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Quality Externalities among Hotel Establishments: What is the Impact of Tour Operators?

Author

Listed:
  • Aleix Calveras

    (Departament d'Economia de l'Empresa, Universitat de les Illes Balears, Edifici Jovellanos, Cra Valldemossa KM 7, 07122 Palma de Mallorca, Spain)

  • Marcos Vera-Hernández

    (Departamento de Economía, Universidad Carlos III de Madrid, C/Madrid 126, 28903 Madrid, Spain)

Abstract

This paper is about quality decisions in a vertical structure, in which competitive producers sell to ‘powerful retailers’. Specifically, the analysis focuses on the role played by the tour operator (TO) in quality investments when distributing the capacity of a given tourism destination. The authors emphasize the presence of quality externalities among hotel establishments, and find that TO distribution can sometimes provide a solution to the ‘tragedy of the commons’ in quality provision. Thus they assess the implications of vertical relationships for quality in the hotel industry and derive appropriate policy recommendations.

Suggested Citation

  • Aleix Calveras & Marcos Vera-Hernández, 2005. "Quality Externalities among Hotel Establishments: What is the Impact of Tour Operators?," Tourism Economics, , vol. 11(4), pages 571-599, December.
    • Handle: RePEc:sae:toueco:v:11:y:2005:i:4:p:571-599
    DOI: 10.5367/000000005775108755
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    References listed on IDEAS

    as
    1. Nigel G. Evans & Mike J. Stabler, 1995. "A Future for the Package Tour Operator in the 21st Century?," Tourism Economics, , vol. 1(3), pages 245-264, September.
    2. Aleix Calveras, 2007. "Expansion of a hotel chain and environmental quality," Investigaciones Economicas, Fundación SEPI, vol. 31(2), pages 263-295, May.
    Full references (including those not matched with items on IDEAS)

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