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The Impact of Internet on Pricing Strategies in the Tourism Industry

Author

Listed:
  • Sahut, Jean-Michel

    (University of Poitiers)

  • Hikkerova, Lubica

    (Matej Bel University)

Abstract

The Internet has had a dramatic effect on the distribution of tourism products. The reintermediation which has taken place has led all distributors to implement more dynamic pricing strategies from the widespread use of Yield Management (YM) practices to price discount strategies. The Internet also influences the consumers’ perception of pricing strategies. Consumers are increasingly aware of YM practices and the Internet has become the essential tool for finding the best price. However, there continues to be a certain disconnect between the channels used for searching for the best price available and those used by the clientele of luxury hotels in France to make their booking. Indeed, the telephone still dominates for this type of clientele when carrying out this type of transaction as they find it easier to use, it is entrenched in their habits and is perceived as being more secure.

Suggested Citation

  • Sahut, Jean-Michel & Hikkerova, Lubica, 2009. "The Impact of Internet on Pricing Strategies in the Tourism Industry," Journal of Internet Banking and Commerce, , vol. 14(1), pages 01-08, April.
    • Handle: RePEc:ris:joibac:0463
    as

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    More about this item

    Keywords

    Tourism; Internet; Pricing strategies; Yield Management; Hotel;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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