Why do I sometimes see a difference between KOOB rates and hotel website rates?
It is common to notice differences between the rates displayed on KOOB and those found on a hotel’s official website. These variations occur due to differences in pricing models, contract types, and hotel revenue management strategies. Understanding these factors helps DMCs make accurate rate comparisons and optimize pricing for their clients.
✅ Hotels adjust their direct pricing dynamically based on demand, occupancy, and revenue strategies.
✅ Promotions and exclusive website discounts may not always apply to B2B distributors like KOOB.
✅ Exchange rates, taxes, and fees can cause price differences.
🚀 Objective: Understanding why price variations occur between KOOB and direct hotel rates and how hotels manage pricing across different distribution channels.
Key reasons for rate differences ?
A. Different rate types: Contract DMC NET vs. BAR NET vs. BAR GROSS
KOOB supports three types of live inventory rates through Channel Managers, which impact how prices appear compared to the hotel’s direct website rates.
| Rate Type | Loaded by | Commission included? | Displayed rate on KOOB | Hotel Website Rate |
|---|---|---|---|---|
| Contract DMC NET | Hotel or KOOB | ❌ No commission | Fixed NET rate | Typically higher (BAR) |
| BAR NET | Hotel | ❌ Deducted at source | Discounted NET rate | Typically higher (BAR) |
| BAR GROSS | Hotel | ✅ Yes (included) | Public price (BAR) | Should matches hotel website (*) |
(*)The hotel may offer direct booking discounts, flash sales, loyalty program benefits, or exclusive promotions that are not extended to third-party distributors like KOOB.
✅ Key Takeaways:
- Contract DMC NET rates are pre-negotiated between the DMC and the hotel and do not fluctuate based on demand.
- BAR NET rates are dynamically calculated by subtracting the agreed commission from the hotel’s Best Available Rate (BAR).
- BAR GROSS rates usually match the hotel’s direct rates but include a commission that the hotel refunds to the DMC after the booking.
📌 Hotel BAR question types asked while connecting the hotel to KOOB: "Are the prices loaded in net (commission deducted) or gross (including commission)? What is the commission amount granted to the DMC"
This defines whether the hotel sends BAR NET or BAR GROSS to KOOB and the amount of commission for commercial approval (DMC and the Hotel).
B. Dynamic Pricing and Yield Management
Hotels continuously adjust their Best Available Rate (BAR) based on:
- Demand fluctuations (higher prices in high season, lower in low season).
- Occupancy levels (fewer available rooms = higher rates).
- Competitor pricing and external market conditions.
📌 Why this matters:
Even if KOOB is connected to a hotel’s Channel Manager, the hotel controls pricing rules, meaning KOOB rates may not always match real-time BAR pricing on the hotel’s website.
✅ Exemple : If a hotel applies discounts on its direct website for direct clients, these may not be reflected in KOOB’s contracted or BAR NET rates.
C. Different rate plans and promotions
Hotels may offer exclusive promotions on their website to encourage direct bookings, such as:
- Member-only discounts.
- Limited-time offers (flash sales, early bird, last-minute).
- Loyalty program benefits.
📌 Why this matters:
- These promotions are often not extended to third-party distributors like KOOB.
- Hotels may choose not to apply the same discounts to their Channel Manager connections.
✅ Solution: If a hotel has a website-only promotion, contact the hotel to check whether it can be applied to KOOB bookings.
D. Taxation and booking conditions
Taxation
KOOB rates may or may not include local taxes, service charges, or resort fees, whereas a hotel’s website might display an all-inclusive price, or reverse.
✅ Solution:
- Always check whether KOOB rates and hotel website rates include taxes and fees before comparing.
📌 Tip: If unsure, verify the tax and fee breakdown in both KOOB and the hotel’s website before making assumptions about price differences.
Booking conditions
Review key elements like:
- Refundability (Flexible vs. Non-Refundable rates).
- Inclusions (Breakfast included vs. Room only).
📌 Why this matters:
A non-refundable rate on a hotel’s website may appear cheaper than a flexible rate on KOOB.
How hotels manage their pricing strategy ?
The hotel controls its pricing on different channels
Hotels determine their pricing structure based on:
- OTA pricing vs. Direct Booking Incentives → Hotels may offer lower rates on their website to encourage direct bookings.
