IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i13p3747-d246817.html
   My bibliography  Save this article

Agritourism: A Hedonic Approach of Quality Tourism Indicators in South Tyrol

Author

Listed:
  • Katia Laura Sidali

    (Department of Business Economics, University of Verona, Via Cantarane, 24 1, 37129 Verona, Italy)

  • Anna Spitaler

    (Faculty of Economics and Management, Free University of Bozen-Bolzano, Piazza Università 1, 39100 Bozen, Italy)

  • Günter Schamel

    (Faculty of Economics and Management, Free University of Bozen-Bolzano, Piazza Università 1, 39100 Bozen, Italy)

Abstract

This paper examines the prices of agritourism accommodation that include food services (i.e., the option to have breakfast) and related farm attributes. We analyze what tourists are willing to pay per night for a designated farm holiday stay in South Tyrol offered through the “Red Rooster” brand ( n = 367). We first identify factors that may influence tourist decisions to book a holiday at a farm, which include the number of flowers (i.e., the red rooster quality-rating scheme), the type of accommodation, the distance to various leisure activities, and externalities related to agricultural practices. Second, the paper develops two hedonic models to estimate implicit prices for farm holiday accommodation rates. Specifically, the dependent variables are the prices paid by guests during the summer peak and low seasons. Independent variables are various accommodation attributes, the quality of food service, and the range of possible activities in the area surrounding the farm. The results of the study show that the red rooster quality-rating scheme (i.e., the number of flowers) and the quality of food services are highly significant and have a positive impact on guest willingness to pay. Farm types, such as fruit-growing and livestock operations, have a significant but negative effect on accommodation rates at least during the peak season, whilst wine production and organic farming display a positive influence on the accommodation rates during the low season. Implications for practitioners and policy-makers are discussed.

