In Brief: New research from Expedia Group surveying 1,500 hotel decision-makers across six markets finds that hotels using full connectivity software experience stronger revenue performance, reduced manual work, and lower operational risks compared to those with basic or no connectivity.
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Full Connectivity Drives Hotel Revenue and Efficiency, Expedia Group Study Shows – Image Credit Unsplash+
Expedia Group released a global study examining how varying levels of connectivity software adoption* impact hotel operations and revenue. The research included responses from 1,500 hotel decision makers representing independent hotels, franchises, and mid-to-large chains across six markets. The study compared properties with full, basic, and no connectivity, focusing on workload, channel performance, and perceived value.
Key Findings on Revenue and Performance
The study found that 81% of fully connected hotels reported improvements in key revenue metrics, including occupancy, average daily rate (ADR), and revenue per available room (RevPAR). In comparison, only 52% of hotels with basic connectivity and 26% of unconnected properties reported similar improvements. Additionally, 83% of fully connected hotels believe that better connectivity positively impacts their bottom line, compared to 55% of those with basic connectivity.
Operational Efficiency and Automation
Hotels with full connectivity reported significant reductions in manual work and operational friction. According to the research, 81% of decision-makers at fully connected properties said that working with a connectivity provider reduced both friction and manual tasks. In contrast, only 49% of those with basic connectivity reported similar benefits. The study also noted that about 74% of unconnected properties still perform tasks on online travel agencies (OTAs) either partially or entirely manually, while roughly half of fully connected properties have automated most or all OTA-related tasks.
Control and Risk Management
Confidence in managing rates and availability across channels was higher among fully connected hotels. The study found that 95% of fully connected properties felt confident that changes in rates and availability were reflected across all channels within 15 minutes. This confidence dropped to 90% for basic connectivity and 80% for unconnected properties. Unconnected hotels also faced higher risks, with a 14% higher likelihood of overbooking and a 9% higher likelihood of reservation delivery delays.
Barriers to Connectivity Adoption
Despite the reported benefits, some hotels remain hesitant to adopt connectivity software. The main concern, cited by 32% of respondents, was the potential loss of control over pricing or inventory. Other barriers included limited internal IT resources or technical expertise (25%) and a lack of perceived benefit (24%). Additionally, 27% of respondents indicated plans to adopt connectivity but had not yet done so.
Expedia Group’s Approach to Supporting Hotels
Expedia Group outlined a three-phase plan to help hotels transition to full connectivity through what it calls Autonomous Distribution. The phases include Autonomous Onboarding, which aims to enable properties to go live quickly; Autonomous Management, which focuses on streamlining daily operations; and Autonomous Optimization, which seeks to enhance performance through promotional tools and expanded distribution.
Conclusion
The Expedia Group study highlights the operational and financial advantages of full connectivity for hotels. While some barriers to adoption remain, the data suggests that hotels investing in advanced connectivity solutions can expect improved revenue, greater efficiency, and reduced risk.
* Full connectivity is the seamless integration of a hotel’s core technology systems—PMS, revenue management, distribution, guest engagement, and payments—so that data flows automatically across the entire operation, reducing manual work and enabling better revenue performance.