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Can Economics Explain Where All Inclusive Deals Are Offered?

Bladh, Christian and Holm, Jerker LU (2013) In Tourism Economics 19(2). p.339-348
Abstract
This paper investigates why all-inclusive travel packages are offered at some hotels but not at others. Using the theory of transaction cost, it is argued that all-inclusive contracts mitigate a hold-up problem and that the severity of this problem varies with regard to the hotel's distance from the resort centre. This hypothesis is tested empirically against data from 3,798 hotel offers and is strongly supported. Additionally, some country-specific mechanisms related to the general price level and the degree of corruption are analysed. Countries with all-inclusive offers are characterized by a low price level and high corruption.
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author
and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
ALL-INCLUSIVE CONTRACTS, HOLD-UP PROBLEM, HOTEL STRATEGIES, TRANSACTION COST, TRAVEL PACKAGES
in
Tourism Economics
volume
19
issue
2
pages
339 - 348
publisher
IP Publishing LTD
external identifiers
  • wos:000318199900008
  • scopus:84877265010
ISSN
1354-8166
DOI
10.5367/te.2013.0209
language
English
LU publication?
yes
id
40dde98b-d042-421e-b8e2-7c7fd1be8fd6 (old id 4178202)
date added to LUP
2016-04-01 12:56:53
date last changed
2020-08-19 03:33:17
@article{40dde98b-d042-421e-b8e2-7c7fd1be8fd6,
  abstract     = {This paper investigates why all-inclusive travel packages are offered at some hotels but not at others. Using the theory of transaction cost, it is argued that all-inclusive contracts mitigate a hold-up problem and that the severity of this problem varies with regard to the hotel's distance from the resort centre. This hypothesis is tested empirically against data from 3,798 hotel offers and is strongly supported. Additionally, some country-specific mechanisms related to the general price level and the degree of corruption are analysed. Countries with all-inclusive offers are characterized by a low price level and high corruption.},
  author       = {Bladh, Christian and Holm, Jerker},
  issn         = {1354-8166},
  language     = {eng},
  number       = {2},
  pages        = {339--348},
  publisher    = {IP Publishing LTD},
  series       = {Tourism Economics},
  title        = {Can Economics Explain Where All Inclusive Deals Are Offered?},
  url          = {http://dx.doi.org/10.5367/te.2013.0209},
  doi          = {10.5367/te.2013.0209},
  volume       = {19},
  year         = {2013},
}