Tips to ensure rate parity without breach of agreement
A simple solution for parity votes is an advanced revenue management tool; including fare shopping, fare optimization, channel distribution and online reputation management solutions. Not only do they arm a hotel to maintain its rate parity and integrity, these revenue management tools also make price suggestions, update online distribution OTAs, keep you current with your reviews and online presence, and place your hotel in a privileged place. on the OTA page to optimize bookings and ultimately increase revenue.
Practice of this type always guarantees a fair price for travelers and, at the same time, ensures that the hotel is also making strategic and preventive decisions to manage its hotel operation profitably.
This is where a state-of-the-art revenue management solution comes in. 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 pricing by studying supply, demand and competitive prices in real time.
However, there is no prize for guessing why increasing direct bookings is a hotel’s ultimate goal. Hotels, to compete with their own distribution channels, are finding innovative practices to entice customers to book directly through their brand website or at the front desk.
In this article, we will discuss approaches that hotel operators can use without taking issue with their OTA agreements. Applying these Hotels can increase their direct reservations without breaching the rate parity agreements.
Smart hotel operators are finding ways to offer incentives that entice customers to book directly through their brand websites, customer service or by phone.
Below are some strategies that hotels can use without running afoul of their OTA agreements and parity issues.
Tactic #1 Offer special offers to selected customers
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 covered.
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 free transfer from airport to hotel, free parking, free breakfast and free Wi-Fi. etc.
These tricks will ensure that your room rate is never lower than what the OTA is offering; however, the total value of the package will be much higher than the OTA room rate offer. In addition, it will also guarantee more business for the hotel during the event season.
Tactic #2 Stay connected with your regular customers
Stay in touch with your loyal customers with frequent offers and deals. Try different ways to stay in touch with your customer base, such as newsletters, blogs, discount offers, events and information about hotel festivals.
Also, hotels can share information about special offers every month, just to instill confidence in your customers, that you are offering them better rates.
Tactic #3 Keep your website up to date
Typically, a hotel website seems to get the least attention when it comes to ease of use and booking. Hotels should focus on designing their website to be user friendly to get maximum bookings. The website should grab interest immediately and there should be a call to action like “Book Now” and prominent phone numbers for booking. Smartphones and tablets are an important way to book hotel rooms. Hotels must have a mobile and tablet compatible website capable of accepting reservations and a button that will automatically call the hotel for the potential customer when pressed.
Hotels can lose many reservations from the website because it is not as intuitive. A hotel’s website should be considered as the most reliable and affordable booking source for customers.
Tactic #4 Offer incentives to loyal guests
Many hotels offer gift vouchers and discounts for their loyal customers. Hotels send a mass 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 #5 Get the most reviews and drive more website visitors
Modern travelers check reviews to rate hotels and see which property has the highest rating. This is your chance to attract 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. Post a sign at the front desk or in rooms that encourages guests to write reviews.
To keep their customers, hotel staff must respond to guest comments, especially negative reviews. This shows that you value customer feedback and work hard to provide better service.
Tactic #6 Design Package Offers and Fringe Benefits
The bundled offer and add-ons are another way to offer discounts, without breaking 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 deal, but offer perks like free pickups, Wi-Fi, breakfast, etc. Plugins are a great way to persuade guests to book through your hotel website.
Tactic #7 Over-the-Counter Discount
The front desk is another direct point of contact with guests in addition to your brand website. Use this engaging face-to-face opportunity to give customers good reasons to interact with you directly. To any client who comes through OTA, offer them a discount on their next direct reservation through the hotel. This will establish trust in the minds of customers that the hotel offers lower rates compared to any OTA.
Tactic #8 Collaborate with OTAs for best results
We’ve discussed tactics that hotels can use to encourage customers to book through hotels. But this in no way implies that OTAs are competitors or adversaries of hotels. In fact, we would call them partners. Since they help you get amazing booking numbers. Involve your OTAs in your promotional plans; you could consider giving them extra benefits like extra inventory etc.
For the benefit of the travel industry and community, we support a win-win situation for hotels and OTAs alike. In addition, they can coexist in this environment benefiting each other.
