How can hotels protect their rates when OTAs Undercut Hotel Direct Rates in 75% of the Searches?

Travel Daily Media

TDM AWARDS - NOMINATE NOW!

How can hotels protect their rates when OTAs Undercut Hotel Direct Rates in 75% of the Searches?

Biannual World Parity Monitor reveals the scale of price pressure on hotel direct channels — and where hotels still hold the advantage

Representative Image
Chronicling the first six months of 2025 — the H1 World Parity Monitor looked at parity on a per-search basis — discovering OTAs undercut the hotel’s own website in 33% of comparisons.

In 75% of hotel rate searches, at least one OTA displays a lower price than the hotel’s own website — a stark finding from the H1 World Parity Monitor 2025 by 123Compare.me.

OTA’s show a lower rate than the hotel website?

The hotel direct channel beat third parties in 45% of cases, while parity was maintained in just 22% of occasions. But when all available offers for the same room are taken into account — an average of more than 20 per search — the picture shifts dramatically: in three out of four searches, at least one OTA shows a lower rate than the official site.

Mapping rate integrity across leading global destinations and shedding light on the behaviours putting the direct channel under pressure — the biannual World Parity Monitor interestingly concluded that the share of searches where OTAs publish lower rates has remained stable compared to 2024. In both January and April, undercutting occurred in 35% of cases. By June, this figure dropped to 28% — the lowest value so far this year.

Mobile booking a vulnerable space for hotels?

Mobiles amplify the rate parity issue — OTAs undercut the official site in 38% of searches, versus 31% on desktop. Faster decision-making, exclusive discounts, and optimised user experiences make mobile a more vulnerable space for hotels.

According to Roberto Gobo, Director of Digital Strategy and Technology at Valamar, these disparities often stem from operational blind spots: “Disparity mostly happens when the hotel doesn’t control the payment flow. When the OTA handles the transaction, the hotel loses visibility on the final rate.” Gobo notes that many OTAs — particularly resellers — exploit loosely managed distribution networks to apply unauthorised discounts.

When does the hotel rate integrity get challenged?

Beyond these operational challenges, the broader concern lies in how these disparities affect the hotel's ability to compete — often without them realising it. That’s where the World Parity Monitor becomes an essential tool, as Jordi Serra, CEO of 123Compare.me, explains: “This report gives hoteliers a clearer understanding of how — and when — their rate integrity is being compromised. It's not just about knowing that disparities exist, but about identifying the patterns: which channels, what booking windows, and which guest segments are most affected. With this insight, hotels can take back control, defend their direct channel, and make smarter distribution choices.”

Hotel websites score on advance bookings, longer stays, and family trips

Despite the overall pressure, the direct channel proves stronger in certain segments — especially bookings made well in advance, longer stays, and family trips. It also gains competitiveness as the booking window widens, reaching peak performance between 6 and 9 months in advance.

The way forward

The mid-year WPM underscores a clear message: in a fragmented landscape, active parity management is non-negotiable for hotel profitability. Contributing to observations and analysis on rate behaviour include Sonia Molina, Business Unit Director at HotelsDot, Claudia Rodríguez, Business Unit Director at Sekuenz and Joe Pettigrew, Chief Commercial Officer at L+R Hotels. With 123Compare sharing its key recommendations including:

  • Automated and ongoing price monitoring across all distribution channels.
  • Careful review of commercial agreements, prioritising intermediaries that support a sustainable direct strategy.
  • A stronger direct value proposition, including exclusive benefits, greater flexibility, and added services for official website bookings.

 

 

 

Join The Community

Join The Community

TDM

x Studio

Connect with your clients by working with our in-house brand studio, using our expertise and media reach to help you create and craft your message in video and podcast, native content and whitepapers, webinars and event formats.

How can hotels protect their rates when OTAs Undercut Hotel Direct Rates in 75% of the Searches?

Biannual World Parity Monitor reveals the scale of price pressure on hotel direct channels — and where hotels still hold the advantage

Representative Image
Chronicling the first six months of 2025 — the H1 World Parity Monitor looked at parity on a per-search basis — discovering OTAs undercut the hotel’s own website in 33% of comparisons.

In 75% of hotel rate searches, at least one OTA displays a lower price than the hotel’s own website — a stark finding from the H1 World Parity Monitor 2025 by 123Compare.me.

OTA’s show a lower rate than the hotel website?

The hotel direct channel beat third parties in 45% of cases, while parity was maintained in just 22% of occasions. But when all available offers for the same room are taken into account — an average of more than 20 per search — the picture shifts dramatically: in three out of four searches, at least one OTA shows a lower rate than the official site.

Mapping rate integrity across leading global destinations and shedding light on the behaviours putting the direct channel under pressure — the biannual World Parity Monitor interestingly concluded that the share of searches where OTAs publish lower rates has remained stable compared to 2024. In both January and April, undercutting occurred in 35% of cases. By June, this figure dropped to 28% — the lowest value so far this year.

Mobile booking a vulnerable space for hotels?

Mobiles amplify the rate parity issue — OTAs undercut the official site in 38% of searches, versus 31% on desktop. Faster decision-making, exclusive discounts, and optimised user experiences make mobile a more vulnerable space for hotels.

According to Roberto Gobo, Director of Digital Strategy and Technology at Valamar, these disparities often stem from operational blind spots: “Disparity mostly happens when the hotel doesn’t control the payment flow. When the OTA handles the transaction, the hotel loses visibility on the final rate.” Gobo notes that many OTAs — particularly resellers — exploit loosely managed distribution networks to apply unauthorised discounts.

When does the hotel rate integrity get challenged?

Beyond these operational challenges, the broader concern lies in how these disparities affect the hotel's ability to compete — often without them realising it. That’s where the World Parity Monitor becomes an essential tool, as Jordi Serra, CEO of 123Compare.me, explains: “This report gives hoteliers a clearer understanding of how — and when — their rate integrity is being compromised. It's not just about knowing that disparities exist, but about identifying the patterns: which channels, what booking windows, and which guest segments are most affected. With this insight, hotels can take back control, defend their direct channel, and make smarter distribution choices.”

Hotel websites score on advance bookings, longer stays, and family trips

Despite the overall pressure, the direct channel proves stronger in certain segments — especially bookings made well in advance, longer stays, and family trips. It also gains competitiveness as the booking window widens, reaching peak performance between 6 and 9 months in advance.

The way forward

The mid-year WPM underscores a clear message: in a fragmented landscape, active parity management is non-negotiable for hotel profitability. Contributing to observations and analysis on rate behaviour include Sonia Molina, Business Unit Director at HotelsDot, Claudia Rodríguez, Business Unit Director at Sekuenz and Joe Pettigrew, Chief Commercial Officer at L+R Hotels. With 123Compare sharing its key recommendations including:

  • Automated and ongoing price monitoring across all distribution channels.
  • Careful review of commercial agreements, prioritising intermediaries that support a sustainable direct strategy.
  • A stronger direct value proposition, including exclusive benefits, greater flexibility, and added services for official website bookings.

 

 

 

Join The Community

Stay Connected

Facebook

101K

Twitter

3.9K

Instagram

1.7K

LinkedIn

19.9K

YouTube

0.2K

TDM

x Studio

Connect with your clients by working with our in-house brand studio, using our expertise and media reach to help you create and craft your message in video and podcast, native content and whitepapers, webinars and event formats.

Scroll to Top