Innovation Adoption in Online Travel Agent Platforms

Abstract

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: (i) ratings and users perception, (ii) previous online experience, (iii) chain affiliation. However, the type and sophistication of the organizational structure does not seem to affect the propensity to adopt the innovative online discount feature.

Keywords: platforms, managerial innovation, online discounts

JEL Classification: Z30, Z31, M21, O32, M30