Evaluation of best price clauses in online hotel bookings

M. Hunold; R. Kesler; U. Laitenberger; F. Schlütter

doi:10.1016/j.ijindorg.2018.03.008

Evaluation of best price clauses in online hotel bookings

M. Hunold, R. Kesler, U. Laitenberger, F. Schlütter

Research output: Contribution to journal › Article › Scientific › peer-review

31 Citations (Scopus)

62 Downloads (Pure)

Abstract

We analyze the best price clauses (BPCs) of online travel agents (OTAs) using meta-search price data of nearly 30,000 hotels in different countries. We find that BPCs influence the pricing and availability of hotel rooms across online sales channels. In particular, hotels publish their offers more often at Booking.com when the OTA does not use the narrow BPC, and also tend to promote the direct online channel more actively. Moreover, the abolition of Booking.com’s narrow BPC is associated with the direct channel of chain hotels having the strictly lowest price more often.

Original language	English
Pages (from-to)	542-571
Journal	International Journal of Industrial Organization
Volume	61
DOIs	https://doi.org/10.1016/j.ijindorg.2018.03.008
Publication status	Published - 2018
Externally published	Yes

Keywords

Best price clauses, hotel booking, Most favored nation clause, online travel agent, vertical restraints

Access to Document

10.1016/j.ijindorg.2018.03.008

1-s2.0-S016771871830033X-mainFinal published version, 896 KBLicence: Taverne

Cite this

@article{f1430268cb014aa6906a2212e42912e6,

title = "Evaluation of best price clauses in online hotel bookings",

abstract = "We analyze the best price clauses (BPCs) of online travel agents (OTAs) using meta-search price data of nearly 30,000 hotels in different countries. We find that BPCs influence the pricing and availability of hotel rooms across online sales channels. In particular, hotels publish their offers more often at Booking.com when the OTA does not use the narrow BPC, and also tend to promote the direct online channel more actively. Moreover, the abolition of Booking.com{\textquoteright}s narrow BPC is associated with the direct channel of chain hotels having the strictly lowest price more often.",

keywords = "Best price clauses, hotel booking, Most favored nation clause, online travel agent, vertical restraints",

author = "M. Hunold and R. Kesler and U. Laitenberger and F. Schl{\"u}tter",

year = "2018",

doi = "10.1016/j.ijindorg.2018.03.008",

language = "English",

volume = "61",

pages = "542--571",

journal = "International Journal of Industrial Organization",

issn = "0167-7187",

publisher = "Elsevier Inc.",

}

TY - JOUR

T1 - Evaluation of best price clauses in online hotel bookings

AU - Hunold, M.

AU - Kesler, R.

AU - Laitenberger, U.

AU - Schlütter, F.

PY - 2018

Y1 - 2018

N2 - We analyze the best price clauses (BPCs) of online travel agents (OTAs) using meta-search price data of nearly 30,000 hotels in different countries. We find that BPCs influence the pricing and availability of hotel rooms across online sales channels. In particular, hotels publish their offers more often at Booking.com when the OTA does not use the narrow BPC, and also tend to promote the direct online channel more actively. Moreover, the abolition of Booking.com’s narrow BPC is associated with the direct channel of chain hotels having the strictly lowest price more often.

AB - We analyze the best price clauses (BPCs) of online travel agents (OTAs) using meta-search price data of nearly 30,000 hotels in different countries. We find that BPCs influence the pricing and availability of hotel rooms across online sales channels. In particular, hotels publish their offers more often at Booking.com when the OTA does not use the narrow BPC, and also tend to promote the direct online channel more actively. Moreover, the abolition of Booking.com’s narrow BPC is associated with the direct channel of chain hotels having the strictly lowest price more often.

KW - Best price clauses, hotel booking, Most favored nation clause, online travel agent, vertical restraints

U2 - 10.1016/j.ijindorg.2018.03.008

DO - 10.1016/j.ijindorg.2018.03.008

M3 - Article

SN - 0167-7187

VL - 61

SP - 542

EP - 571

JO - International Journal of Industrial Organization

JF - International Journal of Industrial Organization

ER -

Evaluation of best price clauses in online hotel bookings

Abstract

Keywords

Access to Document

Fingerprint

Cite this