Pricing

Rate parity

Rate parity is the practice — often a contractual requirement — of not undercutting an OTA's price on your own channels.

Worked example

  1. An OTA lists your room at ₱3,800 and takes 18%, netting you ₱3,116.
  2. You keep your own price at ₱3,800 for parity, but include breakfast worth ₱250.
  3. The guest gets ₱250 of value, you net ₱3,550 instead of ₱3,116, and no parity clause is broken.

Why it matters

OTA contracts frequently require it, and breaking it can cost you placement. But parity on the headline rate does not stop you making a direct booking more attractive: free breakfast, a late checkout, a room upgrade.

It is why properties compete on inclusion rather than price when they want direct business.

Inclusion beats discounting for a second reason: a breakfast costs you its food cost, not its menu price. The guest values it at ₱250 and it costs you perhaps ₱90.

In MangoHost

Rates are set per room type with seasonal overrides, and optional services let you attach value to a direct booking rather than discounting the room.

Optional services

Related terms

  • OTA (online travel agency)An OTA is a third-party site that sells your rooms for a commission — Booking.com, Agoda, Airbnb, Expedia.
  • Direct bookingA direct booking comes to you without an intermediary — your own site, a phone call, Messenger, or a returning guest.
  • Seasonal pricingSeasonal pricing means setting different rates for different parts of the year — peak, shoulder and low season — rather than one rate all year.

MangoHost gives Philippine properties these numbers without a month-end spreadsheet. Book a 30-minute walkthrough and see them on your own rooms.