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Article
Publication date: 6 November 2023

Chi-Jen Chen

Channel coordination has become an essential part of researching hotel supply chain management practices. This paper develops an improved channel coordination approach to…

Abstract

Purpose

Channel coordination has become an essential part of researching hotel supply chain management practices. This paper develops an improved channel coordination approach to coordinate the profit distribution between hotels and online travel agencies (OTAs) achieved through an introduction of advertising fees. This direction further improves the decentralization of cooperation and achieves Pareto improvement to achieve mutual profitability.

Design/methodology/approach

The methodology used in this study involves Stackelberg game theory employed for the decision-making and analysis of both the hotel and OTA. The OTA, acting as the leader, offers a hotel a contract specifying the commission rate that the hotel will pay to the respective OTA. The hotel, acting as a follower, sets a self-interested room rate as a given response. A deterministic, price-sensitive linear demand function is utilized to derive possible analytical solutions once centralized, noncooperative decentralization and cooperative decentralized channel occurs.

Findings

Results show that a new channel coordination approach is possible, namely via advertising fees. Prior to channel coordination, the OTA tends to set a higher commission rate, and the hotel sets a higher room rate in response under noncooperative decentralization. As such, this results in a lower channel-wide profit for all. One way to reduce channel-wide profit loss is to use a method of cooperative decentralization, which can, and will result in optimal profit as centralization takes place. However, the lack of incentives makes cooperative decentralization unfeasible. Further improvement is possible by using advertising fees based on a cooperative decentralization agreement, which can reach Pareto improvement.

Practical implications

This paper helps the OTA industry and hotel owners cooperate by way of smoother coordination. This study provides practitioners with two important practical implications. The first one is that the coordination between the hotel industry and OTA through cooperative decentralization allows for the achievement of higher profitability than that of noncooperative decentralization. The second one is that this paper solves the outstanding problem of insufficient incentives characteristic of cooperative decentralization by means of an advertising fee as a new supply chain coordination approach.

Originality/value

This paper offers both the problem and solution regarding the lack of incentives that hamper cooperative decentralization without the use of advertising fees. This paper is unique in that it derives analytical solutions regarding commissions levied in a typical hotel supply chain under noncooperative decentralization.

Details

Journal of Hospitality and Tourism Insights, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9792

Keywords

Open Access
Article
Publication date: 14 July 2023

Ana Isabel Polo Peña, Hazel Andrews and Victor Morales Fernández

Online travel agencies (OTAs) have an important role to play in reactivating tourism activity following a health crisis by providing information about the health conditions of…

Abstract

Purpose

Online travel agencies (OTAs) have an important role to play in reactivating tourism activity following a health crisis by providing information about the health conditions of tourist destinations. Once developed, it is necessary to analyze the effectiveness of the information provided and ascertain whether the provision of such information effects the understanding of the value of using OTAs and, in turn, the intention to do so.

Design/methodology/approach

This paper, based on an empirical case study conducted during the COVID-19 pandemic, examines whether following a health crisis, the quality of information provided by OTAs on the health conditions of tourist destinations and the perceived value of their offer generate a greater OTA services reuse intention, and signals, therefore, a return to travel.

Findings

The results show the quality of the information positively influences the perceived value, but not the OTA services reuse intention. Rather, the perceived value positively influences the OTA services reuse intention.

Practical implications

Overall, it can be suggested that providing quality health information for a destination is a necessary strategy because it contributes to increasing the perceived value of OTAs. To incentivize the intention for repeated use of OTA services, it is necessary to consider the perceived value that influences the intention to make repeat OTA reservations.

Originality/value

This research offers a novel perspective about the OTAs’ contribution to the recovery of the activity of the tourism industry after a health crisis. This contributes to achieving a more resilient sector in the face of future health crises.

Details

Journal of Humanities and Applied Social Sciences, vol. 5 no. 4
Type: Research Article
ISSN: 2632-279X

Keywords

Article
Publication date: 14 June 2021

Saddam Abdullah, Philippe Van Cauwenberge, Heidi Vander Bauwhede and Peter O’Connor

This study aims to assess if the benefits outweigh the costs of participation in online travel agencies (OTAs) such as Booking.com.

