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The Second-Home Rental Market: A Hedonic Analysis of the Effect of Different Characteristics and a High-Market-Share Intermediary on Price

Author

Listed:
  • Albert Saló

    (ESADE Business School, Av Torre Blanca, 59, 08172 Sant Cugat del Vallès, Barcelona, Spain)

  • Anna Garriga

    (Facultat de Ciències Econòmiques i Empresarials, Universitat de Girona, Campus Montilivi, 17071 Girona, Spain)

Abstract

The phenomenon of second homes has been little studied in the tourism economics literature. Residential tourism can represent more than 50% of housing in tourist areas like the Costa Brava in Spain. This article uses hedonic techniques to analyse the market value of the attributes that explain the overall price of a representative sample of second-home rentals. The explanatory variables of this overall price include characteristics such as number of rooms, housing area size, garden size, swimming pool, housing type, distribution channel, municipality, sea views, distance to the beach and seasonality. This study therefore provides tools to assist the decision making of the main agents involved: stakeholders and policy makers.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:toueco:v:17:y:2011:i:5:p:1017-1033
    DOI: 10.5367/te.2011.0074
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    References listed on IDEAS

    as
    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. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    3. 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.
    4. Oliver E. Williamson & Scott E Masten (ed.), . "The Economics of Transaction Costs," Books, Edward Elgar Publishing, number 1652.
    5. Benson, Earl D & Hansen, Julia L. & Schwartz Jr., Arthur & Smersh, Greg T., 1998. "Pricing Residential Amenities: The Value of a View," The Journal of Real Estate Finance and Economics, Springer, vol. 16(1), pages 55-73, January.
    6. 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.
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    Citations

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    Cited by:

    1. David Boto-García & Veronica Leoni, 2022. "The hedonic value of coastal amenities in peer-to-peer markets," DEA Working Papers 94, Universitat de les Illes Balears, Departament d'Economía Aplicada.
    2. David Boto-García & Veronica Leoni, 2023. "The Economic Value of Coastal Amenities: Evidence from Beach Capitalization Effects in Peer-to-Peer Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(2), pages 529-557, February.
    3. Bloze, Gintautas & Skak, Morten, 2014. "Owning, letting and demanding second homes," Discussion Papers on Economics 1/2014, University of Southern Denmark, Department of Economics.
    4. Hernández, Juan M. & Suárez-Vega, Rafael & Santana-Jiménez, Yolanda, 2016. "The inter-relationship between rural and mass tourism: The case of Catalonia, Spain," Tourism Management, Elsevier, vol. 54(C), pages 43-57.
    5. Candela, Guido & Castellani, Massimiliano & Mussoni, Maurizio, 2012. "Clashes and compromises: Investment policies in tourism destinations," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 6, pages 1-25.
    6. 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.
    7. Angela Hof & Macià Blázquez-Salom, 2013. "The Linkages between Real Estate Tourism and Urban Sprawl in Majorca (Balearic Islands, Spain)," Land, MDPI, vol. 2(2), pages 1-26, May.
    8. 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.

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