IDEAS home Printed from https://ideas.repec.org/p/lia/wpaper/006.html
   My bibliography  Save this paper

Insiders vs outsiders in the hotel sector: is it worth entering an official classification system?

Author

Listed:
  • Olivier Beaumais

    (Laboratoire Lieux, Identités, eSpaces et Activités (LISA))

  • Sauveur Giannoni

    (Laboratoire Lieux, Identités, eSpaces et Activités (LISA))

Abstract

We investigate whether entering an official hotel classification system is as lucrative as suggested in the tourism management literature. Indeed, in countries in which the official hotel classification system is voluntary, a substantial fraction of hotels choose not to enter the system, and are outsiders. Considering that being classified (being insider) as a predictor of the rate structure may raise an endogeneity issue, we apply the recursive semi-ordered probit model to control for endogeneity and appropriately assess the effect of being classified on price rates. Using a sample of 357 hotels of Corsica, we show that, in contrast to previous research, classification does not provide any rate premium. We also fully derive conditional probabilities and partial effects on differences in conditional probabilities within the recursive semi-ordered probit model.

Suggested Citation

  • Olivier Beaumais & Sauveur Giannoni, 2017. "Insiders vs outsiders in the hotel sector: is it worth entering an official classification system?," Working Papers 006, Laboratoire Lieux, Identités, eSpaces et Activités (LISA).
    • Handle: RePEc:lia:wpaper:006
    as

    Download full text from publisher

    File URL: https://umrlisa.univ-corse.fr/RePEc/lia/pdf/WorkingPaper06.pdf
    File Function: First version, 2017
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    hotel rating; rate premium; endogeneity; recursive semi-ordered probit;
    All these keywords.

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:lia:wpaper:006. 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: Florian Gueniot (email available below). General contact details of provider: https://edirc.repec.org/data/licorfr.html .

    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.