A Study of OTAs and A-Taxes

What is it about?

The purpose of this article is to further explore the relationship and balance of power between online travel agencies (OTAs) and hotel properties, specifically addressing and generally supporting the established but contentious concept of the billboard effect. The research also introduces the concept of chain immunity, an ancillary benefit that unlisted hotels receive as a function of the billboard effect. The empirical study conducted suggests that OTAs have less power than is generally perceived versus hotels. The findings further provide hoteliers with strong justification to support experimentation with their property's sales distribution systems as they seek to determine the most effective balance of OTA versus Brand.com promotional efforts for their properties.

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