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Abstract

Purpose

This study aims to assess if the benefits outweigh the costs of participation in online travel agencies (OTAs) such as Booking.com.

Design/methodology/approach

A two-step system generalised method of moments estimation of a regression model of firm-level return on assets (ROA) is used on a dummy variable indicating whether a lodging facility participates in Booking.com. The assessment contained various control variables, including size, age, leverage, liquidity and lagged ROA. The moderating effect of firm age and size was studied by including interaction variables between the Booking.com dummy and age and size, respectively. The model was estimated using participation and financial data of 775 Belgian firms over a 20-year period (1999–2018).

Findings

The findings indicate that participation in Booking.com is associated with higher profitability, with this effect more economically important and pronounced for smaller hotel properties.

Research limitations/implications

The study provides a broadly applicable empirical model to assess the impact of platform participation on the financial performance of tourism, hospitality or retail businesses.

Practical implications

The study provides empirical evidence that, from a transaction cost perspective, the benefits of participation in OTAs outweigh the costs, resulting in substantially higher profitability. The evidence can be used to justify the use of OTAs as distribution channels.

Originality/value

While prior studies have described and conceptually analysed the evolution and role of OTAs in the hotel sector, and speculated on the net effect of OTA participation, to the best of the authors’ knowledge, this is the first study to empirically assess whether OTA participation creates value for hotel owners and investors.

设计/方法/途径

本文采用了两步系统GMM的估计方法, 用一个虚拟变量指示住宿设施是否参与了Booking.com, 以确定企业级别的资产回报率(ROA)的回归模型。评估涵盖了多种控制变量, 包括公司规模, 年限, 杠杆, 流动性和滞后资产回报率。企业年龄和规模的调节作用是通过加入Booking.com虚拟变量与年龄和规模之间的交互变量实现的。该模型是使用20年(1999–2018年)间775家比利时公司的参与和财务数据估算得出的。

目的

本文目的是评估收益是否超过了参与Booking.com等在线旅行社(OTA)的成本。

结果

研究结果表明, 参与Booking.com与更高的获利能力相关联。这种影响在经济上更加重要, 并且对于较小的酒店物业而言更为明显。

研究贡献

该研究提供了广泛适用的经验模型, 以评估平台参与对旅游业, 酒店业或零售业的财务绩效的影响。

实际应用

该研究提供了重要的实证依据。从交易成本的角度来看, 参与OTA的收益大于成本, 从而大大提高了盈利能力。该实例证明了使用OTA作为分销渠道是合理的。

原创性/价值

尽管先前的研究已经描述并从概念上分析了OTA在酒店领域的演变和作用, 并推测了OTA参与的净效应, 但据我们所知, 这是第一个凭经验评估OTA参与是否为酒店所有者和投资者创造价值的研究。

Diseño/metodología/enfoque

Una estimación GMM en dos pasos de un modelo de regresión del rendimiento de los activos (ROA) a nivel de empresa sobre una variable ficticia que indica si un establecimiento de alojamiento participa en Booking.com. La evaluación contenía diversas variables de control, como el tamaño, la edad, el apalancamiento, la liquidez y el ROA retardado. El efecto moderador de la edad y el tamaño de la empresa se estudió incluyendo variables de interacción entre la variable ficticia de Booking.com y la edad y el tamaño, respectivamente. El modelo se estimó utilizando datos de participación y financieros de 775 empresas belgas durante un periodo de 20 años (1999–2018).

Objetivo

Evaluar si los beneficios superan los costes de la participación en agencias de viajes online (OTAs) como Booking.com.

Conclusiones

Los resultados indican que la participación en Booking.com está asociada a una mayor rentabilidad, siendo este efecto más importante y pronunciado desde el punto de vista económico para las propiedades hoteleras más pequeñas.

Limitaciones/implicaciones de la investigación

El estudio proporciona un modelo empírico ampliamente aplicable para evaluar el impacto de la participación en la plataforma en los resultados financieros de las empresas turísticas, hoteleras o minoristas.

