Innovation Adoption in Online Travel Agent Platforms
37 Pages Posted: 10 Jan 2019 Last revised: 25 Jan 2020
Date Written: January 23, 2020
This paper analyzes the strategic opportunities enabled by one of Booking.com's managerial innovations introduced in 2015-16: a new online discount feature. Focusing on the hospitality and online booking platforms, we explore the role of the heterogeneity in characteristics that make establishments more susceptible to embrace such innovation. The empirical analysis indicates that the propensity to adopt a managerial innovation is positively affected by ratings and user perception, as well as online sales experience and chain affiliation. Conversely, we find that the type of establishment does not significantly affect the propensity to adopt the innovative discount feature.
Keywords: platforms, managerial innovation, online discounts
JEL Classification: Z30, Z31, M21, O32, M30
Suggested Citation: Suggested Citation