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Destination Management and Tourists’ Choice with a Two-Part Tariff Price of the Holiday

Author

Listed:
  • Guido Candela

    (University of Bologna)

  • Paolo Figini

    (University of Bologna)

  • Antonello E. Scorcu

    (University of Bologna)

Abstract

The 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.

Suggested Citation

  • Guido Candela & Paolo Figini & Antonello E. Scorcu, 2009. "Destination Management and Tourists’ Choice with a Two-Part Tariff Price of the Holiday," Rivista di Politica Economica, SIPI Spa, vol. 99(2), pages 107-125, April-Jun.
  • Handle: RePEc:rpo:ripoec:v:99:y:2009:i:2:p:107-125
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    Citations

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    Cited by:

    1. Guido Candela & Paolo Figini, 2010. "Destination Unknown. Is there any Economics Beyond Tourism Areas?," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 2(3), pages 256-271, September.
    2. José António Filipe, 2014. "Tourism Destinations: A Methodological Discussion on Commons and Anti-commons. The ‘Ammaia’ Project’s Locale Impact," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 4(2), pages 725-725.
    3. Andergassen, Rainer & Candela, Guido & Figini, Paolo, 2013. "An economic model for tourism destinations: Product sophistication and price coordination," Tourism Management, Elsevier, vol. 37(C), pages 86-98.
    4. José António Filipe, 2014. "Tourism Destinations and Local Rental: A Discussion around Bureaucracy and Anticommons. Algarve Case (Portugal)," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 4(4), pages 821-821.

    More about this item

    Keywords

    two-part tariff; pricing strategy; tourism economics; tourism destination;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

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