Where to find the lowest hotel room rates on the internet? The case of Hong Kong

Abstract

Purpose -This study aims to examine online room rates in Hong Kong hotels. It focuses on comparing and contrasting the lowest hotel room rates that are available to customers. Design/methodology/approach -Eight distribution channels and 45 hotels in Hong Kong were examined for online room rates in a 13-month period from 2005 to 2006. The eight distribution channels represented different nature of operations including both indirect and direct distribution channels. Findings -Empirical findings showed the web sites of local travel agents and local reservation agents offered the lowest online room rates, and that indirect distribution channels offered lower room rates than direct distribution channels. Research limitations/implications -A major limitation of this study is the geographic limitation of hotel selection. Originality/value -Findings of the study are expected to provide insights for hoteliers to refine their online room rate strategy.

Pricing determinants in the hotel industry: Quantile regression analysis

“…O'Connor (2003) and Law et al (2007) found that room rates differed according to distribution channel. Additionally, room prices varied depending on season, and the occurrence of trade events exhibitions or conferences.…”

A demand-driven analysis of tourist accommodation price: A quantile regression of room bookings

“…To understand further this behavior, Law et al (2007) examined online hotel room rates in Hong Kong. Among the eight selected distribution channels, websites of a local travel agent and a local reservation agent offered the lowest online room rates, while indirect distribution channels offered lower room rates than direct ones.…”

Information Technology Applications in Hospitality and Tourism: A Review of Publications From 2005 to 2007

“…For customers searching on the Internet for the lowest room rates, the websites of travel agents and reservation agents are likely to be the best choice (Law, Chan, & Goh, 2007). In the Internet era, search engines play an important role in information searching (Ho & Liu, 2005), and the Google search engine in particular is perceived to be the most important tool (Law & Huang, 2006).…”