Quality differentiation and conditional spatial price competition among hotels

Seul Ki Lee

Tourism Management, 2015, vol. 46, issue C, 114-122

Abstract: It is generally accepted that location is the dominant product attribute for hotels. Accordingly, studies on price competition have often utilized fixed geographic boundaries when defining competitive sets. When travelers are willing to substitute location and quality, however, the spatial extent of competition can depend on the hotels' quality. Therefore, it can be hypothesized that geographic boundary of price competition among hotels is conditional on quality differentiation.

Keywords: Agglomeration; Differentiation; Market boundaries; Price competition; Two-stage least squares (2SLS) (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:touman:v:46:y:2015:i:c:p:114-122

DOI: 10.1016/j.tourman.2014.06.019

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