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1 – 10 of 385Eugene Wong and Yan Wei
The purpose of this paper is to develop a customer online behaviour analysis tool, segment high-value customers, analyse their online purchasing behaviour and predict their next…
Abstract
Purpose
The purpose of this paper is to develop a customer online behaviour analysis tool, segment high-value customers, analyse their online purchasing behaviour and predict their next purchases from an online air travel corporation.
Design/methodology/approach
An operations review of the customer online shopping process of an online travel agency (OTA) is conducted. A customer online shopping behaviour analysis tool is developed. The tool integrates competitors’ pricing data mining, customer segmentation and predictive analysis. The impacts of competitors’ price changes on customer purchasing decisions regarding the OTA’s products are evaluated. The integrated model for mining pricing data, identifying potential customers and predicting their next purchases helps the OTA recommend tailored product packages to its individual customers with reference to their travel patterns.
Findings
In the customer segmentation analysis, 110,840 customers are identified and segmented based on their purchasing behaviour. The relationship between the purchasing behaviour in an OTA and the price changes of different OTAs are analysed. There is a significant relationship between the flight duration time and the purchase lead time. The next travel destinations of segmented high-value customers are predicted with reference to their travel patterns and the significance of the relationships between destination pairs.
Practical implications
The developed model contributes to pricing evaluation, customer segmentation and package customization for online customers.
Originality/value
This study provides novel method and insights into customer behaviour towards OTAs through an integrated model of customer segmentation, customer behaviour and prediction analysis.
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Rob Law, Rosanna Leung, Ada Lo, Daniel Leung and Lawrence Hoc Nang Fong
The purpose of this paper is to reexamine several issues about disintermediation from the perspectives of tourism product/service suppliers (hotels) and traditional intermediaries…
Abstract
Purpose
The purpose of this paper is to reexamine several issues about disintermediation from the perspectives of tourism product/service suppliers (hotels) and traditional intermediaries (travel agencies), considering the move of the current distribution landscape toward disintermediation. Internet and mobile technologies offer various tools for consumers to search and purchase products/services from suppliers directly. Consequently, the necessity and role of traditional intermediaries in the industry become questionable.
Design/methodology/approach
In all, six focus group interviews were conducted to collect primary data from ten managers of three traditional travel agencies and 11 managers from three business hotels in Hong Kong, which is a major travel destination in Asia with many world-class hotels and tourism facilities.
Findings
Despite their different business backgrounds, the interviewees agreed on the increasing importance of Internet technology in the distribution of tourism products. The interviewees also posited that traditional travel agencies are still needed to serve certain customer groups, albeit their role may have little importance.
Practical implications
Practitioners should adapt to technologically induced changes to remain competitive in the e-business era.
Originality/value
This paper provides several original contributions. First, this paper supplements the extant literature by revealing how modern practitioners perceive disintermediation in the tourism and hospitality industry. Second, this paper is the first to investigate the disintermediation issue from the perspectives of tourism product/service suppliers and intermediaries. Finally, this paper provides a reference for industry practitioners to establish adequate strategies that take advantage of Internet technology.
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Zuzana Kvítková and Zdenka Petrů
Online reputation management (ORM) plays a significant role in the tourism industry. Tourists are more and more interested to express their opinions about their…
Abstract
Online reputation management (ORM) plays a significant role in the tourism industry. Tourists are more and more interested to express their opinions about their experiences/satisfaction not only with their friends but also on social media. ORM is largely used not only by tourist destinations but also by other companies operating in the tourism industry. This chapter aims to draw attention to the importance of intermediaries in tourism, their reputation in general, and especially their ORM and its specifics. This contribution also characterizes different types of intermediaries and their different roles in the distribution process of tourism services. These roles are important and can be even more significant in the “new normal” post-COVID-19 time. In the scientific literature and research, there is not much attention given to intermediaries as a whole and even less to their ORM and its specific solutions. But practical contributions can be found. Due to the specific activities and roles of different types of intermediaries, also their reputation is influenced not only by tourists but also by their suppliers. Their ORM has also some specifics and needs specific solutions. Their reputation is depending not only on customers' satisfaction with their own services but also on the reputation of tourism service providers, whose services they offer and mediate either individually or in the form of their own product, e.g., package tours. Specific attention in this chapter is given to intermediaries such as OTAs (Online Travel Agencies/Agents) and tour operators. At some time, these two types of intermediaries help to increase the reputation of tourism services providers, e.g., hotels. The chapter describes the situation in the field of intermediaries with a conceptual model, their ORM, and summarizes its specifics.
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Natasa Christodoulidou, Daniel J. Connolly and Pearl Brewer
The purpose of this paper was to explore the ways travel intermediaries (online travel agencies (OTAs) and travel meta sites) used throughout the distribution value chain engaged…
Abstract
Purpose
The purpose of this paper was to explore the ways travel intermediaries (online travel agencies (OTAs) and travel meta sites) used throughout the distribution value chain engaged in relationships with travel suppliers.
Design/methodology/approach
The multiple‐case study approach is suitable in examining contemporary events in their natural context. A commonly reported strength of the case study approach in that a variety of evidence can be used to investigate the subject matter. The data evidence gathered for this paper came from field study interviews and document analysis.
