{"id":23096,"date":"2009-10-06T10:33:09","date_gmt":"2009-10-06T10:33:09","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/evolution-of-hotel-pricing"},"modified":"2025-11-27T15:08:43","modified_gmt":"2025-11-27T15:08:43","slug":"hotel-pricing-evolution","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/revenue-management\/revenue-management-book\/hotel-pricing-evolution","title":{"rendered":"Evolution of Hotel Pricing"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:1248px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\" style=\"--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1\"><div style=\"text-align: justify;\"><img decoding=\"async\" style=\"float: left; margin-right: 5px; margin-bottom: 5px;\" title=\"Hotel Pricing Evolution\" src=\"\/wp-content\/images\/stories\/history_channel_logo.jpg\" alt=\"history_channel_logo\" width=\"80\" height=\"80\" \/>Today we decided to take a look back at the <strong>history and evolution of pricing<\/strong> in hotels and <strong>distribution<\/strong>. A lot, really a lot has changed in <a class=\"waffle-rich-text-link\" href=\"https:\/\/www.xotels.com\/\">hotel revenue management consulting<\/a> over the last 10 years. It\u2019s funny how quickly we have adapted to all new developments like it has been like this for ever.<\/div>\n<div style=\"text-align: justify;\">\n<p><span style=\"font-size: 12pt;\"><span style=\"font-size: 12pt;\"><br \/>\nThe growth of internet distribution has had the deepest impact on our rate strategies. With rates being distributed publicly on such a large scale, even corporate and consortia contracts are being pushed to become more dynamic and competitive. It is a pure natural development. <\/span><\/span><\/p>\n<p><span style=\"font-size: 12pt;\">Of course this couple with the wide spread implementation of revenue management cultures and yield strategies in hotels. No longer are we working with static seasonal rates, even in many resorts. <\/span><\/p>\n<p>Here an overview of some historical highlights in the evolution of hotel pricing:<\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<ul>\n<li><span style=\"font-size: 12pt;\"><strong>1998<\/strong> &#8211; Priceline introduces Opaque rates<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>2003<\/strong> &#8211; Industry wide acceptance of the Rate Parity concept <\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>2003<\/strong> &#8211; Marriott and AMEX change fixed prices to dynamic pricing<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>200<\/strong><strong>3<\/strong> &#8211; Opaque rates grow, as Expedia scoops up Hotwire<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>2004<\/strong> &#8211; Hilton and Intercontinental stop using fixed rates with Consortia<\/span><\/li>\n<li><span style=\"font-size: 12pt;\">2004 &#8211; Wholesalers and FIT\u2019s start publishing offline rates online<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>2004<\/strong> &#8211; Introduction of Dynamic Rate Rules (stay 4 pay 3 discounts) by OTA in order to get more competitive rates, and break rate parity<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>200<\/strong><strong>5<\/strong> &#8211; Accor moves to dynamic pricing model and reduces allotments<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>2005<\/strong> &#8211; Hyatt and Starwood introduce flexible pricing models to selected corporate accounts<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>2006<\/strong> &#8211; Introduction of B.A.R (Best Available Rate)<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>2006<\/strong> &#8211; Introduction of Non-Refundable and Pre-Paid rates on hotel\u2019s own websites<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>2007<\/strong> &#8211; LRA &#8211; Last Room Availability on corporate contracts being questioned<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>2008<\/strong> &#8211; More acceptance by corporate accounts of rate derived from a Floating BAR<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>2008<\/strong> &#8211; Meta-search websites like Kayak and HotelsCombined offer price transparency across the web.<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>2008<\/strong> &#8211; OTA\u2019s launch hidden or secret hotel program to compete with Opaque rates<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>2009<\/strong> &#8211; Resort Hotels moving more and more away from seasonal into dynamic pricing<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>2009<\/strong> &#8211; OTA add value added promotion packages, at preset rates. By adding value and masking the rate, hotels feel that their price integrity stays intact<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>2009<\/strong> &#8211; Direct PMS interfaces make OTA give up guaranteed allotment for Last Room Availability<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>2009<\/strong> &#8211; Wide spread publication of Opaque and Wholesale \/ FIT rates, breaking the Rate Parity strategies of hotels.