PRESS RELEASE: European Hotels Refine Pricing Strategy: Anticipation Becomes Key to Revenue Optimization

Latest World Parity Monitor from 123Compare.me identifies the impact of lead time on price behavior in global hotel bookings

Barcelona, 24 April 2025 — As hotels continue to refine their revenue strategies, 123Compare.me identifies booking anticipation as a key lever for price optimization as it unveils the latest findings from its World Parity Monitor (WPM).

The March report reveals a clear bell-shaped curve in price behavior. Early bookings secure the lowest prices with rates peaking at around two weeks ahead of check-in before decreasing for last-minute reservations.

Within the key findings, 123Compare highlights that the direct channel consistently offers better prices than OTAs, though differences are subtle — emphasizing the need for hotels to boost direct channel visibility and value.

Across the hotel categories, 5-star properties show the most stable pricing, while 3- and 4-star hotels fluctuate more sharply as check-in approaches. Furthermore, independent hotels apply more variable pricing, while large branded groups maintain consistent rate strategies.

When it comes to location - destination sensitivity to lead time varies, with typical international vacation hotspots like Phuket and Rio de Janeiro with high seasonality, competitive marketing or a strong presence of tour operators show higher early booking incentives, while cities with high corporate traffic like Paris and Shanghai favor late-booking price elasticity.

Impact on rate between corporate and leisure hotels

Impact of rate between hotel stars

According to Jordi Serra, CEO at 123Compareme “Lead time is no longer just a data point — it’s a key part of the pricing strategy. Understanding when guests are most likely to book helps hotels plan better, price smarter, and sell more at the right time.”

Revenue consultant, Sonia Molina, COO, HotelsDot, commented on the findings “The WPM emphasizes the importance of incorporating new variables into price analysis, such as booking lead time, which is a key lever for optimizing revenue. Among the five core variables that shape an effective Revenue Management strategy lead time stands out for its ability to pinpoint the exact moment when demand is willing to pay more.”

The World Parity Monitor is a reference in the market and a tool to track and monitor hotel pricing strategies across the distribution channels. The complete March 2025 WPM report is available at:  https://123compareme.net/en/report-impact-ead-time-hotel-pricing-strategy/