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Research Note: Tourism Expenditure and all-Inclusive Packages – the case of a Mature Mediterranean Destination

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  • Joaquín Alegre
  • Llorenç Pou

Abstract

Nowadays, all-inclusive packages represent one of the top holiday choices for tourists visiting mature Mediterranean sun-and-sand destinations. Compared to other types of board, all-inclusive packages suppose a change in the way tourists purchase services. This research note analyses the changing patterns of expenditure caused by all-inclusive packages. For that purpose, an empirical analysis is applied to the case of the Balearic Islands, one of the leading Mediterranean destinations. The main findings are twofold: first, compared to other types of board, all-inclusive packages lead to a reduction in the destination's revenue from tourism. Second, all-inclusive packages are causing a significant change in the distribution of tourist expenditure among economic agents. In particular, compared to other types of board, spending in the country of origin is higher for all-inclusive tourists, while spending in the destination is substantially lower.

Suggested Citation

  • Joaquín Alegre & Llorenç Pou, 2008. "Research Note: Tourism Expenditure and all-Inclusive Packages – the case of a Mature Mediterranean Destination," Tourism Economics, , vol. 14(3), pages 645-655, September.
    • Handle: RePEc:sae:toueco:v:14:y:2008:i:3:p:645-655
    DOI: 10.5367/000000008785633631
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    References listed on IDEAS

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    1. Eugeni Aguiló & Joaquín Alegre & Maria Sard, 2003. "Examining the Market Structure of the German and UK Tour Operating Industries through an Analysis of Package Holiday Prices," Tourism Economics, , vol. 9(3), pages 255-278, September.
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    Cited by:

    1. Mayer Marius & Vogt Luisa, 2016. "Economic effects of tourism and its influencing factors: An overview focusing on the spending determinants of visitors," Zeitschrift für Tourismuswissenschaft, De Gruyter, vol. 8(2), pages 169-198, November.
    2. Jorge V Pérez-Rodríguez & Francisco Ledesma-Rodríguez, 2021. "Unconditional quantile regression and tourism expenditure: The case of the Canary Islands," Tourism Economics, , vol. 27(4), pages 626-648, June.
    3. Eugenio-Martin, Juan L. & Inchausti-Sintes, Federico, 2016. "Low-cost travel and tourism expenditures," Annals of Tourism Research, Elsevier, vol. 57(C), pages 140-159.

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