Pub Date : 2023-09-30DOI: 10.1177/13548166231204668
Usamah F Alfarhan, Khaldoon Nusair, Fevzi Okumus, Seyed Rajab Nikhashemi
This article proposes a structural framework for the joint estimation of tourists’ daily personal expenditures (intensity) and length of stay (extensity). We reconceptualize commonly accepted exogeneous determinants of both outcomes into a set of exogenous antecedents pre-existing the travel decision and a set of endogenous mediators that capture the role of market exchange after the travel decision and corresponding choices are made. Findings reveal that the effects of some exogenous factors, such as gender, income, and motives on total spending are fully mediated within the intensity and extensity components, absent of any direct impacts. Other factors, such as nationality, appear not to influence spending due to offsetting mediated effects. As these forces are difficult to discern via reduced-form modeling, the proposed structural framework provides tourism managers with deeper insight into the footprints of established expenditure determinants, potentially improving upon the efficacy of marketing strategies.
{"title":"Identifying structural asymmetries by jointly estimating tourism expenditure intensity and extensity","authors":"Usamah F Alfarhan, Khaldoon Nusair, Fevzi Okumus, Seyed Rajab Nikhashemi","doi":"10.1177/13548166231204668","DOIUrl":"https://doi.org/10.1177/13548166231204668","url":null,"abstract":"This article proposes a structural framework for the joint estimation of tourists’ daily personal expenditures (intensity) and length of stay (extensity). We reconceptualize commonly accepted exogeneous determinants of both outcomes into a set of exogenous antecedents pre-existing the travel decision and a set of endogenous mediators that capture the role of market exchange after the travel decision and corresponding choices are made. Findings reveal that the effects of some exogenous factors, such as gender, income, and motives on total spending are fully mediated within the intensity and extensity components, absent of any direct impacts. Other factors, such as nationality, appear not to influence spending due to offsetting mediated effects. As these forces are difficult to discern via reduced-form modeling, the proposed structural framework provides tourism managers with deeper insight into the footprints of established expenditure determinants, potentially improving upon the efficacy of marketing strategies.","PeriodicalId":23204,"journal":{"name":"Tourism Economics","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136280339","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-29DOI: 10.1177/13548166231200373
Aldric Vives, Liudmila Ostrovskaya
Hedonic pricing (HP) models are widely used to capture the price heterogeneity of hotel attributes and complementary services. This study uses a broad-ranging database with information about 11 hotels, located in the same Majorcan (Spain) coastal town, to identify the main attributes, complementary services and guest characteristics that affect hotel pricing, hotel revenue (RevPAR) and repeat stays. The results found that, aside from the main sources of price variability, such as accommodation type, location and season, other hotel attributes/services were found to influence these dependent variables: refurbishments, room type, occupancy level, number of stars, clients’ online ratings and the specific hotel. Attributes/services did not have a homogeneous effect on the three types of models estimated, as some attributes increased prices without increasing RevPAR or number of repeat stays.
{"title":"Exploring the impact of hotel attributes and services on price and revenue: A hedonic pricing model approach with a focus on internal and external segmentation and repeat customers","authors":"Aldric Vives, Liudmila Ostrovskaya","doi":"10.1177/13548166231200373","DOIUrl":"https://doi.org/10.1177/13548166231200373","url":null,"abstract":"Hedonic pricing (HP) models are widely used to capture the price heterogeneity of hotel attributes and complementary services. This study uses a broad-ranging database with information about 11 hotels, located in the same Majorcan (Spain) coastal town, to identify the main attributes, complementary services and guest characteristics that affect hotel pricing, hotel revenue (RevPAR) and repeat stays. The results found that, aside from the main sources of price variability, such as accommodation type, location and season, other hotel attributes/services were found to influence these dependent variables: refurbishments, room type, occupancy level, number of stars, clients’ online ratings and the specific hotel. Attributes/services did not have a homogeneous effect on the three types of models estimated, as some attributes increased prices without increasing RevPAR or number of repeat stays.","PeriodicalId":23204,"journal":{"name":"Tourism Economics","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135247599","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-21DOI: 10.1177/13548166231203042
David Boto-García, Alvaro Muñiz-Fernández, Levi Pérez
Income is a relevant factor for explaining outbound tourism demand. However, when working with regional- or country-level data, it is difficult to disentangle the role of income in stimulating tourism travelling from other factors that correlate with greater income levels. This paper exploits a natural experiment from Spanish Christmas Lottery to estimate the causal effect of income shocks on outbound tourism. We leverage the staggered and quasi-random assignment of lottery winnings across Spanish regions to estimate the elasticity of outbound annual trips and expenditure to windfall gains. Using difference-in-differences with the amount of lottery prizes as an indicator of treatment intensity, we show that lottery winnings per capita increase both the annual number of tourism trips and expenditure per capita. This effect operates during the first 2 years following the draw, which is likely explained by bandwagon and income multiplier effects.
{"title":"Windfall money and outbound tourism: A natural experiment from lottery winnings","authors":"David Boto-García, Alvaro Muñiz-Fernández, Levi Pérez","doi":"10.1177/13548166231203042","DOIUrl":"https://doi.org/10.1177/13548166231203042","url":null,"abstract":"Income is a relevant factor for explaining outbound tourism demand. However, when working with regional- or country-level data, it is difficult to disentangle the role of income in stimulating tourism travelling from other factors that correlate with greater income levels. This paper exploits a natural experiment from Spanish Christmas Lottery to estimate the causal effect of income shocks on outbound tourism. We leverage the staggered and quasi-random assignment of lottery winnings across Spanish regions to estimate the elasticity of outbound annual trips and expenditure to windfall gains. Using difference-in-differences with the amount of lottery prizes as an indicator of treatment intensity, we show that lottery winnings per capita increase both the annual number of tourism trips and expenditure per capita. This effect operates during the first 2 years following the draw, which is likely explained by bandwagon and income multiplier effects.","PeriodicalId":23204,"journal":{"name":"Tourism Economics","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136130424","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-21DOI: 10.1177/13548166231203148
José F. Perles, Martín Sevilla, Ana B. Ramón-Rodríguez, María Jesús Such, Patricia Aranda
One of the justifications for promoting tourism development is the capacity that it has to generate spillover effects on traditional economic activities. However, the strength of these spillover effects depends, largely, on the complementary or competitive nature of the traditional sector with respect to the resources used by tourism. Using time series analysis techniques, this paper examines the relationship existing between tourism development and the local fisheries sector. The results suggest that fisheries have been benefiting from growth in tourism, not so much in terms of an increase in the volume of catches but rather due to an increase in their value.
{"title":"Carry-over effects of tourism on traditional activities","authors":"José F. Perles, Martín Sevilla, Ana B. Ramón-Rodríguez, María Jesús Such, Patricia Aranda","doi":"10.1177/13548166231203148","DOIUrl":"https://doi.org/10.1177/13548166231203148","url":null,"abstract":"One of the justifications for promoting tourism development is the capacity that it has to generate spillover effects on traditional economic activities. However, the strength of these spillover effects depends, largely, on the complementary or competitive nature of the traditional sector with respect to the resources used by tourism. Using time series analysis techniques, this paper examines the relationship existing between tourism development and the local fisheries sector. The results suggest that fisheries have been benefiting from growth in tourism, not so much in terms of an increase in the volume of catches but rather due to an increase in their value.","PeriodicalId":23204,"journal":{"name":"Tourism Economics","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136130560","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-19DOI: 10.1177/13548166231202358
Faruk Balli, Hung Do, Hina Uqaili
We examine the effect of the decomposition of tourist demand on tourism receipts. We find that tourists from OECD economies or from countries that have strong trade connections with the host economy tend to spend more money in emerging economies. However, tourists from countries that have sociocultural or geographic linkages, such as sharing the same border, having the same religion or language, or have the same ethnicity as those in the host country, tend to spend less money.
{"title":"The decomposition of tourism demand and tourism receipts","authors":"Faruk Balli, Hung Do, Hina Uqaili","doi":"10.1177/13548166231202358","DOIUrl":"https://doi.org/10.1177/13548166231202358","url":null,"abstract":"We examine the effect of the decomposition of tourist demand on tourism receipts. We find that tourists from OECD economies or from countries that have strong trade connections with the host economy tend to spend more money in emerging economies. However, tourists from countries that have sociocultural or geographic linkages, such as sharing the same border, having the same religion or language, or have the same ethnicity as those in the host country, tend to spend less money.","PeriodicalId":23204,"journal":{"name":"Tourism Economics","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135015963","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-13DOI: 10.1177/13548166231199156
Ganna V Demydyuk, Mats Carlbäck
This study examines the relationship between revenue and profit drivers and long-term financial performance in the hotel industry based on 17-years data (2004–2020) of six US hotel chains. The analysis creates, tests, and analyzes a cross-level model that examines the complex endogenous relationships, underlying long-term financial performance of hotels. Specifically, we examine the interaction of room price (ADR) and customer satisfaction (ACSI) within a sales-volume-driver framework that impacts financial performance through profitability, measured at both the operating and accounting levels. This study seeks to advance our understanding of these relationships, their characteristics, and their implications for long-term financial performance in the hotel industry. The findings reveal that customer satisfaction is more important than price in achieving long-term financial success in the hotel industry, whereas room nights sold is significant positive driver of all performance levels.
