An Examination of the Influence of Online Travel Agencies on Hotel Pricing Strategies in Bauchi State
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study
Online Travel Agencies (OTAs) like Booking.com, Expedia, and Airbnb have become dominant players in the global hospitality industry. These platforms allow tourists to search for, compare, and book hotels and other accommodations directly, influencing both consumer behavior and the pricing strategies of hotels. For hoteliers in Bauchi State, understanding the role of OTAs in shaping pricing strategies is crucial for maintaining competitive advantage in a growing tourism market.
In Bauchi State, which is known for its tourist attractions such as the Yankari Game Reserve and its historical landmarks, the hospitality industry is rapidly evolving. Hotels are increasingly using OTAs as part of their distribution strategy, which can affect their pricing structure, promotional offers, and overall revenue management strategies. OTAs have a unique influence on hotel pricing, as they provide price transparency and enable real-time comparisons. Additionally, the commission fees charged by OTAs may affect the pricing decisions of hotels.
This study aims to examine the influence of OTAs on hotel pricing strategies in Bauchi State, assessing the implications for hotel revenue, pricing flexibility, and competitiveness in the local market.
Statement of the Problem
The rise of OTAs has transformed the hotel industry’s pricing dynamics. Hotels in Bauchi State may face challenges in setting competitive and profitable prices, especially with the pressure of maintaining visibility and rankings on these platforms. While OTAs provide broader exposure, they also impose commission fees and require certain pricing strategies to remain competitive. The impact of OTAs on hotel pricing strategies in Bauchi State has not been extensively studied. This research aims to explore how OTAs influence hotel pricing decisions and the long-term effects on the local hospitality industry.
Objectives of the Study
1. To examine the influence of OTAs on hotel pricing strategies in Bauchi State.
2. To assess the impact of OTA commission fees on hotel pricing decisions.
3. To explore how OTAs affect the competitiveness of hotels in Bauchi State’s tourism market.
Research Questions
1. How do OTAs influence hotel pricing strategies in Bauchi State?
2. What impact do OTA commission fees have on hotels’ pricing decisions in Bauchi State?
3. How do hotels in Bauchi State maintain competitiveness while using OTAs for bookings?
Research Hypotheses
1. OTAs significantly influence hotel pricing strategies by affecting pricing flexibility and revenue management in Bauchi State.
2. OTA commission fees negatively impact hotel profitability and pricing decisions in Bauchi State.
3. Hotels in Bauchi State that optimize their use of OTAs maintain competitive pricing strategies and attract more bookings.
Scope and Limitations of the Study
This study will focus on hotels in Bauchi State that use OTAs for their booking and pricing strategies. Data will be collected from hotel managers, industry experts, and OTA platforms. Limitations include potential biases in self-reported pricing data and the challenge of isolating the influence of OTAs from other external factors.
Definitions of Terms
• Online Travel Agencies (OTAs): Websites and platforms that aggregate hotel listings and allow consumers to book accommodations directly, often with commissions or fees.
• Hotel Pricing Strategy: The method by which hotels set prices for their rooms based on factors such as demand, competition, and distribution channels.
• Revenue Management: The practice of optimizing hotel pricing to maximize revenue, balancing occupancy rates and room rates.
