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Labelling and differentiation strategy in the recreational housing rental market of rural destinations: the French case

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Abstract:

In France the rural recreational housing rental market is composed of two parts: the market for 'non-labelled' lodgings and the market for 'labelled' lodgings. Two national federations with branches in each region of France manage the labelled segment. In this article the hedonic price approach is developed (a) to assess the labelling premium in the recreational housing rental market of rural destinations in France and (b) to examine the two federations' differentiation strategies. The author uses a database for the Aveyron region for the summer season of the year 2002. The data for labelled lodgings are drawn from catalogues produced by the labelling federations, and the information for non-labelled accommodation was gathered from local tourism information brochures. The study reveals that labels are indeed valued positively by the market. The labelling premium can reach E129 per week in the peak season. Moreover, environmental variables (such as the population density of the commune in which the lodging is located) are the key variables of differentiation in the labelled lodgings market. The results can assist federation managers in defining labelling and pricing strategies. They also point to some new directions for public initiatives to encourage the development of this type of accommodation in rural destinations.

Keywords: HEDONIC METHOD; LABELS; RURAL FRANCE; RURAL TOURISM; SERVICE DIFFERENTIATION

Document Type: Research Article

DOI: http://dx.doi.org/10.5367/000000006778493619

Publication date: September 1, 2006

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).

    Fast Track. Tourism Economics Fast Track papers have been peer-reviewed, revised and fully accepted for publication. However, although these are the final versions from the authors, they are unedited manuscripts and will undergo a rigorous editing process before their appearance in an issue of the journal. This means that the Fast Track manuscripts may not conform to journal style in terms of presentation, spelling and other usages. They may also contain errors of typography, grammar, spelling, referencing, etc, all of which will be corrected in the processes of copy-editing and proofreading.
    Tourism Economics operates a Fast Track online publication system so that papers can be published and made available almost immediately on final acceptance by the journal. Each Fast Track article is given a DOI. When the paper is assigned to an issue, this DOI will automatically be transferred to the article in the journal issue.
    Fast Track articles may be cited using the DOI. Citations should include the author's or authors' name(s), the title of the article, the title of the journal followed by the words Fast Track, the year of Fast Track publication and the DOI. For example:

    Smith, J. (2013), Article title, Tourism Economics Fast Track, DOI xxxxxxxx.

    Once the paper has been published in an issue of the journal, the DOI will automatically resolve to that final version and the article can be cited in accordance with normal bibliographical conventions.

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