What it means in plain language
Rate parity is the OTA's protection against being undercut. Most contracts require parity on public, unrestricted rates. Member rates, private channels, and corporate rates are typically exempt - the workaround most direct-booking strategies exploit. Break parity in public and the OTAs will downrank you, raise commission, or cancel.
How Rate Parity fits in the bigger picture
Rate Parity doesn't live alone - it sits inside the Pricing & Rate Strategy category and connects to 3 closely related concepts most working revenue managers track in the same breath. Pair this definition with the related terms below to build a working mental model - definitions in isolation are easy to memorize and easy to misuse.
Related terms you should also know
Each of these is one click away - start with whichever you don't already use daily: