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Quality Externalities among Hotel Establishments: What is the Impact of Tour Operators

Author

Listed:
  • Aleix Calveras

    (Universitat de les Illes Balears)

  • Marcos Vera-Hernandez

    (University College London)

Abstract

This paper is about quality decisions in a vertical structure where competitive producers sell to powerful retailers. Specifically, we focus the analysis on the role played by a tour operator on quality investments when distributing the capacity of a given tourist destination. We emphasize the presence of quality externalities among hotel establishments, and see that sometimes a Tour Operator distribution can provide a solution to the "tragedy of the commons' in quality provision. Thus, we analyze what implications do vertical relations have for quality in this industry, and then derive some policy recommendations

Suggested Citation

  • Aleix Calveras & Marcos Vera-Hernandez, 2003. "Quality Externalities among Hotel Establishments: What is the Impact of Tour Operators," Industrial Organization 0303001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpio:0303001
    Note: Type of Document - Acrobat PDF; prepared on IBM PC - PC-TEX/; to print on PostScript; pages: 25 ; figures: none
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/io/papers/0303/0303001.pdf
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    References listed on IDEAS

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    6. Aleix Calveras, 2007. "Expansion of a hotel chain and environmental quality," Investigaciones Economicas, Fundación SEPI, vol. 31(2), pages 263-295, May.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Guido Candela & Paolo Figini, 2010. "Destination Unknown. Is there any Economics Beyond Tourism Areas?," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 2(3), pages 256-271, September.
    2. Aleix Calveras & Francina Orfila, 2014. "Intermediaries and Quality Uncertainty: Evidence from the Hotel Industry," Tourism Economics, , vol. 20(4), pages 727-756, August.
    3. Marianna Succurro, 2008. "The Role of Intermediaries in the Growth of a Lesser-Developed Region: Some Empirical Evidence from Calabria, Italy," Tourism Economics, , vol. 14(2), pages 393-407, June.
    4. Roberto Gabriele, & Enrico Tundis, & Enrico Zaninotto, 2015. "Public Subsidies and Development of Hotel Industry: Evidence from a Place-based Policy," DEM Discussion Papers 2015/10, Department of Economics and Management.
    5. Mahbuba Alieva, 2010. "Uzbek Travel Services Industry And International Comparison," Perspectives of Innovation in Economics and Business (PIEB), Prague Development Center, vol. 6(3), pages 66-70, October.
    6. Esther Blanco, 2011. "A social-ecological approach to voluntary environmental initiatives: the case of nature-based tourism," Policy Sciences, Springer;Society of Policy Sciences, vol. 44(1), pages 35-52, March.
    7. 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.
    8. Roberto Gabriele & Enrico Tundis, 2015. "the effect of longitudinal multiple subsidies on firm performance in the presence of neighbour interactions," ERSA conference papers ersa15p1368, European Regional Science Association.
    9. Evangelos Mitrokostas & Alexandros Apostolakis, 2013. "Research Note: Strategic Corporate Social Responsibility and Competition in the Tourism Industry — A Theoretical Approach," Tourism Economics, , vol. 19(4), pages 967-975, August.
    10. Aleix Calveras, 2003. "Incentives of International and Local Hotel Chains to Invest in Environmental Quality," Tourism Economics, , vol. 9(3), pages 297-306, September.
    11. Sofronis Clerides & Paris Nearchou & Panos Pashardes, 2004. "Intermediaries as Quality Assessors in Markets with Asymmetric," University of Cyprus Working Papers in Economics 3-2004, University of Cyprus Department of Economics.

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    More about this item

    Keywords

    vertical relations; externalities; tragedy of commons; tourism; hotel industry;
    All these keywords.

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L89 - Industrial Organization - - Industry Studies: Services - - - Other

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