In order to implement rate parity properly in a hotel, and truly have the same price over all your distribution channels, you need to know all your commissions and margins for 3rd party channels.
A recommendation would be to make an excel table with all the conditions of each third party channel, to include;
- Tax % (included / excluded)
- Net / commissionable
- Margin % / fees
- Cancelation policies
- Payment policies
- Free sale / allotment
It will help you to better understand your property’s distribution mix if you place room nights against each channel and the cost of doing business.
Next step is to configure a channel management system with the correct margin and taxes so you can easily load the same sell rate for each extranet all at one time.
If you have more than one room type per online travel agency website, you may want to configure a differential, variable per room type. For instance, set the difference between your superior room and deluxe room to 400.00 kr. This way you will save time on rate loading a price for each single room type, and will only have to submit the BAR for one room type and the channel management system will update the rest.
It will help you to better understand your property’s distribution mix if you place room nights against each channel and the cost of doing business.
Next step is to configure a channel management system with the correct margin and taxes so you can easily load the same sell rate for each extranet all at one time.
If you have more than one room type per online travel agency website, you may want to configure a differential, variable per room type. For instance, set the difference between your superior room and deluxe room to 400.00 kr. This way you will save time on rate loading a price for each single room type, and will only have to submit the BAR for one room type and the channel management system will update the rest.
The right price based on = value, customers perceived value, positioning and competition
- What rooms do you sell first and last?
- By room type what is the starting price point?
- Corporate deal commitments – is there a percentage % per day of occupancy that needs to be blocked?
- For how long in advance of bookings before any rate reductions or increases?
- Will customers pay more closely to an arrival date / last minute?
- Does mid-week business pay higher rates than on a weekend?
Revenue management
Goal and mission
Market segmentation
Pricing and rates
- Rate parity
- Price strategy
- Price segmentation
- Pricing grid
Budgets, forecasting and a demand calendar
Capacity allocation
Performance
IT / Analysis support tools
