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Index
AAbsolute advantage, 486
Accessibility, 86, 282
Accessibility of destinations, 491
Acquisition, 320
Adaptive behavior, 196
Additional consumption, 41
Adjustable pegging system, 501
Administration, 250
Ad valorem tax (VAT), 537
Adverse selection, 335–337, 358
Advertisement, 350–352
Advertising, 348, 352
Agenda 21, 555
Aggregate demand, 431
Aggregation Theorem, 142
AIDS. See Almost Ideal Demand System
(AIDS)
Airline companies, 469–470
Airline Deregulation Act, 289
Air taxi, 288
Air transport, 285
Alghero, 225–227
Allocation
bureau, 512
reason, 512
Allocentric, 122, 186
Allotment contract, 247
Almost Ideal Demand System (AIDS), 126,
492
Amenities, 86
Annual leave, 167–171
Anticommon, 88, 212, 370
Applied economics, 2
Appreciation, 501
Arbitrage, 508
Arch elasticity, 80
Arrival function, 109
Arrivals (A), 38Artificial snow, 240–241
Asymmetric information, 334
Attractions, 86
AUDIT, 583
Authority, 211
Autonomous component
of consumption, 431
of imports, 431
Auxiliary services, 86
Average
daily rate, 279
length of stay, 38
price, 138
unit cost, 274, 291
BBackward induction, 147, 323
Backward linkages, 477
Backward vertical integration, 247
Balance of payments, 62, 483–485
Bandwagon effect, 110, 112–114, 187
Beach tourism, 120
Bellman principle, 147
Bertrand’s model, 319
Best Western, 272–273
Big Mac’s Index, 502Black box, 212
Booking
lead time, 303
management, 297, 303–305
Booking.com, 342
Break-even point, 265, 277
Budget constraint, 135
Bundling, 403
G. Candela and P. Figini, The Economics of Tourism Destinations,Springer Texts in Business and Economics, DOI 10.1007/978-3-642-20874-4,# Springer-Verlag Berlin Heidelberg 2012
607
Business
tourism, 261
unions, 547
Bus transport, 285
Buy-down, 298
Buy-up, 298
CCall option, 371, 506
Canada, 64–65
Capacity planning, 250
Capital account, 62
Car, 288
Carrying capacity, 106, 572–580
Caserta, 222
CBA. See Cost–Benefit Analysis (CBA)Center–periphery model, 494–498
Certainty equivalent, 362
CGE. See Computable General Equilibrium
(CGE)
Charter
flights, 285
tourists, 567
Choice
experiments, 178
modelling, 176–179
Circular flow of goods and factors, 429
Clearance sale, 259, 307
Closed input-output model, 438
Club good, 513
Coase theorem, 528
Coexistence, 552
Combinatorial innovation, 402
Commission, 263
Commitment, 339, 360
Common goods, 88, 565
Comparative advantage, 487
Complementarity, 140
Complementary services, 49
Complementary to another tourism, 81
Complete system of goods and services, 207
Computable General Equilibrium (CGE), 59,
439
Computer Reservation System (CRS), 400
Condition of existence on the market, 264
Confidential price, 260
Conflict, 552
Constant elasticity of substitution, 94
Constant returns to scale, 54
Consumption
externalities, 523
technology, 172
Contingency markets, 207
Contingent valuation, 178
Contract(s), 211, 355
allotment, 357, 371
with commission, 248
complete, 358
contingent, 361, 363
exclusive, 375
explicit, 356
fixed, 364–365
forward, 356, 367
free sale, 357, 368–370
full-line, 378–379
implicit, 356
incentive, 359, 379
incomplete, 356
insurance, 361
long-term, 394
relational, 377
selection, 379–380
spot, 356, 367
Control, 250
list, 582
Coordination, 90–93
activity, 87–93, 423
theorem, 11–12, 93, 94, 97
Copyleft, 402
Copyright, 402
Core services, 49
Corporate Social Responsibility (CSR), 556
Cost–Benefit Analysis (CBA), 581
Cournot point, 105, 113
Cournot’s model, 319
Creative destruction, 452
