Coping with reintermediation : The case of SMHEs

• The structure of hospitality distribution has experienced profound changeswithin the last few decades. With the evolution and spread of internet, a substantialnumber of consumers started to use electronic channels for hotel bookings.This has resulted in disintermediation of traditional offline travel agencies. Yet, ithas also initiated a new type of middleman to emerge and grow. Much powerfulthan its former version, online travel agencies (OTAs) bring about some benefits butalso challenges particularly for small and medium sized independent hotels(SMHEs). This paper focuses on the difficulties SMHEs face during this transformation.The characteristics of SMHEs, the evolution of channels and the role ofOTAs were discussed based on a qualitative study. 22 SMHE managers wereinterviewed about their perceptions of OTAs and challenges with reintermediation.Based on the data the challenges were grouped under; complexity, dependency,unfair competition and commodification. Solutions to complications of reintermediationfor SMHEs and directions for future research are suggested

Subject headings

SAMHÄLLSVETENSKAP  -- Social och ekonomisk geografi -- Ekonomisk geografi (hsv//swe)

SOCIAL SCIENCES  -- Social and Economic Geography -- Economic Geography (hsv//eng)

Keyword

SMHE

OTA

Boutique hotels

Distribution channels

Reintermediation

Disintermediation

Publication and Content Type

ref (subject category)

art (subject category)