Preparing for Pandemics: Reflecting on the Impact of Strategic Elements in the COVID-19 Influenced Online Travel Agencies' Marketing Mix

Abstract

The landscape of online hotel booking, particularly through online travel agencies (OTAs), witnessed a transformation during the COVID-19 pandemic. This shift triggered intense competition among OTA marketers. Interestingly, amidst this competitive environment, while causal predictive models exist that focus on moderate to high effects of major features on Price and hotel BI, the strategic impact of minor features has largely been overlooked. To address this gap, a frequency analysis involving a comprehensive sample of 63 OTAs identified four minor features. Subsequently, a partial least squares structural equation modeling approach explored 499 consumers’ perceptions. Two features were shown to be significant (COVID-19 Hygiene Label, Price Discount), with COVID-19 Hygiene Label mediating Price. However, Scarcity and Loyalty Program showed no direct or mediating effects. The model accounted for a strategic 29.8% R2. As COVID-19 is an ongoing recurring issue and preparation for future pandemics is prudent, the results provide valuable insights for OTA app developers aiming to gain additional predictive marginal performance advantages (i.e., .10 or greater). Implications and suggestions for future research are also offered.