The NYU School of Professional Studies (NYU SPS) Jonathan M. Tisch Center of Hospitality, its Hospitality Innovation Hub (HI Hub), RateGain Travel Technologies Limited, and HEDNA have jointly released the second edition of The State of Distribution 2025 report. Based on data from over 700 hotel brands and more than 21,000 properties in 310 cities, the report provides a detailed analysis of how commercial teams in the hospitality sector are adapting to ongoing changes in distribution and commercial operations.
Building on the first edition launched last year, which examined the direction of hotel distribution teams, the 2025 edition reflects a shift toward integrated commercial operations. It emphasizes that distribution is no longer treated as a siloed function. Instead, it is now increasingly connected with revenue management and marketing to enhance performance and efficiency.
The report outlines the current state of readiness in adopting emerging technologies, particularly artificial intelligence. While AI has the potential to significantly improve guest engagement and operational outcomes, the industry is still in the early stages of implementing it effectively. Gaps in training, integration, and talent remain key challenges, even though the tools themselves are widely available.
Variations in commercial strategies are evident across hotel types. Independent hotels are actively experimenting with new technologies and expanding their commercial teams. In contrast, larger hotel chains are focusing on consolidating systems and streamlining operations to reduce complexity. Distribution functions continue to evolve toward leaner structures, even as the demands of managing content, APIs, and rate parity increase.
Reporting continues to be a manual burden for many hotels. A significant portion of hotel teams reportedly spends up to two days per week on reporting activities, pointing to a need for tools better suited for distribution-specific analytics. System integration also remains a priority as hotels work to improve data connectivity and enable stronger collaboration across departments.
As guest expectations continue to grow, the ability to align people, processes, and technology is becoming increasingly central to competitive performance. The 2025 report captures a hospitality industry in transition—where commercial transformation is redefining how hotels approach distribution and operational planning.
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