Effects of Competition and Quality on Hotel Pricing Policies in an Online Travel Agency

Miguel Ángel Ropero

Tourism Economics, 2013, vol. 19, issue 1, 63-76

Abstract: This paper explores the effects of competition and service quality on pricing behaviour by hotels and tourist apartments in the Balearic and Canary Islands, Spain via an online travel agency. The results show that the price set decreases as the number of competitors increases and that the establishments offering higher quality service set their prices at a significantly higher value than other establishments. These effects increase in absolute value across the price distribution.

Keywords: cluster; competition; online travel agency; product quality; fixed-effect model; quantile regression (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:19:y:2013:i:1:p:63-76

DOI: 10.5367/te.2013.0189

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