Europe Sets Pace in Hotel Pricing, Outperforms Asia and Americas

According to the World Parity Monitor by 123Compare.me, European hotels are taking the lead in the global pricing parity race, achieving more aggressive pricing compared to OTAs and Metasearch engines. This trend is particularly noticeable during the peak season, between October 2023 and October 2024.

Compared to other global markets, such as Asia and America, Europe significantly improved its pricing strategy. Over 48% of direct rates were better than those offered by third-party channels, a stark increase from 2023. This progress is evident in Paris and Lisbon, which had the best direct rates globally in October 2024.

However, not all cities are performing as well. Macau, Las Vegas, Zurich, and Ho Chi Minh City have experienced increased competition from OTAs, with Ho Chi Minh City losing 54.8% of rates to OTAs.

Global hotel brands are also changing their pricing strategies. Eurostars, for instance, secured the highest room rate for direct bookings, up by 39 percentage points from 2023. Meanwhile, Radisson Hotel Group demonstrated the strongest rate parity among hotel chains, but IHG saw its pricing controls slip from 2023.

Jordi Serra, CEO and founder of 123Compare, suggests that the EU’s Digital Marketing Act (DMA) regulation has given hotels more opportunities to beat OTAs on rates. This appears to result in a more equal price distribution with higher price parity, and better tactics for stronger direct rates.

Despite hotels’ improving performance, OTA Booking.com continues to dominate the market, appearing in over 90% of offers. However, hotels’ direct prices beat Booking.com’s rates 47.4% of the time.

For a full report on hotel pricing strategies in October 2024, visit 123Compare.net.