{"title":"Balancing short-term gains and long-term success in lodging: The role of customer satisfaction and price in hotel profitability model","authors":"Ganna V Demydyuk, Mats Carlbäck","doi":"10.1177/13548166231199156","DOIUrl":"https://doi.org/10.1177/13548166231199156","url":null,"abstract":"This study examines the relationship between revenue and profit drivers and long-term financial performance in the hotel industry based on 17-years data (2004–2020) of six US hotel chains. The analysis creates, tests, and analyzes a cross-level model that examines the complex endogenous relationships, underlying long-term financial performance of hotels. Specifically, we examine the interaction of room price (ADR) and customer satisfaction (ACSI) within a sales-volume-driver framework that impacts financial performance through profitability, measured at both the operating and accounting levels. This study seeks to advance our understanding of these relationships, their characteristics, and their implications for long-term financial performance in the hotel industry. The findings reveal that customer satisfaction is more important than price in achieving long-term financial success in the hotel industry, whereas room nights sold is significant positive driver of all performance levels.","PeriodicalId":23204,"journal":{"name":"Tourism Economics","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135742080","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-11DOI: 10.1177/13548166231200932
Jorge V Pérez-Rodríguez, Juan M Hernández, Julián Andrada-Félix
This paper examines whether short-term rental listings in the sharing accommodation market take account of market risk in their pricing. To do so, we estimate time-varying market risks, and forecast price changes using daily supply-price time series. The empirical analysis was conducted using daily data for the Canary Islands sharing accommodation market for the period January 2016 to September 2021. The following main results were obtained. First, individual listings face systematic risks that are lower than the average market listing return, but multi-unit hosts are more sensitive to market index variations than single-unit hosts. Second, there is a time-varying but long-range dependence on market risk, indicating a slow reversion to the mean level of volatility. Price changes also reflect negative long-range dependence or anti-persistence. Third, volatility does not affect price adjustments in the market (no evidence of risk-return trade-off) for types of hosts and lodgings. Fourth, models can be used to perform risk management using value-at-risk approaches, and market risks are greater for houses and single-unit hosts in the GBP market. Finally, prices can be predicted in different horizons using long-range dependence models.
{"title":"Modelling prices and volatilities in the sharing economy","authors":"Jorge V Pérez-Rodríguez, Juan M Hernández, Julián Andrada-Félix","doi":"10.1177/13548166231200932","DOIUrl":"https://doi.org/10.1177/13548166231200932","url":null,"abstract":"This paper examines whether short-term rental listings in the sharing accommodation market take account of market risk in their pricing. To do so, we estimate time-varying market risks, and forecast price changes using daily supply-price time series. The empirical analysis was conducted using daily data for the Canary Islands sharing accommodation market for the period January 2016 to September 2021. The following main results were obtained. First, individual listings face systematic risks that are lower than the average market listing return, but multi-unit hosts are more sensitive to market index variations than single-unit hosts. Second, there is a time-varying but long-range dependence on market risk, indicating a slow reversion to the mean level of volatility. Price changes also reflect negative long-range dependence or anti-persistence. Third, volatility does not affect price adjustments in the market (no evidence of risk-return trade-off) for types of hosts and lodgings. Fourth, models can be used to perform risk management using value-at-risk approaches, and market risks are greater for houses and single-unit hosts in the GBP market. Finally, prices can be predicted in different horizons using long-range dependence models.","PeriodicalId":23204,"journal":{"name":"Tourism Economics","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135982007","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-11DOI: 10.1177/13548166231201199
Timothy Webb, Misuk Lee, Zvi Schwartz, Ira Vouk
Revenue management (RM) systems forecast demand and optimize prices to maximize a hotel’s revenue. The RM function operates in coordination between a system and an analyst. Systems provide recommendations while analysts review the forecasts and prices to approve or make subjective adjustments. In many cases the recommendations are a “black box” with little insight regarding how recommendations are derived. This article proposes the k-Nearest Neighbor (k-NN) algorithm as a forecasting approach that can transition the “black box” to a “glass box.” The benefits of the k-NN are discussed in detail and compared with neural networks. The analysis is conducted on 35 hotels in partnership with a leading RM service provider. The results indicate similar performance for both techniques, leading to an important discussion on model evaluation outside of accuracy. In particular, the article discusses some of the unique advantages k-NN provides for the RM discipline.
