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Tourism Competitiveness: Price and Quality

Author

Listed:
  • Marie-Louise Mangion

    (Hawwiefa, 95 School Street, Fgura PLA 14, Malta)

  • Ramesh Durbarry

    (Public Sector Policy and Management, University of Technology Mauritius, La Tour Koenig, Pointe-aux-Sables, Republic of Mauritius)

  • M. Thea Sinclair

    (Christel DeHaan Tourism and Travel Research Institute, Nottingham University Business School, Jubilee Campus, Wollaton Road, Nottingham NG8 1BB, UK)

Abstract

The price competitiveness of tourism destinations is examined at the national level using the Almost Ideal Demand System model. The extent to which changes in the characteristics of package holidays in destinations contribute to a change in the price of the packages is then examined using hedonic pricing models. The results show that the price sensitivities of tourism demand vary considerably between destinations, so that monitoring relative price competitiveness is important. The characteristics that have significant effects on package prices are identified, assisting policy makers in their choice of which characteristics to enhance with a view to increasing the returns from tourism.

Suggested Citation

  • Marie-Louise Mangion & Ramesh Durbarry & M. Thea Sinclair, 2005. "Tourism Competitiveness: Price and Quality," Tourism Economics, , vol. 11(1), pages 45-68, March.
    • Handle: RePEc:sae:toueco:v:11:y:2005:i:1:p:45-68
    DOI: 10.5367/0000000053297202
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    References listed on IDEAS

    as
    1. M. Thea Sinclair, 1997. "Tourism and Economic Development: A Survey," Studies in Economics 9703, School of Economics, University of Kent.
    2. Andreas Papatheodorou, 1999. "The demand for international tourism in the Mediterranean region," Applied Economics, Taylor & Francis Journals, vol. 31(5), pages 619-630.
    3. Stephan Haroutunian & Pandelis Mitsis & Panos Pashardes, 2005. "Using Brochure Information for the Hedonic Analysis of Holiday Packages," Tourism Economics, , vol. 11(1), pages 69-84, March.
    4. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762.
    5. Eugeni Aguiló & Joaquín Alegre & Maria Sard, 2003. "Examining the Market Structure of the German and UK Tour Operating Industries through an Analysis of Package Holiday Prices," Tourism Economics, , vol. 9(3), pages 255-278, September.
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