cover: member rates, inclusions, cancellation terms and points earning. Competition authorities have restricted such clauses in several countries, which is why booking direct can be cheaper there again.
Not to be confused with#
Rate parity is not the same as a best-price guarantee: parity is a distribution agreement, a guarantee is a promise to the guest with its own proof requirements.
In German#
The German term is Ratenparität. German version of this term
Related terms#
- Rack rate: The rack rate is a hotel’s official undiscounted room price, used as the reference point from which all other rates are derived.
- Online travel agency: An online travel agency is an intermediary that sells flights and hotels in its own name, sitting between the traveller and the airline or hotel.
- Opaque rate: An opaque rate is an offer where the provider is revealed only after booking, such as an unnamed hotel of a given class in a given district.
Articles that use this term#
TopicEvery article and term onBooking and flight search.