Credence goods, 344
Credit cards, 507
Critical mass, 408
Cross-price elasticity, 79
Crowding out effect, 451–452
CRS. See Computer Reservation System (CRS)
Cruises, 284
CSR. See Corporate Social Responsibility(CSR)
Cultural district, 464
Currency market, 500–501
Current account, 62
Cycle, 218
DDaily spending, 42
Daily variation, 218
Day-tripper, 26
608 Index
Deadweight loss
due to the monopoly, 317
of welfare, 316
Debit cards, 507
De facto discipline, 5
Delphi method, 128
Demand function, 76
Demand-side approach, 50–60
Depreciation, 501
Destination
branding, 100
management, 96–100, 393, 533
marketing, 100–101
web management, 422
Destination Management Systems (DMS), 414,
422
Detachment phase, 442
Devaluation, 500
Development
factor, 434
theory, 441
DFC. See Direct Fixed Cost (DFC)
DFUC. See Direct Fixed Unit Cost (DFUC)
Diagonal integration, 320
Direct
arbitrage, 508
competition, 278
control, 527
costing strategy, 253
management costs, 251
Direct Fixed Cost (DFC), 251
Direct Fixed Unit Cost (DFUC), 252
Direct Unit Cost (DUC), 252
Direct Variable Costs (DVC), 252
Direct Variable Unit Cost (DVUC), 252
Dirty fluctuations, 501
Discipline, 7
Discounts, 259, 302
Dissatisfaction cost, 332
Distribution reason, 512
DMS. See Destination Management Systems
(DMS)
Dollar-per-thousand rule, 275
Domestic
day-tripper, 32
tourism, 28
tourists, 32
visitor, 32
Double
auction, 407
mark-up, 372
season, 220
Downgrading, 298
DUC. See Direct Unit Cost (DUC)Durable goods, 40, 155–161
Dutch auction, 407
DVC. See Direct Variable Costs (DVC)DVUC. See Direct Variable Unit Cost
(DVUC)
Dynamic
packaging, 403
pricing, 258, 298, 306–308, 404
techniques, 304
EEarly booking, 258
Eclectic theory of multinational firms, 475
Ecological footprint, 564
E-commerce, 404, 405
Economics of destinations, 74
Economics of Outdoor Recreation (EOR), 21
Economies of scale, 249, 319, 403, 409
Economies of scope, 249, 319
Ecotourism, 570
EIA. See Environmental Impact Assessment
(EIA)
Elasticity, 79–85
related to available money, 79, 82
Elite tourism, 550
Employment multiplier, 437
Endogenous growth
models, 454
rate, 455–461
Endogenous preferences, 183–185
Engel curve, 83
English auction, 407
Environmental carrying capacity, 573–575
Environmental Impact Assessment (EIA),
581–583
Environmental monitoring, 581–584
Environmental sustainability, 551, 558, 566
EOR. See Economics of Outdoor Recreation
(EOR)
ESA. See European System of Accounts (ESA)
Ethical consumption, 556, 570
Ethical tourism, 571
E-tourism, 420
European System of Accounts (ESA), 60
Events, 293
E-word-of-mouth, 415
Ex ante transaction costs, 215
Exchange rate, 471, 492, 498
Excise tax, 537
Excludability of benefits, 513
Excursionist, 30
Index 609
Exhaustible
and nonrenewable resources, 560–562
and renewable resources, 562–563
Exit, 578
Exogenous quality, 239, 327–330
Expected utility, 199, 361
Experience goods, 198, 200–202, 210,
350–352, 410,
Explorers, 567
Ex post transaction costs, 215
Externality, 382, 550
FFacebook, 342
Factor augmenting, 520
Fair premium, 365
Fatigue effect, 192
FDI. See Foreign direct investments (FDI)
Ferries, 284
Financial assessment, 250
Finiteness property, 323
Fire alarm, 385
activity, 250
Firm, 211, 214
augmenting, 520
First-degree price discrimination, 303, 403
First minute pricing, 306
Fixed costs, 273
Fixed exchange regime, 500
Fixed (lump-sum) tax, 537
Flexible structure, 304
Floating exchange regime, 501
Florence, 221
Fly and drive, 288
Folk theorem, 383
Food and wine tourism, 181–182
