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

Aleix Calveras and Marcos Vera-Hernández
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Aleix Calveras: Departament d'Economia de l'Empresa, Universitat de les Illes Balears, Edifici Jovellanos, Cra Valldemossa KM 7, 07122 Palma de Mallorca, Spain
Marcos Vera-Hernández: Departamento de Economía, Universidad Carlos III de Madrid, C/Madrid 126, 28903 Madrid, Spain

Tourism Economics, 2005, vol. 11, issue 4, 571-599

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 (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:11:y:2005:i:4:p:571-599

DOI: 10.5367/000000005775108755

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