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Finding similar price preferences on tourism activities

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Author Info

  • Lorenzo Masiero

    ()
    (Institute for Economic Research (IRE), Faculty of Economics, University of Lugano, Switzerland)

  • Juan L. Nicolau

    ()
    (Dpt. of Financial Economics, Accounting and Marketing, Faculty of Economics, University of Alicante, Spain)

Abstract

This article builds on the double role of the effect of prices on the choice of tourism activities: not only is it the only component of a destination marketing strategy that represents income but also a determinant factor in tourist choice. On this account, identifying patterns of tourists with different degrees of sensitivities to prices would help them design an appropriate bundle of activities and have a clear definition of the segment the destination should try to attract. Accordingly, the objective of this paper is to find tourist segments from individual price sensitivities to activities. The results show that, although price has a dissuasive influence on the choice of activities it shows a differentiated effect; this heterogeneous responsiveness to price supports the use of this variable as a segmentation criterion. In the empirical application four segments are found with significantly different price sensitivities.

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Bibliographic Info

Paper provided by USI Università della Svizzera italiana in its series Quaderni della facoltà di Scienze economiche dell'Università di Lugano with number 1102.

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Length: 12 pages
Date of creation: Jan 2011
Date of revision:
Handle: RePEc:lug:wpaper:1102

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Web page: https://www.bul.sbu.usi.ch

Related research

Keywords: individual price sensitivity; tourism activities; tourist choice; segmentation strategy;

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