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The Supply of Tourism Services: Hospitality, Transport, Attractions

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The Economics of Tourism Destinations

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Abstract

In this chapter, where we continue from Chap. 7 the investigation of the different types of tourism firms, we study the companies that supply tourism services included in the matrix of the tourism product. These services are also included in the package holiday produced by the tour operator: the hospitality firms supply accommodation services of different variety and quality (see Sect. 9.2); transport firms supply different types of travel (see Sect. 9.3); and museums, amusement parks, and other firms supply leisure or cultural attractions (see Sect. 9.4).

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Notes

  1. 1.

    Lundberg et al. (1995) include restaurants, bars, and other catering services in the list of tourism companies. Since restaurants also serve non-tourist customers, these authors call “tourism restaurants” those that mainly serve customers who live at least 50 miles away from the business. Because this classification seems too rough and little operational, we decided to not explicitly consider restaurants in our investigation, even if they provide an important contribution to the composition of the tourism product.

  2. 2.

    We refer to the literature on hotel management for the investigation of specific management issues (see for example Hayes and Ninemeier 2006, Rutherford and O’Fallon 2006).

  3. 3.

    The marginal cost of production is given instead by the change in costs due to a one-unit increase in the number of stays. In our case, with constant returns we have dTC/dN H = dVC/dN H = c.

  4. 4.

    Although the calculations of (9.3) and (9.5) have been presented in terms of overnight stays (per person or per bed place), they can be similarly computed “per room”, according to the commercial practice in use.

  5. 5.

    Other useful indicators for the hotel management are the breakdown of variable costs (such as the share of labor costs on total cost, the share of spending for drinks on the total cost for the breakfast, etc.) and the ratio between liquid and financial assets.

  6. 6.

    We define as theme cruises those cruises offering a set of activities to be carried on board or at ports around a theme that usually characterizes the entire trip: for example, culture (art, folklore, and language courses), entertainment (music, dance, film and theater), fashion (with fashion shows on board).

  7. 7.

    To be more precise, the size of the aircraft to be used is not exogenously given, but is a very important strategic decision that the firm has to take. To keep things simple we assume that the firm has already chosen in a previous stage of the decision process the size N of the vector.

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Candela, G., Figini, P. (2012). The Supply of Tourism Services: Hospitality, Transport, Attractions. In: The Economics of Tourism Destinations. Springer Texts in Business and Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-20874-4_9

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  • DOI: https://doi.org/10.1007/978-3-642-20874-4_9

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