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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title Hotel Rankings of Online Travel Agents, Channel Pricing, and Consumer Protection
Organization Unit
Authors
  • Matthias Hunold
  • Reinhold Kesler
  • Ulrich Laitenberger
Item Subtype Original Work
Refereed Yes
Status Published in final form
Language
  • English
Journal Title Marketing Science
Publisher Institute for Operations Research and the Management Science
Geographical Reach international
ISSN 0732-2399
Volume 39
Number 1
Page Range 92 - 116
Date 2020
Abstract Text We investigate whether online travel agents (OTAs) assign hotels worse positions in their search results if these set lower hotel prices elsewhere. We investigate whether online travel agents (OTAs) assign hotels worse positions in their search results if these set lower hotel prices at other OTAs or on their own websites. We formally characterize how an OTA can use such a strategy to reduce price differentiation across distribution channels. Our empirical analysis shows that the position of a hotel in the search results of OTAs is better when the prices charged by the hotel on other channels are higher. This is consistent with the hypothesis that OTAs alter their search results to discipline hotels for aggressive prices on competing channels, thereby reducing the search quality for consumers.
Digital Object Identifier 10.1287/mksc.2019.1167
Other Identification Number merlin-id:18312
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