---
title: "What is Rate parity? | Benefit Systems"
description: "Rate parity is the agreement that a hotel offers the same room price across all distribution channels and does not undercut the agencies."
source: "aus dem gebauten HTML abgeleitet"
---
# What is Rate parity?

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](/de/glossar/ratenparitaet)

## Related terms #

- [Rack rate](/en/glossary/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](/en/glossary/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](/en/glossary/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 #

- [Book direct or through an online travel agency?](/en/knowledge/direct-vs-ota)
- [Why your hotel bill is higher than the rate you booked](/en/knowledge/resort-fees)
- [How do hotel award categories work?](/en/knowledge/hotel-award-categories)