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HOSPITALITY GLOSSARY TERM
Rate Parity
Rate Parity is a legal agreement or pricing strategy where a hotel maintains consistent rates for the same room type across all distribution channels (its own website and all OTAs).
Detailed Explanation
While rate parity ensures that OTAs like Booking.com and MakeMyTrip have price competitiveness, it restricts hotels from offering lower room rates on their own websites. To encourage direct bookings without violating parity agreements, hoteliers offer exclusive value-adds (free breakfast, early check-in) or direct-only packages behind member logins. Read more in our Direct Booking Strategies Blog.
A highly searched, controversial legal and strategic topic in Indian and global hospitality, prime for search snippet positioning.