Successfully selling accommodation packages at online auctions – The case of eBay Austria

In this era of e-commerce online auctions have emerged as a valuable distribution channel (Nissanoff, 2006; Werthner & Ricci, 2004). Displaying low entry and exit barriers but also vast coverage rates, online auctions may effectively augment the distribution potential of hotel businesses. This paper identifies those factors that positively affect the final price level obtained in online auctions for hotel room vouchers. Based on data gathered at eBay comprising 53,406 auctions, linear structural equation modelling (SEM) was conducted to identify significant relationships between auction characteristics and the obtained final price for hotel room vouchers. By drawing on these results and through an example of the Austrian eBay platform, selling strategies for successfully listing accommodation packages at online auctions are proposed.