Service commission contract design of online travel agency to create O2O model by cooperation with traditional travel agency under asymmetric information

2021 ◽  
Vol 21 ◽  
pp. 100641
Author(s):  
Pingping Shi ◽  
Yaogang Hu
Keyword(s):  
Asymmetric Information ◽  
Contract Design ◽  
Travel Agency ◽  
Service Commission ◽  
Online Travel ◽  
Online Travel Agency

scholarly journals Optimal Service Commission Contract Design of OTA to Create O2O Model by Cooperation with TTA under Asymmetric Information

2021 ◽  
Vol 2021 ◽  
pp. 1-17
Author(s):  
Pingping Shi ◽  
Yaogang Hu ◽  
Yongfeng Wang
Keyword(s):  
Asymmetric Information ◽  
Contract Design ◽  
Travel Agency ◽  
Management Implications ◽  
Asymmetry Information ◽  
Service Information ◽  
Optimal Service ◽  
Service Commission ◽  
Online Travel ◽  
Online Travel Agency

This paper studies the service commission contract of an online travel agency (OTA) to integrate the online to offline (O2O) model by cooperation with a traditional travel agency (TTA) under asymmetric information. The principal-agent models are established with symmetric and asymmetric service information, respectively. Further, the impacts of asymmetry information on the revenue of the OTA, TTA, and the whole O2O model and the properties of optimal commission contract are analyzed. The paper notes management implications: (1) OTA designs service commission contracts by weighing the fixed payment and service commission coefficient for different incentives to TTAs with different serviceabilities and (2) because the existence of asymmetric information always leads to the damage of OTA’s expected revenue, OTA should encourage the TTA to disclose private service information.

Dark patterns used by online travel agency websites

2020 ◽  
pp. 103055
Author(s):  
Woo Gon Kim ◽  
Souji Gopalakrishna Pillai ◽  
Kavitha Haldorai ◽  
Wasim Ahmad
Keyword(s):  
Travel Agency ◽  
Online Travel ◽  
Online Travel Agency

Online Travel Agency Price Presentation: Examining the Influence of Price Dispersion on Travelers’ Hotel Preference

2019 ◽  
Vol 59 (4) ◽  
pp. 704-721 ◽  
Author(s):  
Jungkeun Kim ◽  
Drew Franklin ◽  
Megan Phillips ◽  
Euejung Hwang
Keyword(s):  
Consumer Choice ◽  
Price Dispersion ◽  
Travel Agency ◽  
Pricing Strategies ◽  
Hotel Room ◽  
Online Travel ◽  
Online Travel Agency ◽  
Price Presentation ◽  
The Impact ◽  
Regular Price

This research investigates the impact of different degrees of price dispersion on travelers’ hotel choice. More specifically, within an online travel agency (OTA) context, we examine the effect of wide (vs. narrow) price dispersion on hotel preference. In addition, we suggest two boundary conditions for this effect: salience of external regular price and perception of destination uncertainty. Across multiple studies, our results show that travelers prefer a hotel option featuring wide price dominance dispersion. Additionally, both the presence of an external regular price and the level of uncertainty associated with the hotel destination act as moderating influences. This work represents an emerging direction in the online price dispersion literature, namely, exploring the consequences of online price dispersion. In practice, by understanding the influence of price dispersion on consumer choice, OTAs can develop more effective pricing strategies in partnership with their hotel room suppliers.

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