An Examination of the Relationship between Online Travel Agents and Hotels

2012 ◽  
Vol 54 (1) ◽  
pp. 95-107 ◽  
Author(s):  
Hee “Andy” Lee ◽  
Basak Denizci Guillet ◽  
Rob Law

Although traditional travel agents have played an important role as proxies enabling travelers to make connections with hotels, the emergence of the internet has changed the traditional relationship between hotels and travel agents. Instead of a traditional agent–principal relationship, online travel agents (OTAs) seem to act as more than just intermediaries and more as business partners or vendors. Scholars have previously observed troubled, if not hostile, relationships between hotels and OTAs. This article reports a case study analyzing online comments on the 2009 feud between Choice Hotels International and Expedia.com . This analysis identified eight themes in three overall categories: the background to the feud (i.e., characteristics of the hotel industry, current business environment, Expedia’s business practices), the perspectives of hospitality industry professionals on the feud (i.e., wake-up call for hoteliers, Choice Hotels’ decision), and expectations concerning the nature of the relationship between hotels and OTAs (i.e., a symbiotic relationship between hotels and OTAs, experience of dealing with guests who book through OTAs and Expedia, and recommendations for hotels). Chief among the study’s conclusions is that hotels must find ways to make the most effective possible use of available technology and distribution channels, and perhaps even form consortia to share information about third-party distribution channels.

2018 ◽  
Vol 12 (01) ◽  
pp. 15-28
Author(s):  
Dwi Agus Kristianto ◽  
Moch. Nur Syamsu ◽  
Aldi Wisnumurti

Although traditional travel agents have played an important role as proxies enabling travelers to make connections with hotels, the emergence of the internet has changed the traditional relationship between hotels and travel agents. Instead of a traditional agent–principal relationship, online travel agents (OTAs) seem to act as more than just intermediaries and more as business partners or vendors. Scholars have previously observed troubled, if not hostile, relationships between hotels and OTAs. There has been a growing tendency for hotel and accommodation business worldwide to use Online Travel Agents (OTAs) to promote and sell their rooms. This research discusses the advantages and disadvantages of the promotion and sales through OTAs for hotel business in Kaliurang a famous tourism destination object in Yogyakarta. The object of the research is the hotel manager, supervisors and staff who handle the hotel promotion and sales of their accommodation business. Hotel were located in Kaliurang chosen based on cluster proportional and the informants were chosen based on purposive sampling technique. The result shows that the disadvantages in using OTAs as promotion and sales tool are rising occupancy, direct payment, and as a tool in making hotel well known worldwide. The disadvantages are decrease net sales, over booking, negative comments could downgrade the hotels rank, and OTAs make hotels website got limited traffic. The motivation of hotel managements in using OTAs is highly motivated. The dominant factor of the perception included factors in self-perception of the target, factor in the self-perception., and factors perception of situation. This research suggests to the villa management to recruit special personnel for handling OTAs as well as to manage own websites to increase the net sales. Keywords: promotion, sales, hotel management, online travel agents


2020 ◽  
Vol 12 (8) ◽  
pp. 3355
Author(s):  
Qiang Guo ◽  
Chris K. Anderson ◽  
Junfeng Dong ◽  
Pengfei Zhao ◽  
Qingkai Ji

Herein, we address a common problem of hotels in the current world of online selling, namely the management of relationships with third party resellers (also known as online travel agents (OTAs)). We highlight the role of OTAs in the current travel landscape, and we discuss the popular contracting forms between OTAs and hotels, which are the so-called merchant and retail (commission) models. We illustrate how these contracts fail to coordinate the hotel–OTA relationship, and then, we develop a new type of contract that can efficiently coordinate a supply chain consisting of the OTA and the individual hotels. We provide theoretical results and numerical examples for a one-to-one model with one OTA and one supplier and a more realistic setting with an OTA selling to consumers on behalf of numerous hotel partners.


