Quality externalities among hotel establishments: what is the impact of tour operators?

Authors: Calveras, Aleix; Vera-Hernández, Marcos

Source: Tourism Economics, Volume 11, Number 4, December 2005 , pp. 571-593(23)

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Abstract:

This paper is about quality decisions in a vertical structure, in which competitive producers sell to 'powerful retailers'. Specifically, the analysis focuses on the role played by the tour operator (TO) in quality investments when distributing the capacity of a given tourism destination. The authors emphasize the presence of quality externalities among hotel establishments, and find that TO distribution can sometimes provide a solution to the 'tragedy of the commons' in quality provision. Thus they assess the implications of vertical relationships for quality in the hotel industry and derive appropriate policy recommendations.

Keywords: HOTEL INDUSTRY; VERTICAL RELATIONS; ENVIRONMENTAL QUALITY; TOUR OPERATORS

Document Type: Research article

DOI: http://dx.doi.org/10.5367/000000005775108755

Publication date: 2005-12-01

More about this publication?

Tourism Economics, published bimonthly, is a peer-reviewed journal devoted to the economics and finance of tourism worldwide. Articles address the components of the tourism product (accommodation; restaurants; merchandizing; attractions; transport; entertainment; tourist activities); and the economic organization of tourism at micro and macro levels (market structure; role of public/private sectors; community interests; strategic planning; marketing; finance; economic development).
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