nep-tur New Economics Papers
on Tourism Economics
Issue of 2012‒11‒03
four papers chosen by
Antonello Scorcu
University of Bologna

  1. Economic and social up(down)grading in tourism global production networks: findings from Kenya and Uganda By Michelle Christian
  2. The Relationship between Internal Satisfaction and External Satisfaction amongst Hotel Customers in Malaysia By Yunus, NKY
  3. Asymmetric Price Adjustments in Airlines By Escobari, Diego
  4. Using prospect theory to investigate the low marginal value of travel time for small time changes By Hjorth, Katrine; Fosgerau, Mogens

  1. By: Michelle Christian
    Abstract: Abstract This paper presents preliminary field research findings on tourism global production networks (GPNs) in Kenya and Uganda. It addresses the questions of whether economic upgrading in the tourism global production network leads to social upgrading for workers, small producers and community members in tourism localities, and what conditions support it. It further examines whether the relationship is different in mass vs. community-based tourism. The paper finds that: social upgrading outcomes can follow economic upgrading, but typically only for certain groups of workers; practically all firms use multi-labour strategies and make independent decisions on strengthening labour protection and standards; ‘mass’ tourism subsectors are more likely to lead to social upgrading than small-scale, community ethnic tourism; and there are acute racial, ethnic and gender divisions between firm ownership, job placement, and sub-segments in the GPN.
    Date: 2012
  2. By: Yunus, NKY
    Abstract: This paper is focused on hotel customers' internal and external satisfaction. Some previous studies had only focused on the customers' external satisfaction and only a few studies had managed to link between the two variables. The study also looked into factors which may act as internal variables such as the employer-employee relationship, employee relationship as well as employee- customer relationship. As for the external variables, these may involve looking into other aspects of satisfaction, such as customer satisfaction towards the service and facilities provided by the hotel. The main focus of the study was to view the relationship between the customers' intrinsic satisfaction with the customers' external satisfaction and the factors which may influence the customers. The data had been randomly gathered from 120 samples by questionnaire distribution among hotel guests and employees in Kuala Lumpur, Port Dickson, Penang, Trengganu and Kota Kinabalu. Overall, this study had managed to uncover the factors which influenced customers' internal and external satisfaction and also discovered possible relationship between the two types of satisfaction.
    Keywords: Employee Satisfaction; Customer Satisfaction; Service Quality; Service; Hotel Industry; Internal Factors; External Factors
    JEL: M31
    Date: 2012
  3. By: Escobari, Diego
    Abstract: This paper uses a unique daily time series data set to investigate the asymmetric response of airline prices to capacity costs driven by demand fluctuations. We use a Markov regime-switching model with time-varying transition probabilities to capture the time variation in the response. The results show strong evidence of asymmetric price adjustments: positive cost shifts have a large positive effect, while negative cost shifts have no effect. The asymmetry is also explained by summer travel, but not by the size of cost shifts. The findings show the importance of consumer heterogeneity and capacity constraints as a source of asymmetric responses.
    Keywords: Asymmetric pricing; Airlines; Regime switching; Capacity costs
    JEL: L93 C22
    Date: 2012–10–21
  4. By: Hjorth, Katrine; Fosgerau, Mogens
    Abstract: A common finding in stated preference studies that measure the value of travel time (VTT) is that the measured VTT increases with the size of the time change considered, in conflict with standard neoclassical economic theory. We present a new test of a possible explanation for the phenomenon that builds on the diminishing or constant sensitivity of the value functions in prospect theory. We use stated preference data with trade-offs between travel time and money that provide separate identification of the degrees of diminishing sensitivity for time and money gains and losses. This enables us to test and potentially falsify the prospect theory explanation. We conclude that prospect theory remains a potential explanation of the phenomenon.
    Keywords: Value of travel time; Stated preference data; Prospect theory; Small time savings
    JEL: D12 C35 R41
    Date: 2012

This nep-tur issue is ©2012 by Antonello Scorcu. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.