Room rate parity: A 2010 study of U.S. booking channels

Hotel guests are facing a variety of different hotel rates when booking online. The transparency of the Internet is driving hotel prices towards rate parity. This study investigates room rate parity, room and hotel availability, price consistency, and rate guarantee. The study examines 240 property-date combinations, focusing on ten metropolitan areas, using a sample of 120 hotels for two booking dates, and analyzing three hotels per four hotel segments. The results suggest that Orbitz, an indirect distribution channel, is the best choice when booking rooms in budget and midscale market segments. Furthermore, Expedia offers the best room prices for luxury properties. Room availability is still an issue for third-party distribution channels, while a phone call is still the best channel to ensure room availability