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Tips to ensure rate parity without breach of agreement
A simple solution for parity votes is an advanced revenue management tool; including fare buying, fare optimization, channel distribution and online reputation management solutions. Not only do they prepare a hotel to maintain its rate parity and integrity, these revenue management tools also make price suggestions, update online distribution OTAs, also keep you up to date with their reviews and online presence, and place your hotel in the main place on the OTA page to optimize bookings and ultimately increase revenue.
Practice of this kind always guarantees a fair price for travelers and at the same time ensures that the hotel is also making strategic and preventive decisions to run its hotel operation profitably.
This is where a cutting edge revenue management solution comes into play. Hoteliers can realize a rational rate structure with a comprehensive hotel revenue management solution.
Modern hotel revenue management tools enable hotel revenue managers to manage their room inventory and prices by studying supply, demand, and competitive prices in real time.
However, there is no prize for guessing why increasing direct bookings is the ultimate goal of a hotel. Hotels, to compete with their own distribution channels, are finding innovative practices to entice customers to book directly through their brand website or reception.
In this article, we will discuss about the approaches that hotel operators can use without disagreeing with their OTA agreements. Applying for these hotels can increase your direct bookings without breaching rate parity agreements.
Smart hotel operators are finding ways to offer incentives that entice customers to book directly through their brand’s websites, customer service, or over the phone.
Below are some strategies that hotels can use without conflicting with their OTA agreements and parity issues.
Tactic No. 1 Offer special offers to selected clients
Parity agreements prevent hotels from offering discounts publicly; however, this restriction does not apply if the hotel does it for a selected audience, but make sure it is well protected.
For example, you can send discount coupons to your social media followers, let’s say you can offer discount codes only to your Facebook followers.
The second instance could be to offer a value-added vacation package, or a special package for any big important event happening in your city, or a courtesy transfer from the airport to the hotel, free parking, free breakfast and Wi-Fi. etc.
These tricks will ensure that your room rate is never lower than what the OTA offers; however, the total value of the package will be much higher than the OTA’s room rate offer. In addition, it will also guarantee more business to the hotel during the event season.
Tactic # 2 Stay connected with your regular customers
Stay in touch with your loyal customers with frequent deals and deals. Try different ways to stay in touch with your customer base such as newsletters, blogs, discount offers, events and information on festivals organized in hotels.
Also, hotels can share special offer information every month, just to instill confidence in your customers that you are offering them better rates.
Tactic # 3 Keep your website up to date
Generally, a hotel website seems to receive the least attention when it comes to ease of use and ease of booking. Hotels should focus on designing their website to be easy to use and get the most from bookings. The website should capture interest immediately and there should be a call to action such as “Book Now” and prominent phone numbers to reserve. Smartphones and tablets are an important way to reserve hotel rooms. Hotels should have a mobile and tablet compatible website that can take reservations and a button that automatically calls the hotel for the potential customer when pressed.
Hotels can lose many reservations from the website because it is not so intuitive. A hotel website should be considered as the most reliable and economical booking source for clients.
Tactic No. # 4 Offer incentives to loyal guests
Many hotels offer gift vouchers and discounts for their loyal customers. Hotels send bulk email to their existing customer database and subscribers. This tactic over a period of time helps establish a loyal customer base and eventually more bookings.
Tactic No. # 5 Get the most reviews and attract more website visitors
Modern travelers check reviews to rate hotels and see which property has the highest rating. This is your chance to drive customers to your website, instead of losing them to OTAs.
To generate maximum positive reviews, you need to spread the culture of customer delight in your hotel. You can also ask guests to write a review and offer discount coupons on their next visit. Have a sign at the front desk or in the rooms, encouraging guests to write reviews.
To keep customers, hotel staff must respond to guest comments, especially negative ones. This shows that you value customer feedback and are striving to provide better service.
Tactic No. # 6 Design Packaged Offers and Additional Benefits
Packaged offers and add-ons are another way to offer discounts, without penetrating the parity contract.
To explain this in more detail, a hotel may offer a $ 400 package for a 4-night stay, versus a $ 350 OTA offer, but it offers benefits like free pick-ups, Wi-Fi, breakfast, etc. Add-ons are a great way to persuade guests to book through the hotel’s website.
Tactic # 7 Discount without a prescription
The front desk is another direct point of contact with guests in addition to your brand website. Use this exciting face-to-face opportunity to give customers good reasons to interact with you directly. For any customer coming through OTA, offer them a discount on their next direct booking through the hotel. This will establish a confidence in the minds of customers that the hotel offers lower rates compared to any OTA.
Tactic No. 8 Collaborate with OTAs for Best Results
We have discussed the tactics hotels can use to encourage customers to book through hotels. But this in no way implies that the OTAs are competitors or opponents of the hotel. In fact, we would call them partners. Since they help you get surprising reservation numbers. Involve your OTAs in your promotion plans; you might consider giving them additional benefits like extra inventory etc.
For the benefit of the industry and the travel community, we support a win-win situation for both hotels and online travel agencies. Furthermore, they can coexist in this environment benefiting each other.
