A new report from travel tech company 123Compare.me reveals that in 75% of hotel searches, at least one Online Travel Agency (OTA) displays a lower price than the hotel’s own website. The H1 2025 World Parity Monitor analyzed millions of rate comparisons from the first six months of the year to assess rate integrity across the industry.
While hotels offered a better price than OTAs in 45% of one-on-one comparisons, the sheer volume of third-party offers means guests are frequently shown at least one cheaper rate elsewhere. The report found that true rate parity occurred in just 22% of searches, with the issue being more pronounced on mobile devices, where OTAs undercut hotels 38% of the time.
Experts cited in the report attribute these disparities to operational blind spots, particularly when OTAs manage the payment flow and apply unauthorized discounts through loosely controlled distribution networks.
Despite the overall pressure, the report identifies areas where the direct channel remains stronger, such as for bookings made far in advance and for longer stays. The study concludes that active, ongoing management of rate parity is non-negotiable for hotel profitability and recommends that hoteliers use automated monitoring, review their commercial agreements, and strengthen their direct booking value proposition.
