Understanding Distribution in Hospitality: Why It Shouldn’t Be a Black Box
Hospitality distribution has long carried a reputation for being complex and difficult to understand. Yet for something so fundamental to selling hotel rooms, the concept itself is surprisingly simple. The confusion comes not from what distribution is, but from how the industry talks about it. At its core, distribution is how a hotel’s product, including rooms, rates, availability, and content, reaches the customer. If a guest can find and book a room online, distribution has done its job. Most people understand this instinctively, even if they might not understand the details of complete hotel distribution. The challenge lies behind the scenes. Over the years, hospitality has tried to simplify distribution through technology, automation, and integration. However, these efforts have created a fragmented ecosystem and data paths that can feel overwhelming at first glance. Distribution has not become more complicated. It has just become harder to see clearly. The focus on how information moves has overshadowed the simpler question of what needs to happen. Our annual Hotel Distribution Chart aims to show how the distribution of inventory and rates moves from the center (the PMS) towards the guest, and the various technology layers that it needs to go through. As distribution systems evolved, investment shifted heavily toward technology. Less attention was paid to the people managing those systems. You can have dozens of integrations running perfectly, but without understanding what they do or why they exist, distribution quickly becomes a black box. Recent industry shifts have made this gap more visible. As experienced professionals have left the workforce, valuable distribution knowledge has gone with them. The systems remain, but the context behind them is fading. The solution is not in more technical detail. It is a stronger foundation. Distribution does not require everyone to understand every system, interface, or workflow. It requires shared clarity on three things: what is being sold, where it is being sold, and how accurately it is represented. When teams start there, distribution becomes far less intimidating and far more effective. In the most basic form, hotel distribution is: As distribution expands beyond rates and inventory into content, payments, and contracts, clarity becomes critical. Investing in education and people is no longer optional. It is essential to preserve knowledge and ensure it is passed on. Learn more: Horizon Distribution: Simplified Global Hotel Visibility In Episode 1 of Shiji’s Hospitality Distribution Chats podcast series, Natalie Kimball spoke with industry leader and HEDNA President Chris Murdoch to explore one of hospitality’s most essential and often misunderstood topics: what distribution really is. Watch the full episode: Hospitality Distribution Chats: What is distribution? – YouTubeWhy Distribution sounds complicated
Technology cannot replace understanding
Start with the fundamentals
Final words
About Shiji Group
Shiji is a global technology company dedicated to providing innovative solutions for the hospitality industry, ensuring seamless operations for hoteliers day and night. Built on the Shiji Platform—the only truly global hotel technology platform—Shiji's cloud-based solutions include property management system, point-of-sale, guest engagement, distribution, payments, and data intelligence for over 91,000 hotels worldwide, including the largest hotel chains. With more than 5,000 employees across the world, Shiji is a trusted partner for the world's leading hoteliers, delivering technology that works as continuously as the industry itself. That's why the best hotels run on Shiji—day and night. While its primary focus is on hospitality, Shiji also serves select customers in food service, retail, and entertainment in certain regions. For more information, visit shijigroup.com.
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