Independent Hotel rates aggressively targeted by secondary OTAs
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April’s World Parity Monitor from 123Compare reveals the connection between worth positioning and OTA aggressiveness.
As motels proceed to refine their income methods, 123Compare.me unveils the findings from the newest version of its World Parity Monitor (WPM) exploring how a lodge’s worth place relative to its native market common impacts OTA pricing behaviour and fee parity.
The April report has recognized that when lodge rates are priced above the market common, the Lose fee — the proportion of occasions a lodge’s direct worth is undercut by an OTA — will increase considerably, particularly for impartial properties. Non-major OTAs present probably the most aggressive pricing responses, underscoring the dangers of overpricing in aggressive environments.
Across the pattern*, 75% of motels had been undercut by not less than one OTA, and Expedia surpassed the 20% Lose fee threshold, reversing its latest pattern of moderation.
From January to April 2025, direct costs rose steadily and ended 6.3% larger than in the identical interval of 2024 — persevering with the upward trajectory already noticed final yr. This pattern displays a structural sample, the place direct rates begin low early within the yr and peak round spring, significantly influenced by seasonal occasions like Easter.
Notably, worth positioning issues greater than ever. While main OTAs like Booking and Expedia maintained steady Lose rates no matter worth section, non-major OTAs turned extra aggressive as lodge costs rose. Meanwhile, the direct channel remained extra aggressive in lower-price segments and noticed improved Meet rates at mid-range ranges.
“Being just slightly above the average can trigger aggressive responses from OTAs,” says Jordi Serra, CEO at 123Compare.me. “Hotels — especially independents — need to keep a close eye on how their positioning aligns with market trends.”
“If I’m an independent hotel and my price is above the market average, I should be concerned about OTAs becoming more aggressive and undercutting my rates. This is a very clear pattern we are seeing month after month.”
The WPM additionally confirms that impartial motels are extra weak to parity loss. When priced greater than 40% above the market common, the Lose fee reached 41.8% with non-major OTAs, in comparison with 34.0% with main OTAs.
The World Parity Monitor is a reference out there and a instrument to trace and monitor lodge pricing methods throughout distribution channels.
The World Parity Monitor is the primary worth parity middle for the hospitality trade, created by 123Compare.me. It offers insights into worth disparity traits throughout 3-, 4-, and 5-star motels on the earth’s 60 most essential vacationer locations.
Each month, it analyzes over 5 million comparisons in Google Hotels, utilizing a constant pattern of greater than 6,000 motels. This permits a dependable analysis of worth variations between motels’ direct rates and OTA costs.
The WPM consists of information segmented by occupancy ranges, size of keep, and reserving lead time. On the primary month of every quarter, the evaluation is prolonged to incorporate nation of origin, cell utilization, and household bookings. Month-to-month comparisons use constant metrics to make sure reliability.
Within the framework of the World Parity Monitor, the month-to-month World Parity Reports are targeted digests of the newest pricing behaviors and traits.
Methodology: Key Performance Indicators (KPIs)
- Beat: The lodge’s direct worth is decrease than OTA costs.
- Meet: The direct and OTA costs are the identical or inside +/- 0.5%.
- Lose: The OTA worth is decrease than the direct fee.
The submit Independent Hotel rates aggressively targeted by secondary OTAs appeared first on Travel Daily Media.