ABSTRACT

This chapter analyzes the characteristics of the relationships between hotels and online travel agencies. Traditional travel agents have played an important role as proxies enabling travelers to make connections with hotels. Information and Communication Technologies have deeply transformed business strategies and practices in the tourism and hospitality industries. According to transaction cost theory hotels should benefit from a collaborative relationship since they could focus on providing their guest experience while travel agents manage the distribution functions. Instead of a traditional agent–principal relationship, online travel agents (OTA) act just as business partners or as vendors. The chapter identifies the sources of a different bargaining power in the Hotel-OTAs relationship and discusses the power asymmetry effects in setting B2B tourism contractual elements; the strategies that enable hotels to fill the information gap in order to balance the bargaining power. It examines the strategies that enable hotels to fill the information gap in order to balance the bargaining power.