Best rate guarantee: when the OTA price is not undercutting

A best rate guarantee holds only when dates, occupancy, room, meal plan, cancellation, currency and taxes match. An OTA price of 190 EUR against a website price of 200 EUR is not undercutting when the OTA price excludes a 10 EUR city tax, because the comparable totals are 200 and 200.

The European Hotel Distribution Study 2026 reports that 51% of hotels see OTA undercutting at least occasionally, and 44% report multi-sourcing. Those are shares of reports in the study, reference year 2025. They are not a finding for one hotel until the check is done. For hotels in Croatia and elsewhere in the EU, a city tax or a tourist tax is a common reason the first screen looks cheaper.

When a lower rate is not undercutting

Before anyone says the OTA is cheaper than the hotel website, both sides need the same dates, the same occupancy, the same room, the same meal plan, the same cancellation rule, the same currency and the same taxes.

In the example the OTA shows 190 EUR. The hotel website shows 200 EUR. The OTA price excludes a city tax of 10 EUR.

The comparable total on the OTA side is 190 + 10 = 200 EUR. The website is 200 EUR. The difference is 200 - 200 = 0 EUR.

That is not undercutting. It is the same total, shown once without the tax.

If the tax, the meal plan or the cancellation rule do not match, the check stops and the conclusion is not published. A best rate guarantee can be stated only for the conditions that matched.

Sources

• European Hotel Distribution Study 2026, HOTREC, PDF. 51% reporting occasional undercutting and 44% reporting multi-sourcing, reference year 2025.

Next step

The same conditions for a best direct rate are set out in the article on rate parity. The working frame is the hotel marketing guide, and the channel review is the hotel audit.