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How OTAs are shaping hotel distribution in 2025

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  • 24 June 2025
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This article was written by Hospitality Today. Click here to read the original article

Booking.com and Expedia dominate Google rankings, while regional players quietly chip away with lower prices

Jun 24, 2025

The latest World Parity Monitor by 123Compare.me reveals that the OTA landscape is evolving quickly: while Booking.com and Expedia maintain dominance in hotel visibility on Google, smaller regional OTAs are undercutting hotel-direct rates more aggressively. The May 2025 report shows how shifts in paid advertising strategies, regional market dynamics, and increased price competition are reshaping how hotels must approach digital distribution and rate parity.

Key takeaways

  1. Booking.com still leads visibility: Booking Holdings maintains the top position in both organic and paid Google placements globally, although its share of paid visibility has dipped slightly.
  2. Expedia is catching up: Expedia Group is increasing its paid ad presence, narrowing the gap with Booking, particularly in global markets like North America and Latin America.
  3. Smaller OTAs undercut prices: Regional OTAs such as MakeMyTrip (India) and Despegar.com (Argentina) frequently undercut hotel-direct prices, especially in their domestic markets.
  4. Visibility โ‰  undercutting: The OTAs dominating visibility arenโ€™t always those driving price undercutting, highlighting a strategic divergence in market tactics.
  5. Strategic implications for hotels: Paid search placements are now the main battleground for rate parity. Hotels need to track both visibility and price undercutting to protect direct bookings and optimize their digital advertising spend.
  6. Hotels must rethink distribution costs: The shift in strategy โ€” Booking slightly retreating while Expedia intensifies its efforts โ€” calls for a reevaluation of how hotels manage OTA relationships and allocate marketing budgets.

Get the full report at 123Compare.me

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