Pricing consistency across direct and indirect distribution channels in South West UK hotels

Abstract

Wai Mun Lim is a lecturer in hospitality management: she has worked at the University of Plymouth since 2001 following employment at two universities and a travel company. Matthew J. Hall worked with P&O Cruises and the Millennium Hotel in New Zealand, he has now returned to the UK and is running his own boutique. ABSTRACT KEYWORDS: independent hotels, distribution channels, pricing, star ratingsThis study seeks to ascertain if hotels across the South West of the UK price their room nights consistently across each of the distribution channels utilized, such as the hotel's website, 'bricks and mortar' travel agents, third party online booking systems, telephone, and emails. While studies examining pricing consistency have been done among larger hotel chains or groups, there had been no studies looking at smaller independent hotels, particularly hotels in the UK. The results will suggest that hotel pricing across channels show no comparable difference but indicates that the star rating of a hotel plays a vital role in pricing decisions and in the methods of distribution utilized.

The Future Impact of Changes in Rate Parity Agreements on Hotel Chains: The long-term implications of the removal of rate parity agreements between hotels and online travel agents using closed consumer group booking models

“…The literature broadly agrees that room rate parity practice involves the sale of the same room, to the same customer, at the same price across all distribution channels (Gazzoli, Kim and Palakurthi, 2008;Demirciftci et al, 2010). Prior to this investigation the majority of academic literature focused on whether rate parity was being achieved (O'Connor, 2003;Thompson and Failmezger, 2005;Tso and Law, 2005;Murphy, Schegg andQiu, 2006: Law, Chan andGoh, 2007;Lim and Hall, 2008;O'Connor and Murphy, 2008;Demirciftci et al, 2010;Sipic, 2010;Toh, Raven and DeKay, 2011) rather than its value or reasons for use. The majority of researchers found that rate parity was not achieved, posing the question of why the industry would persevere with a practice so difficult and expensive to achieve in reality.…”