Jurnal IPTA ◽  
2014 ◽  
Vol 2 (2) ◽  
pp. 34
Author(s):  
Ni Made Adi Yanti Putri ◽  
I GPB Sasrawan Mananda ◽  
Ni Putu Eka Mahadewi

The background of this study was based on of technology development that affect the online or offline room sales at All Seasons Legian Bali. Room sales are made through online travel agents is higher than the offline travel agents. It means the influence of offline travel agent is lower than the growth online travel agent. The purpose of this report is to determine the influence of travel agents as a distribution channel about rooms sales at All Seasons Legian Bali Hotel. The data were collected by observation, interviews, library research and documentations. Type of data were used in this research are qualitative and quantitative. The data sources were used are the primary and secondary data and the purposive sampling methods to determine the informant. The data were analyzed with the simple regression analysis techniques, simple correlation analysis, analysis of determination, t test with significant level of five percent. The data processing were using with SPSS (Statistical Package for Social Science) 16.00 for windows. Based on the calculation, The lowest room sales is 247 in the period of May 2009, while the highest room sales is 2.239 in the period of January 2012, and obtained a correlation is 3.9%, which means the relationship between the travel agent and level of room sales at All Seasons Legian is low. The suggestion could be given that the hotel should strengthen in relationship with travel agents, so that could to provide great contribution as a distribution channel in room sales at All Seasons Legian Hotel.


2020 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Putu Diah Sastri Pitanatri ◽  
Made Deny Kharisma ◽  
I Dewa Putu Hendri Pramana

Abstrak Ketatnya persaingan yang terjadi dan mulai terdisrupsinya pasar Offline Travel Agent oleh Online Travel Agent menuntut pihak manajemen hotel mempertimbangkan secara selektif saluran distribusi mana yang harus dimaksimalkan guna meraih kinerja pendapatan kamar yang baik melalui Revenue per Available Room. Penelitian ini bertujuan untuk mengetahui dan mengkaji bagaimana pengaruh penjualan kamar melalui saluran distribsui Offline Travel Agent dan Online Travel Agent secara parsial maupun simultan terhadap Revenue per Available Room. Hasil penelitian secara parsial dan simultan menunjukan bahwa saluran distribusi Offline Travel Agent dan Online Travel Agent berpengaruh positif (searah) dan signifikan terhadap Revenue per Available Room (RevPar). Hasil analisis koefisien determinasi menunjukkan bahwa nilai R2 para variabel saluran distribusi Offline Travel Agent sebesar 0,765 atau jika diinterpretasikan sebesar 76,5% dengan kontribusi yang kuat. Pada salurah distribusi Online Travel Agent nilai R2 sebesar 0,836 atau sebesar 83,6% dengan kontribusi yang sangat kuat. Sementara secara simultan nilai R2 sebesar 0,865 menunjukkan bahwa 86,5% variabel Revenue per Available Room dapat dijelaskan melalui kedua variabel bebas tersebut, sedangkan sisanya sebesar 13,5% dijelaskan oleh variabel lain diluar variabel penelitian. Sebagai kesimpulannya saluran distribusi Offline Travel Agent dan Online Travel Agent memiliki pengaruh dan kontribusi terhadap Revenue per Available Room, namun pengaruh dan kontribusi lebih besar dihasilkan oleh saluran distribusi Online Travel Agent.   Kata kunci: Saluran Distribusi, Offline Travel Agent, Online Travel Agent, dan Revenue per Available Room.   Abstract The competition that occurs and the disruption of the Offline Travel Agent market by Online Travel Agents demanding the hotel management to consider selectively which distribution channels should be maximized in order to achieve good room revenue performance through Revenue per Available Room. This study aims to find out and examine how the influence of room sales through Offline Travel Agent and Online Travel Agent distribution channels partially or simultaneously to Revenue per Available Room (RevPar). The results of the partial and simultaneous research show that the Offline Travel Agent and Online Travel Agent distribution channels have a positive (unidirectional) and significant effect on Revenue per Available Room. The results of the coefficient of determination analysis show that the R2 value of the Offline Travel Agent distribution channel variable is 0.765 or if interpreted at 76.5% with a strong contribution. On the line of Online Travel Agent distribution R2 value is 0.836 or 83.6% with a very strong contribution. While simultaneously the R2 value of 0.865 shows that 86.5% of the Revenue variable per Available Room can be explained through the two independent variables, while the remaining 13.5% is explained by other variables outside the research variable. In conclusion, Offline Travel Agent and Online Travel Agent distribution channels have influence and contribution to Revenue per Available Room, but greater influence and contribution is generated by the Online Travel Agent distribution channel.   Keywords: Distribution Channels, Offline Travel Agent, Online Travel Agent, and Revenue per Available Room.  


