Proposing a model for evaluating market efficiency of OTAs: Theoretical approach

• Hao Huang ^[1] ; Yide Liu ^[3] ; Dong Lu ^[2]
  1. [1] Chinese Academy of Social Sciences

     Chinese Academy of Social Sciences

     China

     
  2. [2] Sichuan Normal University

     Sichuan Normal University

     China

     
  3. [3] Macau University of Science and Technology

     Macau University of Science and Technology

     RAE de Macao (China)

     

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• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 26, Nº. Extra 6, 2020 (Ejemplar dedicado a: e-Tourism economics), págs. 958-975
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • As one of the most popular exchange intermediary for travel products, the online travel agencies(OTAs) compete fiercely. Previous studies on the OTA market efficiency focus on the travelproduct prices and distribution channels competition, but contradictions and paradoxes can befound between the theoretical explanations and empirical results. This article proposed a theo-retical model by identifying two determinants of the OTA market efficiency: the matching abilityand market size. The study shows that (1) the matching ability improves the market efficiency byenlarging the market size and increasing the effective range of competition; (2) the comparativeadvantage in matching ability of one OTA will lead to the efficiency occupation of other OTAs; andthat (3) new OTAs or long tail travel products may reduce market efficiency, but it provides theopportunity to reconstruct the traditional industrial chain. This study enriches the economictheory of OTA and provides commercial guides for practice.