Hunold, Matthias Kesler, Reinhold Laitenberger, Ulrich Schlütter, Frank
Year of Publication:
ZEW Discussion Papers 16-066
We analyze the best price clauses (BPCs) of online travel agents (OTAs) using meta-search price data of nearly 30,000 hotels in different countries. We find that BPCs influence the pricing and availability of hotel rooms across online sales channels. In particular, the abolition of Booking.com's narrow BPC is associated with the hotels' direct channel having the strictly lowest price more often. Moreover, hotels publish their offers more often at Booking.com when it does not use the narrow BPC, and also tend to promote the direct online channel more actively.
Best price clauses evaluation hotel booking MFN OTA vertical restraints