How to introduce a livestreaming channel: a case of the hotel at a fixed capacity

• DOI: 10.1111/itor.13259
• Publication Date: 2023-01-14T04:31:04Z
• Authors: Qiang Guo; Shengyan Cheng; Pengfei Zhao
• Keywords: Consumption

Abstract Considering two hotels that sell substitutable rooms through the same online travel agency (OTA), we study optimal supply chain structure for a fixed‐capacity hotel to introduce livestreaming channel (LC). First, ideal pricing and room allocation are explored four scenarios: (a) single with no introduction, (b) dual hotel‐operated LC, (c) an OTA‐operated (d) involving influencer retailer. Upon comparing each model's performance, find small large prefer retailers, while medium‐sized favor self‐operated LC when influencers cannot demonstrably extend market. An service is only appropriate declining economy because platform's reputation livestream presentation can inform consumers’ intentions after recovery. Furthermore, OTAs may suffer during introductory period, whereas system will benefit from celebrities’ charisma impulsive consumption.