Insiders vs. outsiders in the hotel sector

Olivier Beaumais and Sauveur Giannoni ()

Applied Economics, 2018, vol. 50, issue 53, 5698-5711

Abstract: We investigate whether entering an official hotel classification system is as lucrative as suggested in the tourism management literature. Indeed, in countries in which the official hotel classification system is voluntary, a substantial fraction of hotels choose not to enter the system, and are outsiders. Considering that being classified (being insider) as a predictor of the rate structure may raise an endogeneity issue, we apply the recursive semi-ordered probit model to control for endogeneity and appropriately assess the effect of being classified on price rates. Using a sample of 357 hotels of Corsica, we show that, in contrast to previous research, classification does not provide any rate premium. We also fully derive conditional probabilities and partial effects on differences in conditional probabilities within the recursive semi-ordered probit model.

Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2018.1488061 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:50:y:2018:i:53:p:5698-5711

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036846.2018.1488061

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().