Implicaciones prácticas

El estudio proporciona pruebas empíricas de que, desde la perspectiva de los costes de transacción, los beneficios de la participación en las OTAs superan los costes, lo que se traduce en una rentabilidad sustancialmente mayor. Las pruebas pueden utilizarse para justificar el uso de las OTAs como canales de distribución.

Originalidad/valor

Aunque estudios anteriores han descrito y analizado conceptualmente la evolución y el papel de las OTAs en el sector hotelero, y han especulado sobre el efecto neto de la participación en las OTAs, hasta donde sabemos, éste es el primero que evalúa empíricamente si la participación en las OTAs crea valor para los propietarios e inversores de hoteles.

Article
Publication date: 27 July 2020

Xingyang Lv, Nian Li, Xiaowei Xu and Yang Yang

With the explosive growth of the Internet, online travel agents (OTAs) have gained an increasing market share in the online booking market. However, OTAs are facing fierce…

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Abstract

Purpose

With the explosive growth of the Internet, online travel agents (OTAs) have gained an increasing market share in the online booking market. However, OTAs are facing fierce competition from hotels' direct booking channels, as well as competition among themselves. Therefore, there is a need for an understanding of the evolution of the OTA market from a dynamic perspective. The purpose of this study is to investigate the long-term effect of OTAs on the hospitality industry and to find whether an equilibrium of this effect exists in the context of e-commerce.

Design/methodology/approach

To gain a better understanding of the OTA market process, a mathematical framework is constructed on the basis of four assumptions. NetLogo 5.1.0 is used to perform a series of numerical simulations.

Findings

The results indicate the following: (1) the development of the OTA market helps to improve net social welfare, but hotels (especially economy hotels) have suffered as a result; (2) clever exploitation of both online and offline channels that are based on hotels' historical data may improve hotels' performance; (3) a scale-priority strategy can be more helpful than a profit-priority strategy for enabling OTAs to maintain their long-term competitiveness; (4) the timing of participation in online-channel competition is a crucial factor in determining whether OTAs can achieve business success.

Social implications

In this study, it is shown how consumer habits have changed since the development of OTAs. The online channels provided by OTAs create a convenient, low-cost user experience, and they consequently improve the net welfare of customers. OTAs should be encouraged appropriately, although some economy hotels may suffer from the rise of OTAs.

Originality/value

In this empirical study, a mathematical framework is developed to describe the process of evolution in the OTA market, and it uses simulations as a means to validate prior research findings. Unlike previous studies, a dynamic perspective is used in this investigation to interpret the emergence of OTAs and to analyze their enormous impact on the hospitality industry. Thus, the findings of this study capture the competitive characteristics of online and offline channels in a network context and indicate potential strategies for the development of OTAs and which hotels may use OTAs to achieve better performance. In addition, the study findings could be easily extended to explain many of the classical economic phenomena regarding firms with intangible products.

Details

Internet Research, vol. 30 no. 6
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 5 October 2010

Ajith Nayar and Srikanth Beldona

Since the advent of non‐proprietary technologies fostered by the internet, the travel distribution model has been subjected to significant changes. One of the primary changes has…

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Abstract

Purpose

Since the advent of non‐proprietary technologies fostered by the internet, the travel distribution model has been subjected to significant changes. One of the primary changes has been the expanding potential of interoperability between systems brought about the advent of extended markup language‐based specifications developed and published by the Open Travel Alliance (OTA). The potential impact of the underlying technology (web services) in use for developing these standards is significant. The purpose of this paper is to evaluate strategic perspectives from key industry players over the potential of this technology and examine the factors pertaining to their adoption.

Design/methodology/approach

Data for this came from a series of 30‐45‐minute interviews with senior executives of four major travel suppliers (included three major hotel chains and one leading car rental company) as well as three major intermediaries (comprised two global distribution system companies and one major online travel agency). Interviews were guided using two types of signposts – conceptual and industry‐level phenomena.

Findings

Findings indicate that suppliers and intermediaries see distinctive levers of advantage from OTA messaging specifications. While suppliers seek to build flexibility to add/delete channels and subsequently leverage greater control over inventory distribution, intermediaries seek to consolidate on their aggregation capabilities through wider content and enhance dynamic packaging as value for end‐customers.

