Rate parity is an evergreen topic. I wrote an article on rate parity for hotels in 2023, and all the way back in 2015. It’s an issue that seems to stir up a lot of concern at the asset management and property levels. Even as I write this, there are hotel industry professionals Googling rates and taking screenshots in the Google Hotel ads section to bring to their next revenue management meeting. Seasoned revenue managers are mostly ignoring these emails loaded with screenshots, as we have already addressed rate parity to the highest degree possible. Plus it’s hard to explain to our bosses that their belief that “we control our rates and distribution” is not quite true.
We want to think that nobody online ever lies, cheats or misrepresents just to get a click. We want to have complete control over our own online presence. So I empathize with those of you who feel angry or frustrated. But the truth is that, at some point, all of us have to go through the five stages of dealing with hotel rate parity acceptance.
As a commercial services provider, I get emails from asset managers, owners and hotel teams who are all in different stages of their rate parity journeys. I feel their pain, but they have to go through these steps in order to come out on the other side. Think of me as a spiritual sherpa trying to help you seek parity enlightenment.
Stage 1: Denial ⇒ “Rate Parity Is the Only Way Forward!”
This is where a lot of newbies find themselves. They cannot believe that the OTAs, and resellers that pull inventory from OTAs, are displaying a rate lower than the hotel’s. Some of them become obsessed with the concept that rates need to be in 100% parity; if not, then someone is definitely asleep at the wheel.
They start to spend time hunched over their laptop, frantically taking screenshots of Google Hotel Finder rates as if they are documenting a UFO sighting or locating the rate parity Bigfoot. They are living in an ideal world where loading identical rates across all channels should mean that nobody can possibly undercut them unless someone on their team has made a mistake.
Meanwhile, the hotel distribution world is busy evolving around them. OTAs have merged and multiplied; more channels are pulling inventory from your hotel than you think. You can choose to stay in denial and continue to harass your revenue teams… but they see you as a modern age Don Quixote tilting at windmills for rate parity honor.
Stage 2: Anger ⇒ “Those Evil OTA Empires Must Be Stopped!”I
Now comes the war phase. People at this stage have their Che Guevarra hats on and are no longer mild-mannered hospitality professionals. Instead, they are now “Direct Revenue Revolutionaries.”
This is also known as the It’s Always Sunny in Philadelphia Pepe Silvia phase. They have red strings connecting screenshots from Google on the wall like they’re hunting international criminals while unraveling OTA pricing conspiracy theories. I have said this before: it’s easy to be a revolutionary with other people’s money. This is why I like to work directly with owners whenever possible, as they have the proverbial skin in the game.
People stuck in this stage are convinced that their 80-room independent property can somehow out-market global platforms that handle millions of bookings daily. It’s like David vs. Goliath, except David forgot to bring a sling and Goliath has billions in marketing budget and distribution technology.

Some of us are angry enough to use the nuclear option. “Let’s pull out from Priceline or [insert any other OTA name here].” The reality is that someone like Priceline can easily pull in inventory from Booking.com like nothing ever happened. Meanwhile, you take an empty victory lap for your “brave” actions.
When you are getting ready to teach your distribution partners a lesson, remember that their actual job is to sell more of your hotel rooms. If you still choose war, I have nothing but thoughts, prayers and a classic song by Edwin Starr for you to listen to on repeat.
Stage 3: Bargaining ⇒ “If I Try Harder, I Can Get It.”
After the anger stage, a certain desperation sets in. You tell yourself if you do everything right, monitor channels, match promos, and offer a gimmicky direct discount, perhaps you can finally achieve the parity unicorn.
You begin frantically running your private promos, mobile discounts, and adding value propositions with the energy of a caffeinated squirrel. This is when you also discover that your current technology can’t actually support half the things you want to do. So you start shopping for new vendors, convinced that the perfect new booking engine will be your salvation. It’s like thinking that buying a better pan will automatically make you a master chef — technically helpful, but missing the main point entirely.
