Fragmented distribution is bleeding hotel profits, new Expedia research warns
Nearly every hotelier is feeling the pinch—98% lose around 6% of annual revenue to rate leakage, a new global study shows.
Hotels could be losing thousands of dollars each year because of fragmented distribution systems, according to new research released by Expedia Group.
The global study of 2000 hotel revenue managers across eight countries found that 98 percent of hoteliers lose an average of six percent of annual revenue due to rate leakage, when discounted rates meant for specific B2B partners appear on public channels. More than half said leakage happens weekly or even more frequently.
Managing distribution is also proving costly. On average, hotels spend $40,100 each year managing B2B distribution networks, with one in four spending more than $50,000 annually. Complexity is a major contributor: 52 percent of respondents juggle four to six distribution partners, making it harder to maintain price consistency across channels. More than half (54 percent) admitted they are only “somewhat confident” about their ability to manage pricing across all channels.
The research highlights strong demand for streamlined solutions, with 99 percent of respondents agreeing that a centralised distribution platform could reduce rate leakage and better protect revenue.
“Hotels are leaving significant revenue on the table every year because of fragmented distribution,” said Steve Quan, Senior Vice President, Hotel Enterprise Partnerships at Expedia Group. “Centralised, automated solutions are no longer optional — they’re essential for protecting revenue, maintaining rate consistency, and reducing the operational burden on hotel teams.”
Expedia Group’s global B2B network connects hotels with 70,000 vetted travel partners worldwide, helping properties reach high-value guests who book earlier, stay longer, and spend more. Hotels can also enrol in B2B Distribution Rates, an Expedia Group program designed to simplify rate distribution, ensure pricing integrity, and unlock more bookings while saving time and maintaining control.
The findings form part of Expedia Group’s latest insights into hotel distribution challenges and the growing need for centralised, technology-driven solutions. A full breakdown of the research is available in the company’s blog post, Inside the Complex Journey of Hotel Rates HERE.
