{"id":7433,"date":"2025-05-12T09:10:34","date_gmt":"2025-05-12T09:10:34","guid":{"rendered":"https:\/\/123compare.me\/?p=7433"},"modified":"2025-11-19T09:55:19","modified_gmt":"2025-11-19T09:55:19","slug":"secondary-otas-raise-pressure-at-premium-rates","status":"publish","type":"post","link":"https:\/\/123compare.me\/en\/secondary-otas-raise-pressure-at-premium-rates\/","title":{"rendered":"Independent Hotels Under Fire: Secondary OTAs Raise Pressure at Premium Rates"},"content":{"rendered":"[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221;]<b>As every month, 123Compare.me publishes the results of the World Parity Report, a monthly tracking that analyzes the evolution of price parity in the global hotel industry.<\/b>[\/nectar_highlighted_text][vc_column_text]<span style=\"font-weight: 400;\">For April&#8217;s edition of the WPM, we focused specifically on whether a hotel&#8217;s price position relative to its local market average reflects different pricing strategies.<\/span>[\/vc_column_text][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221;]<b>SUMMARY<\/b>[\/nectar_highlighted_text][vc_column_text]\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><span style=\"font-weight: 400;\">lose <\/span><span style=\"font-weight: 400;\">rate<\/span><span style=\"font-weight: 400;\"> increases when a hotel&#8217;s price is above the market average.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This effect is more pronounced in independent hotels, which are also more exposed to price aggressiveness from non-major OTAs when their prices exceed the market average.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The average direct price from January to April 2025 was 6.3% higher than in the same period of 2024.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Direct prices increased steadily from January to April 2025, mirroring the pattern seen in 2024.<\/span><\/li>\n<\/ul>\n[\/vc_column_text][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221; custom_font_size=&#8221;35px&#8221;]\n<h2><b>1. BML Average<\/b><\/h2>\n[\/nectar_highlighted_text][vc_column_text]<span style=\"font-weight: 400;\">April&#8217;s BML reached 35%, representing a 5-point increase compared to March, as shown in <\/span><b>Graph 1<\/b><span style=\"font-weight: 400;\">:<\/span>[\/vc_column_text][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221;]\n<p style=\"text-align: center;\"><b>Graph 1.<\/b> <span style=\"font-weight: 400;\">Average | April 2025 | Beat, Meet, and Lose<\/span><\/p>\n[\/nectar_highlighted_text][image_with_animation image_url=&#8221;7439&#8243; image_size=&#8221;medium_large&#8221; animation_type=&#8221;entrance&#8221; animation=&#8221;None&#8221; animation_movement_type=&#8221;transform_y&#8221; hover_animation=&#8221;none&#8221; alignment=&#8221;center&#8221; border_radius=&#8221;none&#8221; box_shadow=&#8221;none&#8221; image_loading=&#8221;default&#8221; max_width=&#8221;100%&#8221; max_width_mobile=&#8221;default&#8221;][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221;]\n<p style=\"text-align: center;\"><b>Source:<\/b><span style=\"font-weight: 400;\"> World Parity Report | April 2025<\/span><\/p>\n[\/nectar_highlighted_text][vc_column_text]<span style=\"font-weight: 400;\">When comparing the hotel\u2019s direct rate to the best available OTA offer, we see that in 75% of cases at least one OTA displays a lower price than the hotel\u2019s own website.<\/span>[\/vc_column_text][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221; custom_font_size=&#8221;35px&#8221;]\n<h2><b>2. Most Aggressive OTAs<\/b><\/h2>\n[\/nectar_highlighted_text][vc_column_text]<span style=\"font-weight: 400;\">Regarding OTA pricing strategies, the major groups \u2014 Booking and Expedia \u2014 continue to apply less aggressive pricing tactics compared to other intermediaries (<\/span><b>see Graph 2<\/b><span style=\"font-weight: 400;\">).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That said, Expedia breaks from its earlier trend and surpasses a 20% lose rate again this month.