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Do OTA loyalty programmes lead to rate disparity ?

OTA (Online Travel Agency) loyalty programs can potentially lead to rate disparity.

Here's how:

OTA loyalty programs typically offer their members exclusive discounts, cashback, or other incentives when they book through their platform. However, these discounts and incentives come at a cost to the hotels, which have to pay a commission fee to the OTA for every booking made through their platform.

To compensate for this cost, hotels may increase their rates on OTA platforms to offset the commission fee. This can lead to rate disparity between the hotel's website and OTA platforms, where the rates on the OTA platform may appear to be lower due to the discounts and incentives offered by the loyalty program.

Additionally, OTAs may use dynamic pricing strategies, where the rates for a particular hotel may change based on supply and demand, seasonality, and other factors. This can further exacerbate rate disparity and make it difficult for hotels to maintain rate parity across different channels.

In summary, while OTA loyalty programs can be beneficial for consumers, they may lead to rate disparity for hotels, which can impact their bottom line and create confusion for consumers trying to compare prices across different platforms.

Have a profitable week.

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