Vol 21 No 2 April 2015
Abstract: There are generally three explanations for tipping: social approval, equitable service exchange and other reasons. The combination and importance of these reasons differ between countries and cultures. In this study, three distinct questions were asked. What influences the frequency of the tipping decision? What influences the magnitude of the tip given? Who is likely to tip more than the norm? A survey among diners was conducted at one of South Africa’s largest arts festivals. Using regression analyses, this paper aims to identify the factors that influence tipping behaviour in South Africa. While most previous research has focused on motivational and/or psychological reasons for tipping, this research contributes towards understanding tipping from an economic perspective. The results show that the frequency of tipping and its magnitude are a function of the ability to pay. However, socio-demographics play an important role, especially in the paying of the above-normal tip.
Abstract: This paper seeks to improve accuracy when presenting the tourism performance of European countries and, in particular, the position of destination management organizations, which play a central role in the tourism development of their countries. The paper measures the performance of European countries and endeavours to explain the dispersion of the efficiency ranking scores in the European Union (EU). Three types of methodology are applied to establish the tourism performance of the destinations. The study covers 27 large and small countries in the EU, but excludes Malta. In addition, two representative indicators of output are used: destination attractiveness and annual data on bed- nights and nights spent. Therefore, the paper uses data envelopment analysis (DEA), super-efficiency DEA and the non-radial Nerlove–Luenberger super-efficiency DEA model to narrow down the partition between efficiency and inefficiency scores in large and small countries in terms of development.
Abstract: The purpose of this study is to segment Japanese spa tourists according to push motivation using a factor-cluster market segmentation approach. The study examines why these tourists choose spa destinations from among the numerous available tourism options, and what kind of attractiveness they seek. The authors derive 7 factors from 44 motivation items by factor analysis and the tourists are segmented into five clusters. Their analysis reveals that these tourists chose spa destinations when they were in search of a ‘soothing’ experience, one of the seven factors considered specific to spas. The answer to the question on the kind of attractiveness sought varied by segment.
Abstract: This paper examines the relationship between quality certification and performance, and quality certification and size in hotel chains operating in Spain. In an initial phase, a quantitative study is made with secondary and objective data to analyse these relationships. In a second phase, a qualitative analysis is applied to reach a better understanding of the quantitative results. The findings show that chains with certified hotels achieve better performance levels; that better performance levels increase with the percentage of certified hotels within the chain; and that quality certification has positive effects on some performance variables. In addition, size is not a key factor for certification, although it could be an enabler.
Abstract: This study investigates the relationship between restaurant consumption and aggregate macroeconomic activity in the USA. Using a set of 2005 chained US dollar quarterly same store sales data for restaurant consumption from Q1 2007 through Q1 2012, it empirically examines whether restaurant consumption is an aggregate macroeconomic indicator. Two categories of restaurant consumption are examined: non-incentivized spend and incentivized spend. Aggregate macroeconomic activity is measured by gross domestic product. Non-incentivized spend is found to be a procyclical coincident indicator of aggregate macroeconomic activity in the USA. Coincident indicators are comprehensive measures of economic performance that help to confirm whether a nation is prosperous or depressed. The study found no relationship between incentivized spend and aggregate macroeconomic activity.
Abstract: Systematic risk, or the variance of asset returns that cannot be eliminated through diversification of a portfolio, has received limited attention from tourism researchers. This is problematic given the dramatic changes experienced by the industry in the last two decades and the fact that there are unique determinants of systematic risk owing to the tourism industry’s idiosyncratic business environment. Therefore, the primary purpose of this study is to identify financial/operating determinants that influence systematic risk for online travel agencies (OTAs). Panel data from 10 US OTA companies listed on the New York Stock Exchange Index from 2001 through 2010 were analysed via a two-way, random-effects model using generalized least squares. The results indicate that advertising expenditures, liquidity and firm size are significant determinants of the systematic risk of OTAs. Appropriate financial/operating management for all three determinants are recommended to decrease that risk. This investigation of OTAs’ systematic risk provides practical insights to the OTA industry.
