Why do people purchase from online travel agencies (OTAs)? A consumption values perspective

Online travel agencies (OTAs) are struggling to remain financially sustainable due to intense competition. To overcome this challenge, OTAs need to better engage their customers by offering them superior value propositions. This calls for an in-depth understanding of the consumption values pertinent to the OTA context. To address this gap, the current study puts forward a framework for predicting purchase intention by adapting the theory of consumption values to the OTA context. The proposed model is tested with data collected from 809 OTA users. The results imply that quality-of-benefits, monetary, social status, preference, and information values predict purchase intention toward OTAs, with the chief driver being the quality-of-benefits value, followed by the preference value. Moderation analysis further reveals that the strength of the relationship between these values and purchase intention differs between users in different age groups and between users with different levels of privacy and security concerns, hygiene consciousness, and visibility perceptions.     

To Ban or not to ban rate parity,that is the question… or not?

Considering the heated debate in the hotel industry about the rate parity clause and the appropriateness of its ban to give rise to rate disparity, this article analyzes the hotel performance that has resulted from the rate parity prohibition established in some European countries, by looking into the market value of the hotels involved. The empirical analysis conducted on a sample of hotel companies trading on the stock exchange in Germany and France shows that the approval of the rate parity ban generates positive abnormal returns. However, an increase in risk is detected. It seems that, while the prospects of greater autonomy to set prices in the hotel industry and stronger competition in the online distribution industry are looked at positively, the hotels will have to deal with a customer’s potential higher perception of price unfairness, less control over its own brand and a greater likelihood of price wars.     

Online distribution of airline tickets: Should airlines adopt a single or a multi-channel approach?

In today's digital world, airlines typically distribute tickets both via their own websites and through online travel agency (OTA) platforms such as Expedia and Travelocity. Although associated with higher distribution costs, selling tickets through the platforms offers airlines exposure to a broader consumer base, and potentially higher sales than selling tickets solely through their own websites. While most airlines have adopted a multi-channel approach by selling tickets through OTA platforms and their websites, some (e.g., Southwest Airlines, easyJet and Ryanair) sell only via the latter. Is one approach better than the other, and if so, under what circumstances? This study analyzes factors that affect an airline's distribution strategy by developing a decision support model. We find that airlines are less likely to use OTA platforms if they have a large loyal consumer base or if the OTA platform is highly competitive.     

Analysis of Korean millennials’ travel expenditure patterns: an almost ideal demand system approach

ABSTRACT

Generational cohorts can differ in their consumption patterns and preferred travel behavior. As the millennial generation represents an important economic force and influences new consumption trends, this study utilizes nationwide data and almost ideal demand system (AIDS) approach to examine expenditure patterns of Korean travelers during holidays. In this process, the joint effects of travel-related characteristics are also examined. The results of the AIDS estimation on data from 871 domestic travelers reveal significantly different travel expenditure patterns for cohorts. The findings contribute to furthering the understanding of how different generational cohorts allocate their travel budgets to respective travel expenditure categories.     

Price bundling presentation and consumer's bundle choice: The role of quality certainty

As bundling has become a prevalent marketing strategy, the existing literature has focused on how to present price discount information for bundled products. To further understand bundling in restaurant operations, this study examined the moderating role of consumer quality certainty on the relationship between the effects of price bundling and consumers’ bundle choices. This study analyzed different bundling phenomena from an acquisition–transaction utility theory perspective in order to investigate the effects of price presentation and quality certainty manipulation on consumers’ bundle choices. Hierarchical regression analyses showed that quality certainty had a significant moderating effect. The less confident a consumer is about the quality of the bundled food products, the more likely it is that price presentation strategies will affect his or her willingness to order a bundle menu. The results also showed that transaction utility becomes significant as price discount information is segregated and as consumers are more certain of the quality of the bundled products. Managerial implications for restaurant operations are also discussed.     

