Against disparities... disparities!
Revenue 27/02/2019
We put in your hands 6 weapons with which to combat price disparities, generating other forms of disparity beneficial to your establishment.
If we stick to hotel distribution and direct sales, it is obvious that the most widespread definition of the concept of disparity is one that refers to the price differences that exist, for the same product, between the different channels of the hotel distribution network. a hotel and its direct sales channel, the official website.
You can believe in parity and die trying to achieve it, or you can assume that, although it can be controlled, today achieving it is almost a utopia.
This type of disparity, very negative from the hotelier's perspective, drastically reduces their competitive capacity and monopolizes a large part of their resources, in a permanent effort to reverse this unfavorable situation. Without a doubt, price disparities are the daily life of the revenue manager and also the recurring nightmare of many of these professionals.
And the fact is that, although hotels and OTAs share a board, the rules of the game that govern their movements and that they try to impose, leave the hotelier in a position of clear disadvantage that has led them to lose control of their product. Although the greater or lesser degree of distribution to which the hotel inventory is subject may condition the reality described up to this point, the truth is that ultimately everything boils down to two alternatives: one can believe in parity and die in the attempt to achieve parity. achieve it, or it can be assumed that, although it can be controlled, today achieving it is almost a utopia, and that it is advisable to opt for other battle fronts.
It may be that the key to revenue management lies precisely in non-parity and that the smartest way to confront this scenario is none other than paying in the same currency.
It may be that the key to revenue management lies precisely in non-parity and that the most intelligent way to confront this scenario is none other than paying with the same currency, that is, generating disparities beneficial for the hotel, disparities that fall directly on its official website, placing it one step above the OTAs, and giving it greater attractiveness from the point of view of customer or user perception.
Can't you lower the price further? Don't worry, there is no need. Add special privileges to the same type of room that add value to the reservation without increasing its cost. Surely OTAs don't come into that area.
In this sense, we are a little in the slipstream of the OTAs, very advanced when it comes to payment methods, and all the more reason we should not let our guard down. Furthermore, this fight is probably more affordable than the price fight: Direct payment at the hotel, installment payment, Google Pay, Amazon Pay, bank transfer, booking without a card... Aim to offer more payment facilities than OTAs and you will earn many points .
By a simple rule of three, if you keep the cheapest regimen, you will also appear as the cheapest option in searches and metasearch engines. You decide what to give to each channel and what to market through direct sales to attract the maximum possible traffic to your official website.
In the end, you are the one who must decide who sells what, when and where. Be smart and distribute your inventory strategically to enjoy exclusively (or almost) the most profitable accommodation units during peak demand.
If the cancellation policies, the days in advance, the flexibility in general, are more favorable on your website than on the OTAs, you have already generated another form of disparity that is very beneficial for your establishment, and will surely influence booking trends. .
As that one said, OTAs give you sleep, sometimes they also give you food, but they do not offer a pleasant browsing experience. They are loyal, yes, but not with the heart. This may not be a typical form of disparity, but making your user feel that you care for them and that you reward their trust will captivate them. Providing them, for example, with technology that demonstrates your sincere intention to guarantee them the best conditions will go a long way to retaining them. Comparators such as Rate Check will help you understand your channel as the right one, and real-time equalizers, such as Parity Maker , will confirm that you are putting your all into the game, while helping to minimize the impact of annoying price disparities.
If you have doubts about how to start generating disparities from which you can benefit, at Paraty Tech we have the most cutting-edge technology and the most qualified human personnel to advise you and optimize your commercial strategy. Do not hesitate to contact us.
If we stick to hotel distribution and direct sales, it is obvious that the most widespread definition of the concept of disparity is one that refers to the price differences that exist, for the same product, between the different channels of the hotel distribution network. a hotel and its direct sales channel, the official website.
You can believe in parity and die trying to achieve it, or you can assume that, although it can be controlled, today achieving it is almost a utopia.
This type of disparity, very negative from the hotelier's perspective, drastically reduces their competitive capacity and monopolizes a large part of their resources, in a permanent effort to reverse this unfavorable situation. Without a doubt, price disparities are the daily life of the revenue manager and also the recurring nightmare of many of these professionals.
And the fact is that, although hotels and OTAs share a board, the rules of the game that govern their movements and that they try to impose, leave the hotelier in a position of clear disadvantage that has led them to lose control of their product. Although the greater or lesser degree of distribution to which the hotel inventory is subject may condition the reality described up to this point, the truth is that ultimately everything boils down to two alternatives: one can believe in parity and die in the attempt to achieve parity. achieve it, or it can be assumed that, although it can be controlled, today achieving it is almost a utopia, and that it is advisable to opt for other battle fronts.
It may be that the key to revenue management lies precisely in non-parity and that the smartest way to confront this scenario is none other than paying in the same currency.
It may be that the key to revenue management lies precisely in non-parity and that the most intelligent way to confront this scenario is none other than paying with the same currency, that is, generating disparities beneficial for the hotel, disparities that fall directly on its official website, placing it one step above the OTAs, and giving it greater attractiveness from the point of view of customer or user perception.
How to generate beneficial disparities for your establishment
OFFER MORE IN EXCHANGE OF THE SAME
Can't you lower the price further? Don't worry, there is no need. Add special privileges to the same type of room that add value to the reservation without increasing its cost. Surely OTAs don't come into that area.
PROVIDES THE MAXIMUM OF PAYMENT FACILITIES
In this sense, we are a little in the slipstream of the OTAs, very advanced when it comes to payment methods, and all the more reason we should not let our guard down. Furthermore, this fight is probably more affordable than the price fight: Direct payment at the hotel, installment payment, Google Pay, Amazon Pay, bank transfer, booking without a card... Aim to offer more payment facilities than OTAs and you will earn many points .
STAY WITH THE MOST ECONOMIC REGIME
By a simple rule of three, if you keep the cheapest regimen, you will also appear as the cheapest option in searches and metasearch engines. You decide what to give to each channel and what to market through direct sales to attract the maximum possible traffic to your official website.
CONTROL YOUR INVENTORY
In the end, you are the one who must decide who sells what, when and where. Be smart and distribute your inventory strategically to enjoy exclusively (or almost) the most profitable accommodation units during peak demand.
OFFER THE BEST CONDITIONS
If the cancellation policies, the days in advance, the flexibility in general, are more favorable on your website than on the OTAs, you have already generated another form of disparity that is very beneficial for your establishment, and will surely influence booking trends. .
CREATE AN ENRICHING WEB EXPERIENCE
As that one said, OTAs give you sleep, sometimes they also give you food, but they do not offer a pleasant browsing experience. They are loyal, yes, but not with the heart. This may not be a typical form of disparity, but making your user feel that you care for them and that you reward their trust will captivate them. Providing them, for example, with technology that demonstrates your sincere intention to guarantee them the best conditions will go a long way to retaining them. Comparators such as Rate Check will help you understand your channel as the right one, and real-time equalizers, such as Parity Maker , will confirm that you are putting your all into the game, while helping to minimize the impact of annoying price disparities.
If you have doubts about how to start generating disparities from which you can benefit, at Paraty Tech we have the most cutting-edge technology and the most qualified human personnel to advise you and optimize your commercial strategy. Do not hesitate to contact us.
