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Research reveals OTAs undercut direct hotel…

  • Travel Weekly Group Ltd
  • 1 August 2025
  • 2 minute read
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This article was written by Travolution. Click here to read the original article

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

Chronicling the first six months of 2025, the H1 World Parity Monitor looked at parity on a per-search basis.

It discovered OTAs undercut the hotel’s own website in 33% of comparisons.

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 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 behaviors 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.

Mobiles amplify the rate parity issue — OTAs undercut the official site in 38% of searches, versus 31% on desktop. 

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Roberto Gobo, director of digital strategy and technology at Valamar, these disparities often stem from operational blind spots.

He said: “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 unauthorized discounts.

Beyond these operational challenges, the broader concern lies in how these disparities affect the hotel’s ability to compete, often without them realising it. 

Jordi Serra, CEO of 123Compare.me, said: “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.”

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 six and nine months in advance.

Please click here to access the full original article.

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