Evaluation of best price clauses in hotel booking


Hunold, Matthias ; Laitenberger, Ulrich ; Schlütter, Frank


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URL: https://ub-madoc.bib.uni-mannheim.de/41510
URN: urn:nbn:de:bsz:180-madoc-415107
Document Type: Working paper
Year of publication: 2016
The title of a journal, publication series: ZEW Discussion Papers
Volume: 16-066
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: D40 , L42 , L81,
Keywords (English): Best price clauses , hotel booking , MFN , OTA , vertical restraints
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.

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Hunold, Matthias ; Laitenberger, Ulrich ; Schlütter, Frank (2016) Evaluation of best price clauses in hotel booking. Open Access ZEW Discussion Papers Mannheim 16-066 [Working paper]
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