2020 ◽  
pp. 193896552097358
Author(s):  
Saram Han ◽  
Christopher K. Anderson

As consumers increasingly research and purchase hospitality and travel services online, new research opportunities have become available to hospitality academics. There is a growing interest in understanding the online travel marketplace among hospitality researchers. Although many researchers have attempted to better understand the online travel market through the use of analytical models, experiments, or survey collection, these studies often fail to capture the full complexity of the market. Academics often rely upon survey data or experiments owing to their ease of collection or potentially to the difficulty in assembling online data. In this study, we hope to equip hospitality researchers with the tools and methods to augment their traditional data sources with the readily available data that consumers use to make their travel choices. In this article, we provide a guideline (and Python code) for how to best collect/scrape publicly available online hotel data. We focus on the collection of online data across numerous platforms, including online travel agents, review sites, and hotel brand sites. We outline some exciting possibilities regarding how these data sources might be utilized, as well as discuss some of the caveats that have to be considered when analyzing online data.


2020 ◽  
Vol 2 (2) ◽  
pp. 133-151
Author(s):  
Ni Luh Indiani

The development of increasingly advanced technology has an important influence in the tourism service industry, namely the utilization of internet technology in the process of booking tour and travels through online travel agents. Conventional travel agents are increasingly being abandoned as travelers turn to online travel agents. Under these conditions conventional travel agents need to make a number of efforts to keep customers in order to survive. This study aims to analyze the effect of service quality on satisfaction, trust and loyalty of travel agent customers in Badung regency.Research respondents are domestic and foreign customers who use travel agent services in Badung regency, as many as 70 respondents. Data collection was done through survey using questionnaire. Testing research hypothesis using Partial Least Square (PLS).The result of the research shows that 1) the quality of service has positive and significant effect to customer satisfaction, trust and loyalty, 2) customer satisfaction has positive and insignificant effect to customer loyalty, 3) customer trust has negative and insignificant effect to customer loyalty, 4) satisfaction and customer trust does not mediate the influence of service quality on customer loyalty.Travel agent in Badung regency should improve and pay attention to the indicators supporting the satisfaction, trust and customer loyalty so that customers are not easy to switch to competitors.


Media Wisata ◽  
2021 ◽  
Vol 17 (1) ◽  
Author(s):  
Lutfi Hendriyati

Technological developments and can change the mind and desires of guests in booking hotel rooms. Online travel agents are one of the most advanced products that are currently booming, and also for changes room reservation to be direct or go shows switching to using online travel agents. The purpose of this study was to know information why the guest booking room directly going to online travel agents, in order to improve the e-commerce effort of services to maintain guests while still choosing Mutiara Malioboro Hotel Yogyakarta as a place to stay. Research is an online travel agent that can increase hotel occupancy rates because they are accessible, efficient and effective at competitive prices, as well as hotel costs with sales costs, fees and employee usage fees. Management support in OTA is also needed in an effort to increase the number of orders through OTA.


2017 ◽  
Vol 58 (4) ◽  
pp. 342-353 ◽  
Author(s):  
Xiaoqing (Kristine) Xie ◽  
Chris K. Anderson ◽  
Rohit Verma

Using two choice-based experiments, we evaluate consumer preferences hotel attributes for firms selling hotel rooms across three online distribution channel formats: full information, semi-opaque, and opaque online travel agents. A multinomial logit model is used to analyze the experimental data and measure consumer trade-offs between price and other product attributes. We then use these preferences to determine optimal channel selling strategies. Our optimal channel strategies illustrate under what conditions firms should add opaque distribution channels and the resulting incremental revenue obtained with the setting of optimal channel specific prices. We deploy two choice-based experiments, traditional and menu-based, in an effort to add flexibility to survey respondents in choice selection. As part of our analysis, we compare managerial insights from analysis based on traditional choice-based experiments to that using menu-based choice experiments. In general, we indicate that both forms of opaque selling increase firm demand and that with appropriate pricing can also increase firm revenue. In addition, opaque channels have elevated price sensitivity and increased impact of guest reviews versus traditional online travel agents.


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