Evaluation of best price clauses in online hotel bookings

Matthias Hunold, Reinhold Kesler, Ulrich Laitenberger and Frank Schlütter

International Journal of Industrial Organization, 2018, vol. 61, issue C, 542-571

Abstract: We analyze the best price clauses (BPCs) of online travel agents (OTAs) using meta-search price data of nearly 30,000 hotels in different countries. We find that BPCs influence the pricing and availability of hotel rooms across online sales channels. In particular, hotels publish their offers more often at Booking.com when the OTA does not use the narrow BPC, and also tend to promote the direct online channel more actively. Moreover, the abolition of Booking.com’s narrow BPC is associated with the direct channel of chain hotels having the strictly lowest price more often.

Keywords: Best price clauses; Online hotel booking; MFN; OTA; Vertical restraints (search for similar items in EconPapers)
JEL-codes: D40 L42 L81 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Working Paper: Evaluation of best price clauses in online hotel bookings (2018)
Working Paper: Evaluation of best price clauses in online hotel booking (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:61:y:2018:i:c:p:542-571

DOI: 10.1016/j.ijindorg.2018.03.008

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