Prices are not all created equal. Not all intermediaries are equally responsible for eroding the integrity of hotel rates. That’s the key takeaway from the latest edition of the World Parity Monitor (WPM) by 123Compare.me, which introduces a new behavioral segmentation model to help hoteliers identify the true drivers of parity loss — and respond strategically.
Drawing on pricing activity data from 188 OTAs and metasearch engines in June, the report analyzes how often — and how aggressively — each intermediary undercuts the direct hotel booking channel. And whether they act alone or as part of broader price war dynamics – to understand which channel actually triggers price damage
“Undercutting by itself tells very little,” says Jordi Serra, CEO of 123Compare.me. “What’s important is whether the fraud is systematic or isolated, and who is behind it. “That’s where the risk is.”
To provide actionable insight from the World Parity Report, 123Compare.me has built a new behavioral framework which identifies three distinct profiles that are reshaping the hotel parity conversation. It allows hotels to segment channel partners in order to prioritize pricing and distribution actions and redefine relationships.
- Disruptive intermediaries frequently undercut official hotel rates — often acting independently – as the You can only get it by clicking here The channel with the lowest price. 123Compare has identified this group to include major OTAs like Booking.com or Expedia and high-risk resellers like Traveluro or Super.com.
- Reactive intermediaries The market is under pressure, and this can be seen in the regional OTAs such as Bluepillow and metasearch platforms like Trivago. This is noticeable in regional OTAs like Bluepillow or metasearch platforms like Trivago.
- Passive intermediaries Have a marginal effect. They almost never act on their own, and they rarely undercut. Examples include eDreams, Logitravel, Kayak, or Skyscanner.
Clustering models can be used To understand the behavior of each intermediary, 123Compare uses four key indicators.
With this level of insight, the 123Compare.me urges hoteliers to shift their focus for their distribution strategy from visibility — the intermediaries most present in metasearch results — to traceability — paying particular attention to those that actually trigger price damage.
“One channel rate might be highly visible but is actually harmless — yet another is seemingly invisible yet consistently harmful. “Unfortunately, we’ve witnessed it time and time again: A trusted brand can be the biggest source of your parity loss.” Adds Serra. You won’t notice it unless your eyes are trained to look deeper. This report provides hotels with the clarity they need to make that decision.
Roberto Gobo is the Director of Digital Strategy and Technology for Valamar. The WPM welcomes the introduction of the new classification system; “June’s WPM was particularly notable.” This report provides excellent insight into OTA behaviour and highlights the risks hoteliers face. These reports are incredibly beneficial for both independent hoteliers and chains in strategizing how to minimize price undercutting by external partners such as OTAs, resellers, and affiliate platforms.”
Gobo emphasizes that smart operational practices are essential to tackling Disruptive Intermediaries. “Focusing on the Disruptive Behaviour pattern, there are several actions hoteliers can take to mitigate the impact — from integrating payment gateways and booking engines to automating direct reservation flows. The payment process must be controlled to detect undercutting and respond effectively in real-time.
In the revamped version of the WPM — the June edition is more than a diagnosis — it’s a strategic tool for revenue and distribution teams to focus efforts on Disruptive players, where action is urgent. The report also identifies the profile overviews of each group with intermediary examples, and advice to turn data into action.