{"title":"Beyond accuracy: The advantages of the k-nearest neighbor algorithm for hotel revenue management forecasting","authors":"Timothy Webb, Misuk Lee, Zvi Schwartz, Ira Vouk","doi":"10.1177/13548166231201199","DOIUrl":"https://doi.org/10.1177/13548166231201199","url":null,"abstract":"Revenue management (RM) systems forecast demand and optimize prices to maximize a hotel’s revenue. The RM function operates in coordination between a system and an analyst. Systems provide recommendations while analysts review the forecasts and prices to approve or make subjective adjustments. In many cases the recommendations are a “black box” with little insight regarding how recommendations are derived. This article proposes the k-Nearest Neighbor (k-NN) algorithm as a forecasting approach that can transition the “black box” to a “glass box.” The benefits of the k-NN are discussed in detail and compared with neural networks. The analysis is conducted on 35 hotels in partnership with a leading RM service provider. The results indicate similar performance for both techniques, leading to an important discussion on model evaluation outside of accuracy. In particular, the article discusses some of the unique advantages k-NN provides for the RM discipline.","PeriodicalId":23204,"journal":{"name":"Tourism Economics","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135982377","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-11DOI: 10.1177/13548166231190142
G. Bianchi, Yong Chen
This research note delineates the conflict of hotel rate parity and key clauses of competition laws in both Europe and the U.S. We trace the origin of hotel rate parity to the principle of most favored nation (MFN) in international trade agreements. We show that rate parity challenges two pillars of competition law. Under rate parity agreements, it is travel intermediaries—not hotels—that demand rate parity, which comes down to the dominance of travel intermediaries over small and independent hotels. The courts view MFN status as a hindrance to competition and therefore in violation of competition law. The trend and message in Europe are clear: the clause is most likely to be judged as not complying with EU competition law and its national equivalents. In the U.S. though, a lack of case decisions precludes us from reaching any conclusion about the fate of the MFN clause.
{"title":"The legal aspects of hotel rate parity","authors":"G. Bianchi, Yong Chen","doi":"10.1177/13548166231190142","DOIUrl":"https://doi.org/10.1177/13548166231190142","url":null,"abstract":"This research note delineates the conflict of hotel rate parity and key clauses of competition laws in both Europe and the U.S. We trace the origin of hotel rate parity to the principle of most favored nation (MFN) in international trade agreements. We show that rate parity challenges two pillars of competition law. Under rate parity agreements, it is travel intermediaries—not hotels—that demand rate parity, which comes down to the dominance of travel intermediaries over small and independent hotels. The courts view MFN status as a hindrance to competition and therefore in violation of competition law. The trend and message in Europe are clear: the clause is most likely to be judged as not complying with EU competition law and its national equivalents. In the U.S. though, a lack of case decisions precludes us from reaching any conclusion about the fate of the MFN clause.","PeriodicalId":23204,"journal":{"name":"Tourism Economics","volume":null,"pages":null},"PeriodicalIF":4.4,"publicationDate":"2023-08-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48823805","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-07DOI: 10.1177/13548166231190424
C. Álvarez-Albelo, J. A. Martínez-González
A destination card has been widely used by destination management organizations to coordinate the complementary tourism supply. Such coordination, which involves pricing a destination card, is challenging when a foreign tour operator is present. Though the literature shows that cooperative pricing between a destination management organization and a tour operator increases total profits, the most advantageous profit sharing for a destination has not been addressed. With a theoretical model of base and add-on products, this paper identifies the arrangement between a public destination management organization and a foreign tour operator that will accrue the highest profits for a destination. It is found that the most profitable option for a destination is a cooperative agreement in which the foreign tour operator is offered the same profits as a price leader under non-cooperation. This result comes from the fact that non-cooperation entails an unstable situation in which the tour operator is not willing to relinquish price leadership. The findings are of practical interest to help achieve economic sustainability in tourism destinations that rely on foreign tour operators and seek to coordinate their complementary tourism supply.
{"title":"Coordination of complementary tourism supply through a destination card: The pursuit of profitability in the presence of a foreign tour operator","authors":"C. Álvarez-Albelo, J. A. Martínez-González","doi":"10.1177/13548166231190424","DOIUrl":"https://doi.org/10.1177/13548166231190424","url":null,"abstract":"A destination card has been widely used by destination management organizations to coordinate the complementary tourism supply. Such coordination, which involves pricing a destination card, is challenging when a foreign tour operator is present. Though the literature shows that cooperative pricing between a destination management organization and a tour operator increases total profits, the most advantageous profit sharing for a destination has not been addressed. With a theoretical model of base and add-on products, this paper identifies the arrangement between a public destination management organization and a foreign tour operator that will accrue the highest profits for a destination. It is found that the most profitable option for a destination is a cooperative agreement in which the foreign tour operator is offered the same profits as a price leader under non-cooperation. This result comes from the fact that non-cooperation entails an unstable situation in which the tour operator is not willing to relinquish price leadership. The findings are of practical interest to help achieve economic sustainability in tourism destinations that rely on foreign tour operators and seek to coordinate their complementary tourism supply.","PeriodicalId":23204,"journal":{"name":"Tourism Economics","volume":null,"pages":null},"PeriodicalIF":4.4,"publicationDate":"2023-08-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43523835","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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