Abstract: The relationship between length of stay (LOS) and total trip expenditures (TTE) has been scrutinized many times within a micro-econometric framework, usually by means of ordinary least squares (OLS) regression analysis. The author questions this practice because much evidence suggests that LOS is an ‘endogenous’ independent variable. One of the basic assumptions of OLS regression is thus violated, and a new method – instrumental variable (IV) regression – is called for to produce a consistent, unbiased estimate of LOS. A non-technical case study on IV regression shows that the LOS–TTE relationship estimated by IV regression analysis is only about half the analogue OLS estimate. The study concludes with several important implications for the statistical modelling of micro-level tourism expenditures and for cross-sectional regression-based tourism studies in general.
Abstract: Many developing countries are now suffering from rather large regional development gaps. Can tourism promote balanced regional development (BRD) and so narrow such gaps? This study empirically examines and compares the impact of both international and domestic tourism on China’s regional development using the Gini coefficient method and the Granger causality test. The results indicate that the spatial distribution of the total tourism industry is more unbalanced than that of the regional economy. However, the imbalance in the spatial distribution is decreasing more rapidly than the imbalance in the regional economy. The Gini coefficient decomposition analysis shows that declining tourism spatial distribution imbalances are mainly and increasingly caused by domestic tourism. Granger causality tests show that tourism development will promote BRD through domestic tourism rather than international tourism. Finally, the authors draw out the policy implications for China’s tourism industry and BRD.
Abstract: This study investigates off-season tours by examining people’s heterogeneous preferences for nature-based tours in sub-frigid climate zones. To explore heterogeneous preferences for winter nature-based tours in Shiretoko, Japan, the authors conducted a discrete choice experiment with a latent class model. Even though the visitors’ preferences were different, it was possible to segment them into three groups based on the results. The first segment clearly preferred a wildlife observation tour and considered the possibility of finding rare eagles and detailed interpretation highly important. At the other extreme, the second segment preferred an adventure-based drift ice tour and were not interested in eagles or detailed interpretation. The final segment comprised those visitors whose preferences were between these two extremes. The findings show that, for satisfactory and profitable tours, tourist agents should provide specific recreation experiences to cater to these heterogeneous preferences rather than experiences thought to be acceptable to all visitors.
Abstract: The growing field of ‘surfonomics’ attempts to document surfing’s economic contribution to local and regional communities, as well as the consumer surplus that surf breaks provide to millions of surfers. To date, no research has examined the extent to which the value of surf breaks is capitalized into home prices. This study uses the hedonic price method with data from three distinct beach- adjacent neighbourhoods in Santa Cruz, CA, USA, to estimate whether proximity to surf breaks leads to higher home values. The authors find that, after controlling for proximity to the beach, ocean views, the specific characteristics of the homes and neighbourhood effects, proximity to surf breaks is a statistically significant contributor to overall home value. A home that is right next to a surf break is valued on average at approximately US$106,000 more than an equivalent home a mile away.
Abstract: This paper evaluates the role and position occupied by the tourism sector in the economic systems of the most industrialized countries. As the sector is not officially recorded, the analysis focuses on one of its most important components: hotel and restaurant services. The main novelty of this study is that it takes joint account of the direct and indirect links between the other economic sectors of a country and those of other countries. The analysis uses the World Input–Output Tables and two descriptive measures: the backward and forward linkages. Joint consideration of these two indices reveals that only for China does tourism prove to be a key sector, while in the remaining countries it proves to be an independent sector.
Abstract: The hypothetical mix of relationship marketing and transactional marketing perspectives is a major theme in the general literature that should be researched in relation to tourism and travel shows. This issue is addressed in the present paper which analyses the effect of managing relationships among three partners (trade organizer, exhibitor and end customer) on the exhibitor’s performance during the fair, and comparing that effect with the influence of transactional marketing management, in which business performance depends on conventional tools. The results point to an overbalance on the side of transactional marketing in the case of tourism and travel exhibitors. By contrast, in the case of the business-to-business relationship between trade show organizers and exhibitors, the weight of relationship marketing seems to be comparatively higher and, most relevant, to affect the exhibitor’s performance in terms of their business with end customers during the show.