<\/span>[\/vc_column_text][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221;]\n<p style=\"text-align: center;\"><b>Graph 2.<\/b> <span style=\"font-weight: 400;\">OTAs and Metasearch Engines with the Most Aggressive Pricing | BML | April 2025<\/span><\/p>\n[\/nectar_highlighted_text][image_with_animation image_url=&#8221;7441&#8243; image_size=&#8221;medium_large&#8221; animation_type=&#8221;entrance&#8221; animation=&#8221;None&#8221; animation_movement_type=&#8221;transform_y&#8221; hover_animation=&#8221;none&#8221; alignment=&#8221;center&#8221; border_radius=&#8221;none&#8221; box_shadow=&#8221;none&#8221; image_loading=&#8221;default&#8221; max_width=&#8221;100%&#8221; max_width_mobile=&#8221;default&#8221;][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221;]\n<p style=\"text-align: center;\"><b>Source:<\/b><span style=\"font-weight: 400;\"> World Parity Report | April 2025<\/span><\/p>\n[\/nectar_highlighted_text][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221; custom_font_size=&#8221;35px&#8221;]\n<h2><b>3. Changes in Pricing Strategy Based on Market Price Levels<\/b><\/h2>\n[\/nectar_highlighted_text][vc_column_text]<span style=\"font-weight: 400;\">Overall, the <\/span><span style=\"font-weight: 400;\">lo<\/span><span style=\"font-weight: 400;\">se<\/span><span style=\"font-weight: 400;\"> rate<\/span><span style=\"font-weight: 400;\"> increases as the hotel\u2019s price rises above the local market average (<\/span><b>Graph 3<\/b><span style=\"font-weight: 400;\">).<\/span>[\/vc_column_text][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221;]\n<p style=\"text-align: center;\"><b>Graph 3.<\/b> <span style=\"font-weight: 400;\">BML by Price Segment: Major vs. Other OTAs<\/span><\/p>\n[\/nectar_highlighted_text][image_with_animation image_url=&#8221;7443&#8243; image_size=&#8221;medium_large&#8221; animation_type=&#8221;entrance&#8221; animation=&#8221;None&#8221; animation_movement_type=&#8221;transform_y&#8221; hover_animation=&#8221;none&#8221; alignment=&#8221;center&#8221; border_radius=&#8221;none&#8221; box_shadow=&#8221;none&#8221; image_loading=&#8221;default&#8221; max_width=&#8221;100%&#8221; max_width_mobile=&#8221;default&#8221;][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221;]\n<p style=\"text-align: center;\"><b>Source:<\/b><span style=\"font-weight: 400;\"> World Parity Report | April 2025<\/span><\/p>\n[\/nectar_highlighted_text][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221; custom_font_size=&#8221;35px&#8221;]\n<h2><b>4. Who Becomes More Aggressive at Higher Price Levels?<\/b><\/h2>\n[\/nectar_highlighted_text][vc_column_text]<span style=\"font-weight: 400;\">Major OTAs do not significantly increase their price aggressiveness when the hotel\u2019s rate is above the market average \u2014 their <\/span><span style=\"font-weight: 400;\">lose rate<\/span><span style=\"font-weight: 400;\"> remains relatively stable across all price segments.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In contrast, the direct channel becomes more competitive in lower-price segments (with higher <\/span><span style=\"font-weight: 400;\">beat rates<\/span><span style=\"font-weight: 400;\"> when hotel prices are below the market average), while <\/span><span style=\"font-weight: 400;\">meet rates<\/span><span style=\"font-weight: 400;\"> increase in higher-price segments (<\/span><b>Graph 4<\/b><span style=\"font-weight: 400;\">).<\/span>[\/vc_column_text][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221;]\n<p style=\"text-align: center;\"><b>Graph 4.