The demise of price parity and ascent of meta-search

By Peter O’Connor, Professor of Strategy at University of South Australia Business School | 4 Dec 15

Given their relatively high levels of fixed costs and their highly perishable inventory, success for hotels is largely driven by the efficiency and effectiveness of their distribution, writes Peter O’Connor of ESSEC. But today’s competitive environment, particularly the online distribution space, has become highly cutthroat, with hotels having to battle not just with each other but also increasingly with a portfolio of ever more powerful OTAs to capture the customer’s attention and wallet.

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About ESSEC Business School

Founded in 1907, ESSEC is one of the world’s top management schools and holds the “triple crown” accreditation from EQUIS, AACSB and AMBA. With 6,660 students; a faculty comprised of 163 full-time professors, 19 of which are emeritus professors, in France and Singapore, recognized for both the quality and influence of their research; a wide range of management training programs; partnerships with the world’s best universities; and a network of 60,000 alumni, ESSEC continues to foster a tradition of academic excellence and a spirit of openness in the fields of economics, social sciences and innovation. In 2005, ESSEC opened a campus in Asia, ESSEC Asia-Pacific. ESSEC’s operations in Asia Pacific, strategically located in Singapore, present the perfect foothold for ESSEC to be part of the vibrant growth in Asia and to bring its expertise to the expanding region. Additionally, in 2017 ESSEC opened a new campus in Rabat, Morocco, ESSEC Africa. ESSEC’s international expansion allows students and professors to study and understand the economic forces at work in the different regions of the world. 

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