An Examination of the Relationship between Online Travel Agents and Hotels: A Case Study of Choice Hotels International and Expedia.com. (February 2013)

• Record Type: Journal Article
• Authors: Lee, Hee "Andy"; Denizci Guillet, Basak; Law, Rob
• Is Part Of: Cornell hospitality quarterly. Volume 54:Number 1(2013)
• Page Start: 95
• Page End: 107
• Publication Date: 2013-02
• Subjects: online travel agents -- Choice Hotels International -- Expedia -- agency problems -- bargaining power; Hospitality industry -- Periodicals; Hotel management -- Periodicals; Restaurant management -- Periodicals; 338.4791
• DOI: 10.1177/1938965512454218
• Languages: English
• ISSNs: 1938-9655

Abstract

Although traditional travel agents have played an important role as proxies enabling travelers to make connections with hotels, the emergence of the internet has changed the traditional relationship between hotels and travel agents. Instead of a traditional agent–principal relationship, online travel agents (OTAs) seem to act as more than just intermediaries and more as business partners or vendors. Scholars have previously observed troubled, if not hostile, relationships between hotels and OTAs. This article reports a case study analyzing online comments on the 2009 feud between Choice Hotels International andExpedia.com . This analysis identified eight themes in three overall categories: the background to the feud (i.e., characteristics of the hotel industry, current business environment, Expedia's business practices), the perspectives of hospitality industry professionals on the feud (i.e., wake-up call for hoteliers, Choice Hotels' decision), and expectations concerning the nature of the relationship between hotels and OTAs (i.e., a symbiotic relationship between hotels and OTAs, experience of dealing with guests who book through OTAs and Expedia, and recommendations for hotels). Chief among the study's conclusions is that hotels must find ways to make the most effective possible use of available technology and distribution channels, and perhaps even form consortia to share information about third-party distribution channels.