Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Intermediaries and Quality Uncertainty: Evidence from the Hotel Industry

Intermediaries and Quality Uncertainty: Evidence from the Hotel Industry The authors study and test one of the possible organizational solutions to the problem of asymmetric information between sellers and buyers: sellers (firms) use intermediaries' reputations instead of their own as a way to provide credible information to potential buyers concerning the true quality of their product. More specifically, the authors test the role of intermediaries in the hotel industry as providers of reputation regarding the true quality of a hotel establishment. The empirical results support their hypotheses by showing that reliance on an intermediary (a tour operator and a travel agency) in the distribution of the capacity of accommodation of a hotel establishment is: (i) higher for high-quality hotels (which face more acute problems from asymmetric information); and (ii) lower for establishments belonging to large and reputable hotel chains (which are themselves capable of building their own reputation and brand name). http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Tourism Economics SAGE

Intermediaries and Quality Uncertainty: Evidence from the Hotel Industry

Tourism Economics , Volume 20 (4): 30 – Aug 1, 2014

Loading next page...
 
/lp/sage/intermediaries-and-quality-uncertainty-evidence-from-the-hotel-lRuTIAa4tR

References (47)

Publisher
SAGE
Copyright
© 2014 SAGE Publications
ISSN
1354-8166
eISSN
2044-0375
DOI
10.5367/te.2013.0306
Publisher site
See Article on Publisher Site

Abstract

The authors study and test one of the possible organizational solutions to the problem of asymmetric information between sellers and buyers: sellers (firms) use intermediaries' reputations instead of their own as a way to provide credible information to potential buyers concerning the true quality of their product. More specifically, the authors test the role of intermediaries in the hotel industry as providers of reputation regarding the true quality of a hotel establishment. The empirical results support their hypotheses by showing that reliance on an intermediary (a tour operator and a travel agency) in the distribution of the capacity of accommodation of a hotel establishment is: (i) higher for high-quality hotels (which face more acute problems from asymmetric information); and (ii) lower for establishments belonging to large and reputable hotel chains (which are themselves capable of building their own reputation and brand name).

Journal

Tourism EconomicsSAGE

Published: Aug 1, 2014

There are no references for this article.