Rate parity agreements have been a widely debated topic in the online booking industry for some time now. With these rate parity agreements booking websites can prohibit hoteliers from offering lower rates on other websites. Since several European authorities have ruled the best price guarantees of Booking and Expedia as illegal and anti-competitive, these OTAs have softened their policies allowing more competition. Or so they say. With high commissions still on the rise, there is no stopping to the OTAs. Read our infographic to get an update on all the recent changes in the hotel market.
Using a low price strategy to win market share may be tricky – but the ones that succeeded, have levelled the playing field proving that good services can be provided against lower costs. On the left, three Dutch companies who entered the market with a disruptive price strategy and succeeded. On the right, three start-ups who in their own way are trying to compete with the old guard in their markets by offering cheaper alternatives.