Hotel Room Rate and Availability Parity Across Electronic Distribution Channels

This is an exploratory research paper looking at the parity of hotel room rates and hotel room availability across electronic distribution channels. The fulfillment of the best rate guarantee of hotels was also analyzed. The study surveyed 40 hotels in Singapore, covering 4 hotel segments, luxury, upscale, mid-market and budget with data collected over 5 dates. The results were analyzed across segments and dates of collection and it was found that neither rate nor room availability parity existed across all the hotels surveyed. In addition, majority of the hotels were unable to fulfill the best rate guarantee. Reasons for why the disparities occurred are discussed and include technological incapability, problems with control of distribution channels and relationships between hotel operators and online intermediaries. Solutions for dealing with these challenges are provided and discussed