Price dispersion, competition, and the role of online travel agents: Evidence from business routes in the Italian airline market

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16 Citations (Scopus)

Abstract

In this article, using data from the Italian airline market, we study the role of online travelagents (OTAs) in driving price dispersion as compared to the effect of airlines’ websites.Specifically, we investigate how distinctive factors between OTAs and airlines’ directchannels influence price dispersion. We find that after controlling for OTAs’ featuresrelated to airline competition, price dispersion should be lower in the OTA channel relativeto airlines’ direct channels. On the other hand, we also find that OTAs’ features related tothe presence of airline competition play in favor of higher price dispersion in such indirectchannel.
Original languageEnglish
Pages (from-to)146-159
Number of pages14
JournalTRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW
Volume69
Publication statusPublished - 2014

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Civil and Structural Engineering
  • Transportation

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