Does it pay to book direct?: Customers’ perceptions of online channel distributors, price, and loyalty membership on brand dimensions

Abstract

To attract a transient market, hotels primarily use several distribution channels, such as the following: the hotel directly, central reservation offices, travel agents, and online booking systems. Yet, little attention has been paid to the revenue management implications with regard to the focus on distribution channels. The purpose of this study was to examine the effects of channels and prices on brand dimensions and to study the role of hotel loyalty membership in the relationships. A 2 (channel) × 2 (price) × 2 (loyalty membership) quasi-experiment was designed to test the research objectives. Multivariate Analysis of Variance was used to test significant differences. The findings provide implications for the industry.