Online competition between hotels and OTAs

What is it about?

• Analyze the cash back issue that emerges recently in online marketplace • Provide the optimal cash back policy for OTAs in the coopetition with hotels • Investigate the optimal decision for hotels to determine the commission fee • Propose collaborative model and coordination contract for the supply chain

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Why is it important?

In the online marketplace, many hotels are concentrating on increasing their market share by establishing cooperation with online travel agencies (OTAs). Meanwhile, hotel websites and OTAs are marketing the hotel rooms at the same price as a result of the strong competition for the same pool of customers. Therefore, it is necessary to balance the cooperation and competition between hotels and OTAs.