Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/173094 
Year of Publication: 
2017
Series/Report no.: 
ZEW Discussion Papers No. 16-066
Version Description: 
This version: December, 2017
Publisher: 
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim
Abstract: 
We analyze the best price clauses (BPCs) of online travel agents (OTAs) using meta-search price data of more than 45,000 hotels in different countries. Although OTAs apparently have not changed their standard commission rates following the partial ban of BPCs in Europe, we find that BPCs do 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 being the price leader more often. Moreover, hotels make rooms more often available at Booking.com when it does not use the narrow BPC.
Subjects: 
best price clauses
hotel booking
MFN
OTA
vertical restraints
JEL: 
D40
L42
L81
Document Type: 
Working Paper

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