Foreign currency, 498
Foreign direct investments (FDI), 475
Forward
contract, 247
exchange, 500
markets, 209
vertical integration, 247
Franchising, 320
Free
entrance, 342
market, 513
riding, 520
sale contract, 248
Frequent-flyer program, 302
Friendly tourism, 530–532, 550
Full budget, 171
Full cost, 274, 321, 373
model, 252
pricing rule, 255
Full-costing strategy, 253
Full income, 166
Full price, 166
Fuzzy time-series method, 127
GGame theory, 383
GDP deflator, 503
GDS. See Global Distribution System (GDS)
Generic occupancy rate, 279
Genetic algorithms, 127
Genre discipline, 7
Global Code of Ethics for Tourism, 571
Global distribution system (GDS), 102, 266, 418
Globalization, 478
Governmental institutions, 544
Grand Tour, 67
Gresham’s Law, 335
Gross propensity to travel, 43
Growth theory, 441
HHabits formation, 187
Harrod–Domar model, 444
Hecksher–Ohlin model, 489–490
Hedging operation, 505
Hedonic price function, 175–179
Herd behavior, 202
Heterogeneity and plurality in tourism product,
34
Hidden
action, 334, 385
information, 334, 385
Higher-bound exit, 384
High-quality hotels, 335
History of tourism, 67–68
Hit and run, 347
Holidays, 218
characteristics, 172
length, 165–167
portfolio diversification strategy, 472
Horizontal
differentiation, 321, 330
integration, 249, 320
tourism, 490
Hospitality
load, 574
sector, 270
610 Index
Hotels, 271
chains, 272
Household Production Function (HPF), 151
Hubbart formula, 275
Human capital, 454
Human-made attractions, 293
Human-made environment, 551
IIATA. See International Air Transport
Association (IATA)
ICT. See Information and Communication
Technology (ICT)
Idiosyncratic effect
of destination, 78
of tourism, 78
Image of the holiday, 185
Immiserizing growth, 490
Imperfect information, 391–392
Implicit price, 149, 166
Inbound tourism, 28
Incentive
constraint, 359, 390
tours, 261
Income
elasticity of tourism, 79
multiplier, 436
time paradox, 171
Incoming agencies, 261
Incoming specialists, 245
Incomplete information, 188–189
Independent
tourism, 82
tourist, 121
wants, 143
Index of saturation, 39
Indirect competition, 278
Indirect control, 527
Indirect costs (IC), 253
Industrial districts, 463
Industrial revolution, 399
Inexhaustible
and nonrenewable resources, 559–560
and renewable resources, 563–564
Inferior tourism, 83
Informational cascade, 202–204
Information and Communication Technology
(ICT), 101, 266, 399
Information asymmetry, 215, 334–335, 358
Infrastructures, 86
Input–output approach, 582
Input–Output (I-O) models, 51, 53, 437
Insurance market, 364
Intermediation, 418
Internalization advantages, 475
Internal tourism, 29
International
day-trippers, 31
firm, 474
flow, 469
hospitality firm, 474
hotel chains, 273–274
market, 468
organizations, 542
tourism, 29, 66, 467
tourism receipts, 483
tourists, 31, 66
tour operators, 470–473
visitor, 30
International Air Transport Association
(IATA), 262
Internet revolution, 399
Inter-seasonal seasonality, 228
Intersection externality, 534
Intra-industry tourism, 490
Intra-seasonal seasonality, 228
Investment, 155
Irregular components, 220
JJevons’s law, 346
Joint
investment, 395
venture, 320, 360
KKaldor model, 446–447
Keynesian multiplier, 428
LLagrangean function, 135
Lagrangean multiplier, 135
Last minute, 306, 307
Law of demand, 76
Leasing, 320
Leiper model, 23
Leisure time, 167
Length
of stay, 30, 108
of the trip, 43
Index 611
Lerner index, 255
Lexicographic order, 140
Linkages, 477
Load factor, 252, 290
Local
development, 464
institutions, 541
