123Compare.me’s latest World Parity Monitor highlights diverging OTA strategies across global markets

The May 2025 edition of the World Parity Monitor (WPM) by 123Compare.me reveals clear strategic divides in the online hotel distribution landscape. While Booking Holdings and Expedia Group continue to dominate visibility on Google Search, a growing number of secondary OTAs are undercutting rates to capture bookings.

The report, which tracks pricing and visibility trends across hundreds of markets, shows that nearly all top-of-page search visibility — both paid and organic — is controlled by Booking.com and Expedia. Booking maintains a lead in both areas, although the report notes a slight drop in its paid presence. Expedia, meanwhile, has increased investment in sponsored placements, narrowing the visibility gap.

“We’re not just seeiWng a concentration of visibility — we’re also seeing strategic adjustments within the leading groups,” says Jordi Serra, CEO at 123Compare.me. “As Booking and Expedia consolidate their online presence, the pricing pressure increasingly shifts to other players. That’s where hotels need to stay alert: visibility and undercutting don’t always come from the same source.”

Smaller OTAs — including MakeMyTrip in India and Despegar.com in Argentina — are competing primarily on price, with higher “Loss rates,” where they display prices lower than both direct channels and dominant OTAs. This pattern is most evident in regions where these platforms hold local market share.

Claudia Rodríguez, Business Unit Director at hospitality tech firm Sekuenz, notes the value of the WPM for distribution and revenue teams: “The WPM doesn’t just provide data — it helps us understand what’s happening in the market and make more precise strategic decisions. The fact that direct hotel prices are more frequently undercut in paid placements than in organic results clearly shows where the most aggressive battles for conversion are taking place.”

She adds that shifts in OTA advertising strategy warrant close attention. “Booking has slightly reduced its investment in paid placements, while Expedia has increased it. These movements should prompt revenue and distribution teams to reconsider how visibility costs and direct sales are being impacted.”

Regional Dynamics: Visibility vs. Undercutting

The WPM also highlights significant regional variations in OTA strategy:

• Europe: Booking maintains strong visibility across most markets, with stable pricing. Switzerland, however, stands out due to regulatory changes that have triggered more aggressive undercutting.

• Asia: Price competition is more intense. Booking undercuts Expedia more frequently in India, while MakeMyTrip enjoys strong organic visibility at home.

• North America: The U.S. market remains steady. Expedia demonstrates consistent performance in both visibility and pricing, with fewer fluctuations compared to other regions.

• Latin America: Booking leads in visibility across most countries, while Expedia tends to adopt more aggressive pricing, particularly in Argentina.

• Africa and Oceania: In South Africa, Booking combines strong visibility with a high frequency of undercutting. Australia sees a more balanced environment, with shared visibility and moderate pricing from both major OTAs.

The World Parity Monitor is increasingly used by hotel groups and independents to track OTA behaviour in real time, enabling more effective revenue management and marketing decisions.

Read the full May 2025 WPM report here: https://123compareme.net/en/major-otas-compete-on-visibility-smaller-otas-compete-on-price