Expedia Group research finds fragmented distribution costs hoteliers

Expedia Group has released new global research revealing that fragmented hotel distribution is costing properties revenue and creating operational strain.

Nearly all of the hoteliers surveyed reported losing income due to rate leakage, yet 99% agree that a centralized distribution platform would help simplify operations, improve rate integrity, and better protect revenue.

The survey of 2,000 hotel revenue managers across eight countries uncovered the following key insights:

• Rate leakage is widespread: 98% of hoteliers report losing an average of 6% revenue annually from rate leakage, with more than half experiencing leakage weekly or more often.
• Managing distribution is costly: Hotels spend an average of $40,100 annually on managing B2B distribution, with a quarter spending over $50,000.
• Too many partners, too much complexity: More than half (52%) juggle 4-6 distribution partners, making rate consistency hard to control.
• Confidence gaps remain: Over half (54%) of hoteliers admit they are only somewhat confident in managing pricing across all channels.
• Clear demand for centralization: 99% agree a centralized platform would reduce leakage and improve revenue protection.

Steve Quan, Senior Vice President, Hotel Enterprise Partnerships at Expedia Group, said of the findings: “Hotels are leaving significant revenue on the table every year because of fragmented distribution. Centralized, automated solutions are no longer optional — they’re essential for protecting revenue, maintaining rate consistency, and reducing the operational burden on hotel teams.”

In Canada, the data paints a similar picture — with hoteliers facing frequent revenue loss, high distribution costs, and growing complexity across channels.

• Frequent revenue loss: A quarter of Canadian hoteliers reported losing potential revenue 2–3 days a week due to rate misuse, with 42% of small hotel groups and 15% of large chains experiencing this loss even more frequently.
• Significant financial impact: Two-fifths (40%) of Canadian respondents estimated revenue losses of 3–5% due to rate leakage, while over a quarter (26%) — including 31% of large chains — reported losses of 6–10% in the past year.
• High distribution costs: Canadian hotels spend an average of 57,361 CAD annually managing their B2B distribution networks, with nearly a third of large chains spending between 67,501–135,000 CAD.
• Complex partner landscape: Nearly half (47%) of Canadian hoteliers manage 4 to 6 connected distribution partners, while over a quarter of independent hotels juggle 7 to 10 — complicating rate consistency.
• Top causes of rate misuse: 49% of Canadian respondents cited wholesalers distributing beyond intended partners as the leading cause, followed closely by non-approved wholesalers selling incorrect rates (49%) and internal errors in rate loading (47%).

For more check out the “Inside the Complex Journey of Hotel Rates” blog.