Why Rate Parity Feels Like 5 Emotional Stages for Hoteliers | THRev.co

"Discover how hoteliers face the challenge of Rate Parity through 5 emotional stages—from denial to acceptance—in this insightful perspective on OTA dynamics."

In today’s digital era, it’s nearly impossible for hotels to survive or grow without relying on Online Travel Agents (OTAs). While some hotels may depend on them more than others, one undeniable truth remains: OTAs have become a major player with tremendous influence in our industry. And with this partnership comes a classic term every hotelier is all too familiar with... which is

Rate Parity

The heart of it is simple: it’s a contract clause that states the rates offered on our hotel’s own website or other OTAs must not be lower than those offered to major OTAs like Booking.com, Agoda, or Expedia. Sounds simple, right? Just “make all room rates equal across all channels.”
But... as insiders know, reality is full of complications! From wholesaler rates, member-only discounts, to sneaky hidden OTA promotions—achieving 100% perfect Rate Parity often feels like fighting a never-ending war.

If you’re new to the hotel industry, feelings of frustration and discouragement are normal. You may have tried your best to make rates perfectly aligned across all platforms—only to realize it’s a battle you just can’t win. I’ve been there myself.
Surprisingly, this emotional journey is universal. It’s almost like the “Five Stages of Grief” but for hoteliers. We have our own version... which is:

The 5 Stages of Coming to Terms with Rate Parity – A Journey Every Hotelier Must Face

Stage 1: Denial
Picture a passionate hotel manager who truly believes that maintaining perfect online pricing is the golden ticket to success. This stage is full of screenshotting price discrepancies, running around to fix them—like chasing shadows in the desert. But the truth is, the OTA world constantly evolves with mergers and tech shifts. Trying to control it all is like catching wind with a butterfly net... impossible.

Stage 2: Anger
Frustration turns into full-on rage—ready to “wage war” against OTAs. Managers channel their inner warriors, aiming to take down giants like Trip.com or Agoda. But in this story, David forgot his slingshot at home. We’re small players facing industry titans, and anger can lead to bold but misguided strategies. Because in this game… Goliath holds all the cards.

Stage 3: Bargaining
Hope re-emerges like a lighthouse in the distance. We try everything—launching promos, pushing direct bookings, exploring new channels. It’s a wild dance, but like trying to change the ocean’s tide with a spoon. We want the perfect tools or strategies, but tools alone aren’t enough. The real key is understanding the current, not just using the compass.

Stage 4: Depression
Then reality hits hard—like a sandstorm. Without OTA support, a hotel becomes invisible. We’re like a camouflaged lizard in the desert while competitors race ahead. Revenues drop slowly but surely. This is when we see the *real* cost of pulling away. Empty rooms and shrinking income are painful truths we can’t ignore.

Stage 5: Acceptance
At last, the storm clears and reveals an oasis of clarity. We begin to understand… modern travelers are smart. They see through “too-good-to-be-true” prices and value the care behind direct bookings. The essence of hospitality isn’t about fighting—it’s about crafting unforgettable experiences

Think of this as a ‘dance’ rather than a ‘battle’—where everyone plays a vital role in creating a beautiful and harmonious performance.

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