Interorganizational relationship with the hotel industry : the perspective of online travel agencies in Asia Pacific

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Interorganizational relationship with the hotel industry : the perspective of online travel agencies in Asia Pacific


Author: Huang, Yin Cherry
Title: Interorganizational relationship with the hotel industry : the perspective of online travel agencies in Asia Pacific
Degree: DHTM
Year: 2015
Subject: Travel agents -- Asia.
Hotels -- Marketing.
Internet marketing.
Hong Kong Polytechnic University -- Dissertations
Department: School of Hotel and Tourism Management
Pages: ix, 209 pages
Language: English
Abstract: Distribution is critical to every business, and this is particularly true with regards to the hotel industry as hotel accommodation is perishable in nature. As key components to the distribution channel, travel agents have traditionally established a well-defined agent-principle relationship with hotels, but this has been overturned by the advent of the Online Travel Agencies (OTAs). The rapid growth of OTAs has posted unprecedented challenges to the hotel industry forcing it to establish and execute its own distribution strategy. The Asia Pacific (APAC) region is leading global economic growth. Tourism is critical to the economic wellbeing and political stability of the region. However, the relationship between hotels and OTAs in the region is under tension with an increasing number of conflicts, which puts the total tourism value chain in the region at risk. There are very few studies dedicated to investigate this phenomenon and no research has been conducted from the OTAs' point of view. This research attempts to identify the problems and the gap; the study aims at establishing a successful interorganizational relationship development model between hotels and OTAs from the OTAs' perspective and it aims at identifying the trends of relationship development in the APAC region. Extensive literature on hotel distribution management, including the history and development of distribution channels, has been reviewed in order to obtain a comprehensive understanding of the current status of interorganizational relationships between hotels and intermediaries. General supply chain management and tourism supply chain management studies are discussed to provide a solid conceptual foundation to build an interorganizational model. The key theories of interorganizational relationships are tested for their applicability in the context of the study. The loose coupling theory is believed to fit best to the aims of the research. Potential key determinants for the successful buyer-supplier relationship development between hotels and OTAs are discussed to support the construct of the model.
The 3-step research design is chosen to form the design strategy of the study. Delphi methods combined with semi-structured interviews are conclusively shown to serve best to the aims of the investigation after the testing of various qualitative research methods. Data collection and analysis process is carefully designed to ensure the reliability of the study, but the research recognizes both strengths and limitations of the research design.The Dephi study concluded that 4-dimensional mutual perceived justice is the foundation of the buyer-supplier relationship between hotels and OTAs; mutual interorganizational exchange behaviors-'knowledge sharing', 'continuous commitment', 'relationship investment' and 'coordination enhancement' build the desired outcome of the buyer-supplier performance -'interorganizational trust' which in turn enhance the perceived justice as foundation of the relationship. The result further shows that for long term sustainable relationships OTAs need to be innovative and enhance their values to the hotels. In light of the results, the study proposes a successful interorganizational development model between hotels and OTAs. Theoretical contributions and practical implications of the study are thereafter presented and recommendations to the further research conclude the entire study.

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