Anomaly in Spanish tourist sensitivity to price

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dc.contributor.authorNicolau, Juan Luisen
dc.date.accessioned2024-07-31T13:29:54Zen
dc.date.available2024-07-31T13:29:54Zen
dc.date.issued2010-12-01en
dc.description.abstractThe literature suggests that the effect of price on destination choice can be either positive or negative and income is considered an important determinant of tourist decisions, so that tourism products are thought to behave like 'normal goods'. Given that studies have paid little attention to the relationship between income and sensitivity to price, this paper analyses the relationship between income and tourists' sensitivities to price. The author identifies and measures these sensitivities - individual by individual - from real choices made by tourists: that is, tourist sensitivity to price is estimated for each individual by observing the destination he or she actually selects. The empirical application is carried out on a sample of 2,127 individuals and the operative formalization used to estimate individual sensitivities to price follows a random coefficient logit model. To detect how the sensitivities relate to income, a regression analysis is employed. The results show an anomalous relationship: income levels moderate tourist sensitivity to price such that increases in the first levels of income reduce the negative effect of price (as expected), but there is a 'saturation point' - that is, beyond a threshold, tourist sensitivity to price increases again (the negative effect of price reappears) - against expectations for these high-income earners.en
dc.description.versionAccepted versionen
dc.format.extentPages 915-923en
dc.format.extent9 page(s)en
dc.format.mimetypeapplication/pdfen
dc.identifier.doihttps://doi.org/10.5367/te.2010.0006en
dc.identifier.eissn2044-0375en
dc.identifier.issn1354-8166en
dc.identifier.issue4en
dc.identifier.orcidNicolau Gonzalbez, Juan [0000-0003-0048-2823]en
dc.identifier.urihttps://hdl.handle.net/10919/120793en
dc.identifier.volume16en
dc.language.isoenen
dc.publisherSageen
dc.relation.urihttp://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000285217900007&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=930d57c9ac61a043676db62af60056c1en
dc.rightsCreative Commons Attribution 4.0 Internationalen
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/en
dc.subjectprice sensitivityen
dc.subjectdestination selectionen
dc.subjectchoice modelsen
dc.titleAnomaly in Spanish tourist sensitivity to priceen
dc.title.serialTourism Economicsen
dc.typeArticle - Refereeden
dc.type.dcmitypeTexten
dc.type.otherArticleen
dc.type.otherJournalen
pubs.organisational-group/Virginia Techen
pubs.organisational-group/Virginia Tech/Pamplin College of Businessen
pubs.organisational-group/Virginia Tech/Pamplin College of Business/Hospitality and Tourism Managementen
pubs.organisational-group/Virginia Tech/All T&R Facultyen
pubs.organisational-group/Virginia Tech/Pamplin College of Business/PCOB T&R Facultyen

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