The influence from the Hotel Category and Size in the commercial relation with intermediaries

Abstract

This study analyzes the influence of the size and category of urban hotels on their commercial relationship with the main distribution channels (Direct, Booking.com, Expedia, and Hotelbeds), within a competitive urban context such as Madrid. Using a quantitative and correlational approach, data were collected from 50 hotels of 3, 4, and 5 stars during 2022 and 2023. Descriptive analyses, non-parametric tests, and logarithmic regression models were applied to measure correlations, increases in roomnights per available room, and channel elasticities. The results reveal significant positive correlations between hotel size/category and booking volume. Larger and higher-category hotels generate more roomnights across all channels, with a pronounced association with Expedia and Booking.com. Expedia and Hotelbeds exhibited greater elasticity and sensitivity to increases in hotel size, while Booking.com and the Direct channel demonstrated more stable behavior. In practical terms, for each additional room, between 28 and 68 additional roomnights were generated, depending on the channel and the year. The study concludes that hotels must design differentiated distribution strategies: larger establishments can prioritize sensitive channels like Expedia and Hotelbeds, while smaller hotels should focus on more stable channels such as Direct and Booking.com.