In the last decade, the rise of online intermediaries has significantly impacted hotel room marketing. Consequently, their sales have surged at the expense of direct bookings on official hotel or hotel group websites.
Currently, one of the most pressing challenges facing the hospitality sector today is that online intermediaries offer lower prices than the official websites of hotels and hotel groups.
The objective: to analyze the price parity in the different online intermediation channels worldwide.
Today, the World Parity Monitor (WPM) has become a benchmark for Revenue Managers and marketing departments, aiding in the design of effective pricing strategies. The WPM identifies undesirable pricing practices.
The World Parity Report (WPR) is the premier global price parity report for the hotel industry.
WPR provides regular insights into price parity status for 3-star and above hotels across various online intermediaries. Moreover, it compares these findings to their official websites.
Utilizing data from the World Parity Monitor, the WPR establishes a sample size that enables a confidence level of +/- 95% at the destination level. The report encompasses over 5,900 establishments in 60 of the world’s leading tourist destinations.
The World Parity Monitor collects data through continuous tracking of Google’s metasearch engine. It performs 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:
OTAs and Metasearches
Hotel Category
Devices: Mobile or Desktop
Booking Anticipation
Lenght of Stay
Traveler Segments
60 Main Travel Worldwide Destinations
The characteristics of the quantitative design presented in the research and the chosen 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
The results collected in the World Parity Monitor are published in the periodic World Parity Reports (WPR). These reports are grounded in comprehensive data analysis. Furthermore, they were shared, reviewed, and validated by an esteemed panel of experts. Each expert is a distinguished authority in their respective fields.
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