Rate parity is the OTA contract clause that says "you will not sell your rooms cheaper than what we display, anywhere." It is also the clause that has been ruled anti-competitive in France, Italy, Germany, Austria, Belgium, and Sweden — and that the EU is currently moving to ban as part of the Digital Markets Act. Knowing the three flavors of parity and which apply to you is the difference between a defensible direct-channel strategy and an OTA contract breach.
Narrow parity
The mildest form. The hotel agrees not to publish a lower rate on its own direct channels (website, booking engine) than what the OTA displays. Direct rate ≥ OTA rate. Permitted in most jurisdictions, including the EU. This is what most OTA contracts now contain after the regulatory wave.
Wide parity
The aggressive form. The hotel agrees not to publish a lower rate on ANY channel — direct, other OTAs, wholesale-leaked rates, metasearch — than what THIS OTA displays. Banned in most of the EU since 2015-2017. Still appears in contracts in less-regulated markets and in updates that the OTA pushes through without explicit re-signing. Worth reading every renewal email carefully.
Mobile / closed-user-group parity
The newest flavor. The OTA argues that "mobile-only rates" and "logged-in member rates" should also be parity-protected — i.e., your member rate displayed only to your own loyalty members should not undercut the OTA. This is unsettled regulatory territory in 2026; the EU's position is that closed-user-group rates are not subject to parity, while individual OTA contracts try to extend parity to them anyway. Push back at renewal.