Conflicts between Accommodation Establishments and Travel Agencies

Abstract

The paper discusses sources of conflicts that arise between accommodation establishments and travel agencies in Bulgaria, their bargaining power and conflict resolution approaches. The sample includes 119 accommodation establishments and 81 travel agencies. Results reveal that agencies more often face conflicts with accommodation establishments than vice versa. From the viewpoint of the accommodation establishments, most conflicts are connected with delayed payments, level of prices, late submission of rooming lists, and timing of contract negotiation. Travel agencies consider frequent conflicts as unfavourable contract terms, prices, accommodation establishment price/quality ratio, incorrect information provided by accommodation establishments. Contrary to general belief, accommodation establishments perceive their bargaining power as equal to agencies’, while agencies consider accommodation establishments to have stronger bargaining power than them. Both agencies and accommodation establishments prefer cooperative conflict resolution approaches. Managerial implications, research limitations and directions for future research are discussed.

Keywords: distribution channel conflicts, accommodation establishments, travel agencies, bargaining power, conflict resolution, Bulgaria