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1 – 10 of over 3000Michael 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.
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.
Chenfeng Xiong, Xiqun Chen and Lei Zhang
This chapter explores a descriptive theory of multidimensional travel behaviour, estimation of quantitative models, and demonstration in an agent-based microsimulation.
Abstract
Purpose
This chapter explores a descriptive theory of multidimensional travel behaviour, estimation of quantitative models, and demonstration in an agent-based microsimulation.
Theory
A descriptive theory on multidimensional travel behaviour is conceptualised. It theorizes multidimensional knowledge updating, search start/stopping criteria, and search/decision heuristics. These components are formulated or empirically modelled and integrated in a unified and coherent approach.
Findings
The theory is supported by empirical observations and the derived quantitative models are tested by an agent-based simulation on a demonstration network.
Originality and value
Based on artificially intelligent agents, learning and search theory, and bounded rationality, this chapter makes an effort to embed a sound theoretical foundation for the computational process approach and agent-based microsimulations. A pertinent new theory is proposed with experimental observations and estimations to demonstrate agents with systematic deviations from the rationality paradigm. Procedural and multidimensional decision-making are modelled. The numerical experiment highlights the capabilities of the proposed theory in estimating rich behavioural dynamics.
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Andrea Fischbach, Katrin Meyer-Gomes, Dieter Zapf and Johannes Rank
Emotion work can be defined as demands to display organizationally desired emotions regarding service-worker–customer interactions, as well as the psychological strategies…
Abstract
Emotion work can be defined as demands to display organizationally desired emotions regarding service-worker–customer interactions, as well as the psychological strategies necessary to regulate these emotional demands. This study applies a task-focused concept of emotion work and uses the Frankfurt Emotion Work Scales (FEWS) in a cross-cultural context to measure emotional work demands. The original German FEWS was translated into English and the extent to which the new English FEWS is equivalent to the original German FEWS is evaluated. Cultural effects on emotion work job demands are demonstrated by comparisons between a US (N=51) and German (N=202) travel agent sample. Cultural comparisons suggest that emotional demands in the US sales service include less emotional dissonance (i.e. the requirement to show emotions not actually felt in a situation) than in Germany. Survey results are discussed in terms of implications for further cross-cultural research.
This paper explores the use of the theory of games as a tool for modelling road usage decisions. By explicitly considering the interdependence among road users and their ‘payoffs’…
Abstract
This paper explores the use of the theory of games as a tool for modelling road usage decisions. By explicitly considering the interdependence among road users and their ‘payoffs’ (utility) from road use, an adapted symmetric form of the ‘game of chicken’ is developed. The paper explores the various possible equilibria in this game. The mixed strategy symmetric Nash equilibrium is derived and a probability of road usage by a single user is calculated from this. The latter depends explicitly upon the generalised costs of road usage that include both the monetary and time costs of travel. From the single road user probability of usage, measures of the expected number of users are derived. An examination is made of how these vary with variations in the level of the generalised cost of usage. This provides an insight into how the tools of game theory may aid the understanding of the generation and regulation of road congestion.
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.
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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Raslinda Mohd Ghazali and Liping Cai
Studies about destination image have been discussed extensively in the literature due to its impact on tourist behavior. Despite the significant number of contributions, existing…
Abstract
Studies about destination image have been discussed extensively in the literature due to its impact on tourist behavior. Despite the significant number of contributions, existing models are outdated in the context of globalization. This chapter synthesizes relevant literature and evaluates the effects of social media on destination image formation. Built on the seminal work by Gartner and that of Tasci and Gartner, the chapter extends the existing understanding with a conceptual model. The construct posits that, with the social media sites as the agent, an overall conative image of a destination can be formed by the overlap of provision and evaluation of cognitive and affective information by and among suppliers, consumers, and third parties.
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Bruce Prideaux, Brian King, Larry Dwyer and Perry Hobson
This paper deals with an issue that has been identified in many markets where there are large numbers of package tourists. In Australia, there have been a number of studies…
Abstract
This paper deals with an issue that has been identified in many markets where there are large numbers of package tourists. In Australia, there have been a number of studies undertaken into the use of a range of dubious business practices employed by Inbound Tour Operators (ITOs), particularly in the Korean market. The cause for this problem is identified as the minimization of the retail price of package tour by transferring part of the cost of the tour to ITOs in the destination country. Under this system, ITOs are paid a daily tour rate below their real costs and are forced to recover losses by employing a range of dubious business practices including forced shopping and kickbacks from shops. The paper models the normal operation of the package tour cycle where no business practices are used and compares this to the Korean package inbound market in Australia where the use of business practices of this nature is widespread.
Maulana Agung Wibowo and Utz Dornberger
The objectives of this chapter are: first, to analyze the magnitude of the COVID-19 impact on homestay business in Bali and second, to identify the most significant determinant of…
Abstract
The objectives of this chapter are: first, to analyze the magnitude of the COVID-19 impact on homestay business in Bali and second, to identify the most significant determinant of COVID-19 to the homestay industry. It hopes that the results would contribute to policy recommendations and business strategies to increase the resilient capacity of the homestay business during the pandemic period. Due to the pandemic situation, 74 respondents of homestay owners were interviewed through an online survey (Google form). The data gathering was through three events of focus group discussion and several in-depth interviews. Partial Least Squares regression and descriptive statistics were applied. The result shows that, first, the COVID-19 pandemic has a considerable decreasing impact on the (1) homestay occupancy rate, (2) homestay characters (room rental price), (3) homestay competency capital, (4) provided facilities, and (5) guest composition. Second, during the global pandemic, the homestay business association, the number of media promotions, the number of room booking channels, and the homestay characters significantly impact the homestay occupancy rate. Third, to increase the demand for tourism, appropriate measures and policies should be taken, such as increasing the travel bubble consent, mobilizing central government officers working in Bali, increasing the number of domestic promotions, and only using an effective and efficient room booking channel.
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