IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v12y2006i4p531-541.html
   My bibliography  Save this article

Strategic Interactions among Firms in Tourist Destinations

Author

Listed:
  • Yoav Wachsman

    (Department of Accounting, Economics and Finance, E. Craig Wall, Sr College of Business Administration, Coastal Carolina University, 119 Chanticleer Drive, Conway, SC 29526, USA)

Abstract

This paper examines strategic interactions among hotels and airlines in tourist destinations. It shows that when there is a single tourist destination an airline and a hotel can increase their profits by simultaneously reducing their price. An agent can lead both firms to cooperate, thus increasing consumer surplus. When there are two competing destinations, firms in one of the destinations can benefit from cooperation; however, if firms in both destinations cooperate their joint profit will fall. Finally, if a single firm operates in both destinations, then it will increase the cost of travel, thus reducing consumer surplus.

Suggested Citation

  • Yoav Wachsman, 2006. "Strategic Interactions among Firms in Tourist Destinations," Tourism Economics, , vol. 12(4), pages 531-541, December.
    • Handle: RePEc:sae:toueco:v:12:y:2006:i:4:p:531-541
    DOI: 10.5367/000000006779320033
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5367/000000006779320033
    Download Restriction: no
    File URL: https://libkey.io/10.5367/000000006779320033?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

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


    Cited by:

    1. à lvarez-Albelo, Carmen D. & Hernández-Martín, Raúl & Padrón-Fumero, Noemi, 2020. "The effects on tourism of airfare subsidies for residents: The key role of packaging strategies," Journal of Air Transport Management, Elsevier, vol. 84(C).
    2. 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.
    3. 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.
    4. Arenoe, Bjorn & van der Rest, Jean-Pierre I. & Kattuman, Paul, 2015. "Game theoretic pricing models in hotel revenue management: An equilibrium choice-based conjoint analysis approach," Tourism Management, Elsevier, vol. 51(C), pages 96-102.
    5. Hong, Tao & Ma, Tao & Huan, Tzung-Cheng (T.C.), 2015. "Network behavior as driving forces for tourism flows," Journal of Business Research, Elsevier, vol. 68(1), pages 146-156.
    6. 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.

    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:sae:toueco:v:12:y:2006:i:4:p:531-541. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: SAGE Publications (email available below). General contact details of provider: .

    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.