Unfortunately, effort is not enough to beat the odds. Maybe you can count cards in blackjack, but you cannot negotiate with a slot machine.
Stage 4: Depression ⇒ “The (OTA) World Is a Vampire.”
Next we officially enter what I like to think of as the goth stage of rate parity. Reality hits like a brick to the face. This is when you realize that independent hotels without OTA exposure are about as visible online as a black labrador in a coal mine.
The anger and bargaining stage decisions have led you to scale back on OTA participation. Now you are staring at your dreaded STR reports, where your competition is doing circles around your hotel like they are Formula 1 drivers. Meanwhile, you are stuck in a pit stop of your own making. The revenue decline isn’t sudden — it’s more like revenue diabetes at this point, with market share slowly draining.
There is a level of sadness in realizing the mathematical truth: there really is no free lunch. The rate parity pain you tried to avoid by abandoning OTAs has been replaced by the much sharper pain of empty rooms and tumbling revenues. I have to say this is the saddest stage. The right amount of coffee and courage can help propel you out of this stage and into the next one.
If you know someone who is stuck here, they need a good hug. Just please ask before giving it to them.
Stage 5: Acceptance ⇒ “Make Hospitality, Not War.”
This is the stage where my closest and wisest hotel industry folks live. But to get here, you first have to experience the stages above. It is painful, but the enlightenment in the end is worth it. This is where you finally accept the following simple truths.
- Your guests are not stupid. Stop panicking. Yes, they saw that Mr. & Mrs. Smith’s hotel was showing 40% off with $100 F&B credit, and then they saw “Super.com” showing $100 lower rates, and then they saw another random reseller on Google Hotel Finder undercutting your rates.… But they know that most of these rates are not real once they go a few clicks deep into making a booking. Most travelers know that nothing beats booking direct when it comes to looking for help, changing reservations, dealing with last minute upheavals, getting upgrades, requesting airport pickups, etc, etc. They would rather speak to your hotel team instead of a call center on any given Sunday.
- Freedom of choice is real. Hotel guests aren’t mindless, price-driven sheep. They want value and they’re perfectly capable of choosing where to book based on their own preferences and needs. Yelling “book direct” at them does not really help. People who like to book direct will always do it. Expedia, Amex and Booking loyalists will do what they need to do to get that (points) bag. Keep calm and carry on.
- Choose common sense over angst. There are some things your hotel revenue manager can do for you; other things are completely outside of their control. OTAs and their AI can create ghost room categories, undercut commissions, and update ads at a lightening pace. That is what they are designed to do. You and your revenue manager can use common sense to match promos wherever possible. Don’t worry about the impossible. The conversation needs to refocus onto how to give your guests the good ol’ razzle dazzle when they do book direct with you and keep them coming back!
- It’s the hospitality business, not a distribution war game. Somewhere along the way, hospitality has taken a back seat. Time to change that! Revenue strategy isn’t a zero-sum death match with your distribution partners. It’s more like a complicated dance where everyone needs to know their steps. Your revenue manager is conducting an orchestra. Yes, some individual member of the team will miss a note sometimes, but the show must go on. A good revenue team will keep you moving forward despite any missteps.
I really hope you get to this stage soon and I will C U When U Get There (RIP Coolio).
Conclusion
The hotel rate parity acceptance process is a natural progression. The sooner we reach the acceptance stage, the sooner we can stop playing games and start making money. The goal is to return focus to the hospitality side of things so that people will want to come stay at our properties.
“Life is pain. Anyone who says differently is selling something.” (Dread Pirate Roberts, The Princess Diaries). In our case, they’re probably selling a website, booking engine, or revenue management software that promises to solve all your distribution and revenue problems while you sleep. It is important to have the right technology, but that will never replace the value of having talented (and accepting) hotel management and revenue teams that support each other in reaching the common goal of providing excellent hospitality at optimal rates.
Now, if you’ll excuse me, I need to go see whether Booking.com, Priceline and Expedia are running any new promos undercutting the hotels I am currently working with…and then go for a long walk.