“Can I sell my rooms cheaper on my own website?” is one of the first questions owners ask when they start pushing direct bookings. Many have heard that the Competition Commission of India “banned rate parity” in 2022. That’s not quite what happened. This guide sets out what the order actually said, using the CCI’s own documents, and what it means for an independent hotel today.
What is rate parity?
Rate parity is a contract clause that stops a hotel offering a lower price somewhere else than on the OTA. There are two kinds, and the difference matters.
The CCI’s order describes them like this: parity clauses are “wide” if they restrict prices on all other platforms, including the hotel’s own website, and “narrow” if they only stop the hotel setting a lower price on its own website, leaving other platforms unrestricted.[1]
| Type | What it restricts | Example |
|---|---|---|
| Wide price parity | Lower prices anywhere: other OTAs and your own website | You can’t sell cheaper on another OTA or on your site |
| Narrow price parity | Lower prices published on your own website | You can sell cheaper on another OTA, but not on your website |
| Room availability parity | Giving other channels more rooms than this OTA | You must offer this OTA at least as many rooms as anyone else |
The order also notes that narrow clauses generally don’t cover offline channels such as phone or email bookings, or loyalty programmes.[1] That’s a description of narrow clauses in general, not a rule about your contract.
What did the CCI order say?
On 19 October 2022, the CCI found that MakeMyTrip-Goibibo (MMT-Go) held a dominant position in online intermediation services for booking hotels in India during 2017 to 2020, and that it had abused that position.[2] The case began with complaints from the hotel federation FHRAI and from Treebo.
The CCI looked at MMT-Go’s wide price parity and room availability parity together with its deep discounting and exclusivity conditions, and found that, in combination, they reinforced its dominance.[2] It directed MMT-Go to:[1]
- Modify its agreements with hotels to remove the price and room availability parity obligations with respect to other OTAs.
- Remove exclusivity conditions, including the “D minus” clause.
- Give hotels access to its platform on fair, transparent and non-discriminatory terms.
- Tell all its hotel partners about these changes.
- Show clearly on its platform when a property isn’t available because its contract ended or its room quota ran out.
It fined MMT-Go ₹223.48 crore and OYO ₹168.88 crore, each at 5% of relevant turnover. OYO’s penalty was for a separate arrangement with MMT-Go under which OYO’s competitors, FabHotels and Treebo, were delisted from MMT-Go’s platforms in 2018.[2] The parity directions were addressed to MMT-Go.
Is the order final?
Not yet, as far as public filings show. MakeMyTrip appealed to the National Company Law Appellate Tribunal in November 2022. In its annual report for the year to March 2025, it said the appeal was pending, that enforcement of the penalty was stayed after it deposited 10% of the penalty, and that it had complied with the CCI’s behavioural directions while the appeal continued.[3] Check the current status before relying on any part of the order.
What does this mean for an independent hotel?
It means you can’t assume your contract lets you price lower on your own website. Three points follow from the order itself:
- The directions applied to MMT-Go. Other OTAs’ contracts are governed by their own terms.
- They covered parity with respect to other OTAs. In the CCI’s own terms, that’s wide parity. The directions didn’t address clauses that only restrict your own website.
- The order records how parity was enforced. It notes evidence of an OTA asking a hotel to remove a rate difference with a competitor or face reduced visibility.[1]
So the honest answer to “can I sell cheaper on my own website?” is: it depends on your current contracts. Read them.
What can you offer instead of a lower price?
Offer more value at the same price. Perks give guests a reason to book direct without touching your room rate:
- Breakfast included
- A guaranteed late checkout
- An upgrade when available on arrival
- A welcome drink, or a dinner credit
- Easier date changes or a more generous cancellation window
- An airport pickup at a fixed price
Show the perk next to the price on your website, and mention it when you reply on WhatsApp. For more ideas, see 12 ways to increase direct bookings. A small caution: some contracts define parity broadly enough to cover conditions or inclusions, so check the definition before you advertise a perk as direct-only.
What should you check before changing your direct rates?
Work through this list first:
- Find the current agreement with each OTA you list on, including any online terms you accepted when signing up.
- Look for clauses about price, room availability, “best rate” or “parity”, and note whether they mention your own website, other OTAs, or both.
- Check how the contract defines price: room rate only, or rate plus conditions and inclusions.
- Check for clauses about contacting guests who booked through the OTA.
- If anything is unclear, ask the OTA in writing, and keep the reply.
- Prefer perks over price differences unless you’re sure your contract allows a lower direct rate.
- Make one change at a time, and track your direct share and OTA visibility for a month.
Whatever you decide, the bigger lever is making direct booking easy and worth it. Our guide to reducing OTA commission covers the full plan, our Direct Booking Optimization service works on the checkout side, and the OTA commission calculator shows what each extra direct booking is worth.
For book-direct perks that avoid undercutting your OTA rates, see how Udaipur hotels can get more direct bookings.