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The impact of online travel agencies on airlines' own online platform: Evidence from a quasi-experiment

  • Yanhong Chen
  • , Luning Liu
  • , Zhenyuan Zhang
  • , Zhiyun Zhang
  • Harbin Institute of Technology

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Usually, many airlines sell their tickets through their own 0nline platform and Online Travel Agency (OTA) platforms. Although selling tickets through the OTA platforms offers airlines exposure to a broader consumer base. It is unclear whether this effect applies to airlines' own online platform. In this paper, we analyzed the impact of the OTA's introduction on the self-owned platform to explain this problem. X Airlines determined to sell their tickets of some routes in Ctrip on May 21, 2012. Relying on this special quasi-experiment in combination with DID and PSM method, we empirically verify our conjecture. The results reveal that the introduction of OTA has caused a significant decline in the competitiveness (e.g. passenger load factor (PLF)) of their own online platform, while it has a positive effect on the auxiliary service sales (e.g. baggage revenue). Our findings have important implications for both airlines and platforms.

Original languageEnglish
Title of host publication26th Americas Conference on Information Systems, AMCIS 2020
PublisherAssociation for Information Systems
ISBN (Electronic)9781733632546
StatePublished - 2020
Event26th Americas Conference on Information Systems, AMCIS 2020 - Salt Lake City, Virtual, United States
Duration: 10 Aug 202014 Aug 2020

Publication series

Name26th Americas Conference on Information Systems, AMCIS 2020

Conference

Conference26th Americas Conference on Information Systems, AMCIS 2020
Country/TerritoryUnited States
CitySalt Lake City, Virtual
Period10/08/2014/08/20

Keywords

  • Difference-in-difference (DID)
  • OTA platforms
  • Propensity Score Matching (PSM)
  • Quasi-experiment

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