Why the Next Phase of Hotel Distribution Will Be Won on Multi-Sourcing Strategy

Managing multiple content sources effectively is becoming central to how suppliers and distributors protect rate integrity, reach target markets, and improve traveler experience.

For decades, global distribution systems (GDSs) have been the foundation of hotel distribution. They’ve provided reach, centralized inventory, and the ability to transact at scale. But as traveler expectations have shifted, the gaps in these systems have become increasingly apparent.

Today’s hotel distribution environment demands more than what a legacy GDS can deliver. Travelers expect rich content, transparent pricing, personalized offers, and a seamless booking experience. Distributors want to differentiate, manage rate plans in real time, and present the right offer to the right customer at the right time. And suppliers want to protect their commercial interests while broadening reach.

This has led to the rise of multi-sourcing, pulling rates, content, and inventory from multiple channels: GDS, direct APIs, wholesalers, aggregators, and others. Done right, it’s a powerful way to offer more choice and better pricing. Done poorly, it creates operational headaches, erodes margins, and undermines commercial agreements.

Why Multi-Sourcing Exists and Why It’s Complicated

GDSs still play a role, but they carry constraints that multi-sourcing was designed to overcome. Rich content is difficult to display on a GDS. Room descriptions are short, fields are rigid, and amenities often go unmentioned. Hotels can’t always highlight key differentiators such as whether they’re adult-only, all-inclusive, or wellness-focused. Distributors end up showing vague descriptions to travelers, creating friction at the point of decision.

Dynamic rate and inventory management is another challenge. GDSs were designed for static pricing. They’ve adapted over time, but geo-targeted promotions, and complex packages are still hard to represent accurately. That can lead to parity issues across channels and lost revenue opportunities.

Multi-sourcing fixes many of these gaps, but it’s far from straightforward. Pulling from multiple sources means juggling different formats, business rules, and connection types. Hotels lose visibility over where their rates appear, distributors risk leakage to other platforms, and both sides face operational complexity that can strain relationships.

The Real-World Risks of Poorly Managed Multi-Sourcing

Consider a distributor that has an agreement to prioritize a specific hotel chain. The distributor also connects to multiple wholesalers. A traveler books through the distributor’s platform, but behind the scenes, the booking gets fulfilled via a wholesaler connected to another marketplace. The booking bypasses the preferred channel entirely.

In another case, a chain distributes inventory to a distributor through multiple intermediaries. One wholesaler passes rates to a secondary marketplace, which undercuts the hotel’s direct price. Not only does the hotel lose rate parity, but its marketing investment in the preferred partnership is diluted.

Both scenarios are common—and both can be avoided with the right technology infrastructure.

How Technology Changes the Equation

Modern technology providers are solving the structural issues that make multi-sourcing so challenging. The goal is simple: give hotels and distributors more control, better visibility, and a cleaner traveler experience.

DerbySoft, for example, works with hotels, suppliers and distribution partners to connect content directly, bypassing intermediaries where it makes sense and preserving preferred relationships. This direct connectivity allows hotels to display complete, unabridged content, images, amenities, detailed room descriptions, without the character limits of a GDS. Distributors can present richer, more accurate data to travelers, making it easier to convert lookers into bookers.

Dynamic inventory management is another area where technology delivers tangible results. Rate changes, promotional offers, and policy updates flow in real time. If a hotel wants to target a specific market with a geo-promotion, that offer can be live across connected channels instantly. Cancellation policies are presented in structured, traveler-friendly formats, reducing booking disputes and improving satisfaction.

Use Case: Protecting Preferred Partnerships

A global distributor wanted to strengthen its partnerships with selected hotel brands while still maintaining a broad multi-sourcing strategy. Using DerbySoft’s connectivity, the distributor could prioritize direct connections to suppliers, ensuring that those bookings flowed through the most commercially beneficial path. At the same time, the platform flagged potential leakage, allowing the distributor to identify when a booking was being fulfilled through a less desirable channel. The result: higher margins for both parties, fewer conflicts over rate parity, and a better traveler experience.

Use Case: Unlocking Rich Content for Conversion

A regional hotel group struggled to differentiate its properties on GDS platforms due to strict content limits. Through DerbySoft’s technology, the group could supply high-resolution images, complete amenity lists, and detailed room descriptions to its distribution partners. Distributors could then display this information on their consumer-facing platforms, leading to higher engagement and conversion rates. For the hotels, this meant competing on experience and value—not just price.

Final Thought

The complexity of multi-sourcing isn’t going away. In fact, as the distribution ecosystem expands, the challenge will grow. The winners will be those who treat technology not just as a connector, but as a strategic asset—one that protects commercial relationships, delivers transparency, and keeps pace with traveler expectations.

Legacy systems like the GDS will remain part of the mix, but they can no longer carry the entire load. Multi-sourcing without the right controls leads to leakage, parity problems, and inefficiencies. Multi-sourcing with the right technology transforms distribution into a driver of growth.

For suppliers and distributors alike, the message is clear: if you want multi-sourcing to work for you—not against you—it’s time to invest in the infrastructure that makes it possible.

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.