Beyond rate parity

Examining offer uniqueness and channel credibility in hotel pricing

Bibliographic Data

ID21689666
AuthorsSung W Lee (0000-0001-8867-4533, Pennsylvania State University, corresponding author), Amit Sharma (0000-0001-6130-1913, Pennsylvania State University)
Year2025
Volume31
Issue2
Pages309-331
Publication date2025-03-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueTourism Economics (JOURNAL)
Journal identifiersISSN: 1354-8166 • E-ISSN: 2044-0375
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/13548166241273881
OpenAlexW4401688910
LanguageEN
Citations received2
References cited52

This study investigated how price and non-price content disparities on online travel agencies (OTA) and hotels’ direct booking websites affect consumers’ hotel booking decisions, focusing on the role of cancellation flexibility and OTA credibility. Price parity across channels can significantly shift consumer preference toward the direct hotel booking website. Conversely, price disparities can prompt further evaluation of non-price content attributes, particularly cancellation flexibility and OTA credibility. Two experimental studies showed that the uniqueness of an offer, cancellation flexibility, and the credibility of OTAs moderate the effect of price on consumers’ willingness to book. Maintaining price parity and managing non-price content disparities is crucial for fostering consumer trust and preference for hotel brands’ booking websites. This study expands the understanding of consumers’ hotel booking behavior beyond using price as the decision criteria, emphasizing the importance of holistic online content management and OTA credibility

Business · Credibility · Econometrics · Economics · Financial economics · Geography · Source credibility · Telecommunications · Tourism · Uniqueness · Computer Science · Consumer Market Behavior and Pricing · Consumer Retail Behavior Studies · Mathematics · Wine Industry and Tourism

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Open DOIOpen Access