Expedia Group research highlights how centralised distribution can help hotels reduce rate leakage and protect revenue
- 98% of hoteliers surveyed lose an average of 6% of revenue annually due to rate leakage.
- Hoteliers spend on average $40,100 annually managing their B2B distribution networks.
- 99% of respondents recognize that a centralized distribution platform helps reduce rate leakage and improve revenue protection.
Expedia Group has released new global research revealing that fragmented hotel distribution is costing properties revenue and creating operational strain. Nearly all surveyed hoteliers report 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 (US, Canada, Mexico, the UK, France, Germany, Australia, and Japan) 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.
“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. “Centralized, automated solutions are no longer optional — they’re essential for protecting revenue, maintaining rate consistency, and reducing the operational burden on hotel teams.”
The study finds that hotels are typically connected to four to six B2B distribution partners, exposing them to hundreds or thousands of indirect channels (wholesalers, redistributors, bed banks). Because of this complexity, rates often stray from their intended path: 49% of wholesale sales go to unintended partners, 49% of rate loading errors are caused by human mistakes, and 48% of unauthorized resellers post rates publicly. Hoteliers estimate an average 6% revenue loss over the past year from such “rate leakage,” rising to 7% for large chains, and many report substantial operational and staffing burdens managing this distribution complexity.
To mitigate these issues, the blog emphasizes Expedia Group’s role as both investigator and guardian within its B2B network. It describes measures like rigorous partner vetting, active monitoring, and a “zero-tolerance policy” to enforce compliance. Eligible hotels can join Expedia’s B2B Distribution rates program, which “incentivize network partners to highlight their inventory” and helps hotels “safeguard their brand while ensuring guests book with confidence.” This system is pitched as a scalable way for hotels to protect rate integrity, while still reaching a global demand base.
For deeper insights and practical implications of the research, read the blog: “Inside the Complex Journey of Hotel Rates”
