South Africa's Competition Commission has phased out rate parity clauses between hotels and online travel agencies, giving hoteliers the freedom to price and package differently by channel. In a new Profitroom article, Shane van Moerkerken, Business Development Manager supporting the Africa region, says the most common question he now hears is how to price rooms, and that many hotels still lack a clear distribution framework.
Value over discounts
Van Moerkerken argues the opportunity is not about cutting rates but about adding exclusive value: late checkouts, upgrades, airport transfers, pre-ordered champagne or pillow preferences. Profitroom data shows African hotels attach extras to 6.4% of bookings versus 21.4% globally, up from 4.4% in 2023, which he sees as significant untapped revenue. Extras should support a personalised experience rather than be added for their own sake.
A three-tier pricing approach
- Public rates: stay competitive on major channels including OTAs, which remain important for visibility and new audiences.
- Direct rates: give guests a reason to book direct, prioritising added value such as complimentary upgrades over discounts.
- Loyalty, member and targeted rates: reward members and subscribers, with Profitroom offering targeted mobile and geo rates that can match or beat OTA offers.
Let technology help
Poor online visibility can cost hotels 20% to 30% of potential guests, the article says, so search, advertising, content and website optimisation matter. Hotels should also consider tools that use live demand signals such as occupancy, pace, events, competitor activity and seasonality to guide pricing.
Evidence from the region
Profitroom says direct bookings through its booking engine at African hotels rose 107% between 2023 and 2025, from 78,927 to 163,739, while direct booking value grew 102% from €31 million to €62.6 million.
Rethinking OTAs
The aim, van Moerkerken concludes, is not choosing between direct and OTAs but building a distribution strategy where each channel has a clear role.
Originally published by Profitroom: Profitroom: A Pricing Blueprint for African Hotels After Rate Parity
