https://doi.org/10.1177/1938965517704369 Cornell Hospitality Quarterly 2018, Vol. 59(1) 61–66 © The Author(s) 2017 Reprints and permissions: sagepub.com/journalsPermissions.nav DOI: 10.1177/1938965517704369 journals.sagepub.com/home/cqx Research Note Introduction The relationship between the hotel industry and online travel agencies (OTAs) has been contentious. Titles of arti- cles in a HotelNewsNow (2011) “Special Report” provide a good sense of the coolness of the relationship: “Can’t live with ‘em. Can’t live without ‘em”; “How to wean yourself off of ‘hotel cocaine’”; and “Hotel-OTA relationship not wedded bliss.” The main issue discussed in these trade arti- cles relate to the OTA fee structure, with the argument made that the hotel industry enjoys little benefit through its par- ticipation with these firms . . . and that any gain by one property is offset by losses by another—a classic zero-sum gain proposition. Several academics researchers have explored the hotel−OTA relationship. At the core of this research has been a debate regarding the value of OTAs to the hotel industry. Championing the positive argument, Cornell’s Chris Anderson (2009, 2011) has provided interesting and well-developed empirical studies in support of OTAs. A major Anderson contribution has been the introduction and quantification of the well-known “billboard effect.” This concept argues that hotels selling rooms through OTAs should consider the fees paid to these intermediaries to be more than simply commission. Rather, he suggests, a por- tion of the fee should be considered as compensation for the OTA’s sales and marketing efforts on the hotel’s behalf, jus- tifying the fee paid as good value for the hotel. On the other side of the issue are authors to include Šimunić (2013) and Green and Lomanno (2012) who argue that OTAs provide little value while syphoning significant revenue that would otherwise accrue to the hotels. It is an interesting debate and one that will continue to be explored. A parallel issue, and one heretofore not studied, is the sometimes contentious relationship between governmental entities and the OTAs. As discussed below, disputes between these entities have flared with regularity. The Columbus, Georgia, case study that follows looks at one such legal dis- pute, interesting in that its resolution followed a path differ- ent than had all others. By studying this case, we hope to add literature that provides a sense of the balance of power between communities and OTAs. Not knowing where the power lies makes for difficult decision making by govern- mental officials and leaves a gap in the hospitality and tour- ism academic literature. The research that follows addresses this lacuna. But first, some background regarding the issue is in dispute. 704369CQX XX X 10.1177/1938965517704369Cornell Hospitality QuarterlyMcLeod et al. research-article 2017 1 College of Charleston, SC, USA 2 Columbus State University, GA, USA Corresponding Author: Brumby McLeod, Associate Professor, Hospitality & Tourism Management, School of Business, College of Charleston, 66 George Street, Charleston, SC 29424. USA. Email: mcleodb@cofc.edu Goodbye Columbus: Accommodation Taxes and OTAs Brumby McLeod 1 , Stephen W. Litvin 1 , Kirk C. Heriot 2 , Andres Jauregui 2 , and Erin Dempsey 1 Abstract In 2006, the community of Columbus, Georgia, filed a lawsuit over uncollected accommodation taxes aimed at online travel agencies [OTAs]. Defendants included companies such as Expedia and Orbitz. In retaliation for the lawsuit, the OTAs delisted the city’s hotels from their sites. Several years later, the lawsuits were settled and normalcy returned. The delisting period provided an interesting set of circumstances that allowed exploration of the power balance between OTAs and municipalities. It also provided, using nonexperimental “real-life” data, some insight into an issue that has received significant trade and academic attention—the influence of OTAs upon hotel occupancies and rates. The results provided should be of interest to communities and their tourism officials in disputes similar to that experienced by Columbus. Hoteliers, the third party caught in the crossfire of these disputes, will also find the research results of value. Keywords OTA; online travel search; travel law; accommodation taxes; hotel performance