Search results

1 – 10 of over 7000
Book part
Publication date: 6 August 2014

Volodymyr Bilotkach and Nicholas G. Rupp

Platforms in two-sided markets are known to provide subsidies to either buyers or sellers, in order to take advantage of cross-group externalities inherent in such industries…

Abstract

Platforms in two-sided markets are known to provide subsidies to either buyers or sellers, in order to take advantage of cross-group externalities inherent in such industries. Online travel agents can be thought of as platforms facilitating trade between passengers and travel service providers (airlines). This chapter evaluates the effects of a buyer subsidy provided by one major US online travel agent – a low-price guarantee offered by Orbitz. We find evidence consistent with increased airline participation with this travel agent upon implementation of the low-price guarantee policy. Our results also confirm the theoretical claims that most-favored customer low-price guarantee policies are procompetitive.

Details

The Economics of International Airline Transport
Type: Book
ISBN: 978-1-78350-639-2

Keywords

Book part
Publication date: 17 December 2003

Michael Doane, Kenneth Hendricks and R.Preston McAfee

The Internet has enabled consumers to act as their own travel agents and to verify independently the accuracy of the information provided by airlines through the CRSs and travel…

Abstract

The Internet has enabled consumers to act as their own travel agents and to verify independently the accuracy of the information provided by airlines through the CRSs and travel agents. As a result, the relationships between consumers and the suppliers of air-travel information have been radically altered, and we document these changes. We identify the relevant market for air-travel information, which includes CRSs, online travel agencies, and the websites and call centers of individual carriers. We determine market concentration and market shares using the Herfindhal-Hirschman Index. Based on our analysis, we argue that there is no longer any need to regulate independent CRSs. However, airlines that own CRSs continue to have an incentive to withdraw their flight and fare information from rival CRSs and, to prevent this from happening, the mandatory participation rule adopted in 1992 should be maintained.

Details

Organizing the New Industrial Economy
Type: Book
ISBN: 978-0-76231-081-4

Book part
Publication date: 1 January 2012

Volodymyr Bilotkach and Marija Pejcinovska

The vertical relationships literature has considered situations where both producers and retailers have a degree of market power. On one hand, retailers may have certain freedom…

Abstract

The vertical relationships literature has considered situations where both producers and retailers have a degree of market power. On one hand, retailers may have certain freedom in deciding what price to charge to the final consumers. On the other hand, large retailers may also pressurize producers (Wal-Mart is a classic example; see also Comanor and Rey (2000) for a formal treatment of this topic). At the same time, producers may pressurize retailers via resale price maintenance. The interplay of producers' and retailers' bargaining power, in addition to the structure (both horizontal and vertical) of product and distribution markets, eventually determine the sticker price faced by an unsuspecting consumer.

Details

Pricing Behavior and Non-Price Characteristics in the Airline Industry
Type: Book
ISBN: 978-1-78052-469-6

Book part
Publication date: 10 December 2015

Dekar Urumsah

The concept and practice of e-services has become essential in business transactions. Yet there are still many organizations that have not developed e-services optimally. This is…

Abstract

The concept and practice of e-services has become essential in business transactions. Yet there are still many organizations that have not developed e-services optimally. This is especially relevant in the context of Indonesian Airline companies. Therefore, many airline customers in Indonesia are still in doubt about it, or even do not use it. To fill this gap, this study attempts to develop a model for e-services adoption and empirically examines the factors influencing the airlines customers in Indonesia in using e-services offered by the Indonesian airline companies. Taking six Indonesian airline companies as a case example, the study investigated the antecedents of e-services usage of Indonesian airlines. This study further examined the impacts of motivation on customers in using e-services in the Indonesian context. Another important aim of this study was to investigate how ages, experiences and geographical areas moderate effects of e-services usage.

The study adopts a positivist research paradigm with a two-phase sequential mixed method design involving qualitative and quantitative approaches. An initial research model was first developed based on an extensive literature review, by combining acceptance and use of information technology theories, expectancy theory and the inter-organizational system motivation models. A qualitative field study via semi-structured interviews was then conducted to explore the present state among 15 respondents. The results of the interviews were analysed using content analysis yielding the final model of e-services usage. Eighteen antecedent factors hypotheses and three moderating factors hypotheses and 52-item questionnaire were developed. A focus group discussion of five respondents and a pilot study of 59 respondents resulted in final version of the questionnaire.

