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Statistical Analysis on the Impact of Online Travel Agents’ (OTAs) Commission Structure on Hotels’ Revenue Management

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Abstract

One of the most critical challenges facing the hotel sector has been the dominant position achieved by the Online Travel Agency (OTA) leading to a radical change in the electronic distribution chain. The application of the merchant model has the hoteliers paying a high commission margin and losing control over their inventory and final sales prices, as they watch how many of their customers are induced to buy through online intermediaries. This paper analyzes the impact of OTAs’ commission structure on hotels’ revenue management. A study is also carried out on the level of use of OTAs by hotels and the fairness of the commission rates, the bargaining power with the OTAs, the efficiency of the OTAs’ marketing strategy and the effectiveness of commission rates on pricing policy.

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Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.Mediterranean Agronomic Institute of Chania (CIHEAM MAICh)ChaniaGreece
  2. 2.Department of EconomicsAristotle University of ThessalonikiThessalonikiGreece

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