<\/b> <span style=\"font-weight: 400;\">BML by Price Segment: Major OTAs<\/span><\/p>\n[\/nectar_highlighted_text][image_with_animation image_url=&#8221;7445&#8243; image_size=&#8221;medium_large&#8221; animation_type=&#8221;entrance&#8221; animation=&#8221;None&#8221; animation_movement_type=&#8221;transform_y&#8221; hover_animation=&#8221;none&#8221; alignment=&#8221;center&#8221; border_radius=&#8221;none&#8221; box_shadow=&#8221;none&#8221; image_loading=&#8221;default&#8221; max_width=&#8221;100%&#8221; max_width_mobile=&#8221;default&#8221;][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221;]\n<p style=\"text-align: center;\"><b>Source:<\/b><span style=\"font-weight: 400;\"> World Parity Report | April 2025<\/span><\/p>\n[\/nectar_highlighted_text][vc_column_text]<span style=\"font-weight: 400;\">Non-major OTAs, however, show a different pattern: their <\/span><span style=\"font-weight: 400;\">lo<\/span><span style=\"font-weight: 400;\">se<\/span><span style=\"font-weight: 400;\"> rate<\/span><span style=\"font-weight: 400;\"> increases notably when hotel prices exceed the market average (<\/span><b>Graph 5<\/b><span style=\"font-weight: 400;\">).<\/span>[\/vc_column_text][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221;]\n<p style=\"text-align: center;\"><b>Graph 5.<\/b> <span style=\"font-weight: 400;\">BML by Price Segment: Other OTAs<\/span><\/p>\n[\/nectar_highlighted_text][image_with_animation image_url=&#8221;7447&#8243; image_size=&#8221;medium_large&#8221; animation_type=&#8221;entrance&#8221; animation=&#8221;None&#8221; animation_movement_type=&#8221;transform_y&#8221; hover_animation=&#8221;none&#8221; alignment=&#8221;center&#8221; border_radius=&#8221;none&#8221; box_shadow=&#8221;none&#8221; image_loading=&#8221;default&#8221; max_width=&#8221;100%&#8221; max_width_mobile=&#8221;default&#8221;][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221;]\n<p style=\"text-align: center;\"><b>Source:<\/b><span style=\"font-weight: 400;\"> World Parity Report | April 2025<\/span><\/p>\n[\/nectar_highlighted_text][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221; custom_font_size=&#8221;35px&#8221;]\n<h2><b>5. Which Hotel Types Are Most Affected? BML by Price and Hotel Type<\/b><\/h2>\n[\/nectar_highlighted_text][vc_column_text]<span style=\"font-weight: 400;\">When segmented by hotel type, the most aggressive behaviors are observed in independent hotels, particularly when compared with non-major OTAs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When prices are more than 40% above the market average, the <\/span><span style=\"font-weight: 400;\">lose rate<\/span><span style=\"font-weight: 400;\"> reaches 41.8% in the case of these OTAs, compared to 34.0% for major OTAs (<\/span><b>Graph 6<\/b><span style=\"font-weight: 400;\">).<\/span>[\/vc_column_text][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221;]\n<p style=\"text-align: center;\"><b>Graph 6.<\/b> <span style=\"font-weight: 400;\">BML in Independent Hotels by Price Segment: Other OTAs<\/span><\/p>\n[\/nectar_highlighted_text][image_with_animation image_url=&#8221;7449&#8243; image_size=&#8221;medium_large&#8221; animation_type=&#8221;entrance&#8221; animation=&#8221;None&#8221; animation_movement_type=&#8221;transform_y&#8221; hover_animation=&#8221;none&#8221; alignment=&#8221;center&#8221; border_radius=&#8221;none&#8221; box_shadow=&#8221;none&#8221; image_loading=&#8221;default&#8221; max_width=&#8221;100%&#8221; max_width_mobile=&#8221;default&#8221;][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221;]\n<p style=\"text-align: center;\"><b>Source:<\/b><span style=\"font-weight: 400;\"> World Parity Report | April 2025<\/span><\/p>\n[\/nectar_highlighted_text][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221;]<b>Conclusion:<\/b>[\/nectar_highlighted_text][vc_column_text]<span style=\"font-weight: 400;\">Independent hotels or those in smaller chains face greater OTA price pressure when their rates are positioned above the average for their market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This increased aggressiveness is especially apparent among smaller OTAs, underscoring the need for closer monitoring of these intermediaries, as price disparity tends to intensify in high-price contexts.