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Pricing European Package Tours: The Impact of New Distribution Channels and Low-Cost Airlines

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  • Jaume Rosselló
  • Antoni Riera

Abstract

The recent expansion of low-cost carriers and the increasing use of the Internet are bringing about a major transformation in the marketing of summer tourism products in Europe. This paper investigates differences in price levels and price dispersion across offline and online markets and across tour operators and new emerging Internet retailers, using microdata for individual tourist expenditure on travel and accommodation in the Balearic Islands, Spain. The results of the hedonic regression model suggest that the prices of transport, accommodation and board offered on the Internet are lower than those offered through other channels, whatever the quality and quantity.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:toueco:v:18:y:2012:i:2:p:265-279
    DOI: 10.5367/te.2012.0121
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    References listed on IDEAS

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    Cited by:

    1. Olmedo, Elena & Mateos, Ruth, 2015. "Quantitative characterization of chaordic tourist destination," Tourism Management, Elsevier, vol. 47(C), pages 115-126.
    2. Luigino Baldassin & Massimo Gallo & Elena Mattevi, 2017. "Tourism in European cities," Tourism Economics, , vol. 23(1), pages 3-28, February.
    3. Marko Budler & Miha Bratec & Katarzyna Barbara Minor & Luka Tomat, 2020. "A business model approach towards the understanding of daily deals within Internet distribution systems," Tourism Economics, , vol. 26(6), pages 976-1000, September.
    4. 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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