Location advantages, 475
Lock-in effect, 377, 403
Loisir, 19Long run, 265
Love of Variety Theorem, 94, 96, 97
Low cost, 259, 302
airlines, 470
flights, 286
Lower-bound exit, 384
Low-quality hotels, 335
Luxury destination, 83
MMaldives, 461–462
Management
contract, 320
of crises, 97
Maps.Google, 342
Marginal cost, 274
Marginal propensity
to consume, 431
to import, 431
to invest, 435
to spend abroad, 431
Market, 211
concentration, 246
criterion, 47
effect, 78
mix, 280
power, 254
regulation, 289
research, 249
uncertainty, 188
Marketing, 250
Markup, 245, 252, 254–256, 263, 274, 375
Mass customization, 411
Mass tourism, 114, 550
Mass-tourist-market, 123
Mass tourists, 567
Matrix of tourism output, 36
Maximisation of tourists spending, 103
Maximum profit, 314
MDG. See Millennium Development Goals
(MDG)
Median Voter Theorem, 578
Menu costs, 251
Merger, 320
Method of Scenarios, 128
Micro-seasonality, 221
Midcentric, 123
Millennium Development Goals (MDG), 556
Minimum quota, 373
Missing market, 528
Mixed public goods, 513
Monetary constraint, 145
Monopolistic competition, 317–318
Monopoly, 315–317
degree, 254
Moral hazard, 334, 357, 385
Motivations or purposes of visit, 29
Mountain tourism, 68
Multinational companies, 474–478
Multiple legs, 304
Multiple purchases, 193–194
Multiplier model, 428
Multistage budgeting, 143
Mystery guest, 385, 387
NNash equilibrium, 397
National government, 541
National Public Organizations, 540–542
National tourism, 29
Natural attractions, 293
Natural environment, 551
Natural growth rate, 446
Natural monopoly, 403
NEG. See New Economic geography (NEG)
Negative externalities, 523–529
Neo-liberal globalization, 479
Net propensity to travel, 43
Network
approach, 304
externality, 404, 407–408
Neural network, 127
New Economic geography (NEG), 405, 497
Nominal exchange rate, 498
Non excludability, 402
Nonexcludability in consumption, 244
Nongovernmental Institutions, 544
Nonprofit organization, 545
Nonrivalry, 402
in consumption, 244
Non-tradable goods, 502
Normal tourism, 83
612 Index
OOccupancy rate, 274
Ocean travel, 284
OLI. See Ownership, Location, Internalization(OLI)
Oligopoly, 318
OLTA. See Online Travel Agency (OLTA)
Online auction, 303, 406
Online Travel Agency (OLTA), 102, 266, 412,
413, 418, 419
Open input–output model, 438
Opportunistic behavior, 347, 360, 383, 394
Optimal choice, 135–136
Optimal seasonality, 236
Optimal size of investment, 230
Option, 505
price, 371
Ordinary spending, 40
Organizational actions, 237
Organizational skills, 491
Outbound tourism, 28
Outgoing specialists, 245
Outgoing travel agencies, 261
Overall profit rate, 234
Overbooking, 305–306
Overnight stays, 38
Ownership advantages, 475
Ownership, Location, Internalization (OLI),
475
PPackage holiday, 149–151
Package tourists, 121
Parasitic factor, 434
Pareto-efficient, 314, 515
equilibrium, 397
Pareto optimality, 523
Partial approach, 304
Participation constraint, 359, 377, 380, 389
Payoff, 361, 382
Peak season, 220
Per capita spending, 42
Perfect competition, 315–317
Perfect discrimination, 303
Perfect information, 390
Periodic events, 220
Pigou tax, 527
Police patrol activity, 250
Policies
for seasonality management, 236
for smoothing tourism seasonality, 236
patrol, 385
Pooling equilibrium, 338, 380
Portfolio diversification, 378
Positional good, 186
Positive externalities, 523
Preference for variety, 490–491
Premium, 370
Price
ceiling, 372–375
discrimination, 299–303
elasticity, 79, 254–256
elasticity of demand, 295
