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

Calveras, A; Vera Hernandez, M; (2002) Quality externalities among hotel establishments: what is the impact of tour operators? (Discussion Papers in Economics 02-05 ). Department of Economics, University College London, UCL (University College London), Department of Economics, University College: London, UK. Green open access

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Abstract

This paper is about quality decisions in a vertical structure where competitive producers sell to powerful retailers. Specifically, we focus the analysis on the role played by a tour operator (TO) on quality investments when distributing the capacity of a given tourist destination. We emphasize the presence of quality externalities among hotel establishments, and see that sometimes a TO distribution can provide a solution to the tragedy of the commons in qualityprovision. Thus, we analyze what implications do vertical relations have for quality in this industry, and then derive some policy recommendations. This paper is about quality decisions in a vertical structure where competitive producers sell to powerful retailers. Specifically, we focus the analysis on the role played by a tour operator (TO) on quality investments when distributing the capacity of a given tourist destination. We emphasize the presence of quality externalities among hotel establishments, and see that sometimes a TO distribution can provide a solution to the tragedy of the commons in qualityprovision. Thus, we analyze what implications do vertical relations have for quality in this industry, and then derive some policy recommendations.

Type: Report
Title: Quality externalities among hotel establishments: what is the impact of tour operators?
Open access status: An open access version is available from UCL Discovery
Additional information: Imported via OAI, 20:31:45 23rd Feb 2007
UCL classification: UCL
UCL > Provost and Vice Provost Offices
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/2570
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