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Quality externalities among hotel establishments: what is the impact of tour operations?

    1. [1] Universitat de les Illes Balears

      Universitat de les Illes Balears

      Palma de Mallorca, España

    2. [2] Universidad Carlos III de Madrid

      Universidad Carlos III de Madrid

      Madrid, España

  • Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 11, Nº 4, 2005, págs. 571-593
  • Idioma: inglés
  • Texto completo no disponible (Saber más ...)
  • Resumen
    • 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.


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