EZYield.com Solves Hotel Rate Parity Challenges with Advanced Markup Engine Technology and Companion Reporting Tool

  • EZYield
  • 08.25.09
EZYield.com, an originator of automated online channel management solutions for the global hospitality industry, is experiencing an increased demand for its channel management products as the importance of achieving rate parity continues to increase among hoteliers worldwide.

When Web-based marketing exploded in popularity in the 1990’s, a significant question by hotel marketers became, “How can we effectively reach the rapidly growing number of consumer Web sites on the Internet?”
EZYield.com made that possible through the development of its proprietary distribution technology in 2002. Today, the most pressing question is, “Now that we can publish rates on a multitude of Web sites in minutes, how can we make sure that every rate the consumer sees is the rate that we want them to see?”

A 2008 study that addressed hotel online distribution and competition stated, “Overall, United States properties had consistent rates across all channels in 66 percent of the cases relative to only 16 percent of their international partners.” This inability to be consistent across all channels makes it difficult for hotels to control rate parity and effectively manage their yield.

Rate parity is defined as offering the same sell rate across all channels that are accessible to consumers. The challenge for revenue managers is that online channels charge varying commissions and fees for bookings made through each Web site or call center. In addition, revenue manager’s pricing structures must take into account any special discounts or offers, different room types and features, and seasonal rates that change monthly or daily throughout the year. Therefore, the management of sell rates and the allotment of inventory to contracted distribution channels must be maintained on a continuous basis in order to achieve rate parity. With hotels now struggling to maintain occupancy levels with deeply discounted rates in many markets, the ideals of rate parity have come into question.

“When we created EZYield.com over seven years ago, we began to directly address the rate parity question for hoteliers,” said Ed St. Onge, president of EZYield.com. “Rate parity can be a real challenge because of the matrix of variables that exist in offering rates to a specific channel. This is mainly due to the different commission rates offered by the Web sites. Our advanced markup engine and companion report features directly address the pushing of calculated consumer rates to forward distribution channels and the pulling of listed sell rates to homogenize pricing strategies.”

EZYield.com’s advanced markup engine calculates each channel’s commission or fee structure automatically so that revenue managers always know what their net rate is, versus the sell rate they’re pushing to consumer Web sites. Other channel management solutions use a single bucket approach that does not differentiate between channels. EZYield.com’s system allows hoteliers to take cost of distribution into account when making critical revenue decisions on where inventory goes.

“I use the advanced markup engine quite a lot and it does save countless amounts of time,” said Lissette Reyes, the e-commerce coordinator of a 2,200-guestroom, attractions-based Orlando resort. “The real value with the advanced markup engine is in dealing with multiple room types with multiple features. It can become quite complicated, but EZYield.com makes it incredibly simple.”

With companion reports, it can pull the yielded rates and inventory on all channels so revenue managers can identify mistaken allocations or update rates and inventory.

“I review the companion reports daily and they are a great tool to have for data collection and identifying trends,” said Stephanie Balaz, managing partner of South Beach Group Hotels, Inc. “The features their system provides are functional and efficient and that makes my yielding responsibilities more organized and cohesive as we look to achieve rate parity for our properties.”

As hotel companies move to further automate the yielding process and achieve rate parity, EZYield.com will continue to implement technological solutions that meet their growing challenges.

Since introducing one of the world’s first automated channel management solution in 2002, EZYield.com has remained an undisputed leader in online distribution technology for the global hospitality industry. Today, over 2,500 hotels in 65 countries utilize EZYield.com’s advanced channel management software to streamline the distribution of rates and inventory to over 430 forward distribution channels in multiple languages and 168 currencies. EZYield.com's ASP Web-based platform and mobile friendly solutions are designed to give control of online distribution back to the hotelier, with products dynamic and flexible enough to satisfy properties ranging from 40 to 4,000 rooms. EZYield.com maintains regional offices in Asia Pacific, Europe, Middle East and the America's, in order to provide continuous live support to their clients around the world.

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