Abstract
The Internet has changed the traditional behavior of customers when purchasing tourism-related products, especially when reserving hotel rooms online. Online travel agencies (OTAs) that offer Web-based hotel room reservation services have proliferated in recent years. This study explores fluctuations in hotel room rates offered by OTAs, a topic that has yet to be fully explored. The results show that ‘last-minute sales mode’ is less frequently adopted among different OTAs at present. Moreover, these agencies even charge the same room rate regardless of the hotel rating (e.g. 5-star, 4.5-star, or 4-star). Furthermore, bundle pricing is more cost-effective than purchasing separate items. Finally, most OTAs have failed to keep their promise of a ‘best rate guarantee’. These findings can help hotel managers improve their strategic management, ensure rate parity among various OTAs, and assist customers in reserving hotel rooms online.
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