<\/span><\/p>\n<p>In this context, industry experts weigh in: \u201cHigher-priced hotels often experience more rate parity issues, particularly from tertiary OTAs undercutting them. This is likely due to the complexity of their distribution networks,\u201d explains <strong>Joe Pettigrew, Chief Commercial Officer (CCO) at L+R Hotels.<\/strong> \u201cThese hotels\u2014typically luxury properties or those in major urban markets\u2014serve diverse, international guest segments and still rely heavily on B2B channels. The broader and more fragmented the distribution, the harder it becomes to maintain rate integrity. With many intermediaries accessing rates, it becomes increasingly challenging to minimise undercutting (lose score) and optimise direct performance (beat score), compared to hotels working with a more limited and controlled set of partners.\u201d[\/vc_column_text][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221; custom_font_size=&#8221;35px&#8221;]\n<h2><b>6. Price Evolution Analysis<\/b><\/h2>\n[\/nectar_highlighted_text][vc_column_text]<span style=\"font-weight: 400;\">To wrap up this \u201cdeep dive into pricing analysis\u201d, here are a few insights into price trends (<\/span><b>see Graph 7<\/b><span style=\"font-weight: 400;\">).<\/span>[\/vc_column_text][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221;]\n<p style=\"text-align: center;\"><b>Graph 7.<\/b> <span style=\"font-weight: 400;\">Price Evolution (euros): Q1 2024 vs. Q1 2025<\/span><\/p>\n[\/nectar_highlighted_text][image_with_animation image_url=&#8221;7437&#8243; image_size=&#8221;medium_large&#8221; animation_type=&#8221;entrance&#8221; animation=&#8221;None&#8221; animation_movement_type=&#8221;transform_y&#8221; hover_animation=&#8221;none&#8221; alignment=&#8221;center&#8221; border_radius=&#8221;none&#8221; box_shadow=&#8221;none&#8221; image_loading=&#8221;default&#8221; max_width=&#8221;100%&#8221; max_width_mobile=&#8221;default&#8221;][nectar_highlighted_text color_type=&#8221;regular&#8221; style=&#8221;full_text&#8221; highlight_expansion=&#8221;default&#8221;]\n<p style=\"text-align: center;\"><b>Source:<\/b><span style=\"font-weight: 400;\"> World Parity Report | April 2025<\/span><\/p>\n<p style=\"text-align: center;\"><b>Base 100 = Direct Price January 2024<\/b><\/p>\n[\/nectar_highlighted_text][vc_column_text]<span style=\"font-weight: 400;\">Although the report includes destinations with varied seasonality, most of the 60 analyzed locations follow a northern hemisphere pattern.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is reflected in the upward monthly price curve, also influenced by the calendar (Easter fell in March in 2024 and in April in 2025).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The same pattern repeats in the first quarter of 2025: prices rise progressively from January through April. This suggests a structural trend \u2014 direct prices start low at the beginning of the year, rise steadily in spring, and tend to decline toward the end of the fiscal year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In aggregate terms, direct prices in Q1 2025 were 6.3% higher than in Q1 2024. In other words, the year began with a higher average nightly rate, possibly reflecting sustained demand growth.<\/span>[\/vc_column_text][\/vc_column][\/vc_row]\n","protected":false},"excerpt":{"rendered":"<p>[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221;&#8230;<\/p>\n","protected":false},"author":10,"featured_media":7571,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[130],"tags":[81,29,26,82,83],"class_list":{"0":"post-7433","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world-parity-monitor","8":"tag-direct-bookings","9":"tag-direct-sales","10":"tag-hotels","11":"tag-otas-2","12":"tag-parity-2"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Independent Hotels Under Fire | 123Compare.me<\/title>\n<meta name=\"description\" content=\"Explore April\u2019s World Parity Report: evolution of price parity shows 6.3% YoY rise in direct rates, with OTAs more aggressive above average.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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