Love and hate relationship between hotels and Online Travel Agencies - an investigation into contemporary revenue management in 4 and 5 star hotels in Edinburgh.
Citation
(2017) Love and hate relationship between hotels and Online Travel Agencies - an investigation into contemporary revenue management in 4 and 5 star hotels in Edinburgh., no. 77.
Abstract
Online Travel Agencies have an increasingly important role to play in modern day
distribution channels of hotels. However, they remain as competitors to the hotels due to
their high commission rates and increasing success. The present study explores the
relationship between hotels and OTAs in terms of their perceptions of each others and
any challenges between them. Through qualitative research methodology, semistructured
interviews with four 4 and 5-star hotel managers and one OTA hotel account
manager were conducted in Edinburgh. The research findings show that a lot concerning
the relationship between chain hotels and OTAs is happening on company level rather
than property level such as the contracting and acquisition. The main OTAs hotels
cooperate with in Edinburgh are Booking.com and Expedia as well as a few smaller
scale and local OTAs. Research results demonstrate that the overall relationship between
hotels and OTAs is positive; however minor challenges occur in terms of getting in
contact with the OTAs, rate parity and acceptance of OTAs. Whereas hotels see OTAs
are both, partners and competitors, they have recently started to put more effort into
attracting direct bookings through their own websites by offering discounted rates for
loyalty program members. The aims and objectives established for this research have
been bet throughout the research. However, the paper concludes with recommendations
for future research to further explore the challenges arising and make suggestions to
improve the relationship.