The effect of the Online Travel Agency(OTA)`s benefit and sacrifice on perceived value : Focused on the implications for OTA and hotel operators

Due to the continuous development of the internet environment, and the advancement and popularization of the mobile phone, travel product channels used by tourists have become very diverse. Also, online purchases and reservations are increasing through various online travel agencies (OTAs). This study aimed to investigate the characteristics of OTAs used by travel buyers. The characteristics of OTAs were classified into five categories: useful information, discounted price, convenience, membership benefit, and enjoyment, while financial and performance risks were used as factors of sacrifice by using value-based adoption model (VAM). The impact of these variables on the perceived value of OTA customers and the relationship between brand trust and reuse intention were identified. For a related empirical analysis, an online survey was conducted with a total of 341 customers who had used an OTA. Four of the five perceived benefit factors (useful information, discounted prices, convenience and enjoyment) were found to affect perceived value. Among them, our results suggest that 'useful information' and 'enjoyment' factors have a significant impact, while 'member benefit' and two perceived sacrifice' factors do not significantly affect the perceived value of OTA. We also verified the relationship among perceived value, brand trust and reuse intention. Based on these findings, we suggested theoretical and practical implications that OTAs should pursue in the future to encourage customers to reuse. Also we discuss practical implications to improve the business performance of hotel operators in the future.