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Online Travel Agencies and Beyond: The Role of Sales Channels for Hotels and Consumers

Author

Listed:
  • Laura Lasio

    (European Commission, Joint Research Centre, Ispra, Italy)

  • Jack (Peiyao) Ma

    (University of Oxford, Oxford, UK)

  • Andrea Mantovani

    (TBS Business School, Toulouse, France)

  • Carlo Reggiani

    (European Commission JRC, Seville, Spain and Department of Economics, University of Manchester, Manchester, UK)

  • Néstor Duch-Brown

    (European Commission, Joint Research Centre, Seville, Spain)

Abstract

This paper examines the impact of online travel agencies on hotel pricing strategies, consumer behavior, and market dynamics within the hospitality sector. Using channel-level proprietary data from major hotel chains across eight European countries, we adopt a structural approach to estimate demand and supply, and simulate policy counterfactuals. Our findings reveal that online travel agencies expand demand without exerting significant competitive pressure on market prices, due to limited substitutability between sales channels. We assess potential regulatory interventions. A fee cap would benefit hotels in the sample and consumers, while hurting outside competitors. Provisions that facilitate direct communication between hotels and customers, in the spirit of the disintermediation allowed by the DMA, would be successful in shifting some sales from the platform to the hotel website while reducing margins overall.

Suggested Citation

  • Laura Lasio & Jack (Peiyao) Ma & Andrea Mantovani & Carlo Reggiani & Néstor Duch-Brown, 2025. "Online Travel Agencies and Beyond: The Role of Sales Channels for Hotels and Consumers," Working Papers 25-07, NET Institute.
    • Handle: RePEc:net:wpaper:2507
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    References listed on IDEAS

    as
    1. Duch-Brown, Néstor & Grzybowski, Lukasz & Romahn, André & Verboven, Frank, 2017. "The impact of online sales on consumers and firms. Evidence from consumer electronics," International Journal of Industrial Organization, Elsevier, vol. 52(C), pages 30-62.
    2. Joel Waldfogel, 2024. "Amazon Self-preferencing in the Shadow of the Digital Markets Act," NBER Working Papers 32299, National Bureau of Economic Research, Inc.
    3. Zhuoxin Li & Gang Wang, 2025. "Regulating Powerful Platforms: Evidence from Commission Fee Caps," Information Systems Research, INFORMS, vol. 36(1), pages 126-140, March.
    4. Chamberlain, Gary, 1987. "Asymptotic efficiency in estimation with conditional moment restrictions," Journal of Econometrics, Elsevier, vol. 34(3), pages 305-334, March.
    5. Sean Ennis & Marc Ivaldi & Vicente Lagos, 2023. "Price-Parity Clauses for Hotel Room Booking: Empirical Evidence from Regulatory Change," Journal of Law and Economics, University of Chicago Press, vol. 66(2), pages 309-331.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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