Suggested Citation

  • Katia Laura Sidali & Anna Spitaler & Günter Schamel, 2019. "Agritourism: A Hedonic Approach of Quality Tourism Indicators in South Tyrol," Sustainability, MDPI, vol. 11(13), pages 1-9, July.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:13:p:3747-:d:246817
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/13/3747/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/13/3747/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Milgrom, Paul & Roberts, John, 1986. "Price and Advertising Signals of Product Quality," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 796-821, August.
    2. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    3. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
    4. Bagwell, Kyle & Riordan, Michael H, 1991. "High and Declining Prices Signal Product Quality," American Economic Review, American Economic Association, vol. 81(1), pages 224-239, March.
    5. Waltert, Fabian & Schläpfer, Felix, 2010. "Landscape amenities and local development: A review of migration, regional economic and hedonic pricing studies," Ecological Economics, Elsevier, vol. 70(2), pages 141-152, December.
    6. Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-754, July/Aug..
    7. Ching-Fu Chen & R. Rothschild, 2010. "An Application of Hedonic Pricing Analysis to the Case of Hotel Rooms in Taipei," Tourism Economics, , vol. 16(3), pages 685-694, September.
    8. Katia Laura Sidali & David Huber & Guenter Schamel, 2017. "Long-Term Sustainable Development of Tourism in South Tyrol: An Analysis of Tourists’ Perception," Sustainability, MDPI, vol. 9(10), pages 1-9, October.
    9. Guido Van Huylenbroeck & Isabel Vanslembrouck & Mieke Calus & Liesbeth Van de Velde, 2006. "Synergies between Farming and Rural Tourism: Evidence from Flanders," EuroChoices, The Agricultural Economics Society, vol. 5(1), pages 14-21, April.
    10. Steven C. Deller & Tsung-Hsiu (Sue) Tsai & David W. Marcouiller & Donald B.K. English, 2001. "The Role of Amenities and Quality of Life In Rural Economic Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 352-365.
    11. Judson, Dean H. & Reynolds-Scanlon, Sue & Popoff, Carole L., 1999. "Migrants to Oregon in the 1990’s Working Age, Near-Retirees, and Retirees Make Different Destination Choices," Rural America/ Rural Development Perspectives, United States Department of Agriculture, Economic Research Service, vol. 14(2), September.
    12. Beyers, William B. & Lindahl, David P., 1996. "Lone Eagles and High Fliers in Rural Producer Services," Rural America/ Rural Development Perspectives, United States Department of Agriculture, Economic Research Service, vol. 11(3), June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kumar Bhatta & Yasuo Ohe, 2020. "A Review of Quantitative Studies in Agritourism: The Implications for Developing Countries," Tourism and Hospitality, MDPI, vol. 1(1), pages 1-18, October.
    2. Marius-Ionuț Gordan & Elena Peț & Gabriela Popescu & Ioan Brad & Anda Ioana Milin & Tabita Cornelia Adamov & Ramona Ciolac & Anka Roxana Pascariu & Tiberiu Iancu, 2022. "Factors Influencing the Accommodation Prices of Romanian Rural Tourism," Sustainability, MDPI, vol. 15(1), pages 1-22, December.
    3. Wuxiang Chen, 2023. "Developing a Sustainable Business Model of Ecotourism in Ethnic-Minority Regions Guided by the Green Economy Concept," Sustainability, MDPI, vol. 15(2), pages 1-25, January.
    4. Dora Isabel Rodrigues Ferreira & Luís Carlos Loures & José-Manuel Sánchez-Martín, 2023. "Spatial Analysis of Sustainability Measures from Agritourism in Iberian Cross-Border Regions," Land, MDPI, vol. 12(4), pages 1-32, April.
    5. Bonfiglio, Andrea & Abitabile, Carla & Henke, Roberto, 2022. "A choice model-based analysis of diversification in organic and conventional farms," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107687899, January.
    2. Waltert, Fabian & Schläpfer, Felix, 2010. "Landscape amenities and local development: A review of migration, regional economic and hedonic pricing studies," Ecological Economics, Elsevier, vol. 70(2), pages 141-152, December.
    3. Mahenc, Philippe & Meunier, Valérie, 2006. "Early Sales of Bordeaux grands crus," Journal of Wine Economics, Cambridge University Press, vol. 1(1), pages 57-74, April.
    4. Chunfang Zhao & Yingliang Wu & Yunfeng Chen & Guohua Chen, 2023. "Multiscale Effects of Hedonic Attributes on Airbnb Listing Prices Based on MGWR: A Case Study of Beijing, China," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    5. Monteiro, Paulo Klinger & Moraga-González, José Luis, 2003. "We Sold a Million Units -- The Role of Advertising Past-Sales," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 57(2), April.
    6. Thomas McGregor & Samuel Wills, 2016. "Surfing A Wave Of Economic Growth," OxCarre Working Papers 170, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    7. Salvatore Piccolo & Piero Tedeschi & Giovanni Ursino, 2018. "Deceptive Advertising with Rational Buyers," Management Science, INFORMS, vol. 64(3), pages 1291-1310, March.
    8. Salvatore Piccolo & Piero Tedeschi & Giovanni Ursino, 2015. "How limiting deceptive practices harms consumers," RAND Journal of Economics, RAND Corporation, vol. 46(3), pages 611-624, September.
    9. Ajay Kalra & Surendra Rajiv & Kannan Srinivasan, 1998. "Response to Competitive Entry: A Rationale for Delayed Defensive Reaction," Marketing Science, INFORMS, vol. 17(4), pages 380-405.
    10. Svetlana Avdasheva & Andrei Yakovlev, 2000. "Asymmetric Information and the Russian Individual Savings Market," Post-Communist Economies, Taylor & Francis Journals, vol. 12(2), pages 165-185.
    11. Choi, Jay Pil, 2003. "Bundling new products with old to signal quality, with application to the sequencing of new products," International Journal of Industrial Organization, Elsevier, vol. 21(8), pages 1179-1200, October.
    12. Sendhil Mullainathan & Joshua Schwartzstein & Andrei Shleifer, 2008. "Coarse Thinking and Persuasion," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 577-619.
    13. Kim, Jeong-Yoo & Berg, Nathan, 2017. "Reexamining the Schmalensee effect," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 11, pages 1-12.
    14. Aldrich, Lorna, 1999. "Consumer Use of Information: Implications for Food Policy," Miscellaneous Publications 330083, United States Department of Agriculture, Economic Research Service.
    15. Ante Mandić & Elza Jurun, 2018. "The Determinants of Small and Family Owned Hotel Room Rates," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 11(2), pages 17-22, September.
    16. 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.
    17. Ting Liu & Monic Jiayin Sun, 2007. "Informal Payments in Developing Countries' Public Health Sectors¤," Boston University - Department of Economics - Working Papers Series WP2007-032, Boston University - Department of Economics.
    18. Justin P. Johnson & David P. Myatt, 2006. "On the Simple Economics of Advertising, Marketing, and Product Design," American Economic Review, American Economic Association, vol. 96(3), pages 756-784, June.
    19. Hao Zhao, 2000. "Raising Awareness and Signaling Quality to Uninformed Consumers: A Price-Advertising Model," Marketing Science, INFORMS, vol. 19(4), pages 390-396, January.
    20. Fulan Wu, 2017. "Signaling Unobservable Quality Choice through Price and Advertising: The Case with Competing Firms," Manchester School, University of Manchester, vol. 85(2), pages 243-260, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:13:p:3747-:d:246817. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.