In the second phase, the main survey was conducted nationally to collect the research data among Indonesian airline customers who had already used Indonesian airline e-services. A total of 819 valid questionnaires were obtained. The data was then analysed using a partial least square (PLS) based structural equation modelling (SEM) technique to produce the contributions of links in the e-services model (22% of all the variances in e-services usage, 37.8% in intention to use, 46.6% in motivation, 39.2% in outcome expectancy, and 37.7% in effort expectancy). Meanwhile, path coefficients and t-values demonstrated various different influences of antecedent factors towards e-services usage. Additionally, a multi-group analysis based on PLS is employed with mixed results. In the final findings, 14 hypotheses were supported and 7 hypotheses were not supported.

The major findings of this study have confirmed that motivation has the strongest contribution in e-services usage. In addition, motivation affects e-services usage both directly and indirectly through intention-to-use. This study provides contributions to the existing knowledge of e-services models, and practical applications of IT usage. Most importantly, an understanding of antecedents of e-services adoption will provide guidelines for stakeholders in developing better e-services and strategies in order to promote and encourage more customers to use e-services. Finally, the accomplishment of this study can be expanded through possible adaptations in other industries and other geographical contexts.

Details

E-services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-709-7

Keywords

Article
Publication date: 8 January 2018

M. Claudia Tom Dieck, Paraskevi Fountoulaki and Timothy Hyungsoo Jung

Advances in information communication technologies (ICTs) have changed the tourism distribution channels model, as traditional players continue to disappear or change their…

3059

Abstract

Purpose

Advances in information communication technologies (ICTs) have changed the tourism distribution channels model, as traditional players continue to disappear or change their business model, while new players and channels emerge because of technological developments. Therefore, this study aims to propose a tourism distribution channels model for European island destinations.

Design/methodology/approach

Using an exploratory approach, interviews with 34 tourism stakeholders were conducted at ITB Berlin and WTM London in March 2014 and March/November 2016, and analyzed using thematic analysis.

Findings

The findings revealed that a number of changes have taken place within the distribution channels market over the past six years. The disappearance of incoming travel agents has increased, while new forms of online communication and distribution have appeared. In particular, social media, online review sites and mobile channels play an increasingly important role for hoteliers.

Practical implications

ICTs change the online landscape for tourist distribution in island destinations, and practitioners should make use of new online channels and be aware of disappearing tourism players to remain competitive.

Originality/value

First, this paper provides indications for the increased disintermediation in regard to incoming travel agents within the Cretan hospitality and tourism industry. Second, it investigates the issue of tourism distribution channels using a broad range of key tourism and hospitality players to provide a tourism distribution channels model for future reference. Finally, this study offers implications for the development of distribution strategies for tourism businesses and hoteliers in Crete.

Details

International Journal of Contemporary Hospitality Management, vol. 30 no. 1
Type: Research Article
ISSN: 0959-6119

Keywords

Book part
Publication date: 30 November 2020

James Malitoni Chilembwe and Victor Ronald Mweiwa

Several tourism destinations are using social media (SM) marketing more than traditional marketing in the developed countries. The increasing use of technology has replaced the…

Abstract

Several tourism destinations are using social media (SM) marketing more than traditional marketing in the developed countries. The increasing use of technology has replaced the role of travel intermediary. Most of the travellers in developed countries are no longer using travel agencies for their services. Many bookings are done online using electronic devices either at office or home. It is, therefore, a fact that SM has come to stay. However, the situation is contrary to some developing countries due to several reasons; for example, unreliable source of energy, communication, poor infrastructure and lack of competition. Most of developing countries depend on tourists from developed nations to consume their tourism destination products. Moreover, the modern travellers are no longer travelling in the dark. They want to have prior knowledge about their destinations. They check online product offerings, certification and destination labels. A modern tourist is becoming a more responsible traveller. SM plays a big role by providing information about many tourism destinations. Nevertheless, there are ongoing debates regarding the usefulness, future and survival of traditional travel agents despite the fact that there are threats from online travel agents and the increasing use of SM. This chapter is a case study of Malawi as a tourist destination. It critically discusses and analyses the impact of SM as a marketing tool. It also analyses the benefits and challenges of the travel agents, and finally confirms that there is a need to embrace technological change in travel and tourism industry in the developing nations.

