Major OTAs Maintain Visibility Lead, Smaller Competitors Focus on Pricing

Major online travel agencies (OTAs) such as Booking.com and Expedia continue to dominate visibility in both paid and organic search spaces, while smaller OTAs focus on competitive pricing strategies.

The World Parity Monitor’s May report highlights the dominance of major OTAs, specifically Booking.com and Expedia, in both paid and organic search visibility. Booking.com leads in overall visibility, consistently bidding for hotel placements. Secondary OTAs rely more on organic visibility and local presence, with examples like Despegar.com in Argentina and MakeMyTrip in India.

Pricing Strategies

Major OTAs like Booking and Expedia have less aggressive pricing strategies than other intermediaries. The report indicates a decrease in their loss rate from April, suggesting a shift in pricing tactics. In contrast, smaller OTAs are more aggressive in pricing to compete with the visibility of larger players.

OTAs and Metasearch bit the Most Aggressive Pricing Policies

Source: World Parity Report | May 2025

Paid vs. Organic Visibility

The report notes that major OTAs are more aggressive in paid placements than organic listings. This is evident from higher lose rates in paid spaces, with variations among brands. For instance, Hotels.com shows a modest 1% difference, while Agoda has a 15% difference in lose rates between paid and organic spaces.

Regional Visibility Trends

In Europe, Booking Group leads in sponsored impression share but shows increased price aggressiveness in Switzerland due to regulatory changes. In Asia, both Booking and Expedia face higher lose rates, reflecting a competitive pricing environment. In the Americas, Expedia adopts a more aggressive pricing strategy in Latin America, while maintaining a moderate lose rate in North America. In Africa, both OTAs exhibit high lose rates, with Booking dominating visibility in South Africa. In Australia, Booking leads in visibility with moderate pricing tactics, while Expedia remains competitive despite lower visibility.

Market Dynamics

The report suggests that the concentration of visibility among major OTAs necessitates strategic adaptations by hotels, particularly independents. The higher lose rate in paid spaces indicates more aggressive behavior in promoted campaigns. The data highlights the importance of understanding market rules and investing in direct sales channels to improve visibility and profitability.

Overall, the report underscores the competitive landscape in the OTA market, with major players maintaining visibility dominance while smaller OTAs leverage pricing strategies and local strengths to compete.

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