Where to find the lowest hotel room rates on the internet? The case of Hong Kong

Abstract

Purpose This study aims to examine online room rates in Hong Kong hotels. It focuses on comparing and contrasting the lowest hotel room rates that are available to customers. Design/methodology/approach Eight distribution channels and 45 hotels in Hong Kong were examined for online room rates in a 13‐month period from 2005 to 2006. The eight distribution channels represented different nature of operations including both indirect and direct distribution channels. Findings Empirical findings showed the web sites of local travel agents and local reservation agents offered the lowest online room rates, and that indirect distribution channels offered lower room rates than direct distribution channels. Research limitations/implications A major limitation of this study is the geographic limitation of hotel selection. Originality/value Findings of the study are expected to provide insights for hoteliers to refine their online room rate strategy.