<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>2010<\/strong> &#8211; <\/span><span style=\"font-size: 12pt;\">Flash Sales introduced by OTA&#8217;s = temporary discount, even for just one hour to pick up a few extra occupancy points.<\/span><\/li>\n<li><span style=\"font-size: 12pt;\"><strong>2010<\/strong> &#8211; Google is testing to display rates in hotel listing on Google Maps<\/span><\/li>\n<\/ul>\n<\/div>\n<p><span style=\"font-size: 12pt;\">I am not sure if we got all the years exactly right, but that is beside the point. Important fact is that in a few years time decades of hotel pricing strategies became outdated.<\/span><\/p>\n<p><span style=\"font-size: 12pt;\">Don\u2019t be surprised if overnight new developments come about. The OTA and Travel Websites continue looking for <strong>creative ways to obtain more competitive offers than their competition.<\/strong> Best Rate is still the name of the game in online sales.<\/span><\/p>\n<p>With the move of Google into meta-search this month, the rate parity struggle by hotels and competitive battle between OTA will only intensify. And with <strong>the social media and networks changing consumer<\/strong> internet behavior we certainly have interesting times ahead of us. Keeping abreast of these changes is essential, and <strong>seeking guidance from experts<\/strong> in <a class=\"waffle-rich-text-link\" href=\"http:\/\/www.xotels.com\/\">hotel revenue management consulting<\/a> can provide <strong>valuable insights<\/strong> to navigate this evolving landscape effectively.<\/p>\n<\/div><div class=\"fusion-text fusion-text-2\"><p><div class=\"fusion-button-wrapper\"><a class=\"fusion-button button-flat fusion-button-default-size button-default fusion-button-default button-1 fusion-button-default-span fusion-button-default-type\" target=\"_self\" href=\"https:\/\/www.xotels.com\/revenue-management\/revenue-management-book\/opaque-pricing\/\" id=\"buttonemail\"><span class=\"fusion-button-text awb-button__text awb-button__text--default\">Previous<\/span><\/a><\/div> <div class=\"fusion-button-wrapper\"><a class=\"fusion-button button-flat fusion-button-default-size button-default fusion-button-default button-2 fusion-button-default-span 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style=\"--awb-text-color:#e3e2de;--awb-margin-top:0px;--awb-margin-bottom:0px;--awb-margin-top-small:10px;--awb-margin-right-small:0px;--awb-margin-bottom-small:10px;--awb-margin-left-small:0px;--awb-font-size:1.2em;\"><h3 class=\"fusion-title-heading title-heading-center fusion-responsive-typography-calculated\" style=\"margin:0;letter-spacing:0.01em;font-size:1em;--fontSize:19.2;--minFontSize:19.2;line-height:1.3;\"><p style=\"text-align: center;\">Uncover the hidden revenue potential <br \/>of your hotel or resort.<\/p><\/h3><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"align-self: center;margin-left: auto;margin-right: auto;margin-top:1rem;margin-bottom:1rem;width:100%;\"><\/div><div class=\"fusion-builder-row fusion-builder-row-inner fusion-row fusion-flex-align-items-flex-start fusion-flex-justify-content-flex-end fusion-flex-content-wrap\" 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target=\"_blank\" rel=\"noopener noreferrer\" href=\"\/en\"><span><\/span>LEARN MORE<\/span><\/a><\/div><\/div><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-3 fusion_builder_column_inner_1_2 1_2 fusion-flex-column fusion-no-medium-visibility fusion-no-large-visibility\" style=\"--awb-padding-right-small:0px;--awb-bg-size:cover;--awb-width-large:50%;--awb-margin-top-large:0px;--awb-spacing-right-large:20.736%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:0%;--awb-width-medium:50%;--awb-order-medium:0;--awb-spacing-right-medium:20.736%;--awb-spacing-left-medium:0%;--awb-width-small:50%;--awb-order-small:0;--awb-spacing-right-small:0%;--awb-spacing-left-small:0%;\" data-scroll-devices=\"small-visibility,medium-visibility,large-visibility\"><div class=\"fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-row\"> <a style=\"\n display: flex;\n align-items: center;\n justify-content: center;\n background-color: #1351aa;\n color: #e3e2de;; \n border-radius: 20px;\n width: 15rem;\n height: 3rem;\n font-weight: 700;\n font-size: 1em;\n border-bottom-width: 2px;\n border-top-width: 2px;\n border-right-width: 2px;\n border-left-width: 2px;\n border-color:#e3e2de;\nmargin-left:10px\ntext-decoration: none !important;\n \"\n