- Market segmentation → Different rates for:
- Wholesale partners (DMCs)
- OTAs (Online Travel Agencies)
- Corporate clients
- Direct clients (B2C wesbite)
📌 Note: Hotels may offer better rates to direct clients B2C to reduce commissions paid to OTAs and third-party distributors.
Channel parity is not always enforced
Some hotels apply rate parity, meaning the same rates appear across all platforms. However, others allow flexibility, leading to differences between KOOB and the hotel’s website.
✅ Examples of why KOOB rates may differ from the hotel website:
- Hotels run last-minute promotions on their direct site.
- Some contract terms allow the hotel to adjust rates independently.
📌 Note: Hotels sometimes use price discrepancies as a strategic tool to encourage direct bookings.
How to ensure accurate rate comparisons ?
A. Compare the correct rate type
Ensure you are comparing:
- KOOB BAR NET vs. hotel’s BAR (minus commission).
- KOOB BAR GROSS vs. hotel’s BAR (same price, commission paid back later).
B. Check booking conditions
Review key elements like:
- Refundability (Flexible vs. Non-Refundable rates).
- Inclusions (Breakfast included vs. Room only).
C. Consider currency and tax differences
- If KOOB and the hotel’s website use different currencies, check the real-time exchange rate.
- Confirm whether both rates include or exclude taxes and service fees.
D. Contact the hotel for clarification
If you see a major price difference, reach out to the hotel’s reservations or revenue management team.
- Ask if any exclusive promotions are running on the hotel website.
- Request confirmation of whether the same offer can be applied to KOOB.
By understanding pricing strategies and rate structures, you can make smarter comparisons and optimize your DMC pricing strategy! 🚀
Takeaways
✅ Understand rate types → KOOB offers Contract DMC NET, BAR NET, and BAR GROSS rates, while hotel websites use BAR pricing.
✅ Hotels manage their own pricing → Direct website rates may be lower due to special promotions, dynamic pricing, or booking incentives.
✅ Compare similar conditions → Always check whether rates include taxes, commissions, and refund policies before comparing.
✅ Currency exchange matters → KOOB rates may fluctuate if displayed in a different currency than the hotel website.
✅ Clarify with hotels → If discrepancies arise, contact the hotel to verify whether the same rate can be extended to KOOB.
FAQ
Q: Why does a hotel website sometimes show a lower rate than KOOB?
✅ The hotel may offer direct booking discounts, flash sales, loyalty program benefits, or exclusive promotions that are not extended to third-party distributors like KOOB.
Q: If KOOB is connected to the hotel’s channel manager, why don’t the rates match?
✅ Even with channel manager connectivity, hotels control their rate strategy and may adjust prices independently. KOOB only reflects the rates the hotel has chosen to load for DMCs.
Q: How can I check if KOOB rates include or exclude commission?
✅ When a hotel connects to KOOB, they must specify:
"Are the prices loaded in net (commission deducted) or gross (including commission)?"
- NET = Commission already deducted (lower rate).
- GROSS = Commission included, refunded later (higher rate).
Q: Why do currency exchange fluctuations impact KOOB rates?
✅ If KOOB and the hotel website use different currencies, exchange rate variations can cause price differences. Always compare rates in the same currency for accuracy.
Q: What should I do if a hotel website rate is significantly lower than KOOB?
✅ Contact the hotel to check if:
- The same promotion can be applied to KOOB.
- The hotel is offering a direct booking incentive not available for DMCs.
Q: Do KOOB rates include taxes and service fees?
✅ Not always! Some KOOB rates exclude taxes and additional fees, whereas hotel website prices may display an all-inclusive final rate. Always check tax inclusions before comparing.
Q: Can I get a better rate on KOOB than the hotel’s website?
✅ If you have a strong contract with fixed NET rates, KOOB may offer better rates than the hotel’s website, especially during peak seasons when BAR rates increase.
Related Articles
- Why do I sometimes get no live inventory results in KOOB?
- What types of hotels should I connect via Live Inventory?
📌 Need help? Visit our KOOB Knowledge Base or contact KOOB Support for assistance. 🚀