nep-tur New Economics Papers
on Tourism Economics
Issue of 2016‒10‒02
two papers chosen by
Laura Vici
Università di Bologna

  1. Financial Implications of Seasonal Variability in Demand for Tourism Services (Final Draft) By Tisdell, Clem
  2. Fuel tourism in Dutch border regions: are only salient price differentials relevant? By David-Jan Jansen; Nicole Jonker

  1. By: Tisdell, Clem
    Abstract: Using Jensen’s inequality (and its mathematical generalization), this contribution shows how increased seasonal (periodic) variability of demand for tourism services can increase the annual profit of a tourism enterprise and the producers’ surplus of a corresponding competitive segment of the tourism industry experiencing this increased variability. It identifies conditions which result in these effects being magnified and takes account of the fact that a tourism business’ supply of services is often subject to capacity utilization constraints. A novel feature is that allowance is made for the possibility that variations in the market demand for tourism services may alter the prices of factors of production. Examples of seasonal variability in the prices for tourism services are provided. Furthermore, the importance of this contribution is related to the available scholarly literature about the financial consequences of seasonal variability in the demand for tourism services.
    Keywords: demand variability, Jensen’s inequality, price instability in tourism, profitability in tourism and demand variability, producers’ surplus and demand variability., Demand and Price Analysis, Institutional and Behavioral Economics, Labor and Human Capital, Risk and Uncertainty, C02, D20, D41, L83,
    Date: 2016–09
  2. By: David-Jan Jansen; Nicole Jonker
    Abstract: Using detailed data on consumer payments, we find only limited evidence that fluctuations in cross-border fuel price differentials are relevant for Dutch consumers. Consumers living close to the German border did react to a salient increase in Dutch excise fuel duties in January 2014. However, the increase of fuel tourism was only temporary. Secondly, there are no robust indications that fuel tourism is relevant for Dutch consumers living further than 10 kilometres from either the border with Belgium or Germany. The apparent absence of fuel tourism may either be explained by the widespread use of loyalty cards or by the low level of international commuting by Dutch workers.
    Keywords: fuel tourism; consumer data; payment diaries; excise duties
    JEL: D12 H23 Q41
    Date: 2016–08

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