Beyond Convenience: Exploring the Hidden Impact of Algorithmic Pricing on Consumer Trust and Loyalty in Chinese Online Travel Agencies

Abstract

The emergence of online travel agencies (OTAs) provides travelers with “one-stop” convenience, but also faces issues of price discrimination. This mixed-methods study began with semi-structured interviews of 30 participants to explore initial perceptions, followed by a survey of 307 Chinese consumers. The study examined attitudes toward OTA overreliance on algorithmic pricing and unclear information, and their impact on trust and loyalty. Findings reveal that during peak seasons, regular customers without value-added membership services paid higher room rates than new customers. The results indicate that once trust is established through clear information quality and reliable service, consumers are less wary of pricing quotes. The conclusion summarizes the findings and suggests further research to promote transparent and fair pricing practices, enhancing consumer trust and loyalty.