- Expedia: Full connectivity drives hotel performance.
- About 81 percent report improvements in occupancy, ADR or RevPAR.
- However, around 24 percent do not see sufficient benefit.
FULL CONNECTIVITY IS a performance differentiator for hotel properties in revenue, operational efficiency and inventory management, according to Expedia Group. Properties using full connectivity report stronger performance, reduced friction and greater confidence.
The Expedia study, based on insights from 1,500 hotel decision-makers across six markets, examines how levels of connectivity software adoption—full, basic or none—affect workload, channel performance and perceptions of value.
“As booking channels proliferate, travel distribution is becoming increasingly complex, and hoteliers using connectivity providers and API capabilities can automate workflows, streamline operations, reduce pressure on their teams, and improve profitability,” said Chris Hodges, Expedia Group’s vice president for global connectivity and partner solutions. “Our goal is to continue removing friction from travel distribution by developing APIs that address the most critical needs of our hotel partners and connectivity providers.”
Connectivity is a profit driver for hotels, with 81 percent of fully connected properties reporting improvements in occupancy, ADR or RevPAR, compared with 52 percent of properties using basic connectivity.
In addition, 83 percent of fully connected properties say better connectivity improves their bottom line, compared with 55 percent of those using basic connectivity and 26 percent of unconnected properties.
Connectivity also reduces friction and manual work, with 81 percent of decision-makers from fully connected properties reporting reduced friction and manual work from connectivity providers, compared with 49 percent of properties using basic connectivity.
About 50 percent of fully connected properties report OTA tasks are fully or mostly automated, compared with 74 percent of unconnected properties where such tasks are partly or fully manual.
Connectivity also improves control and reduces risk. Around 95 percent of fully connected properties are confident that rate and availability changes are applied across channels within 15 minutes, compared with 90 percent of basic users and 80 percent of unconnected properties.
Unconnected properties are more likely to report OTA issues, including a 14 percent higher risk of overbookings due to mismatched availability and a 9 percent higher risk of reservations not being delivered or delayed in PMS or front office systems.
Approximately 32 percent of hotel decision-makers cite loss of control over pricing or inventory as the main reason for not adopting connectivity software. Around 27 percent plan to adopt but have not yet done so, while 25 percent cite limited IT resources or technical expertise. However, around 24 percent do not see sufficient benefit.
A recent Canary Technologies study found hotels are moving from exploring AI solutions to implementing them, with hoteliers expecting a major impact. They are investing in AI to drive revenue, improve operations and enhance guest experiences.
