The European hotel market leads in price parity, outperforming OTAs with aggressive pricing and securing control over rate distribution, says World Parity Monitor.

The European hotel market has taken the lead in price parity, outperforming OTAs and metasearch platforms through more competitive pricing strategies. According to the October 2024 World Parity Monitor by 123Compare.me, hotels in Europe now have enhanced real-time control over their pricing distribution.

Between October 2023 and October 2024, Europe’s hotel sector outshined its counterparts in Asia and America during the “Peak” season*, with over 48% of direct booking rates surpassing those offered by third-party channels. This is a significant improvement compared to 2023 when direct rates only outperformed OTAs during the “Somewhat Busy” and “Not Busy” periods.

European cities also dominated the list of top performers for October 2024. Paris secured the highest percentage of best direct rates at 67.35%, followed closely by Lisbon (66.56%) and Palma de Mallorca (66.02%). Other notable cities included Barcelona (62.22%) and Venice (61.91%).

Top Performing Cities Worldwide (October 2024):

• Paris: 67.35%
• Lisbon: 66.56%
• Palma de Mallorca: 66.02%
• Barcelona: 62.22%
• Venice: 61.91%

At the opposite end of the spectrum, cities like Macau, Las Vegas, and Zurich faced growing pressure from OTAs. In Ho Chi Minh City, 54.8% of hotel rates were lost to third-party platforms, a trend consistent with 2023. Additionally, Rio de Janeiro and Vancouver emerged as new hotspots where OTAs outperformed direct bookings.

Global hotel brands have intensified their pricing strategies, leading to notable shifts in price parity. Eurostars achieved remarkable growth in direct booking rates, improving from 40.1% in 2023 to 78.8% in 2024—an increase of 39 percentage points. Choice Hotels followed at 49.9%, with Millennium Hotels and Resorts at 46.1%. The Radisson Hotel Group demonstrated the most consistent parity, with 44.5% of its rates aligned with third-party channels. On the other hand, IHG saw a decline in direct rate competitiveness, with better deals now frequently found on OTAs.