Rate parity is a contractual agreement between a hotel or B&B and its distribution agents that its room rates will remain the same across all booking platforms including the property’s website. Rate parity is highly beneficial to online travel agents (OTAs) that have access to many travelers and charge commissions of 15-20% to property owners/operators. And remember, Bookings Holdings and Expedia Group own a majority of the travel booking sites. There are two main types of rate parity: 1. Wide rate parity With wide rate parity, a hotel or B&B agrees not to undercut the room prices that an OTA charges for their hotel. This agreement generally applies to all distribution channels. 2. Narrow rate parity Narrow rate parity clauses allow hotels to offer lower rates than other OTAs, but not publicly through their own websites. With this type of rate parity, hotels can offer lower direct rates through indirect or offline channels such as travel clubs, email campaigns, and phone bookings.