Destination Management and Tourists’ Choice with a Two-Part Tariff Price of the Holiday
AbstractThe holiday can be considered a good for which the tourist pays a two-part tariff (TPT). The variable part, roughly proportional to the length of stay, is charged on top of a fixed price, paid to get to the destination (typically due to travel costs). We analyse the policy implications of this price structure in both monopoly and monopolistic competition, by arguing that the TPT might be used as a policy instrument to drive the tourist towards certain destination targets in terms of arrivals and length of stay, thus possibly contrasting the present trend in the reduction of holidays’ length.
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Bibliographic InfoArticle provided by SIPI Spa in its journal Rivista di Politica Economica.
Volume (Year): 99 (2009)
Issue (Month): 2 (April-June)
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two-part tariff; pricing strategy; tourism economics; tourism destination;
Find related papers by JEL classification:
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism
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- Guido Candela & Paolo Figini, 2010.
"Destination Unknown. Is there any Economics Beyond Tourism Areas?,"
Review of Economic Analysis,
Rimini Centre for Economic Analysis, vol. 2(3), pages 256-271, September.
- Guido Candela & Paolo Figini, 2009. "Destination Unknown. Is There any Economics Beyond Tourism Areas?," Working Paper Series 36_09, The Rimini Centre for Economic Analysis, revised Jan 2009.
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