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Inside the Complex Journey of Hotel Rates – By Steve Quan – Image Credit Unsplash
Explore the hidden stories behind hotel pricing and what it means for hoteliers
Every hotel rate has a story. Some are mysteries — and many of those are cases of missing revenue.
According to a new Expedia Group survey of more than 2,000 hoteliers worldwide, almost all (98%) reported revenue loss in the past year due to rate misuse. Incidents of revenue loss occurred an average of eight times per month.*
The research comes from an investigation launched by Expedia Group — which has one of the largest B2B ecosystems for hoteliers in the world — to better understand and uncover the impacts of a fragmented wholesale distribution landscape. It was conducted in the USA, Canada, Mexico, UK, France, Germany, Australia, and Japan, spanning a range of hotel sizes — independent hotels, small groups, and mid-size and large chains.
At its origin, a hotel rate is clear and controlled. The hotel revenue manager carefully aligns it with the hotel’s strategy and seasonal demand, prepping it for prospective travelers. But the moment it leaves that entry point, the trail quickly branches into a maze of separate paths. A single rate can move through online travel agencies (OTAs), wholesalers, redistributors, and bed banks — multiplying touchpoints and opening the door for misuse. According to the research, more than half (52%) of the hoteliers surveyed now work with four to six connected distribution partners, opening access to hundreds, if not thousands, of indirect channels.
As the research shows, rates are vulnerable in such a vast network. Rates may be marked up incorrectly, misapplied, or sold where they were never meant to appear. Our investigation was launched to answer an urgent question: Where does complexity in the B2B ecosystem open the door to this rate misuse and put hotel revenue at risk?
98% of 2,000 hoteliers surveyed reported revenue loss due to rate misuse.
Our research revealed that rate misuse is rarely the result of a single failure. It’s the byproduct of multiple complexities across a vast, fragmented ecosystem.
49% of wholesale sales go to unintended partners – When wholesalers pass rates to unintended partners, they create blind spots for hoteliers and can cause rates to appear on channels where they shouldn’t be.
49% of rate loading errors are caused by human mistakes – In a complex distribution system, one mistake — like wrong data, misapplied restrictions, or overlooked updates — can cause incorrect rates to spread quickly.
48% of unauthorized resellers post rates publicly – When wholesalers pass rates to unintended partners, they create blind spots for hoteliers and can cause rates to appear on channels where they shouldn’t be.
The evidence reveals a story of significant financial damage. On average, hoteliers estimate 6% of revenue has been lost to rate leakage in the past 12 months — a figure that jumps to 7% for large chains. While that may seem like a small percentage, that can add up to staggering annual losses, hitting the millions in some cases.
Beyond revenue, the operational toll of overseeing rates is steep. Hotel teams face the constant strain of updating rates, running manual parity checks, and firefighting against undercutting. On average, respondents spend $40,100 annually managing B2B distribution, while 77% reported high or medium time-cost burdens. This drains time and resources that could otherwise be spent on improving guest experiences and growth.
$40K on average is spent managing B2B distribution.
6% of revenue was reportedly lost to rate leakage over the last year.
Our investigation showed how easily rates can drift off course, but it also revealed a clear path forward. Expedia Group serves as the enforcement arm for hoteliers, ensuring every rate moves safely and consistently across our trusted network of more than 70,000 vetted partners. These partners include some of the largest financial institutions, corporate traveler management companies, airlines, and more.
Through our global B2B distribution network, hoteliers also gain extended reach and access to high-intent travelers at no additional cost and effort. These travelers book further in advance, stay longer, and spend more. And hotels see nearly 10% more midweek room nights by quality travelers. Additionally, over two-thirds of bookings from our B2B network come from non-U.S. travelers.
To further optimize B2B reach and bookings, eligible hotels can enroll in B2B Distribution rates, which incentivize network partners to highlight their inventory to travelers. Since launching, more than 39,000 hotel properties have joined the program and over 70 chains have fully participated or are in trial. For example, Accor Group partnered with Expedia Group to simplify its leisure distribution.
Together, this trusted distribution and B2B reach create a reliable, scalable way to protect rate integrity while capturing global demand.
In this complex environment, Expedia Group acts as both investigator and guardian: uncovering misuse, removing bad actors, and upholding fair, consistent pricing for travelers. By setting a higher standard for compliance, we help hotels safeguard their brand while ensuring guests book with confidence.
We recognize the complexity of the B2B ecosystem. With hoteliers increasingly wanting more control over which partners receive their rates, Expedia Group provides the safeguards and oversight to keep rates on track once they enter the network. Once a rate leaves our network, we cannot control what happens to it. Within it, we set the standard for integrity and consistency.
The road ahead
The investigation is never over. New distribution channels are emerging daily — from social media integrations and AI platforms to evolving reseller models. Expedia Group’s mission is to carefully vet each new connection, protecting integrity while opening new opportunities for hotels to grow.
For hoteliers, the stakes couldn’t be higher. Rates that stray from their intended path erode trust and drain revenue. Under Expedia Group’s stewardship, hoteliers can be confident their rates within the network will stay protected, consistent, and as profitable as possible.
Steve Quan
Steve Quan – Business Development & Strategic Partnerships Executive, Lawyer, Angel Investor, and Part-time VC. Connect with Steve on LinkedIn.
*The research was conducted by Censuswide, with responses from 2,003 hoteliers across the USA, Canada, Mexico, UK, France, Germany, Australia, and Japan. 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 08.08.2025 – 13.08.2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.
This article originally appeared on Expedia Group.
