VRMA
    International 2022Join Now

    Wild West of Parity

    Track: Data and Revenue Management

    Session Number: 3126
    Date: Wed, Oct 26th, 2022
    Time: 10:15 AM - 11:15 AM

    Description:

    STRs reign as outlaws of the rate game in the OTA world, where pricing rules aren’t (arguably) enforced. However, there are new sheriffs coming to OTA marketplaces to mandate pricing between some channels stays consistent.

    On one side, the point that all vacation rental properties are unique and can only be sold at a 1:1 ratio per stay date holds true and makes the practice parity impossible. On the other side, STR inventory can sell just as hotel rooms do with various degree of room types, unit types and complex placement that creates ability to enforce parity In this session, we will take a look at pricing across different OTAs, direct sites and search engines and compare and contrast what (dis)parity is in play and how it impacts the traveler decision model, conversion & performance.
    Session Type: Panel Breakout Session (45 minutes - 60 minutes)

    2 Learning Outcomes:
    • Real property data from different lodging operators, OTAs, RMS and CMSs will be compared for parity practices; including models such as all-inclusive pricing, dynamic fees, auto-markup, and commission calculations [Grrr, including commission and markup on taxes?!] 
    • Attendees will be able to calculate performance and conversion metrics for search behaviors and enact pricing that makes price-shopping drop and bookings take less time and less marketing spend to convert. 
    • Attendees will be able to apply rate, fee, promotion strategies that make use of market, inventory, and channel-algorithm conditions that either raise/lower or meet pricing between channels or direct sites. 
    • Attendees will be given a worksheet to compare pricing for new commission models of different OTAs, as well as cost a of direct booking, so profitability is clear and markup, promotions, or fee structure can be used to meet revenue goals, as opposed to mucking up the value of a rental unit. 
    Session Type: Panel Breakout Session (45 minutes - 60 minutes)

    2 Learning Outcomes:
    • Real property data from different lodging operators, OTAs, RMS and CMSs will be compared for parity practices; including models such as all-inclusive pricing, dynamic fees, auto-markup, and commission calculations [Grrr, including commission and markup on taxes?!] 
    • Attendees will be able to calculate performance and conversion metrics for search behaviors and enact pricing that makes price-shopping drop and bookings take less time and less marketing spend to convert. 
    • Attendees will be able to apply rate, fee, promotion strategies that make use of market, inventory, and channel-algorithm conditions that either raise/lower or meet pricing between channels or direct sites. 
    • Attendees will be given a worksheet to compare pricing for new commission models of different OTAs, as well as cost a of direct booking, so profitability is clear and markup, promotions, or fee structure can be used to meet revenue goals, as opposed to mucking up the value of a rental unit.