Details

The Emerald Handbook of ICT in Tourism and Hospitality
Type: Book
ISBN: 978-1-83982-689-4

Keywords

Article
Publication date: 13 July 2010

John Kracht and Youcheng Wang

The purpose of this paper is to examine the evolution and transformation of tourism distribution channels, focusing on the role the internet has played in such a process. It…

12820

Abstract

Purpose

The purpose of this paper is to examine the evolution and transformation of tourism distribution channels, focusing on the role the internet has played in such a process. It attempts to graphically illustrate, in a temporal manner, the evolving complexity of the tourism distribution systems.

Design/methodology/approach

This paper provides insights into the change of the structure of tourism distribution that has not been extensively explored. Indeed, the complexity of the tourism distribution structure has been diagrammatically depicted multiple times by previous researchers and each depiction has contributed to a fuller understanding of the body of knowledge by focusing on different aspects of that structure. This paper builds upon those valuable knowledge contributions by focusing on the evolution of the structure over time, systematically and diagrammatically revealing the progressively larger number of intermediation layers, in spite of concurrent disintermediation and reintermediation activity. This paper does not focus on every action of every participant in detail, but rather focuses on categories of intermediaries, looking at pioneering examples of each. Likewise, the comparative rates of technology adoption in different regions of the world are not investigated.

Findings

The complex network proposed in this paper indicates that the advance of information and communication technology has not reduced the number of intermediaries in the distribution channel, but rather resulted in an increasingly complex array of intermediaries. The structure of the tourism industry has taken the form of a complex global network. In the struggle to prosper in this environment, participants at various levels will continue to compete, cooperate, merge, form partnerships, and change relationships on a regular basis.

Originality/value

The extant literature has covered many aspects of intermediation, disintermediation, and reintermediation, albeit with differing terminologies. Most of these studies have adopted a static and cross‐sectional approach in examining the structure and use of tourism distribution channels. This paper examines the historical evolution and progression of tourism distribution channels which is not only important in understanding where we are now as an industry, but also where we came from and where we are heading to.

Details

International Journal of Contemporary Hospitality Management, vol. 22 no. 5
Type: Research Article
ISSN: 0959-6119

Keywords

Book part
Publication date: 1 January 2012

Volodymyr Bilotkach and Nicholas G. Rupp

This study traces the evolution of offered airfares on 50 busy routes on the US domestic market. Our approach differs from that in the literature in the following ways. First, we…

Abstract

This study traces the evolution of offered airfares on 50 busy routes on the US domestic market. Our approach differs from that in the literature in the following ways. First, we trace the lowest offered fares for specific round-trip itineraries, acknowledging both that many trips involve return travel and that the round-trip airfare is often not equal to the sum of the two one-way fares. Many previous studies (e.g., Escobari, 2009; Escobari & Gan, 2007) either looked at fare quotes for specific one-way flights or examined the lowest round-trip quote available. Second, our sample of half of the top 100 domestic routes includes itineraries from markets with varying number of competitors as well as from markets with and without the presence of low-cost carriers (LCCs). Third, we have collected fare quotes simultaneously from three leading online travel agents. Thus, our research design allows us to see whether any systematic airfare differences exist across the different online distributors of travel services.

Details

Pricing Behavior and Non-Price Characteristics in the Airline Industry
Type: Book
ISBN: 978-1-78052-469-6

Article
Publication date: 28 August 2007

Rob Law, Ivy Chan and Carey Goh

This study aims to examine online room rates in Hong Kong hotels. It focuses on comparing and contrasting the lowest hotel room rates that are available to customers.

4275

Abstract

Purpose

This study aims to examine online room rates in Hong Kong hotels. It focuses on comparing and contrasting the lowest hotel room rates that are available to customers.

Design/methodology/approach

Eight distribution channels and 45 hotels in Hong Kong were examined for online room rates in a 13‐month period from 2005 to 2006. The eight distribution channels represented different nature of operations including both indirect and direct distribution channels.

Findings

Empirical findings showed the web sites of local travel agents and local reservation agents offered the lowest online room rates, and that indirect distribution channels offered lower room rates than direct distribution channels.

Research limitations/implications

A major limitation of this study is the geographic limitation of hotel selection.

Originality/value

Findings of the study are expected to provide insights for hoteliers to refine their online room rate strategy.

Details

International Journal of Contemporary Hospitality Management, vol. 19 no. 6
Type: Research Article
ISSN: 0959-6119

Keywords

Book part
Publication date: 9 February 2023

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.

Details

Online Reputation Management in Destination and Hospitality
Type: Book
ISBN: 978-1-80382-376-8

Keywords

1 – 10 of over 7000