Online travel agency price presentation: Examining the influence of price dispersion on travelers’ hotel preference

Jungkeun Kim*, Drew Franklin, Megan Phillips, Euejung Hwang

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract / Description of output

This research investigates the impact of different degrees of price dispersion on travelers’ hotel choice. More specifically, within an online travel agency (OTA) context, we examine the effect of wide (vs. narrow) price dispersion on hotel preference. In addition, we suggest two boundary conditions for this effect: salience of external regular price and perception of destination uncertainty. Across multiple studies, our results show that travelers prefer a hotel option featuring wide price dominance dispersion. Additionally, both the presence of an external regular price and the level of uncertainty associated with the hotel
destination act as moderating influences. This work represents an emerging direction in the online price dispersion literature, namely, exploring the consequences of online price dispersion. In practice, by understanding the influence of price dispersion on consumer choice, OTAs can develop more effective pricing strategies in partnership with their hotel room suppliers.
Original languageEnglish
Pages (from-to)704-721
Number of pages18
JournalJournal of Travel Research
Volume59
Issue number4
Early online date28 Jun 2019
DOIs
Publication statusPublished - Apr 2020

Keywords / Materials (for Non-textual outputs)

  • price dispersion
  • reference pricing
  • online travel
  • online travel agent
  • hotel choice

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