July 15, 2025

Why More Hotels Are Turning to Distribution Outsourcing

Here’s why more and more hotels are outsourcing their distribution operations:

1. Save Time and Reduce Errors
2. Get Access to Specialist Knowledge
3. Improve Performance Across All Channels

In short, your distribution becomes more strategic and less reactive.

The distribution landscape for hotels has evolved dramatically over the past decade. What used to be a straightforward process; listing your property on a few key OTAs, has become a fragmented, high-stakes environment where content, pricing, and visibility must be constantly managed and optimised.

In this context, distribution outsourcing for hotels is no longer just a temporary solution or a cost-saving tactic. It’s increasingly seen as a strategic choice for hotels seeking to operate with more focus, precision, and resilience.

Distribution: The Silent Engine Behind Revenue

For many hotel teams, distribution is a behind-the-scenes function that only gets attention when something breaks, availability doesn’t sync, rates appear incorrectly, or parity issues lead to guest complaints.
Yet the truth is: distribution is where revenue strategies come to life. No matter how sophisticated your pricing or marketing approach, it won’t translate into bookings if the channels aren’t properly managed.
And as the number of channels continues to grow; metasearch, wholesalers, dynamic packaging sites, direct booking tools, the margin for error gets smaller.

Why Outsourcing is on the Rise

Over the past few years, we've seen a notable increase in hotels exploring outsourced distribution management. This shift is driven by several trends:

1. Increased Complexity: Channel managers, PMS integrations, rate mapping, OTA algorithms and more. Distribution today requires both technical know-how and commercial understanding. Not every hotel has the internal resources to keep up.

2. Post-Pandemic Restructuring: With smaller teams and shifting responsibilities, many hotels are choosing to outsource specific functions, like distribution, so they can maintain performance without rebuilding large back-office teams.

3. Focus on Strategy Over Admin: Modern hotel teams are expected to be more strategic. By outsourcing repetitive or technical distribution tasks, revenue managers and GMs can spend more time on pricing, segmentation, and demand forecasting.

What Does Good Outsourced Distribution Look Like?

Outsourcing doesn’t mean giving up control, it means bringing in expertise to ensure consistency, quality, and alignment with your revenue goals. At its best, distribution outsourcing becomes a collaborative partnership, where insights flow both ways.
A strong distribution partner will:
Proactively monitor and maintain your presence across channels
Optimise OTA content, pricing structures, and promotions
Flag opportunities or risks based on performance data
Work in sync with your revenue management and marketing efforts

Is Outsourcing Always the Right Move?

Not necessarily. For some hotels with robust in-house teams and well-integrated systems, distribution can remain an internal function. But for many independent hotels, lifestyle brands, or regional groups, outsourcing provides flexibility and peace of mind, especially during periods of change, like switching tech platforms or onboarding new staff.
The decision to outsource should be based on operational needs, staffing structure, and business goals, not just budget.

A Sign of a Maturing Industry

The growing interest in distribution outsourcing for hotels reflects a wider trend: the professionalisation of hotel commercial operations. As hoteliers become more data-driven and tech-savvy, they’re also becoming more comfortable with distributed workflows, external partnerships, and agile team structures.
It’s not just about outsourcing tasks, it is about redefining how modern hotel teams work.
 

Want to learn more about the role of distribution in today’s hotel landscape? At Taktikon, we regularly advise hotels on structuring their commercial teams and making distribution work better, whether in-house, outsourced, or a mix of both.

If you would like to know more about the Outsourcing services Taktikon offers, read here: https://taktikon.com/revenue-outsourcing/

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