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Peer Reviewed

Beyond price: how platform power shapes demand allocation in online hotel channels

Type of paper: Research Article

Authors

Ling Ling

Corresponding Author

Affiliation: Old Dominion University

Email: lling@odu.edu

https://orcid.org/0009-0004-2933-0270

Timothy Webb

Affiliation: University of Delaware

Email: twebb@udel.edu

https://orcid.org/0000-0002-4435-1596

Zvi Schwartz

Affiliation: University of Delaware

Email: zvi@udel.edu

https://orcid.org/0000-0001-9254-5670

Received:May 20, 2026
Revised:May 25, 2026
Accepted:May 25, 2026
Published:May 31, 2026

How to Cite

Ling, L., Webb, T., & Schwartz, Z. (2026). Beyond price: how platform power shapes demand allocation in online hotel channels. CACTUS - Journal of Tourism Business, Management and Economics, 8 (1), 4-22.

Based on the official APA guide. Review the full set of examples.

© 2026 The Author(s);

Licensed under CC BY-NC 4.0

Abstract

Rate disparity remains a widely used but poorly understood pricing strategy in the hotel industry. While previous research generally assumes that lower prices shift demand toward less expensive channels, this study investigates whether such effects occur in practice. Using high-frequency booking and pricing data from five full-service hotels across multiple online travel agencies (OTAs), we analyze how rate disparity relates to the distribution of demand across channels. The findings show that the impact of price differences is limited, highly non-linear, and strongly dependent on contextual factors. Channel market power and hotel-specific characteristics seem to play a more significant role than price advantages under the observed conditions. Rate disparity reallocates demand across channels rather than increasing total demand within the sample studied, and its effectiveness varies across demand seasons and competitive environments. These results challenge the prevailing focus on price-based competition and suggest that platform dynamics and hotel attributes may play a more central role in distribution outcomes.

Keywords

Hotel revenue managementRate disparityDistribution channelCompetitive dynamicsPricing strategy

JEL Classification

L14L83M47

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