Some hostel booking sites require you to give them the lowest price that is advertised anywhere. Some even require hostels to give them the same rate that is on their websites.
For example, I've heard that hostels (and hotels) are forced by booking.com to give them the lowest rate that must be as low as the rate on all the other booking websites, and even as low as on the hostel's own website. When multiple booking sites do this, it seems that hostels lose control of their own pricing.
I'm wondering if we could compile a list of all the booking sites that require this. Do Hostelworld and Hostelbookers require this in their contracts?
Also, what do you think about the situation?
12 years
This is not a problem if what you sell on the agent site is not the same product you sell on your own website. The trick is to be able to manage that without hassle. So yes naturally because I am answering this thread it means we have assist users of our software with this. www.hosteloffice.com
12 years
I checked through my contracts to see which sites require rate parity. Here is what I found.
Booking.com does require rate parity:
1. DEFINITIONS
In addition to terms defined elsewhere in this Agreement, the following definitions apply throughout this Agreement, unless the contrary intention appears:
"Best Price Guarantee" means the guarantee issued by Booking.com (under this or any similar name) stating that Booking.com offers the best rate for a room and that no lower rate can be found online for the equivalent room with the same check-in and check-out dates and the same booking conditions.2.2.2 The Hotel shall give Booking.com rate and availability parity ("Parity"). Rate Parity means the same or better rates for the same hotel, same room type, same dates, same bed type, same number of guests, same or better restrictions and policies such as breakfast, reservation changes and cancellation policy as are available on the Hotel‟s websites or call-centres (including the customer reservation system), or directly at the Hotel, with any competitor of Booking.com (which includes any online or offline reservation or booking agency or intermediary) and/or with any other (online or offline) third party that is a business partner of or in any other way related with or connected to the Hotel. Availability Parity means that the Hotel shall provide Booking.com with such availability (i.e. rooms available for booking at the Website) that are at least as favourable as those provided to any competitor of Booking.com (which includes any online or offline reservation or booking agency or intermediary) and/or with any other (online or offline) third party that is a business partner of or in any other way related with or connected to the Hotel.
Hostelworld does require rate parity:
The Licensee [hostel]Agrees:
To offer Product on Hostelworld.com websites at a price not exceeding the lowest price at which the Licensee offers such Product elsewhere (including on the Licensee's own websites).
Hostelbookers does require rate parity:
Owner’s Obligations
5) The Owner hereby confirms and agrees that:-
(x) except with prior written agreement with the Company [HostelBookers.com Ltd.], the prices on the Website [hostelbookers.com] in relation to the Arrangements are no higher than on any other website competing with the Website [hostelbookers.com].
Gomio and Hostelsclub do not have a rate parity requirement in their contracts.
If I am wrong on any account, the booking sites are welcome to post a correction here.
Any other booking sites that would like to post their rate parity requirements (or lack thereof) are also encouraged to do so.
10 years
Just for anyone looking at this the Rate Parity clause is removed from the Hostelworld contract.
There have been talks that it is no longer legal in Europe but will have to get some evidence of this in regards Booking.com
10 years
In Europe by Law starting from The 1th of Febbruary it's illegal The parity rate! Booking Hw and Hb can not ask for a parity rate or obliged us to put the same price in there web sites! We here at our Hostel we' e already changed our prices in there web sites asking more money for The same Bed !! And we closed key period where we can sell with no needs if them our Beds!! We have lowest price on Hostelsclub.com and we are waiting for hosteltimes to send put our Hostel online in there web site to give them all our beds with lowest price! I think if all Hostels Owners do The same they will return back to 10%!! We should act all toghether!
Riccardo
The hostel Manager
10 years
I am less worried about rate parity and more worried about availability parity, ie: the rule that says if you offer a certain number of beds on another site or your own site, you have to offer to them as well. However I recently signed up for Expedia and got this clause waived by basically saying if they required this then I wouldn't sign up. I close out all these sites during the busy season anyway so I can't be forced to load beds onto all of them.
10 years
In regards availability parity cant you do the following
Say if you have 10 dorms. Give 2 dorms to each of the 5 OTAS. Once the 2 dorms are full with an OTA re-open them again with that OTA.
By right you are still giving all OTA's the same availability.
10 years
From Riccardo Causin:
In Europe by Law starting from The 1th of Febbruary it's illegal The parity rate!
I’m having trouble finding documentation for this.
The UK Office of Fair Trade closed the case between InterContinental Hotels Group (IHG), Expedia, and Booking. They decided that the OTAs can offer discounts on hotel rooms up to the amount of their own commission, as long as the discounts are only offered to closed groups. (A “closed group” means people who have signed up to receive discount offers AND who have previously made at least one non-refundable full-priced booking.) Hotels can offer discounts in the same way to closed groups. This decision does not address the issue of Rate Parity though. If there are established rate parity clauses in the agreements between hotels and OTAs they will still apply for rates offered to the general public. *This entire ruling ONLY applies to UK hotels.
Germany did way better. This article says Germany won’t allow the rate parity clause at all anymore. They have ordered HRS to remove it from their contracts by 01 Mar 14, and now they are going after Expedia and Booking too.
The US Department of Justice Antitrust Division is also looking into the anti-competitive practice of most-favored nation (price parity) clauses.
I have read rumors and insinuations that the European competition authorities also forbid rate parity provisions across all of Europe, but I have not found a report or legal document yet where they clearly make this statement. It would be great if anyone could post a link to this!
10 years
HostelTraveler.com does not require rate parity, and supports the Sydney Declaration. HostelTraveler is the only top 5 hostel booking site based in the United States.
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