Report Overview and Methodology

RateGain Travel Technologies Limited, in collaboration with NYU SPS Jonathan M. Tisch Center of Hospitality and HEDNA, released the third edition of The State of Distribution 2026 industry benchmark report. The report represents one of the most comprehensive views into how commercial teams across the hospitality industry are navigating technology investment, AI adoption, distribution complexity, and changing traveler behavior.

The research is based on insights from over 270 hotel brands and 58,000+ properties across 141 cities and 53 countries. The 2026 survey examines hotel commercial operations for the period from December 1, 2024, to November 30, 2025. Respondents represented four core commercial disciplines: revenue management, marketing, distribution, and sales. The analysis compares independent hotels, mid-sized hotel chains, and large hotel chains to understand how technology adoption, operating models, and commercial challenges vary by organizational scale.

Key Findings from The State of Distribution 2026 Report

1. AI Adoption vs. Impact Gap

  • More than half of hotels now use or are procuring generative AI
  • Fewer than one in ten hotels report reductions in manual work by more than 30 percent
  • Most hotels are seeing small gains rather than a change in how their teams operate
  • Trust, data privacy, and governance gaps are creating a ceiling on AI autonomy
  • Hotels are increasingly willing to use AI for assistance but remain cautious about allowing it to make decisions or act independently

2. Technology Investment Trends

  • Technology budgets are rising for most hotels
  • Leading priorities are improving existing systems, increasing productivity, and reducing integration and vendor complexity rather than adding new platforms
  • Market is evolving from systems of record to systems of work that help commercial teams interpret signals, coordinate decisions, and act with greater confidence

3. Operational Inefficiencies

  • More than 80 percent of commercial teams still spend one to two days a week producing and analyzing reports manually
  • Fewer than 30 percent have invested in dedicated reporting tools
  • Hotel commercial teams are becoming more connected, but their data remains fragmented due to disconnected systems, disparate data, and vendor fragmentation

4. Distribution Channel Performance

  • Core direct-booking infrastructure is nearly universal
  • OTAs generate close to twice the bookings of hotel-owned digital channels
  • AI-originated search now contributes a measurable share of reservations
  • 55 percent of hotels report no or only a minor change to their distribution strategy

5. Mid-Sized Hotel Chain Advantage

  • Mid-sized chains appear large enough to invest in systems and specialist capabilities, but agile enough to avoid silos and integration complexity affecting larger chains
  • Report stronger cross-functional alignment, greater reporting automation, and more mature AI governance
  • Show the highest incidence of meaningful AI-led reductions in manual work

Expanded Research Scope

The 2026 edition expands the benchmark into several new areas including:

  • Generative AI
  • Trust and governance
  • Zero-click search
  • Booking attribution
  • Traveler intent
  • Behavioral pricing
  • Data privacy
  • Regulatory compliance

The report retains common measures that support meaningful comparisons across editions, having first launched in 2024.

Executive Commentary

Bhanu Chopra, Founder and Managing Director, RateGain stated: "Buying AI is easy. Getting value from it is not, and this report shows most of the industry is still stuck between the two. The advantage will not go to the hotels with the most tools. It will go to the ones that turn their technology into better decisions and give their teams their time back."

Vanja Bogicevic, Clinical Associate Professor and Director of HI Hub Exchange, NYU SPS added: "This third edition reflects how quickly hotel commercial operations are evolving. AI is reshaping how travelers discover hotels, how commercial teams work, and how pricing and demand decisions are made."

Lisa Murphy, HEDNA President commented: "Unbiased data beats hype. HEDNA exists to give our industry a shared, honest picture of where distribution stands and why it matters. Three years of this research show that commercial teams are becoming more connected and technology investment is growing, yet fragmented systems and manual work remain deeply embedded."

Report Availability

The State of Distribution 2026 was launched at HEDNA Lisbon. The report is available at www.stateofdistribution.com.