Price dispersion, competition, and the role of online travel agents: Evidence from business routes in the Italian airline market

Paolo Roma, Fabio Zambuto and Giovanni Perrone

Transportation Research Part E: Logistics and Transportation Review, 2014, vol. 69, issue C, 146-159

Abstract: In this article, using data from the Italian airline market, we study the role of online travel agents (OTAs) in driving price dispersion as compared to the effect of airlines’ websites. Specifically, we investigate how distinctive factors between OTAs and airlines’ direct channels influence price dispersion. We find that after controlling for OTAs’ features related to airline competition, price dispersion should be lower in the OTA channel relative to airlines’ direct channels. On the other hand, we also find that OTAs’ features related to the presence of airline competition play in favor of higher price dispersion in such indirect channel.

Keywords: Price dispersion; Competition; Online travel agents; Airline industry (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (11)

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DOI: 10.1016/j.tre.2014.06.004

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