Pricing on the European Mass Tourism Market: Tour Operators, Low Cost Carriers and Internet
The recent expansion of Low Cost Carriers (LCCs) and the increasing use of Internet are provoking a deep transformation in the marketing of the typical Mediterranean summer tourism product in Europe. Internet may significantly reduce intermediary costs by enabling the connection between accommodation and transport business and consumers. At the same time, a more flexible product can be created in contrast to the conventional rigid tourist package offered by traditional tour operators. This paper investigates differences in price level and price dispersion across off-line and on-line markets and across tour operators and new emerging Internet retailers -including LCCs- using microdata on travel & accommodation individual expenses of tourists in the Balearic Islands, one of the most representative mature Mediterranean resorts. On the basis of the hedonic regression model, results suggest that price of transport; accommodation and board offered on Internet are lower than those offered by others channels, whatever the quality and quantity. Additionally, results reveal how on-line and off-line markets differ in the indirect value attributed to different characteristics of the product showing market segmentation.
|Date of creation:||2008|
|Date of revision:|
|Publication status:||Published in 'Documents de Treball CRE', 2008, pages 1-18|
|Contact details of provider:|| Web page: http://www.cre.sanostra.es|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Morton, Fiona Scott & Zettelmeyer, Florian & Silva-Risso, Jorge, 2001. "Internet Car Retailing," Journal of Industrial Economics, Wiley Blackwell, vol. 49(4), pages 501-19, December.
- Eric K. Clemons & Il-Horn Hann & Lorin M. Hitt, 2002. "Price Dispersion and Differentiation in Online Travel: An Empirical Investigation," Management Science, INFORMS, vol. 48(4), pages 534-549, April.
- Karen Clay & Ramayya Krishnan & Eric Wolff, 2001.
"Prices and Price Dispersion on the Web: Evidence from the Online Book Industry,"
in: E-commerce, pages 521-539
National Bureau of Economic Research, Inc.
- Clay, Karen & Krishnan, Ramayya & Wolff, Eric, 2001. "Prices and Price Dispersion on the Web: Evidence from the Online Book Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 49(4), pages 521-39, December.
- Karen Clay & Ramayya Krishnan & Eric Wolff, 2001. "Prices and Price Dispersion on the Web: Evidence from the Online Book Industry," NBER Working Papers 8271, National Bureau of Economic Research, Inc.
- Erik Brynjolfsson & Michael D. Smith, 2000.
"Frictionless Commerce? A Comparison of Internet and Conventional Retailers,"
INFORMS, vol. 46(4), pages 563-585, April.
- Michael Smith & Erik Brynjolfsson, 1999. "Frictionless Commerce? A Comparison of Internet and Conventional Retailers," Computing in Economics and Finance 1999 1022, Society for Computational Economics.
- Jeffrey R. Brown & Austan Goolsbee, 2002.
"Does the Internet Make Markets More Competitive? Evidence from the Life Insurance Industry,"
Journal of Political Economy,
University of Chicago Press, vol. 110(3), pages 481-507, June.
- Brown, Jeffrey, 2000. "Does the Internet Make Markets More Competitive? Evidence from the Life Insurance Industry," Working Paper Series rwp00-007, Harvard University, John F. Kennedy School of Government.
- Kathy Baylis & Jeffrey Perloff, 2002.
"Price Dispersion on the Internet: Good Firms and Bad Firms,"
Review of Industrial Organization,
Springer, vol. 21(3), pages 305-324, November.
- Baylis, Kathy & Perloff, Jeffrey M., 2001. "Price Dispersion on the Internet: Good Firms and Bad Firms," Institute for Research on Labor and Employment, Working Paper Series qt2t0770rn, Institute of Industrial Relations, UC Berkeley.
When requesting a correction, please mention this item's handle: RePEc:pdm:wpaper:2008/4. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Centre de Recerca Econòmica (UIB ·"Sa Nostra"))The email address of this maintainer does not seem to be valid anymore. Please ask Centre de Recerca Econòmica (UIB ·"Sa Nostra") to update the entry or send us the correct email address
If references are entirely missing, you can add them using this form.