From travel agents to OTAs: How the evolution of consumer booking behavior has affected revenue management

Travel booking behavior has changed substantially over the past two decades. The traditional approach of utilizing travel agents and booking ahead has evolved into a fast‐paced, last‐minute booking environment. This evolution has had substantial effects on revenue management (RM) in the areas of forecasting, pricing and online travel agency inventory allocations. These changes have made understanding the consumer booking process a necessary requirement for success. This article reviews the relevant literature on this historical shift and the effects it has had on RM.