New behavioural framework exposes threats to hotel rate integrity

123Compare.me maps the pricing behaviour of 188 OTAs and metasearch engines

Not all pricing disparities are created equal, and not all intermediaries play the same role in eroding hotel rate integrity, are the key takeaways from the latest edition of the World Parity Monitor (WPM), by 123Compare.met, which introduces a new behavioural 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 analyses how often - and how aggressively - each intermediary undercuts the direct hotel booking channel. 

It also looks at whether they act alone or as part of broader price war dynamics, to understand which channel actually triggers price damage

“Undercutting on its own tells you very little,” said Jordi Serra, CEO of 123Compare.me. 

“What matters is whether it’s systematic, whether it happens in isolation, and what type of intermediary is behind it. That’s where the real risk lies.”

To provide actionable insight from the World Parity Report, the firm has has now built a new behavioural framework which identifies three distinct profiles that are reshaping the hotel parity conversation. 

This enables hotels to practically segment channel partners to redefine relationships and prioritise distribution and pricing actions:  

The first is disruptive intermediaries that frequently undercut official hotel rates, often acting independently, as the only channel offering 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.

Next up, 123Compare.me identified reactive intermediaries contribute to parity loss but act in tandem with others, reflecting broader market pressure. This is noticeable in regional OTAs like Bluepillow or metasearch platforms like Trivago.

Finally, passive intermediaries have marginal impact. They rarely undercut, and almost never act alone. Examples include eDreams, Logitravel, Kayak, or Skyscanner.

Using a clustering model to analyse the data from across the 188 channels, 123Compare applies four key indicators to understand the behavioural profile of each intermediary.  

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 seen it again and again: a trusted brand can be your biggest source of parity loss,” added Serra. 

“But you won’t see it unless you look beyond the surface. This report gives hotels the clarity to do just that.”

Roberto Gobo, director of digital strategy and technology at Valamar, welcomes the new classification model introduced in the WPM. He said: “June’s WPM is particularly noteworthy. 

"It offers excellent insights into OTA behaviour and highlights the risks that 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 also emphasisesd the importance of addressing Disruptive intermediaries through smart operational practices. He added: “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. Controlling the payment process is key to detecting undercutting in real time and responding effectively.”

In the revamped version of the WPM — the June report also identifies the profile overviews of each group with intermediary examples, and advice to turn data into action.