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Tourist areas: Examining the effects of location attributes on tour-operator package holiday prices

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  • Alegre, Joaquín
  • Cladera, Magdalena
  • Sard, Maria

Abstract

This paper focuses on an analysis of the effect of locational characteristics on holiday prices, using the hedonic price model to estimate them. The paper's main finding is that location attributes do have an effect on prices. More specifically, when hotel-related locational characteristics were analysed, a negative relationship was observed between prices and the distance to the beach for German and British package holidays, a positive relationship between prices and the distance to the centre of the tourist resort for British tourists, and a negative one in this instance for German tourists. Having a room with a sea view was found to push up the price for both German and British packages and price differences among tourist resorts were also observed. As for the area-related attributes that were considered, only the distance from the tourist resort to the airport turned out to be relevant, with a negative effect on prices being identified.

Suggested Citation

  • Alegre, Joaquín & Cladera, Magdalena & Sard, Maria, 2013. "Tourist areas: Examining the effects of location attributes on tour-operator package holiday prices," Tourism Management, Elsevier, vol. 38(C), pages 131-141.
    • Handle: RePEc:eee:touman:v:38:y:2013:i:c:p:131-141
    DOI: 10.1016/j.tourman.2013.02.011
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    References listed on IDEAS

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    Cited by:

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    2. Josep Mª Espinet Rius, 2018. "Global and local pricing strategies in the cruise industry," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(5), pages 329-340, October.
    3. Loïc Lévi & Jean Jacques Nowak & Sylvain Petit & Hakim Hammadou, 2022. "Industrial legacy and hotel pricing: An application of spatial hedonic pricing analysis in Nord-Pas-de-Calais, France," Tourism Economics, , vol. 28(4), pages 870-898, June.
    4. Ildiko IOAN & Carmen Valentina RADULESCU & Florina BRAN, 2014. "Romanian Rural Tourism: Status And Prospects By Innovative Organizational Approaches," Revista de turism - studii si cercetari in turism / Journal of tourism - studies and research in tourism, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 17(17), pages 15-21, June.
    5. Cirer Costa, Joan Carles, 2014. "Petróleo: peligro mortal. Unas islas alquitranadas [Oil: Fatal danger. The Balearic Islands tarred]," MPRA Paper 58243, University Library of Munich, Germany.
    6. Evangelinos, Christos & Obermeyer, Andy & Bartel, Aaron, 2020. "The individual monetary valuation of online hotel ratings," IU Discussion Papers - Hospitality, Tourism & Event 3/2020, IU International University of Applied Sciences.
    7. Arenoe, Bjorn & van der Rest, Jean-Pierre I. & Kattuman, Paul, 2015. "Game theoretic pricing models in hotel revenue management: An equilibrium choice-based conjoint analysis approach," Tourism Management, Elsevier, vol. 51(C), pages 96-102.
    8. Salvador Garcia-Ayllon, 2018. "Urban Transformations as an Indicator of Unsustainability in the P2P Mass Tourism Phenomenon: The Airbnb Case in Spain through Three Case Studies," Sustainability, MDPI, vol. 10(8), pages 1-21, August.
    9. Viglia, Giampaolo & Abrate, Graziano, 2017. "When distinction does not pay off - Investigating the determinants of European agritourism prices," Journal of Business Research, Elsevier, vol. 80(C), pages 45-52.
    10. Cirer-Costa, Joan Carles, 2017. "Estrategias de fijación y ofuscación de precios en los hoteles de sol y playa [Pricing and obfuscation strategies for sun and beach hotels]," MPRA Paper 81823, University Library of Munich, Germany.
    11. Seymur Ağazade & Egemen Güneş Tükenmez & Merve Uzun, 2023. "Is the volatility of international tourism revenues affected by tourism source market structure? An empirical analysis of Turkey," Tourism Economics, , vol. 29(2), pages 291-304, March.
    12. Pulina, Manuela & Santoni , Valentina, 2018. "Hotel online pricing policy: A review and a regional case study," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 42, pages 93-111.
    13. Alegre, Joaquín & Sard, Maria, 2015. "When demand drops and prices rise. Tourist packages in the Balearic Islands during the economic crisis," Tourism Management, Elsevier, vol. 46(C), pages 375-385.
    14. Latinopoulos, Dionysis, 2018. "Using a spatial hedonic analysis to evaluate the effect of sea view on hotel prices," Tourism Management, Elsevier, vol. 65(C), pages 87-99.
    15. Hakim Hammadou & Lévi Loïc & Jean Jacques Nowak & Sylvain Petit, 2018. "The prices of public goods and public bads for hotel rooms in Nord-Pas de Calais, France," Working Papers hal-01831534, HAL.
    16. Christos Evangelinos & Stefan Tscharaktschiew, 2021. "The Valuation of Aesthetic Preferences and Consequences for Urban Transport Infrastructures," Sustainability, MDPI, vol. 13(9), pages 1-17, April.
    17. Hernández, Juan M. & Suárez-Vega, Rafael & Santana-Jiménez, Yolanda, 2016. "The inter-relationship between rural and mass tourism: The case of Catalonia, Spain," Tourism Management, Elsevier, vol. 54(C), pages 43-57.

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    More about this item

    Keywords

    Location attributes; Hedonic prices; Tourist areas; Holiday prices;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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