The Use of Problematic Integration Theory to Assess Destination Online Promotion Activities

Abstract

This paper uses problematic integration theory to assess destination online promotional activities often used to influence consumer travel purchase behavior. The model of destination online promotion activities assessment focuses on the link between consumers' online brand preference drivers (differentiation, quality, and value) and online market data (price, distribution, Web presence, promotions, direct online communication tool, and ad identification). The model is tested using the case of Australia (www.australia.com) and their efforts to attract a U.S. market. The study found Australia.com is a well-designed travel guide that provides information and emphasizes its aesthetic aspects. However, the Website's interactive aspects could be improved. By assessing destination online promotional activities, destination marketing organizations may be able to reduce underlying uncertainty regarding the destination and more clearly address the needs of their target markets.     

Modeling International Travel Arrangements for Taiwanese Travelers: Potential Fits

Abstract

This paper presents a choice model of international travel arrangements for potential Taiwanese FIT (Foreign Independent Travel) travelers. Previous studies were based mostly on package vacations, with little attention given to FIT travelers. Recent years have indicated a transition toward FIT. Since this transition is likely to continue, it is important for travel and tourism organizations and for marketers to understand FIT individuals. This study distinguishes potential FIT travelers from non-FIT travelers, identifies variables useful in making this prediction, and provides recommendations to travel and tourism organizations of host countries. The findings indicate that Taiwanese FIT travelers are likely to be younger, male, highly educated, budget conscious, travel with a larger party size for purposes of meeting interesting and friendly local people, stay for longer periods of time, and have taken many trips in the last three years that in volved spending at least four nights away from home.     

旅行社网站服务公平性对顾客行为意向的影响研究

企业坚持公平性原则,才能建立和维系与顾客的长期关系.笔者以旅行社网站的顾客为研究对象进行了一次实证研究,探讨了旅行社网站服务公平性对顾客行为意向的影响.数据分析结果表明:旅行社网站服务公平性直接影响顾客信任感和满意感,间接影响顾客的行为意向.     

海峡两岸境外团体套装旅游趋势研究

团体套装旅游是亚洲许多国家及地区的主要海外旅游形式,本研究探索性地研究了海峡两岸境外团体套装旅游的现状和发展趋势,研究方法通过对台湾(台北)与大陆(北京)两地共30家经营境外团体套装旅游的旅行社高级管理者进行深度访谈后,通过分析得到419项类别目(台湾214项;大陆205项),归类过程信度值均超过0.8.研究结果表明,第一,海峡两岸的境外团体套装旅游发展具有相似性;第二,海峡两岸旅行社将朝\"大者恒大、小者转型\"的方向发展;第三,海峡两岸团体套装旅游产品的包装及营销手段将更趋向消费者导向;第四,在定价趋势上,大陆将朝\"参考同业定价\"与\"需求导向\"发展,台湾将以\"低价竞争\"发展,等等.本研究结果从应用价值上,可为海峡两岸经营境外团体套装的旅游管理者提供重要参考,从理论价值上,可为后续的深入研究提供系统性市场调查与分析结果.     

Medical Tourism—Attracting Japanese Tourists For Medical Tourism Experience

This study aimed at examining the intention of Japanese tourists to travel to Korea in a medical tourism context by applying the Theory of Planned Behavior (TPB). A total of 237 responses were analyzed via structural equation modeling to test two dimensions of medical tourism models. A total of 14 salient belief items in the health treatment model and 16 salient belief items in the beautification model were identified. Reshaping dimensions of medical tourism and the proved applicability of the TPB extends the knowledge of medical tourism and understanding of Japanese tourists' travel intentions in a medical tourism context. The findings indicate the industry practitioners should put effort into attracting Japanese medical tourists. This research has shown that authorities should influence word-of-mouth information exchange and should seek feedback to develop marketing strategies. Publicity should be coordinated with professional bodies in the originating and destination countries. The research further indicates that regulatory and safety regulations must be in place with easy access to information.