The NYU School of Professional Studies (NYU SPS) Jonathan M. Tisch Center of Hospitality, in collaboration with RateGain Travel Technologies and HEDNA, has released the second edition of its benchmark industry report — The State of Distribution 2025.
Billed as the most comprehensive study in the hospitality space, the report gathers insights from over 700 hotel brands and more than 21,000 properties across 310 cities, offering a detailed look at how commercial teams are transforming operations through the integration of marketing, revenue management, and distribution.
Unlike its inaugural edition, which primarily examined the trajectory of distribution teams, the 2025 edition emphasizes the increasing convergence of commercial functions. It highlights how collaboration across departments is reshaping priorities, enhancing capabilities, and driving the adoption of technology, including artificial intelligence.
Key findings from the report reveal:
AI adoption is still in its infancy: Despite growing interest, investments in AI remain limited due to training gaps, talent shortages, and lack of system readiness.
Diverging commercial strategies: While independent hotels are experimenting with new tech and expanding teams, larger chains are focused on operational efficiency and system consolidation.
Distribution roles are streamlining: Teams are becoming leaner even as challenges around parity, APIs, and content complexity grow.
Reporting inefficiencies persist: Nearly 80% of hotels spend up to two days a week on manual reporting, highlighting a need for more advanced analytics tools.
System integration remains a key hurdle: Breaking down data silos and enabling better cross-functional collaboration is a common priority across hotel sizes.
Christopher Murdock, HEDNA President and Director at Accor, said the report continues to fill a critical void in the industry by offering essential benchmarking data. “The findings make a strong business case for investing in both technology and talent,” he noted.
Dr. Vanja Bogicevic of NYU SPS echoed this sentiment, emphasizing that technology alone is not enough. “Without proper investment in people, progress stalls,” she said, calling the report a “blueprint for developing the next generation of hospitality leaders.”
Ankit Chaturvedi, VP of Marketing at RateGain, added that the robust response to the survey confirms the industry’s hunger for data-driven insights. “To adopt AI effectively across commercial functions, leaders first need a unified understanding of how each function is evolving,” he said.
Ultimately, The State of Distribution 2025 stresses that while technology is a key enabler, success in hospitality will hinge on readiness, integration, and coordinated action.