|Tso, Ying-ying Angie
|An analysis of online pricing practice in Hong Kong's hotel industry
|Hong Kong Polytechnic University -- Dissertations
Hotels -- China -- Hong Kong -- Rates
Internet marketing -- China -- Hong Kong -- Case studies
|School of Hotel and Tourism Management
|vii, 90 leaves : ill. ; 30 cm
|Although some prior studies have been performed to examine online pricing practice and Internet marketing in the hotel sector, these studies were primarily based on the U.S. and Europe. This study examines the online pricing practice of Hong Kong hotels. The present study focuses on comparing and contrasting hotel room rates that are available to customers. In this study, seven distribution channels and forty-five hotels were examined for data collection from August to December 2003. Seven distribution channels, represented indirect distribution channels (i.e. commission model through channels such as Global Distribution Systems, switching company, local travel agent, merchant model) and direct distribution channels (i.e. hotels' own voice channel and website). On the basis of Hotels.com's rating system, a total of forty-five hotels categorized as three-, four-, five-star with fifteen in each of the categories were selected from the member list of the Hong Kong Hotels Association. The selection was made according to the high usage rate in the seven distribution channels. The mean rates were calculated from data collection by selected distribution channels and hotel categories. A comparative analysis revealed significant differences on overall performance of the selected seven distribution channels. This study concludes that (i) the local travel agent offered the cheapest online room rates than worldwide distribution channels; (ii) the indirect distribution channels had better online pricing practice than direct distribution channels. This research has a number of implications for hotel industrial practitioners and policy makers. In particular, it urges Hong Kong's hotel industry should refine the online pricing practices of direct distribution channels, expand the integration with worldwide distribution channels and improve the competitiveness of local distribution channels.
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