Research limitations/implications

This is a qualitative study comprising in‐depth interviews with a selected few respondents that limit the generalizability of the results. Additionally, the perspective is limited to the larger players in the travel distribution space.

Originality/value

The study is the first in hospitality/travel marketing literature to examine the issues of interoperability specific to a major initiative such as the OTA.

Details

International Journal of Contemporary Hospitality Management, vol. 22 no. 7
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 25 June 2021

Yu Mu, Bart Bossink, Tsvi Vinig and Suchuan You

Research on service innovation management of online travel agencies (OTAs) remains relatively scarce. This study aims to illuminate the detailed components of managing service…

Abstract

Purpose

Research on service innovation management of online travel agencies (OTAs) remains relatively scarce. This study aims to illuminate the detailed components of managing service innovations at OTAs.

Design/methodology/approach

An in-depth case study is conducted at Trip, the largest OTA in China. A coherent framework of managing service innovations at OTAs is proposed through refining an existing framework from new service development (NSD), and concerning the success factors of service innovation. Based on theoretical synthesis and empirical analysis, the NSD framework is adapted, restructured and refined for service innovation management at OTAs.

Findings

The proposed framework contains three facets and associated managerial elements: (1) resources, including stakeholders, technologies and systems; (2) contexts, including innovation strategy, structure and culture; and (3) ideation, including idea generation and idea application. Different success factors are attached to the managerial elements. The facets, managerial elements and success factors serve as the components in the framework.

Research limitations/implications

This study provides academia with an analytical framework to understand and interpret service innovation management at OTAs, which can be used as a point of departure for future research.

Practical implications

The analytical framework inspires OTA managers to adopt a structured approach in service innovation management, and policymakers to design related interventions.

Originality/value

This study offers a first step toward the investigation of service innovation management at OTAs, specifically in China. The proposed framework is potentially applicable to other industries.

研究目的

目前关于在线旅行社(OTA) 的服务创新管理的研究相对贫乏。本研究旨在阐明OTA的服务创新管理的具体元素。

研究设计/方法/途径:

本研究以携程网(中国最大的在线旅行社)为对象进行深入案例分析。通过改善已有的基于新服务开发;理论(NSD), 以及综合服务创新成功要素的理论框架从而提出一项连贯的服务创新管理理论框架。基于理论综合以及实证分析,本研究改编,整合和改善了NSD理论框架从而为在线旅行社的服务创新管理框架所适用。

研究结果:

被提议的理论框架包括三个层面以及相关管理元素:1) 资源,包括利益相关者,科技和系统;2)应用环境,包括创新战略,结构和文化;以及3)构思能力,包括概念生成,概念应用。管理元素与不同的成功要素相结合。这些层面,管理元素和成功因素作为提出框架的组成部分。

研究理论限制/启示:

本研究为学术领域提供了分析框架,从而进一步了解和诠释了在线旅行社的服务创新,从而作为今后研究的起点。

研究实践启示:

本分析框架促使在线旅社管理者在服务创新中借用更加结构化的方法,并且鼓励政策制定者来设计相关的干预措施

研究原创性/价值:

本研究提供了在中国的环境下迈向在线旅社服务创新的第一步。提议的框架对其他产业也存在潜在贡献。

Details

Journal of Hospitality and Tourism Technology, vol. 12 no. 3
Type: Research Article
ISSN: 1757-9880

Keywords

Article
Publication date: 1 February 1992

Deborah Mongeau and Pamela Stoddard

As the 1960s drew to a close, Congress found itself grappling with an increasing array of complex technological issues that it was ill equipped to analyze and that could be the…

