When Price Varies Across Otas: How Room Rate Disparity Shapes Switching Behavior and Brand Trust

This study investigates how room rate disparity across Online Travel Agencies (OTAs) influences consumers’ switching behavior and perceptions of hotel brand integrity. Employing a scenario-based experimental design with a sample of 430 Chinese consumers, we explored how price differences interact with loyalty status, price trajectory information, and brand consistency. Our findings reveal a complex non-linear inverse sigmoid relationship between rate disparity and channel switching. Contrary to expectations, loyalty membership did not reduce switching intent or increase discount thresholds. Moreover, rate disparity triggered brand integrity concerns, with brand doubt consistently exceeding switching intent. While price trajectory information did not change switching intentions, it increased the discount needed to induce switching, suggesting that consumers’ price expectations influence sensitivity. These results advance theory by introducing a new and empirically supported non-linear model of channel switching and linking pricing inconsistency to diminished brand perception. Practically, the findings offer guidance on strategic discounting, brand management, and OTA design.