Table of Contents
Why would hotels use opaque rates rather than transparent rates?
Opaque pricing benefits hotels because they can sell otherwise empty rooms without damaging brand integrity. In addition, once reserved, the hotel has guaranteed revenue for that room as the reservation can’t be modified.
What does Opaque mean in hotels?
An opaque inventory is the market of selling unsold travel inventory at a discounted price. The inventory is called “opaque” because the specific suppliers (i.e. hotel, airline, etc.) remain hidden until after the purchase has been completed.
What does opaque channel mean?
An opaque channel is a website on which either the price or the product is hidden to the customer. Examples of opaque sites are Hotwire and Travelocity.
What does opaque rate mean?
Opaque pricing is a technique used to hide the lower prices at which some merchandise is sold. It is targeted at those customers who are highly price sensitive, and so will only buy goods or services at lower price points. Thus, pricing deals are hidden from those customers who are not price sensitive.
What is opaque distribution?
In opaque distribution channels, posted price (PP) is a popular selling mechanism that has now been adopted by Hotwire. In the opaque distribution channel, the intermediary hides some of the service attributes from the customer, only revealing them after the customer has paid for their booking.
What is opaque package?
Opaque packaging films are new films that eliminate the need for traditional corrugated boxes and fillers. With this innovation, the machinery wraps items as they are, cutting out bulky packages. And because the film is opaque, what’s inside remains private.
What are parity issues?
Rate parity issues, also known as rate disparity, describes the situation when you find varying rates across different sales channels. For example, you might find your rate on booking.com on a specified date for $100 per night, but on Expedia for the same room and dates, the price is only $90 per night.
What are opaque sites in the hospitality industry?
What is the meaning / definition of Opaque Sites, in the hospitality industry? Opaque Sites are booking channels and OTA websites where the supplier (in this case the hotel) remains hidden until after the purchase is complete. The customer sees only the product category (destination, star rating of the hotel) and the price but not the brand.
What is an opapaque site?
Opaque Sites are booking channels and OTA websites where the supplier (in this case the hotel) remains hidden until after the purchase is complete.
What is an opaque site?
The sites are called ‘opaque’ because the supplier remains hidden during the booking process. This segment is popular in the travel industry. It is used to sell unsold hotel rooms, airline seats etc. The pricing strategy helps hotels to sell empty rooms without damaging their brand integrity and price positioning.
What is an opaque discount offer?
It is basically a non-transparent discount offer. The sites are called ‘opaque’ because the supplier remains hidden during the booking process. This segment is popular in the travel industry. It is used to sell unsold hotel rooms, airline seats etc.