nep-tur New Economics Papers
on Tourism Economics
Issue of 2019‒08‒26
three papers chosen by
Laura Vici
Università di Bologna

  1. Price-Setting Behavior in a Tourism Sharing Economy Accommodation Market: A Hedonic Price Analysis of AirBnB Hosts in the Caribbean By Lorde, Troy; Jacob, Jadon; Weekes, Quinn
  2. Airbnb, Technological Change and Disruption in Barbadian Tourism: A Theoretical Framework By Lorde, Troy; Joseph, Tennyson S D
  3. Fire takes no vacation: impact of fires on tourism By Vladimir Otrachshenko, Luís C. Nunes

  1. By: Lorde, Troy; Jacob, Jadon; Weekes, Quinn
    Abstract: This study investigated the price-setting behaviour of hosts in the tourism sharing economy in the Caribbean. Generally speaking, we find that site, reputation, convenience, personal and amenities attributes, along with country-level indicators significantly affect prices in the Caribbean. More specifically, most attributes have a positive effect on price-setting. Larger accommodations charge higher prices. Hosts with superior reputations charge higher prices. However, listings with a larger number of ratings are associated with lower prices. This may be an artefact of tourists’ preferences for cheaper sharing accommodations, resulting in a relatively higher volume of reviews for properties at the lower end of the price spectrum. Provision of Convenience options have an overall positive effect on prices, although there is evidence that some options can result in lower prices for tourists. The sole Personal attribute investigated is associated with higher price-setting behaviour. Virtually all amenities examined result in greater prices being charged for the space. Results indicate that geography has significant effects on price-setting behaviour. Listings in countries with greater economic and infrastructural development, greater biodiversity, but weaker exchange rates have higher prices. On the other hand, prices are lower in countries where there is more competition for customers.
    Keywords: tourism, sharing economy, Airbnb, Caribbean, price-setting behaviour
    JEL: L83 O54
    Date: 2018–05–03
  2. By: Lorde, Troy; Joseph, Tennyson S D
    Abstract: This paper focuses on how Airbnb, an internet platform which has created the possibility for mass participation in the tourism market, is resulting in class conflict between new entrants and the ‘traditional’ tourism industry. Specifically, it studies how traditional tourism interests in Barbados have responded to Airbnb by seeking to restrict participation in the industry and presents this as a microcosm of broader class transitions and conflicts associated with new technologies. The paper utilises a Marxist theoretical perspective buttressed by Joseph Schumpeter’s theory of ‘creative destruction’ – places emphasis on the process of destroying productive systems to understand how specific industries expand and survive – and Clayton Christensen’s notion of ‘disruptive innovation’ – a process by which a disruptive product transforms a market – for studying how transformations in technology are impacting the tourism industry in Barbados. Its aim is to provide an account of how the process of disruption is unfolding in Barbados by highlighting the reactions of the main hotel lobby group to Airbnb, while also applying the ideas of Marx, Schumpeter and Christensen as useful theoretical lenses through which to examine the unfolding of the process of disruption of settled class and historical control of a dominant economic sector by new technologies.
    Keywords: Airbnb Marxist theory creative destruction disruptive innovation tourism industry class relations
    JEL: B51 L83 O1 Z13
    Date: 2018–06–06
  3. By: Vladimir Otrachshenko, Luís C. Nunes
    Abstract: Many Mediterranean-type climates around the world will face increased risks of wildfires as a consequence of climate change. In this study we consider the case of Portugal and estimate the impact of the increasing risk of forest fires on tourism. Using data for 278 municipalities for the 2000-2016 period we find a considerable negative impact of burned areas on the number of tourist arrivals, both domestic and inbound. We go beyond the traditional impact analysis and provide predictions for 2030 and 2050. The estimated costs to the Portuguese economy due to the impact of burned areas in 2030 range between 17.03 and 24.18 million Euros for domestic tourist arrivals and between 18.26 and 38.08 million Euros for inbound ones. In 2050, those costs will increase at least fourfold. These findings underscore the importance of taking the forest fire risks into account when planning local investments. JEL codes: L83, O13, Q54, Q56
    Keywords: climate change, economic development, fires, future projections, tourism, Portugal
    Date: 2019

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