Abstract

As the 1960s drew to a close, Congress found itself grappling with an increasing array of complex technological issues that it was ill equipped to analyze and that could be the cause of costly blunders if acted upon incorrectly. To alleviate this situation, the U.S. Office of Technology Assessment (OTA) was created in 1972 under Public Law 92–484 in order to advise Congress on issues in science and technology so that relevant information would be available when pertinent legislation was being developed. Under the leadership of its director John Gibbons, OTA has earned the distinction of providing Congress, that most political of bodies, with timely and objective information without becoming mired in political skirmishes. Despite this distinction, OTA is one of the smallest government agencies, with a budget of twenty million dollars and a staff of 140. Its organization is remarkable for its simplicity. A bipartisan congressional Technology Assessment Board governs the agency overall but appoints the director who has full responsibility for running it. The nine agency divisions are organized according to scientific disciplines and report to the director with little or no intervening bureaucracy. Outside expert advice is available from the Technology Assessment Advisory Council. The result is an organization that is equally balanced politically and scientifically, that is streamlined and efficient, and that allows input from its governing members. This structure also allows great flexibility in the research and production of assessment reports. To do an assessment, OTA deploys its experts to go out and gather the information needed on the wide‐ranging topics it has been commissioned to research. The topics are chosen according to the need and interest of both houses and both political parties. Outside experts are sometimes called upon to do research but OTA exercises the final responsibility over their reports. Factual conclusions and options are presented but opinions are never given. The manner in which the information is acted upon is always left to Congress, a major reason for OTA's success.

Details

Reference Services Review, vol. 20 no. 2
Type: Research Article
ISSN: 0090-7324

Article
Publication date: 2 September 2020

Chien-Che Huang, Yu-Wei Chang, Ping Yu Hsu and Grandys Frieska Prassida

The purpose of this study is to investigate multichannel integration of hotels and online travel agencies (OTAs) and to compare consumer behavior between China and Indonesia in…

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Abstract

Purpose

The purpose of this study is to investigate multichannel integration of hotels and online travel agencies (OTAs) and to compare consumer behavior between China and Indonesia in the context of online to offline (O2O) commerce. We examine how the services, brand and market share of OTAs influence behavioral intentions in both online and offline channels. SERVQUAL, theory of reasoned action and the halo effect are integrated to develop the research model.

Design/methodology/approach

To investigate Chinese and Indonesian customers' experiences and behavioral intention of OTAs and hotels, the customers who booked hotels using OTAs were invited to participate in the questionnaire survey. This study collected 336 and 305 data from China and Indonesia, respectively. A partial least squares structural equation modeling technique was used to test and compare the research hypotheses and model between China and Indonesia.

Findings

The results compare the similarities and differences of cross-country customer experiences and behavioral intentions of OTAs and hotels. The effect of website service quality on online satisfaction, the effect of online satisfaction on offline confirmation and the effects of offline confirmation and booking intention on patronage intention are significant and positive in both countries. Website service quality is positively associated with booking intention for Indonesia but not for China. The relationship between perceived size and booking intention is significant for China but not for Indonesia. The findings provide insights into the development of O2O commerce for global markets and multichannel strategies between OTAs and hotels.

Originality/value

With the development of O2O commerce, increasingly more hoteliers are opening up online and offline sales channels by cooperating with OTAs. Although several cross-country studies have investigated consumer behavior or behavioral intentions, behavioral settings are based on online or offline channels rather than the integration of both channels. Although some research has studied the integration or competition of OTAs and hotels, none of these studies have investigated the issues from the perspective of country comparison. This study provides the understanding of how customers in different countries and with different backgrounds react to the same e-commerce development, especially the cooperation of OTA and hotels.

Details

Industrial Management & Data Systems, vol. 120 no. 12
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 17 May 2013

Khadije Rahimi, Ali Mohamadi Sani and Eisa Gholampour Azizi

The aim of this study was to investigate the presence of ochratoxin A (OTA) in chickpea samples in northern Iran and to study the effect of thermal treatment on ochratoxin content…

Abstract

Purpose

The aim of this study was to investigate the presence of ochratoxin A (OTA) in chickpea samples in northern Iran and to study the effect of thermal treatment on ochratoxin content of the samples.

Design/methodology/approach

For this purpose, 32 chickpea samples were collected from retail stores of four cities in Mazandaran province in the north of Iran. Samples were soaked in potable water and cooked, respectively, for 3.5 and 4 h. Then the raw and cooked samples and the soaking water were analyzed for OTA determination by enzyme linked immunosorbent assay (ELISA) technique.

