nep-tur New Economics Papers
on Tourism Economics
Issue of 2017‒01‒15
two papers chosen by
Laura Vici
Università di Bologna

  1. Tourist tax-fee as a mechanism of urban renovation and upgrade of tourist product: Implementation on the municipality of Athens By Vasiliki Delitheou; Georgios Papastamatiou
  2. Are all online hotel prices created dynamic? An empirical assessment By Melis, Giuseppe; Piga, Claudio A

  1. By: Vasiliki Delitheou; Georgios Papastamatiou
    Abstract: Tourism has been an important factor for national and local development. Local taxes on tourism could increase local revenues which in turn could upgrate local environment. This paper proposes a model of urban renaissance and redevelopment of the local tourist industry, based on the levying of a tourist charge fee that will replenish a contributory mechanism which will provide a guarantee capacity to the hotel establishments, who will be able to create large investment projects in upgrading and modernising their existed infrastructure facilities, while at the same time this mechanism will also combine the contribution of funds coming from the E.U. funds, which will be used for the implementation of aesthetics interventions over the façade of the old and abandoned buildings. The imposition of a small tax- fee which will be provided to a significant number of tourist who will be offered overnight lodgings in a city, will have a much less pronounced impact on the tourist trade but a significant one on the busyness of this section, because through the re-circulated use of the funds, due to this wide guaranteed funding mechanism, the redevelopment of the already existed hotel establishments will be strengthened, while, through the benefits of this mechanism, new investments in hotel establishments will be held in less-favored regions of a city.
    Keywords: Tourism; taxes; local government revenues
    JEL: L83 O18
    Date: 2016–12
  2. By: Melis, Giuseppe; Piga, Claudio A
    Abstract: Understanding how tourist firms set their online prices is important due to their growing reliance on Online Travel Agencies (OTA). Little is known, however, about whether differences exist in the online pricing approaches adopted by hotels using an OTA. The article tests, using a big data approach, whether the diffuse narrative of a pervasive presence of dynamic pricing provides a realistic description of hotels’ pricing behavior and thus challenges the view that dynamic pricing should be considered the prevailing norm for the industry. The evidence suggests a heterogenous attitude across hotels, with uniform pricing being more widespread in most hotels of our sample, namely, the 3-star or less, while dynamic pricing is more likely applied in higher quality hotels.
    Keywords: Revenue Management; Online travel agents; Heterogeneous strategic management behaviour; dynamic pricing
    JEL: L81 L83
    Date: 2016–12–01

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