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Having worked for a company with a similar model, the problem with not having rate parity is that companies will then use your site for lead generation but enco

Having worked for a company with a similar model, the problem with not having rate parity is that companies will then use your site for lead generation but encourage people to book directly. Also, the industry I was in had more transparent pricing than is typical in hotels so the client would often realise they had been made to pay extra for using the intermediary and leave bad reviews about the price discrepancy. So long as there is sufficient competition in the industry then I don't think it's in the consumer interest to ban rate parity.

beefield 6y ago
> companies will then use your site for lead generation but encourage people to book directly Of course. That would be the whole point. In that case the OTAs would need to start figuring out how to actually produce value to both end customers and hotels instead of just rent seeking.
- VBprogrammer 6y ago
  I for one consider that being able to compare prices and availability across a large segment of the market to be consumer friendly behaviour. Additional fees for the privilege, not so much. Hotels are of course free to decline a business relationship with the various OTAs and traditional travel agencies for that matter. So long as no one OTA has a monopoly I don't think there is a problem.
  - beefield 6y ago
    > Additional fees for the privilege, not so much. But you understand that as the end customer, you end up paying the fees anyway, even if they are not visible in the bill? If your customers were unhappy about the extra cost, maybe you were not open enough about them or maybe the customer did not think your service worth the extra fee? After all, if the end customer is the one paying the fee, hotel has no incentive to try to get the customer past the OTA. They get the same money anyway.
    - VBprogrammer 6y ago
      You could say that for any marketing activity. You don't expect a hotel to add an additional fee for the fact that you seen an advert in a glossy magazine, or for providing their own website for that matter. I'm sure you are aware that the entire travel industry, predating the advent of OTA, works on a commission basis.

beefield 6y ago

> companies will then use your site for lead generation but encourage people to book directly Of course. That would be the whole point. In that case the OTAs would need to start figuring out how to actually produce value to both end customers and hotels instead of just rent seeking.

VBprogrammer 6y ago
I for one consider that being able to compare prices and availability across a large segment of the market to be consumer friendly behaviour. Additional fees for the privilege, not so much. Hotels are of course free to decline a business relationship with the various OTAs and traditional travel agencies for that matter. So long as no one OTA has a monopoly I don't think there is a problem.
- beefield 6y ago
  > Additional fees for the privilege, not so much. But you understand that as the end customer, you end up paying the fees anyway, even if they are not visible in the bill? If your customers were unhappy about the extra cost, maybe you were not open enough about them or maybe the customer did not think your service worth the extra fee? After all, if the end customer is the one paying the fee, hotel has no incentive to try to get the customer past the OTA. They get the same money anyway.
  - VBprogrammer 6y ago
    You could say that for any marketing activity. You don't expect a hotel to add an additional fee for the fact that you seen an advert in a glossy magazine, or for providing their own website for that matter. I'm sure you are aware that the entire travel industry, predating the advent of OTA, works on a commission basis.