Will hotels get cheaper in 2024? 2023 data + predictions.
After analyzing 150K+ hotel searches, we can see a clear trend of OTAs lowering their overall rates to stay competitive in their market with their prices. This 2023 data shows how fast OTAs are lowering their rates, and RatePunk's official prediction is that this trend will follow well into 2024.
By Augustinas
Published: February 20, 2024 • 2 min read
In the second half of 2023 and the start of 2024, we've heard OTAs say that they will discount their rates to "stay competitive".
So, having our mountains of data, RatePunk decided to investigate.
The data below is a comparison of how often OTAs had the lowest price when compared to wholesale rates*.
*Wholesale rates are the original rates that OTAs receive for distribution. While these rates vary depending on the OTA due to various fees and legal and tax differences, we've picked the rates that RatePunk gets from their providers against the other OTA prices. RatePunk offers these "naked" rates straight to our users. The first OTA to do so.
This data shows a clear trend towards OTAs lowering their prices and increasing their 'cheapest in the market' percentage by quite a lot throughout 2023 - especially the second half.
"If more companies like RatePunk are allowed to spread their wings in the market, the only outcome will be prices decreasing like this for everybody, so I see these statistics as progress in the right direction. This is great news." - CEO of RatePunk, Justin Albertynas on LinkedIn
2024 tendencies.
While Expedia stayed in the back during 2023, right now, at the beginning of 2024, we can see a very big jump in just one month from having the best price 0.8% of the time to 11.2% of the time.
Great job, Expedia!
And we can also see a further decrease in wholesaler having the best price, once again showing a clear trend of OTAs lowering their overall prices.
"As long as travelers are paying less - I'm happy" - CEO of RatePunk, Justin Albertynas on LinkedIn
February 20, 2024