Glossary / Pricing & strategy

Rate Parity

Definition

Rate parity is the policy that the same room on the same night sells at the same price across all channels. Booking.com sees the same rate as your direct site sees as Expedia sees.

What it tells you

OTAs typically require rate parity in their contracts. Violating parity (e.g., a direct-only discount that’s visible to the OTA) can result in delisting or reduced visibility. The exceptions: closed user groups, mobile-only rates, loyalty rates — which OTAs accept because they’re not publicly visible.

How to track it

Channel manager dashboards flag parity violations. Some rate-shopping tools also detect parity breaches.

Where it fits

A central distribution constraint. Most direct-booking strategies work around parity through value-add (free breakfast, late checkout, loyalty perks) rather than rate cuts.

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