The relationship between hotel companies and travel agencies: An empirical assessment of the United States market

Abstract

In the hospitality industry, co-operative relationships among organisations are increasingly referred to as a crucial factor for organisational performance and survival. Within this framework, hotels are increasingly forming permanent alliances with other organisations such as airlines, car rental agencies, suppliers, other hotels, and travel agencies. The main aim of this study is to describe the relationship that hotels have with travel agencies, which is currently considered the most effective way for a hotel to extend its sales and marketing efforts. The authors first reviewed existing hospitality literature with a view to presenting a framework for understanding the business relationship between hotels and travel agencies. An empirical survey was then carried out to analyse United States hotel companies' relationships with travel agencies. Significant differences were found between hotel companies of different sizes, service strategies, price levels, and clientele, based upon the percentage of reservations received from tl travel agencies, and the number and diversity of travel agencies with which hotel companies relate.