Direct bookings

Rate parity hotels: a rate parity check on one stay

Rate parity hotels compare the same room and the same rules. A website price of 180 EUR and an OTA price of 200 EUR differ by 20 EUR, which is 10% of the OTA price.

Published: Updated: 3 min read

Short answer

Rate parity hotels should compare the same room, dates, occupancy and cancellation rule before they call a gap rate parity. A website price of 180 EUR and an OTA price of 200 EUR differ by 20 EUR, which is 10% of the OTA price, and the comparison is invalid if tax or the meal plan differs.

  • The check needs the same room, dates, occupancy, meal plan, cancellation and taxes.
  • The 13 November 2024 gatekeeper duty does not end every parity clause.
  • The Court did not itself ban all parity.
A revenue manager compares the same room and terms across two sales channels.
A price comparison is valid only for the same product and booking conditions.

AI illustration

Rate parity hotels should compare the same room, dates, occupancy and cancellation rule before they call a gap rate parity. A website price of 180 EUR and an OTA price of 200 EUR differ by 20 EUR, which is 10% of the OTA price, and the comparison is invalid if tax or the meal plan differs.

This is general information for readers following EU hotel distribution. It is not legal advice.

What the DMA and the Court say, inside that limit

On 13 May 2024 the European Commission designated Booking a gatekeeper. Article 5(3) of Regulation (EU) 2022/1925 stops a gatekeeper from preventing a business user from offering different prices on its own channel. Article 3(10) requires compliance within 6 months of designation. Six months from 13 May 2024 is 13 November 2024.

That duty is about the price on the hotel's own channel. It does not mean every parity clause in the world has ended.

In C-264/23, Booking.com v 25hours, 19 September 2024, the Court of Justice said wide and narrow parity clauses are not ancillary restraints and stay inside Article 101(1) TFEU. The Court did not itself ban all parity.

Same room, two rates

Same room, same dates, same occupancy, same cancellation rule. The hotel website shows 180 EUR. The OTA shows 200 EUR.

The difference is 200 - 180 = 20 EUR. The share of that gap in the OTA price is 20 / 200 = 0.10, which is 10%.

If taxes or the meal plan differ, the comparison is invalid. The 20 EUR is then not rate parity. It is two different products.

A hotel can state a best direct rate only for the matching conditions: the same room, the same dates, the same occupancy, the same meal plan and the same cancellation rule, in the same currency and with the same taxes. If one of those conditions differs, do not place that sentence next to the price.

A cheaper OTA price that leaves out a city tax is a separate check, covered in the article is Booking.com cheaper than the hotel website.

What Google Hotels shows

A hotel may be cheaper on its website. In practice it is more often the other way round. In October 2026 we captured Google Hotels for 84 Croatian 4 and 5 star hotels, for 11 to 12 November, 2 adults.

IndicatorHotels
Rates for the date48
No own rate, intermediaries only26 of 48
At least one seller cheaper than the website19 of 21
Same, excluding member rates16 of 21
Booking.com cheaper than the website5 of 17
Website cheapest2 of 21

The median gap is 16%. The comparison does not include cancellation terms or meal plans, so it is a signal to check, not a verdict. The method is in the direct booking study.

Sources

Next step

Continue the condition check in the article on a cheaper Booking price than the hotel website. The working frame is the hotel marketing guide, and the channel review is the hotel audit.

Related: case study Meneghetti Wine Hotel & Winery. Campaigns, the booking engine and direct booking results, June 2026 vs June 2025, source GA4.

Frequently asked questions

Did rate parity end for every contract?

This page does not say that. From 13 November 2024 a gatekeeper must not stop a business user from offering different prices on its own channel. That does not mean every parity clause, in every contract, has ended.

What did the Court say on 19 September 2024?

In C-264/23, Booking.com v 25hours, the Court said wide and narrow parity clauses are not ancillary restraints and stay inside Article 101(1) TFEU. The Court did not itself ban all parity.

When is 180 EUR against 200 EUR an invalid comparison?

It is invalid as soon as the tax or the meal plan differs. It is also invalid if the dates, occupancy, room or cancellation rule differ.

How can a hotel state a best direct rate?

Only for matching conditions: the same room, dates, occupancy, meal plan, cancellation rule, currency and taxes. If any condition differs, do not publish that sentence with the price.

Nikton Hospitality. A digital marketing agency for hotels.

About Nikton Hospitality and how we work

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