The digital revolution has transformed the hospitality industry, particularly the hotel sector, giving unprecedented prominence to Online Travel Agencies (OTAs). These web platforms have significantly influenced the marketing of hotel rooms, exponentially increasing their sales compared to direct bookings. As a result, the hotel sector has found itself needing not only to redefine strategies to boost and amplify direct bookings but also to recognize the fundamental role of pricing in optimizing revenue.
In this context, 123Compare.me has developed the World Parity Monitor, which allows for the analysis of price parity across different online intermediary channels worldwide. This project, led by Jordi Serra, CEO, and Pau Ferret, CRO, has established itself as a trusted tool for hotel groups, as it helps them understand the changing dynamics of distributed pricing.
World Parity Monitor for pricing in the hotel sector
The World Parity Monitor conducts a monthly analysis of existing prices across the hospitality industry, providing efficient results on strategic pricing approaches in the hotel sector. To achieve this, it utilizes a continuous tracking system on Google’s metasearch engine, which collects various price data from three-star hotels and above.
This enables over 50 million rate comparisons in major global destinations, achieving a confidence level in the sector of 95%. The goal is to present a report on price parity, considering variables such as OTA websites, booking times, and length of stay, among other factors.
Through these functionalities, the platform provides hotel groups with valuable information to design a more competitive pricing strategy in the market. Additionally, it serves as a means to increase conversion rates and avoid booking losses, as it allows for the detection and correction of rate disparities in real time.
Advanced methodology that facilitates price comparison
The quantitative design characteristic of the research and the adopted approach determine the BML metric as the most suitable information analysis technique for achieving the proposed objectives. This metric is used to compare different prices published on various metasearch platforms and online intermediary sites with the direct price published on the hotel’s official site.
From this KPI, valuable data can be obtained such as BEAT (direct price lower than the intermediary price), MEET (direct price equal to the intermediary price), and LOSE (direct price higher than the intermediary price).
It is noteworthy that the World Parity Report provided by the system has been reviewed, validated, and shared by an esteemed panel of experts and distinguished authorities in the hotel sector, who support the data analysis presented in the report. Furthermore, users accessing the 123Compare.me website can request a free trial of the software and verify the benefits it offers for analyzing price parity in the hotel industry.
In this way, hotel chains can gain a clearer and more precise understanding of the existing price disparities in the sector and, through the product called “competitive pricing” from 123Compare.me, make timely decisions that minimize rate disparities and remain competitive in the market.
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