Free website & SEO check: see your score in under a minute  ·  Check my website →
Want more direct bookings? Get a fixed written quote for your hotel website Get a free quote
Hotel Websites Rate parity EU, UK, AU

Can Hotels Offer Lower Rates on Their Own Website?

By MarketingToolsProHub Editorial Team  |  Last updated:  |  5 min read

Can hotels offer lower rates on their own website?

It depends on where your hotel is and what your OTA contracts say. In the European Economic Area, the Digital Markets Act lets hotels set lower prices on their own website than on Booking.com. Elsewhere, a "narrow" parity clause can still stop you publishing a lower public rate on your website.

In brief

What is rate parity?

Rate parity (or price parity) is a clause in an agreement between a hotel and an online travel agency (OTA) that stops the hotel offering a better price elsewhere. The UK's Competition and Markets Authority described two kinds:

  • Wide parity: the hotel must offer the OTA the same or a better price than on other OTAs.
  • Narrow parity: the hotel must offer the OTA the same or a better price than on the hotel's own online direct channels, its website.

Narrow parity is the one that matters for your website. For how hotels win more direct bookings within these rules, see our hotel website design page.

Where can hotels set lower prices on their own website?

Official sources, checked 2 October 2026: European Commission (DMA factsheet, 28 September 2026), Bundeskartellamt (German Federal Court of Justice, 2021), CMA case closure summary (16 September 2015), ACCC media release (2 September 2016). General information, not legal advice.
RegionWhat the official source saysYour own website
European Economic AreaThe DMA bans Booking.com from preventing different prices or conditions on other channels, including your own websiteLower prices allowed (Booking.com)
Germany (before the DMA)The Federal Court of Justice confirmed Booking.com's narrow parity clauses were unlawful (2021)Lower prices allowed
United KingdomBooking.com and Expedia removed wide parity from 2015; the CMA said it would keep the remaining narrow clauses under reviewCheck your contract: narrow parity may apply
AustraliaFrom 1 September 2016, Expedia and Booking.com removed parity with other OTAs and with offline channelsCheck your contract: the change covered other OTAs and offline channels
US, Canada and elsewhereNo official source in this tableYour contract decides

The DMA applies to Booking.com because the European Commission designated Booking Holdings a gatekeeper, with obligations applying from 14 November 2024. Other OTAs aren't covered by the DMA in the same way, so check each contract.

What changed for hotels in Europe in 2026?

On 28 September 2026, the European Commission published changes Booking.com made to support DMA compliance. According to the factsheet, Booking.com:

  • removed parity clauses from its General Delivery Terms (July 2024);
  • stopped using parity as an eligibility test for its Genius, Preferred and Preferred Plus programmes;
  • stopped using external prices for default ranking and programme eligibility;
  • removed "competitive" and "non-competitive" labels from the Extranet.

In practice, a hotel in the EEA can offer a lower price on its own website without losing Booking.com programme eligibility because of it. Whether a lower direct price is the right strategy is a separate, commercial question.

What can you offer direct even under narrow parity?

Narrow parity usually targets the public price on your website. Depending on your contract and region, these are often still open to you:

  • Phone and walk-in rates: in Australia, the ACCC said hotels can offer lower rates through telephone bookings and walk-ins.
  • Loyalty and member rates: the ACCC also mentioned special rates for customer loyalty groups.
  • Added value instead of a lower price: breakfast, late check-out, parking or a room upgrade for direct bookings.
  • Packages: a room with dinner or an activity, priced as a package rather than a room rate.

Our guide to getting more direct hotel bookings covers what to offer direct guests, and our guide to OTA commission rates shows what each OTA booking costs you.

Why do OTAs sometimes show a lower price than your own website?

Usually not because you loaded a lower rate there. Common causes:

  • OTA-funded discounts: the OTA reduces its own margin for members or app users.
  • Programmes you joined: member, mobile or campaign discounts you agreed to.
  • Rates leaking from wholesale or tour-operator contracts onto public sites.
  • Currency, taxes or fees shown differently on each site, so totals don't match.

Check the rates and programmes in each extranet first, then your wholesale contracts. Matching every OTA price isn't always the goal either: parity makes rates easy for guests to trust, but it also means your direct channel needs another reason to win, such as added value.

What should you check in your OTA contract?

  1. Is there a price or availability parity clause, and does it cover your own website, other OTAs or offline channels?
  2. Does it mention member, loyalty or closed-group rates?
  3. Do visibility programmes (preferred status, badges, ranking boosts) depend on parity?
  4. What happens if a rate shows lower elsewhere: a warning, lower ranking, or a penalty?
  5. Which country's law governs the agreement?

This is general information, not legal advice. For a specific contract, ask a lawyer or your hotel association.

How should your website show a better direct offer?

State it next to the booking button, not on a separate page: "Book direct: free breakfast and late check-out". Make sure the booking engine applies it automatically, and that the price guests see on your site matches what they'll pay. Our hotel website checklist covers the booking path, and our guide to hotel website costs covers what it costs to build.

Check how your current site presents direct offers with our free hotel website grader.

Frequently asked questions

The Commission designated Booking Holdings as a gatekeeper; check your Expedia contract for its own terms.

Often yes, as a closed offer to a defined group, but check your contract and your privacy obligations for email marketing.

That usually comes from OTA-funded discounts or programmes. Check the rates you load and the programmes you've joined, and ask the OTA.

Not necessarily. Added value often wins the booking while keeping your rate strategy consistent.

It depends on your contract. Read the parity and visibility clauses, and get legal advice if you plan to change your pricing.

Summary

Whether you can show a lower rate on your own website depends on your region and contract. In the EEA, the DMA lets hotels set different prices from Booking.com, including on their own website; in the UK and Australia, wide parity has gone but narrow clauses may remain. Read your contract, use added value and closed offers where the public price is restricted, and present the direct offer clearly next to the booking button.

See how your website presents direct offers with our free hotel website grader.

Sources checked

Information checked on . Prices, fees and policies change, so confirm details with the source before relying on them. This article is general information, not legal or tax advice.