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Using Brochure Information for the Hedonic Analysis of Holiday Packages

Author

Listed:
  • Stephan Haroutunian

    (Economics Research Centre, University of Cyprus, PO Box 20537, 1678 Nicosia, Cyprus)

  • Pandelis Mitsis

    (Economics Research Centre, University of Cyprus)

  • Panos Pashardes

    (Economics Research Centre, University of Cyprus)

Abstract

This paper investigates the production of misleading results from hedonic analysis when heterogeneity in the effects of quality characteristics is ignored. Two causes of such heterogeneity are examined: (a) when quality is registered in different ways in the brochures of different tour operators and (b) when the effects of quality characteristics differ between packages with a different star rating. Furthermore, the authors test the impact of the presence of these two sources of heterogeneity on the estimated effects of quality characteristics on price, along with a third possible source of heterogeneity – the rating system of the hotels. They then discuss the policy implications of their empirical findings.

Suggested Citation

  • Stephan Haroutunian & Pandelis Mitsis & Panos Pashardes, 2005. "Using Brochure Information for the Hedonic Analysis of Holiday Packages," Tourism Economics, , vol. 11(1), pages 69-84, March.
    • Handle: RePEc:sae:toueco:v:11:y:2005:i:1:p:69-84
    DOI: 10.5367/0000000053297158
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    References listed on IDEAS

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    1. Olympia Bover & Pilar Velilla, 2001. "Hedonic house prices without characteristics: the case of new multiunit housing," Estudios Económicos, Banco de España, number 73.
    2. Peter K. Schott, 2001. "Do Rich and Poor Countries Specialize in a Different Mix of Goods? Evidence from Product-Level US Trade Data," NBER Working Papers 8492, National Bureau of Economic Research, Inc.
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    4. Marvin L. Wolverton & Jimmy Senteza, 2000. "Hedonic Estimates of Regional Constant Quality House Prices," Journal of Real Estate Research, American Real Estate Society, vol. 19(3), pages 235-253.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. de la Peña, Mario Raúl & Núñez-Serrano, Juan A. & Turrión, Jaime & Velázquez, Francisco J., 2016. "Are innovations relevant for consumers in the hospitality industry? A hedonic approach for Cuban hotels," Tourism Management, Elsevier, vol. 55(C), pages 184-196.
    2. Josep-Maria Espinet & Modest Fluvià & Ricard Rigall-I-Torrent & Albert Saló, 2012. "Hotel Characteristics and Seasonality in Prices: An Analysis Using Spanish Tour Operators' Brochures," Tourism Economics, , vol. 18(4), pages 749-767, August.
    3. Joaquín Alegre & Magdalena Cladera & Maria Sard, 2012. "The Evolution of British Package Holiday Prices in the Balearic Islands, 2000–2008," Tourism Economics, , vol. 18(1), pages 59-75, February.
    4. Luigino Baldassin & Massimo Gallo & Elena Mattevi, 2017. "Tourism in European cities," Tourism Economics, , vol. 23(1), pages 3-28, February.
    5. Fluvià, Modest & Rigall-I-Torrent, Ricard & Espinet, Josep Maria & Garriga, Anna & Saló, Albert, 2011. "Precios implícitos de los atributos de los productos turísticos: ¿Qué esconde el efecto de la localización?/Implicit Prices of the Attributes of Tourism Products: What is Hidden Behind Location?," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 781-802, Diciembre.
    6. Marie-Louise Mangion & Ramesh Durbarry & M. Thea Sinclair, 2005. "Tourism Competitiveness: Price and Quality," Tourism Economics, , vol. 11(1), pages 45-68, March.
    7. Aliza Fleischer, 2012. "A Room with a View — A Valuation of the Mediterranean Sea View," ERSA conference papers ersa12p144, European Regional Science Association.
    8. Josep Maria Espinet Rius & Ariadna Gassiot-Melian, 2022. "Has COVID-19 had an impact on prices? The case of the cruise industry," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(5), pages 538-552, October.
    9. Fleischer, Aliza, 2012. "A room with a view—A valuation of the Mediterranean Sea view," Tourism Management, Elsevier, vol. 33(3), pages 598-602.
    10. Becerra, Manuel & Santaló, Juan & Silva, Rosario, 2013. "Being better vs. being different: Differentiation, competition, and pricing strategies in the Spanish hotel industry," Tourism Management, Elsevier, vol. 34(C), pages 71-79.
    11. Albert Saló & Anna Garriga, 2011. "The Second-Home Rental Market: A Hedonic Analysis of the Effect of Different Characteristics and a High-Market-Share Intermediary on Price," Tourism Economics, , vol. 17(5), pages 1017-1033, October.
    12. Josep Maria Espinet & Ariadna Gassiot-Melian & Ricard Rigall-I-Torrent, 2020. "An analysis of price segmentation in the cruise industry," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(3), pages 162-189, June.
    13. Rigall-I-Torrent, Ricard & Fluvià, Modest, 2011. "Managing tourism products and destinations embedding public good components: A hedonic approach," Tourism Management, Elsevier, vol. 32(2), pages 244-255.
    14. Rigall-I-Torrent, Ricard & Fluvià, Modest & Ballester, Ramon & Saló, Albert & Ariza, Eduard & Espinet, Josep-Maria, 2011. "The effects of beach characteristics and location with respect to hotel prices," Tourism Management, Elsevier, vol. 32(5), pages 1150-1158.
    15. 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.
    16. Valter di Giacinto & Giacinto Micucci, 2014. "Hedonic value of Italian tourism supply: comparing environmental and cultural attractiveness," Temi di discussione (Economic working papers) 975, Bank of Italy, Economic Research and International Relations Area.
    17. 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.
    18. Carmen D à lvarez-Albelo & José A Martínez-González, 2024. "Should antitrust regulators be wary of inter-firm coordination agreements through a tourism destination card?," Tourism Economics, , vol. 30(2), pages 324-344, March.
    19. Albert Saló & Anna Garriga & Ricard Rigall-I-Torrent & Mar Vila & Josep M. Sayeras, 2012. "Differences in Seasonal Price Patterns among Second Home Rentals and Hotels: Empirical Evidence and Practical Implications," Tourism Economics, , vol. 18(4), pages 731-747, August.
    20. Jaume Rosselló & Antoni Riera, 2012. "Pricing European Package Tours: The Impact of New Distribution Channels and Low-Cost Airlines," Tourism Economics, , vol. 18(2), pages 265-279, April.
    21. Chih-Chien Chen & Jane E. Ruseski & Zvi Schwartz, 2009. "Room Rates as Signals of Quality, Sell-Out Risk and the Prospects of Getting a Better Deal: Analytical Model and Empirical Evidence," Tourism Economics, , vol. 15(2), pages 367-380, June.

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