Expedia Group Inc. has recently released significant global research that underscores the critical role of full connectivity for hotels in enhancing revenue performance and operational efficiency. The findings, which stem from insights gathered from 1,500 hotel decision-makers across various markets, reveal that properties leveraging comprehensive connectivity solutions experience less friction in operations and greater confidence in their business performance.

Chris Hodges, Vice President of Global Connectivity & Partner Solutions at Expedia Group, emphasized the importance of connectivity in a rapidly evolving travel distribution landscape. "As booking channels proliferate, travel distribution is becoming increasingly complex," he stated. He further noted that hotels employing connectivity providers and API capabilities can automate workflows, streamline operations, and significantly boost profitability.

2. Connectivity as a Revenue Driver

The research findings present compelling evidence of the advantages associated with full connectivity:

81% of fully connected properties report improvements in occupancy, average daily rate (ADR), or revenue per available room (RevPAR).

In comparison, only 52% of properties utilizing basic connectivity experience similar enhancements.

Additionally, a striking 83% of fully connected properties assert that better connectivity positively impacts their bottom line, compared to just 55% with basic connectivity and a mere 26% of unconnected properties.

These statistics highlight how integral connectivity has become in driving financial success for hotels.

3. Reducing Friction and Time Consumption

The survey also indicates that connectivity significantly alleviates operational friction:

81% of decision-makers from fully connected properties reported reduced friction and manual workload through their connectivity provider, compared to 49% of basic connectivity users.

Notably, around 74% of unconnected properties still perform tasks manually on Online Travel Agents (OTAs), leading to inefficiencies.

Conversely, approximately 50% of fully connected properties have fully or mostly automated their tasks on OTAs, showcasing the time-saving benefits of connectivity.

This reduction in manual tasks not only streamlines operations but also allows hotel staff to focus on enhancing guest experiences.

4. Enhanced Control and Reduced Risks

The confidence levels among fully connected properties are noteworthy:

95% of fully connected properties believe they can make rate and availability changes across all channels within 15 minutes, compared to 90% of basic connectivity properties and 80% of unconnected properties.

Furthermore, unconnected properties face increased risks, with 14% being more prone to overbookings due to mismatched availability and 9% encountering delays in reservations being processed in their Property Management Systems (PMS).

These findings underscore the importance of adopting connectivity solutions to mitigate risks associated with overbookings and operational delays.

5. Barriers to Connectivity Adoption

Despite the evident advantages, some barriers remain concerning the adoption of connectivity solutions:

32% of hotel decision-makers expressed concerns about losing control over pricing or inventory as a primary reason for not adopting connectivity software.

27% have indicated plans to adopt but are yet to implement, while 25% cited limited internal IT resources or technical expertise as obstacles.

Notably, 24% of hoteliers do not perceive sufficient benefits from connectivity, suggesting a need for greater awareness and education on the advantages.

6. Expedia Group's Commitment to Supporting Hotels

In response to these challenges, Expedia Group is launching a three-phase initiative aimed at simplifying the journey towards full connectivity for hotels:

Autonomous Onboarding: This phase will facilitate rapid onboarding processes, enabling properties to go live in minutes.

Autonomous Management: Focused on streamlining daily operations through advanced software solutions.

Autonomous Optimization: This will enhance hotel performance through promotional levers and expanded distribution strategies.

Through these initiatives, Expedia Group aims to empower hotel partners and maximize their potential in a competitive market.

7. Conclusion

Expedia Group’s research provides valuable insights into the benefits of full connectivity for hotels, demonstrating its critical role in enhancing revenue performance, reducing operational friction, and improving overall efficiency. As the travel landscape continues to evolve, the emphasis on connectivity becomes increasingly vital for hotels to thrive and provide exceptional guest experiences. The company’s commitment to supporting its partners on this journey further cements its position as a leader in the global travel marketplace.

Original press release