The aim of this paper is to analyze the characteristics of the relationships between hotels and online travel agencies. Traditional travel agents have played an important role as proxies enabling travelers to make connections with hotels. Information and Communication Technologies have deeply transformed business strategies and practices in the tourism and hospitality industries (Ip et al., 2011). Specifically, the Internet has served as one of the most effective marketing and communication tools for hoteliers in facilitating information sharing and online transactions (Tse, 2013), thus leading businesses into a new era. In response to the new challenges (Buhalis and Law, 2008) and in order to increase their competitiveness, hotels have established various online presences. In this field Online Travel Agencies (OTAs) have a strategic role in inducing travelers to make reservations mainly through discounts on travel packages (Toh et al., 2011), coupons or cash-back (Guo et al., 2014). The online travel represents about 20% of the Italian market, for a value higher than EUR 10 billion buying through OLTA grew by 14% in the Italian travel market (Politecnico di Milano – Observatory of Digital Innovation 2016). Hotels pay them a commission fee to ensure such a desirable achievement, and face a trade-off between reservations and a high commission fee
The relationship between hotels and online travel agencies. Opportunities and challenges for long-term strategies.
Antonio Iazzi
;Pierfelice Rosato;Oronzo Trio
2019-01-01
Abstract
The aim of this paper is to analyze the characteristics of the relationships between hotels and online travel agencies. Traditional travel agents have played an important role as proxies enabling travelers to make connections with hotels. Information and Communication Technologies have deeply transformed business strategies and practices in the tourism and hospitality industries (Ip et al., 2011). Specifically, the Internet has served as one of the most effective marketing and communication tools for hoteliers in facilitating information sharing and online transactions (Tse, 2013), thus leading businesses into a new era. In response to the new challenges (Buhalis and Law, 2008) and in order to increase their competitiveness, hotels have established various online presences. In this field Online Travel Agencies (OTAs) have a strategic role in inducing travelers to make reservations mainly through discounts on travel packages (Toh et al., 2011), coupons or cash-back (Guo et al., 2014). The online travel represents about 20% of the Italian market, for a value higher than EUR 10 billion buying through OLTA grew by 14% in the Italian travel market (Politecnico di Milano – Observatory of Digital Innovation 2016). Hotels pay them a commission fee to ensure such a desirable achievement, and face a trade-off between reservations and a high commission feeI documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
