Room Rate Parity Analysis Across Different Hotel Distribution Channels in the U.S

In order to further enhance a relationship of trust between the hotel company and the guest, the guest must not feel that they are being cheated by paying more because they did not know where to get the best rates. At the same time that consumer savvy is growing, the complexity of purchasing choices is growing at an even faster rate. The purpose of this study was to examine actual rate parity of hotels across direct and indirect channels of distribution. The authors hope to help provide insight into the actual rate parity and to ultimately influence hotel guest perception of fairness in hotel room rate value and equity for what they are paying. Findings showed that there were no significant differences between rates from direct or indirect channels. However, significant differences were found in rates within both direct and indirect channels. Notable improvements in hotel rate parity from past studies were identified in this study. However, this study negates the claim of “lowest rates guaranteed” as propagated by several hotel chains, which they have stated in order to increase direct distribution through their own websites.