Reimagining Hotel Distribution Without Contracts

Imagine a world where hotel distribution operates with seamless efficiency, effortlessly connecting properties with the right partners in real-time. This isn’t just an aspiration; it’s the direction the industry is heading. As travel continues to evolve at an unprecedented pace, hotels—whether independent or part of global chains—must rethink how they engage with distribution networks to stay competitive. Traditional models, built on direct contracts and negotiated agreements, have long been reliable methods for securing distribution. However, these approaches can also introduce significant complexity, require extensive resources to manage, and add costs that reduce flexibility.

For years, securing and maintaining distribution agreements has been an essential aspect of hotel operations. These agreements provide stability and structure but can also create logistical hurdles, making it difficult to efficiently manage relationships with multiple partners, each with their own requirements and pricing structures. One 2024 study found that direct booking channels, including hotel websites, still account for 50.9% of overnight stays in Europe, but electronic distribution channels such as OTAs and internet booking engines now make up 45.1%. This shift signals an increasing reliance on digital distribution, emphasizing the need for more seamless, adaptable approaches.

A new distribution model is emerging—one that simplifies the connection process between hotels and their partners while maintaining the advantages of strong partnerships. By shifting toward seamless integration, hotels can access a global network without the administrative burdens of direct contracts, allowing them to focus on what truly matters: optimizing revenue and delivering exceptional guest experiences. According to a recent report, digital channels now account for 60% of global distribution revenue, underscoring the growing dominance of digital solutions in the hospitality industry.

This evolution in distribution isn’t just about streamlining operations; it’s about creating a more dynamic and collaborative ecosystem. Reducing contractual complexities allows hotels to respond more quickly to market changes. Distributors, in turn, benefit from simplified supplier management, eliminating time-consuming negotiations and accelerating access to inventory. This refined approach fosters greater transparency, enabling both parties to build stronger, more flexible partnerships.

Beyond cost efficiency, this shift empowers hoteliers with greater control and visibility. Transparent pricing structures and real-time performance insights allow for more informed decision-making without constraints. Skift Research projects that by 2030, direct digital channels will surpass OTAs, generating over $400 billion in global hotel gross bookings, further reinforcing the need for hotels to adopt more adaptable and transparent distribution strategies.

The hospitality industry is at a turning point. Hotels that embrace this shift toward simplicity, transparency, and seamless collaboration will not only position themselves ahead of the competition but will also unlock new growth opportunities. What happens when we strip away the layers of complexity and redefine distribution? The answer may very well shape the future of hospitality in the digital age.

Distribution Simplified: The DerbySoft Exchange Advantage

In today’s complex hospitality landscape, time has become the ultimate luxury. The most successful hotels aren’t necessarily those with the most resources, but those who deploy them most strategically.

DerbySoft Exchange offers a more straightforward approach to distribution. By eliminating traditional contracting processes through zero-cost connectivity, hotels can redirect valuable time and attention toward revenue-generating activities and guest experience enhancements.

The real advantage lies in the control it returns to hoteliers. With the ability to instantly manage distributors affecting rate parity or block status, teams gain the agility needed in today’s dynamic marketplace. This combination of simplicity and control creates ideal conditions for innovation and growth.

Seamless integration with existing payment systems reduces operational friction, while intuitive dashboards provide the real-time insights needed for informed decision-making.

In an industry where complexity can often be often misconstrued as innovation, sometimes the most powerful strategy is simplification itself.

About the Author

Duane Overgaard is the Divisional CEO, Hospitality, of DerbySoft. With over 30 years of experience in the hospitality industry, he has a diverse skill set that includes account management, business development, and contract negotiation. Duane has held various leadership positions at renowned companies such as Sabre Corporation, Wyndham International, and Hilton Hotels & Resorts, where he has demonstrated expertise in hotel management and marketing strategy. He is known for his strong team-building and competitive analysis skills. Duane is currently based in the Dallas area of the United States.