Inside the complex journey of hotel rates

How fragmented B2B channels create hidden losses, brand risks, and new demands on hotel distribution strategy

A new Expedia Group survey reveals that almost all hoteliers reported revenue losses due to misuse of rates within complex B2B networks. With multiple intermediaries involved, contracted rates often end up in unintended channels or exposed to unauthorized resellers, eroding both revenue and brand trust. The study highlights the scale of the issue, the operational burden it creates for hotels, and the steps being taken to safeguard rate integrity across a rapidly evolving distribution landscape.

Key takeaways

• Rate misuse is pervasive: 98 % of surveyed hoteliers reported revenue lost in the past year due to misapplied or misrouted rates.
• Complex distribution chains multiply risk: More than half of hotels work with 4-6 distribution partners, exposing rates to hundreds of indirect channels.
• Wrong partners and resellers amplify leakage: 49 % of wholesale sales are passed to unintended partners, and 48 % of unauthorized resellers publicly post rates.
• Significant revenue impact: On average, hotels estimate 6 % of annual revenue is lost; for large chains, that rises to 7 %.
• High operational cost: Hotels spend ~$40,100 annually managing B2B distribution and report substantial time and resource burdens.
• Expedia’s approach to integrity: Expedia vets B2B partners, actively monitors compliance, and enforces policies to keep in-network rates consistent and protected.
• Growing vigilance needed: As new distribution channels emerge (e.g. AI, social media), hotels must continuously adapt controls to preserve rate integrity.

Get the full story at Expedia