target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.xotels.com\/en\/locations\" id=\"nativeads\"><span>CONTACT US<\/span><\/a><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\n<div class=\"fusion-separator fusion-full-width-sep\" style=\"align-self: center;margin-left: auto;margin-right: auto;margin-top:50px;width:100%;\"><div class=\"fusion-separator-border sep-double\" style=\"--awb-height:20px;--awb-amount:20px;border-color:var(--awb-color3);border-top-width:1px;border-bottom-width:1px;\"><\/div><\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<div style=\"text-align: justify;\"><img decoding=\"async\" style=\"float: left; margin-right: 5px; margin-bottom: 5px;\" title=\"Hotel Pricing Evolution\" src=\"images\/stories\/history_channel_logo.jpg\" alt=\"history_channel_logo\" width=\"80\" height=\"80\" \/>Today we decided to take a look back at the history and evolution of pricing in hotels and distribution. A lot, really a lot has changed in <a title=\"Hotel Revenue Management\" href=\"en\/hotel-revenue-management\">hotel revenue management<\/a> over the last 10 years. It\u2019s funny how quickly we have adapted to all new developments like it has been like this for ever\u2026..<\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[189],"tags":[],"class_list":["post-23096","post","type-post","status-publish","format-standard","hentry","category-revenue-management-book"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Evolution of Hotel Pricing - Revenue Management History<\/title>\n<meta name=\"description\" content=\"Xotels revenue management blog post on the evolution of hotel pricing and the history of rate strategies and distribution.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.xotels.com\/en\/revenue-management\/revenue-management-book\/hotel-pricing-evolution\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Evolution of Hotel Pricing - Revenue Management History\" \/>\n<meta property=\"og:description\" content=\"Xotels revenue management blog post on the evolution of hotel pricing and the history of rate strategies and distribution.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.xotels.com\/en\/revenue-management\/revenue-management-book\/hotel-pricing-evolution\" \/>\n<meta property=\"og:site_name\" content=\"Xotels\" \/>\n<meta property=\"article:published_time\" content=\"2009-10-06T10:33:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-11-27T15:08:43+00:00\" \/>\n<meta name=\"author\" content=\"Patrick Landman\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@xotels\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Patrick Landman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":[\"Article\",\"BlogPosting\"],\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/revenue-management\\\/revenue-management-book\\\/hotel-pricing-evolution#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/revenue-management\\\/revenue-management-book\\\/hotel-pricing-evolution\"},\"author\":{\"name\":\"Patrick Landman\",\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/#\\\/schema\\\/person\\\/f51e882bd553ae1b905fc0214cdca6f5\"},\"headline\":\"Evolution of Hotel Pricing\",\"datePublished\":\"2009-10-06T10:33:09+00:00\",\"dateModified\":\"2025-11-27T15:08:43+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/revenue-management\\\/revenue-management-book\\\/hotel-pricing-evolution\"},\"wordCount\":1209,\"publisher\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/#organization\"},\"articleSection\":[\"Revenue Management Book\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/revenue-management\\\/revenue-management-book\\\/hotel-pricing-evolution\",\"url\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/revenue-management\\\/revenue-management-book\\\/hotel-pricing-evolution\",\"name\":\"Evolution of Hotel Pricing - Revenue Management History\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/#website\"},\"datePublished\":\"2009-10-06T10:33:09+00:00\",\"dateModified\":\"2025-11-27T15:08:43+00:00\",\"description\":\"Xotels revenue management blog post on the evolution of hotel pricing and the history of rate strategies and distribution.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/revenue-management\\\/revenue-management-book\\\/hotel-pricing-evolution#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.xotels.com\\\/en\\\/revenue-management\\\/revenue-management-book\\\/hotel-pricing-evolution\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/revenue-management\\\/revenue-management-book\\\/hotel-pricing-evolution#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.xotels.com\\\/en\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Revenue &amp; 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