The Impact of Internet on Pricing Strategies in the Tourism Industry

The Internet has had a dramatic effect on the distribution of tourism products. The reintermediation which has taken place has led all distributors to implement more dynamic pricing strategies from the widespread use of Yield Management (YM) practices JIBC April 2009, Vol. 14, No. 1 2 to price discount strategies. The Internet also influences the consumers’ perception of pricing strategies. Consumers are increasingly aware of YM practices and the Internet has become the essential tool for finding the best price. However, there continues to be a certain disconnect between the channels used for searching for the best price available and those used by the clientele of luxury hotels in France to make their booking. Indeed, the telephone still dominates for this type of clientele when carrying out this type of transaction as they find it easier to use, it is entrenched in their habits and is perceived as being more secure.