While technology has come a long way to help hoteliers manage today’s dynamic distribution landscape, rate parity remains a constant battle for revenue and distribution managers.
Multiple hoteliers recently reported that Agoda is “selling unauthorised static wholesale rates through the site, undercutting them on price without any regard for contracts… [and at] other times the feeling is Agoda takes a contracted rate and shaves its margin to push the price below competitor and hotel pricing.”
But hoteliers need OTAs to increase their reach, so shying away completely is not the answer. The question is not if you should work with OTAs, but how.
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