Thursday, 20 December 2012

Scandinavian operators pull rooms from Expedia

Scandinavian operators pull rooms from Expedia

Telling the story of rate parity - or is it price fixing. Should hotels be forced to sell at the same price on all channels? Should they have full autonomy when it comes to pricing their rooms, or be influenced by third party sellers.

What strikes me here is that the hotels are trying to remain independent and control of their rates, however they are being forced to comply to BAR pricing structures, that provides little benefit. OTAs too are failing to recognise their strength, they are not just a hotel booking engine but a full travel product booking engine. They need to look at providing transparent, and engaging travel packages where they can earn better commission from a combination of products, rather than singularly selling products.

This will allow the industry to diversify away from rate parity...but will it really catch on?