In their May newsletter recently released to suppliers, they tackle the thorny issue of rate parity.
In hard times this is a timely topic that the accommodation industry should be giving serious consideration.
Best to leave it to ezibed.com Managing Director, Gareth Pearce to comment further:
"I would like to raise this issue with accommodation suppliers because as the market has retracted due to the current economic climate, this has become an increasing concern. This issue has been bought to our attention by both our customers and our accommodation suppliers. This will probably not affect you but if it does, all we ask is that you take what we say into consideration.
So what is the issue? Firstly, from the customers side. If a booking is made online and then that person arrives at a property and views a cheaper rate advertised on a street sign outside the property then the customer feels like they have not got 'the best deal' when expecting that by booking 'online' they should have.
If customers choose not to book beforehand but wait until they arrive at a property they then risk rooms not being available. Some suppliers might point out that as a business owner they can display different rates in different places. That is decision of the business owner.
What we are asking is that there is price consistency in the marketplace. We would like to see online, billboard and supermarket docket rates the same to create price consistencies. Move street sign and supermarket docket rates up to equal online rates. This is especially important in today's environment.
More money can be made from providing price consistency. If a property receives a direct booking then the 10% not paid as a commission is retained by that property. That extra revenue pays for the cost of the supermarket dockets or it's straight into the bank as profit if it is a 'walk-in'. More importantly, the customer does not arrive into a property angry for the fact that the rates are different. This is what we have experienced.
As an example, Accor's Ibis hotels manage this very well. On an LED screen outside their hotels they advertise their 'walk-in' rate. This rate is also the rate that a customer would see if they sat in their vehicle and booked on their laptop at the same time, or walked into the reception area to book.
Price consistency is important and we ask that if suppliers are displaying street signs or supermarket dockets that they take this into consideration. In the end, more money will be made by the property and consistency will be achieved."
