This document summarizes the key points from a PhD thesis on pricing and distribution strategies, and sustainability norms, in the tourism industry. It discusses how consumer preferences and technology have changed the tourism product supply. It then outlines two main objectives of the thesis: 1) analyzing opaque pricing and distribution strategies used by online intermediaries, and 2) examining the role of industry and residents in establishing environmental norms. Several research questions and methods are presented, including optimization games and models. The results suggest joint implementation of pricing strategies yields most profit. It also finds the tourism provider adapts its offerings to consumer preferences over time. Resident interactions both limit tourism and accelerate norms, though traditional offerings may be best if negative impacts dominate. Extensions to the

1. Intermédiation, Normes et Stratégies de
Marché dans l’Offre des Produits
Touristiques
Malgorzata OGONOWSKA
Jury:
OLIVIER BEAUMAIS Rapporteur
CHRISTOPHE CHARLIER
CHRISTIAN LONGHI Directeur de thèse
FRANÇOIS MOREAU
CLAUDIO PIGA Rapporteur
DOMINIQUE TORRE Directeur de thèse
2 Décembre 2013

2. Why Tourism?
• 9% of world GDP and 1/11 of jobs worldwide;
• Impact on many economic sectors and activities;
Modification of supply of
tourism products:
– Consumer preferences
modification
– Technological advances
Multi-channel distribution
Modification of demand
preferences:
‒ Customized/personalized products;
 Standardized experience goods
became complex experience goods
 ex. dynamic packaging
‒ Price sensitivity;
‒ Environmental Protection issues.
2 main components of tourism goods:
Price
02/12/2013 Sophia Antipolis
Quality
2

3. Objectives
1. Pricing and Distribution Strategies in Tourism
Disintermediation
Dynamic Pricing
Reintermediation
Since many variants of opaque systems exist, is there an
advantage for an online intermediary to use simultaneously
more than one alternative opaque distribution channel?
2. Towards a Sustainable Tourism
What role do the service provider and industry play in the
emergence of environmental norms?
What role do the residents play in the emergence of
environmental and sustainability norms?
02/12/2013 Sophia Antipolis
3

4. Research Question
Since many variants of opaque systems exist, is there an
advantage for an online intermediary to use
simultaneously more than one alternative opaque
distribution channel?
Method:
Optimization game with heterogeneous tourists
02/12/2013 Sophia Antipolis
4

5. Opaque Selling – 2 Strategies
•
•
•
•
OTAs specialized in selling remaining tickets;
Serve very price-sensitive demand;
Key information – revealed after the payment;
Advantage: preserve brand image
– Passenger fills in the travel
request form and then gives
the price she wants to pay;
Posted – Price Opaque
mechanism
– OTA answers within 15 min;
– No possibility of rebidding.
02/12/2013 Sophia Antipolis
5

6. Assumptions
• More potential travelers then available seats;
• Agents are risk neutral
3 possible strategies for the OTA:
1.
2.
3.
An opaque Posted-Price system;
An opaque NYOP system;
Both systems.
• Stackelberg equilibrium
(the OTA is the leader & consumers - followers)
– Information asymmetry
• The game – solved by backward induction.
02/12/2013 Sophia Antipolis
6

7. Results
1.
Imperfect, but complete information on the states of the world:
– Potential travelers know the distribution of available seats and other
agents’ propensity to pay;
– Potential travelers bid prices corresponding to their reservation prices;
– NYOP only & joint-implementation of both systems are equivalent
for the intermediary;
2.
Imperfect and incomplete information (moderate uncertainty):
– Agents estimate imprecisely the other agents’ propensity to pay;
– If NYOP implemented alone: agents are too pessimist because of
uncertainty (low bids);
– Most profitable solution for the OTA – joint–implementation of 2
systems.
02/12/2013 Sophia Antipolis
7

8. Research Questions
What role do the service provider and industry play in
the emergence of environmental norms?
Given the modification of demand preferences, how the
service provider adapts its offer and reacts to the
possibility of a competitor’s entry?
Method:
Optimization model with heterogeneous agents
02/12/2013 Sophia Antipolis
8

9. Since 1990s: actors’ awareness of pollution and environmental
protection
Modification of tourists’ preferences & intensification of local
populations’ resistance to tourism related activities
Sustainable Tourism:
“Every tourism activity that preserves for a long time the local natural,
cultural and social resources, contributing to the well-being of
individuals living in those tourist areas”
(Associazione Italiana Turismo Responsabile)
02/12/2013 Sophia Antipolis
9

10. General Settings – 5 stages:
1. No information on existing pollution
–
Traditional product only.
2. Public information on environmental damages is made available
– New segment of demand appears – agents sensible to environmental
issues and interested in sustainable tourism products.
3. Agents integrate this information on environmental issues in their
decisions
– Population of environmentally conscious tourists grows;
– New brand for sustainable tourism products.
4. Environmental norms become general norms
– Quality of sustainable tourism products improves;
5. Possibility of competitor’s entry on the traditional market
–
3 incumbent’s reactions possible.
02/12/2013 Sophia Antipolis
10

11. Results
• Evolution of service provider’s offer:
– Depending on modification of tourists’ preferences.
• Analysis of branding strategy :
– Demand heterogeneity;
– Reputation effects.
• Importance of quality;
• Industry’s role in emergence of environmental norms:
– Monopoly & competition case.
02/12/2013 Sophia Antipolis
11

12. Research Questions
What role do the residents play in the emergence of
environmental and sustainability norms?
Do these interactions between the service provider,
residents and tourists generate spillovers in the nature of
provided services?
Method:
optimisation model with heterogeneous agents
02/12/2013 Sophia Antipolis
12

13. Model framework (1/2)
Tourism
Service
Provider
hotel
monopoly
• Wages
• Reduction cost of
tourism negative
incidence
02/12/2013 Sophia Antipolis
Sustainable or
traditional products
prices
Residents
Tourists
Traditional Responsible
Tourists’
expenses
Workers, locals,
craftsmen,
retailers, local
authorities
13

14. Model framework (2/2)
Tourism
Service
Provider
Tourists
hotel
monopoly
Traditional Responsible
More or less
aggressive actions
Tourism subjective
negative impacts
Residents
Tourism objective
negative impacts
Workers, locals,
craftsmen,
retailers, local
authorities
02/12/2013 Sophia Antipolis
14

15. Results
Integration of interactions with residents has a double impact:
1. Limits the number of tourists;
2. Accelerates or slows down the adoption of environmental
norms:
– Accelerating forces dominate – residents have a better perception
of products and tourists respectful of local culture and
environment.
– But when objective negative impacts dominate the others, it
could be more profitable to provide traditional tourists only with
traditional product.
02/12/2013 Sophia Antipolis
15

16. Thesis Extensions
1. Introduction of risk aversion in an experimental study;
2. Agent-based model to analyze the dynamics of environmental
norms becoming general;
3. Duopoly/Oligopoly case: taking into account residents’
reactions makes a specialization strategy impossible;
4. Integration of dynamics in residents’ reaction;
5. Survey in an adequate area on residents’ resistance to tourism.
02/12/2013 Sophia Antipolis
16