Imagine you’re running a hotel buffet. You’ve prepared a fantastic spread, but instead of inviting guests directly, you rely on a third-party service to bring them in. This service takes a hefty cut for every plate served, controls which dishes are promoted, and sometimes even sells them at a discount without your approval. Meanwhile, guests who would have happily booked with you directly are being funneled through expensive middlemen.

This is exactly what happens when hotels mismanage their distribution strategy. As a former revenue manager for a hotel chain, I’ve seen firsthand how poor distribution decisions lead to lost revenue, rate parity headaches, and a lack of control over pricing and guest relationships.

Despite the sophisticated tools available, many hotels still fall into avoidable traps—over-relying on costly OTAs, neglecting B2B opportunities, or failing to monitor rate integrity. The result? Revenue leakage, reduced profitability, and missed opportunities to build stronger direct sales.

The good news? These mistakes are fixable. By identifying these common pitfalls and implementing smarter strategies, hotels can regain control over their distribution and optimize revenue performance. Let’s explore five of the most common mistakes in hospitality distribution and, more importantly, how to fix them.

1. Over-Reliance on OTAs

While Online Travel Agencies (OTAs) provide increased visibility and bookings, an over-dependence on them can lead to high commission costs and diminished control over guest relationships.

Fix It:

Diversify your distribution mix by implementing direct booking strategies, leveraging metasearch platforms, and engaging in B2B distribution networks. Platforms like HyperGuest facilitate direct connections with demand partners, reducing reliance on high-commission channels.​

2. Neglecting B2B Distribution

Focusing solely on B2C channels means overlooking the potential of travel agencies, tour operators, and corporate travel buyers who can bring in high-value guests. Relying on inefficient legacy systems introduces unnecessary intermediaries.​

Fix It:

Adopt a direct B2B marketplace approach. HyperGuest, for instance, allows hotels to collaborate with demand partners without intermediaries, enabling real-time inventory distribution and pricing control.​

3. Inconsistent Rate Parity Management

Rate undercutting by third-party distributors can frustrate guests who find lower prices on OTAs than on your website, leading to lost direct bookings and revenue leakage.​

Fix It:

Utilize specialized rate shopping tools to identify and address rate disparities by tracing their sources effectively.​

4. Static Pricing and Inventory Management

In today's dynamic market, static pricing models can result in missed revenue opportunities.​

Fix It:

Ensure real-time connectivity between your Property Management System (PMS), channel managers, and distribution partners. HyperGuest integrates seamlessly with major PMS, channel managers, and Central Reservation Systems (CRS), facilitating automatic updates and dynamic pricing adjustments.​

5. Lack of Insight into Performance Metrics

Without measuring distribution performance, opportunities to optimize channels and maximize revenue are often missed.​

Fix It:

Employ real-time reporting and analytics to make data-driven decisions about your distribution strategy. HyperGuest provides deep insights into demand patterns, booking trends, and channel performance, empowering hoteliers with actionable data.​

Final Thoughts: Smarter Distribution is Smarter Revenue

Much like running a successful hotel buffet, managing your distribution strategy requires balance, control, and the right mix of channels. When hotels rely too heavily on OTAs, neglect B2B distribution, struggle with rate parity, ignore dynamic pricing, or fail to track performance, they leave money on the table. Worse yet, they risk weakening their brand, losing guest relationships, and reducing long-term profitability.

The hospitality landscape is evolving rapidly, and distribution must evolve with it. As industry expert Peter O’Connor, Professor at ESSEC Business School, points out:

"Hotels that rely solely on traditional distribution methods are fighting a losing battle. The key to profitability is finding the right mix of direct and indirect channels while maintaining control over pricing and guest relationships."【source】

The good news? These mistakes are not only avoidable—they're fixable, and the reason why HyperGuest was created. The right technology and strategy can help hotels regain control, boost revenue, and strengthen direct sales.