Article ID Journal Published Year Pages File Type
1012439 Tourism Management 2011 6 Pages PDF
Abstract

In today's digital world, airlines typically distribute tickets both via their own websites and through online travel agency (OTA) platforms such as Expedia and Travelocity. Although associated with higher distribution costs, selling tickets through the platforms offers airlines exposure to a broader consumer base, and potentially higher sales than selling tickets solely through their own websites. While most airlines have adopted a multi-channel approach by selling tickets through OTA platforms and their websites, some (e.g., Southwest Airlines, easyJet and Ryanair) sell only via the latter. Is one approach better than the other, and if so, under what circumstances? This study analyzes factors that affect an airline's distribution strategy by developing a decision support model. We find that airlines are less likely to use OTA platforms if they have a large loyal consumer base or if the OTA platform is highly competitive.

Related Topics
Social Sciences and Humanities Business, Management and Accounting Strategy and Management
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