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World Parity Monitor

Pricing Analysis, empowering hotels

The online distribution channel has become exceptionally significant in the hotel sector, especially with the rise of Online Travel Agencies (OTAs).

In this context, traditional distribution channels saw a drastic reduction in reservations, while bookings through OTAs increased exponentially. In response, hotels and groups are redefining strategies to boost direct bookings, recognizing the pivotal role of pricing in revenue optimization.

A major challenge faced by hotels is that online intermediaries often offer lower prices than their official websites. Considering all the above, 123COMPARE.ME has introduced the World Parity Monitor, aiming to be the global reference for analyzing price parity across different channels.

World Parity Report

Trends in hospitality pricing

The general objective of the World Parity Report is defined as follows:

“Determine the state of price parity worldwide by analyzing the behavior of prices for three-star or higher hotels across different online intermediary platforms compared to the official hotel site.”

For this objective, a sample size is determined, allowing us to establish a confidence level of +/- 95% at the destination level.

Over 5,000 establishments in 61 tourist destinations are analyzed.

Research Design

Over 9 million price comparisons per month

Data collection is carried out through continuous tracking of Google’s metasearch engine, performing over 9 million price comparisons per month across major global destinations based on actual demand.

The purpose of the tracking is to obtain information on price parity considering the following variables:

Online intermediary: platforms (OTAs)

Category of the hotel establishment

Devices: mobile and desktop

Booking anticipation

Duration of the stay

Segmentation: types of bookings: family, couple, and individual

Location: 61 main tourist destinations worldwide

The first version of the study was published on November 14 of 2023.

Methodology, analysis, and results

Beat, Meat, and Lose

The characteristics of the quantitative design presented in the research and the adopted approach determined the following as the most suitable information analysis technique for achieving the proposed objectives:

BML Metric: BEAT, MEET, AND LOSE

BML is a metric used to compare different prices published on various online intermediary platforms with the direct price published on the hotel’s official site.

BEAT: Direct price lower than intermediated price

MEET: Direct price equal to intermediated price

LOSE: Direct price higher than intermediated price

KOL Council

Our panel of experts

The World Parity Report, grounded in comprehensive data analysis, was shared, reviewed and validated by an esteemed panel of experts, each a distinguished authority in their respective fields.

 

  • Raúl Álvarez – VP Global Digital Experience of Radisson Hotels Group.
  • Carles Saniger – Global Digital Business Revenue Management of Barceló Group.
  • Otón Gómez – SVP e-commerce & Marketing Services of NH Hoteles.
  • Claudia Rodríguez – Marketing & Sales Director of Ona Hotels & Apartments.
  • Marina López – Corporate Director of Eurostars.
  • Sonia Blanc – Smart Revenue Development Manager at Hotusa Hotels.
  • Pilar Salat – Director of Operations of Derby Hotels.
  • Fabián Rachim – Head of Online Marketing of Blue Sea Hotels.
  • Antoní Homar – Corporate Chief Commercial & Marketing Officer of Zafiro Hotels.
  • Amaya Lacambra – Commercial Strategy and Revenue Management Director of Vincci Hoteles.
  • Roberto Gobo – Director of Digital Strategy and Technology of Valamar Riviera.