Findings
The results show that the relationship structure has an impact on the type of contractual agreement OTAs and meta sites have with travel suppliers and with each other.
Practical implications
These results can be used by top‐level executives involved in online travel as they research and test how to best craft their relationship and formal or informal agreements with their suppliers, affiliates, and other entities with which they choose to work.
Social implications
Partnerships between travel suppliers and meta search engines could threaten travel agencies and allow travel suppliers a viable means to bypass agencies all together and maintain more control in both the transaction, the relationship building process with customers, and, ultimately, ownership of customers.
Originality/value
Based upon the current state, it is clear that the distribution landscape is in state of flux. Travel meta search engines are gaining traction, both in terms of market share and financial backing. Kayak's recent acquisition of SideStep helps to provide strength to Kayak and will likely be the catalyst for other mergers in due time. All of the major players are jockeying for position. There will likely be consolidation and more new entrants. To remain relevant, one must actively monitor this space, continue to keep abreast of developments as they unfold, and innovate. Most importantly, one must provide unmatched value to win customer loyalty and gain market share.
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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.
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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…
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.
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Yu-Wei Chang, Ping-Yu Hsu and Qing-Miao Yang
This study uses the travel industry as the research context and investigates online–offline integration between the different business entities of hoteliers and online travel…
Abstract
Purpose
This study uses the travel industry as the research context and investigates online–offline integration between the different business entities of hoteliers and online travel agencies (OTAs). The purpose of this paper is threefold: first, to examine cooperation between hotels and OTAs; second, to examine how online and offline satisfaction increase behavioral intentions toward online and offline channels; and third, to investigate the factors that increase online and offline satisfaction.
Design/methodology/approach
To investigate customers’ behavioral intentions toward online and offline channels, the authors collected 241 data points from ten hotels from four well-known chains. The partial least squares structural equation modeling approach was used to test the research model and the 13 hypotheses.
Findings
The results show that system quality, information quality and service quality of OTA websites increase online satisfaction. Online satisfaction further increases behavioral intentions toward online channels but has no significant effect on offline satisfaction and behavioral intentions toward offline channels. Emotional value and social value offered by hotels increase offline satisfaction. Offline satisfaction further increases behavioral intentions toward online and offline channels. Finally, behavioral intentions toward online channels indeed reinforce behavioral intentions toward offline channels.
Originality/value
Some prior studies have focused on the effects of offline channels on online channels, whereas others have examined the influences of online channels on offline channels. However, in previous studies, the online and offline channels were both owned by the same business entities. To the best of the authors’ knowledge, this study is the first to examine how online and offline channels belonging to different business entities can work together to increase customer intentions.
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Ursula Scholl-Grissemann and Benedikt Schnurr
The purpose of this study is to investigate how hedonic and utilitarian choice options of online travel agencies (OTAs) affect consumers’ process enjoyment and booking intentions.
Abstract
Purpose
The purpose of this study is to investigate how hedonic and utilitarian choice options of online travel agencies (OTAs) affect consumers’ process enjoyment and booking intentions.
Design/methodology/approach
The authors apply a one-factorial experimental design. The stimuli consisted of screenshots of the fictitious OTA “www.my-holiday.com”. Participants were told to imagine they were planning a city trip to San Francisco and that, during an internet search, they came across a new OTA called “www.my-holiday.com”.
Findings
The authors find that both booking intentions and process enjoyment are higher for hedonic OTAs, i.e. OTAs which offer more hedonic choice options such as entertainment and spa. The authors conclude that these toolkits strongly relate to pleasurable experiences and positive emotions. Therefore, these options drive positive affective reactions in terms of process enjoyment, which subsequently affect booking intentions. Additionally, the authors find that preference insight positively affects consumers’ booking intention as the number of choices provided by the OTA increases.
Originality/value
This paper contributes to tourism research on online travel shopping behavior. The authors apply knowledge from research on online customization tools to an OTA context and show that hedonic and functional choice options of OTAs significantly reflect on consumer behavior.
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Yan Chen, Tianwei Tang, Yongjian Li and Di Fan
This study examines whether a higher interest alignment between online travel agencies (OTAs; hosting platform) and hotels (business owners) will intensify review manipulation…
Abstract
Purpose
This study examines whether a higher interest alignment between online travel agencies (OTAs; hosting platform) and hotels (business owners) will intensify review manipulation activities.
Design/methodology/approach
With a panel data set collected from a Chinese online travel agency and a travel search engine, the authors develop a matching-based difference-indifference approach to examine the presence of partnership-intensified review manipulation.
Findings
The authors find that the ratings of agency's partner hotels (with a higher interest alignment) are abnormally higher than those of matched non-partner hotels (with a lower interest alignment), after they are benchmarked with their ratings on the search engine (without a partnership business model). Further, the analysis results indicate that this partnership-intensified manipulation deteriorates the hotel's sales performance because of damaged customer trust and satisfaction.
Originality/value
Previous studies implicitly assume that review manipulator is independent from the hosting platform. This is the first study examining the role of the hosting platform in review manipulations.
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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…
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.
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