Findings

Results showed that six raw samples (18.75 per cent) contained detectable amounts of OTA by average concentration of 5.9±3.7 which is lower than national standards. The highest and lowest concentration of OTA in raw samples was 2.1 and 12.5 ppb, so chickpea is not a source for OTA poisoning. Increasing the time of cooking led to slight degradation of OTA but according to statistical analysis and LSD test, only after five hours, thermal treatment caused OTA to degrade significantly (p<0.05). During soaking and thermal processing, leakage of OTA to the water partly occurred so that the OTA content of soaking water is detectable.

Originality/value

Few research studies have been done on OTA detection in legumes and specially chickpea samples in the world and no research has been done to evaluate the effect of cooking process on OTA in chickpea.

Details

Nutrition & Food Science, vol. 43 no. 3
Type: Research Article
ISSN: 0034-6659

Keywords

Article
Publication date: 12 March 2018

Carola Raab, Orie Berezan, Natasa Christodoulidou, Lan Jiang and Stowe Shoemaker

Hoteliers are often frustrated by the significant fees charged for bookings by Online Travel Agents (OTAs), and they try to encourage more direct bookings that circumvent the OTA

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Abstract

Purpose

Hoteliers are often frustrated by the significant fees charged for bookings by Online Travel Agents (OTAs), and they try to encourage more direct bookings that circumvent the OTA system. However, there are billions of dollars of room revenues generated by OTAs every year; and many companies in other industries sell their products through multiple channels. The purpose of this study is to investigate how hotel revenue managers can collaborate successfully with OTAs.

Design/methodology/approach

Qualitative methods are applied in this study, specifically focus groups and in-person interviews with market managers of a leading OTA. Content analysis is performed, using ATLASti 5, to discover emerging themes and categories from the transcripts.

Findings

This study highlights several OTA value propositions and how hotels can benefit from them. Additionally, the findings of this study reveal that effective two-way communication between OTAs and revenue managers is the key to success. An “optimization loop” is established, which specifies that partnership and collaboration between OTAs and hotels must occur in a circular sequence of communication, engagement, collaboration and strategy.

Research limitations/implications

A major limitation for this study is that interviews were conducted only with market managers, limiting the perspective to that of OTAs.

Originality/value

There is a paucity of research and dialogue discussing productive relationships between OTAs and hotel firms. Through in-depth in-person interviews with a diverse set of market managers from a leading OTA, this study brings to light an array of perspectives of what is required to optimize the OTA/hotelier relationship.

研究目的

酒店经营者常常受到在线旅行社(OTA)收取高额预订费用的困扰。酒店试图鼓励客人直接预订房间,绕过OTA程序。然而,每年OTA贡献仍有数以十亿计美金的订房收入; 其他行业的很多公司采用多渠道销售产品。本论文研究目的在于探索酒店经理人们如何能够成功地与OTA合作。

研究设计/方法/途径

本论文采用定性研究方法,主要以小组讨论和个人访谈的形式,与一家行业领先的OTA市场经理们进行深度访谈。本论文借用ATLASti 5 内容分析工具进行样本分析,总结出主题和分类。

研究结果

本论坛提出了多个OTA价值组成,以及酒店如何从中盈利。此外,本论文还指出了OTA和财务经理的有效双向交流的重要性。其中,需要建立“循环展开”(Optimization Loop),即OTA和酒店之间的合作交流需要建立在循环、有序、通畅、以及战略的基础上。

研究理论限制/意义

本论文一个主要的理论限制就是只采访了OTA的市场经理。

研究原创性/价值

理论上,关于OTA和酒店之间的战略合作的讨论,我们知之甚少。本论文采用与一家行业领先的OTA市场经理们的深入访谈,将这一合作关系进行积极讨论分析,提供一系列优化战略合作的方案和见解。

关键词

在线旅行社(OTA),酒店订房收入,合作关系,Expedia,市场经理,收入优化

Details

Journal of Hospitality and Tourism Technology, vol. 9 no. 1
Type: Research Article
ISSN: 1757-9880

Keywords

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