Rogue rates or violations of parity are hard to track, especially in wholesaler relationships. This is because many wholesalers are selling contracted rates to uncontracted OTAs, resulting in revenue loss.
Without a tool like Parity Insight in place, it can be difficult to control this, with many revenue managers resorting to making their own test bookings as a way to keep their wholesalers in check, where automated root-cause detection technology would be the smarter option. However, the offending wholesaler is often confronted, only to do it again weeks later.
So it’s clear that hoteliers must rethink their relationships with wholesalers. The trick is doing this effectively, without turning off the tap completely.
Here are three ways to start tackling disparity in your wholesaler relationships.
1) Rethink dynamic pricing
Many hotels are looking to dynamic rates to solve the problem. However, dynamic pricing can actually make the parity problem worse, because it has led to a false sense of security.
Yes, hotels have more operational control through the switch in the CRS to hold wholesale accountable with dynamic rates. Yes, it’s still a fixed discount off BAR. Yes, BAR is updated regularly rather than once, so they can’t undercut by large amounts.
But these are not cure-alls, because:
2) Change your internal processes
To ensure effective wholesaler relationships, you can adjust your internal processes in the following ways:
3) Keep wholesalers honest through monitoring
To stay in control of your distribution strategy, you need transparency, which you can only achieve through effective monitoring.
Make sure that you:
Remember that you are taking these actions to uphold industry standards - your distribution is only as good as its weakest link (and with opaque wholesalers, you may never even know where that weakest link lies).
Want to see how you can manage and track your parity performance? Request a demo of Rate Insight and its parity tab, and we’ll show you how. For larger chains with many properties, Parity Insight will also be of interest.
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