The Untold Story of Rate Misuse

Expedia Group Research Highlights How Centralized 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.

SEATTLE, WA - September 30, 2025 - 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 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."

Expedia Group's global B2B network connects hotels with 70,000 vetted partners worldwide, helping properties reach high-value traveler segments who book earlier, stay longer, and spend more. By enrolling in B2B Distribution Rates, on a preferred setup, eligible hotels can further streamline rate distribution, ensure consistent pricing, and unlock more bookings across global channels - all while saving time and maintaining control.

For deeper insights and practical implications of the research, read the blog: "Inside the Complex Journey of Hotel Rates"

About the survey
The survey was conducted by Expedia Group in August 2025, targeting professionals responsible for revenue management across hotels in eight markets: the US, Canada, Mexico, the UK, France, Germany, Australia, and Japan. It explores rate leakage frequency, causes, financial impact, resource allocation, and attitudes toward emerging centralized distribution platforms. Respondents represent independent hotels, small groups (<50 properties), mid-size chains (51-500 properties), and large chains (over 500 properties). The data was collected between 08.08.25-13.08.25.

Media contact: [email protected]

About Expedia Group

Expedia Group, Inc. brands power travel for everyone, everywhere through our global platform. Driven by the core belief that travel is a force for good, Expedia Group™ helps people experience the world in new ways and build lasting connections.

Expedia Group's three flagship consumer brands are Expedia®, Hotels.com®, and Vrbo®. Its B2B arm, Private Label Solutions, delivers industry-leading technology solutions to fuel partner growth and success, while facilitating memorable experiences for travelers. Expedia Group Advertising helps partners extend their reach and connect with travelers across its travel sites and a broad range of offsite channels through its travel media network.

© 2025 Expedia, Inc., an Expedia Group company. All rights reserved. Expedia Group and the Expedia Group logo are trademarks of Expedia, Inc. CST: 2029030-50.

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