maker, 317
search, 189–198
taker, 315
Pricing according to season, 301
Principal-agent model, 359, 385, 388
Principle of comparative advantage, 486–489
Principle of consistency, 146
Prisoner’s dilemma, 396
Private good, 244, 514
Private information, 336
Product club, 381
Product differentiation, 317, 411
Production costs, 215
Production externalities, 523
Production multiplier, 436
Productivity slowdown, 404
Professional association, 546
Profit rate, 234
Property rights, 402
Psychocentric, 122, 186
Public bads, 521–523
Public goods, 244, 402, 513, 515
Public intervention, 535–536
Public production factors, 519
Pure economics, 2
Put option, 371, 506
QQuality, 323–327, 379
of tourism, 106
search, 198–202
stability, 340
Quotas of production, 527
RRack rate, 277
Rail transport, 284
Rate
of capital use, 234
of managerial profit, 233, 234
of overall profit, 233
Reaction function, 319
Real exchange rate, 501
Real restyling, 118
Index 613
Regional development, 440–441
Regional tourism organization, 542
Regret, 187
Release back period, 247
Release date, 371
Repeat purchases, 194–195
Reputation, 360, 413
Reputation(al), 352–354
capital, 343
equilibrium, 340
Research and development, 454
Reservation price, 149
Residuals, 220
Resource appropriability, 565
Responsible tourism, 568–572
Restraining actions, 237
Restyling, 118, 120
Retail level, 217
Return of preferences, 187
Revaluation, 500
Revenue management, 297
Revenue per available room (RevPAR), 282
Reverse auction, 407
RevPAR. See Revenue per available room(RevPAR)
Rigid structure, 304
Rimini, 119, 120, 222
Risk
aversion, 362
neutrality, 362
premium, 363, 392
propensity, 362
Rivalry in consumption, 513
Rough set approach, 127
Roulette formula, 260, 306
Ryanair, 286–288
SSales tax, 537
Same-day visitor, 26
Scheduled service, 285
Scientific discipline, 5
Search cost, 345
Search engine, 266
Search goods, 198–202, 210, 348–350
Search models, 346–347
Seaside tourism, 68
Seasonal gap, 232
Seasonality, 218–238
gap, 228
losses, 230
management, 237
peak factor, 228
rate, 228
Seasonal profile, 220
Season length, 232
Seat-inventory, 304
Second-degree price discrimination, 302
Sectoral interdependence, 51
Sectoral tourism multipliers, 438, 439
Selection, 413
Self-organization of a holiday, 151–153
Semi-rigid, 305
Separability of preferences, 142
Separating equilibrium, 338, 359, 380
Sequential search, 190, 195
Seychelles, 460
Shadow price, 152, 166, 256
Short run, 265
Shoulder season, 221
Signaling, 336, 337, 413
Simultaneous search, 189
Single currency, 493
Single leg, 304
Site-specific attraction, 292
Snob effect, 110–112, 187
Social carrying capacity, 577–580
Social networks, 341–343, 414
Social sustainability, 551, 566–569
Social tourism, 571
Solow model, 447
Spain, 98–100
Spa tourism, 68
Species disciplines, 7
Specific investment, 393
Specificity, 215
Specific occupancy rate, 279
Specific spending, 40
Spot markets, 209, 367
Stabilization reason, 512
Stackelberg’s model, 319
State of nature, 208
State of the world, 208
Static techniques, 304
STD. See Sustainable Tourism Development
(STD)
ST-EP program. See Sustainable Tourism-
Eliminating Poverty (ST-EP) program
STG. See Sustainable Tourism Growth (STG)
Stolper–Samuelson theorem, 489
Stopping rule, 189
Strategic interaction, 318
Strong separability, 143
Structural models, 125
Structure–Conduct–Performance (SCP), 311
614 Index
Subsidiarity, 542
Subsidy, 295
Substitutability, 139
Substitute for tourism, 81
Substitutes, 139
Substitution effect, 167
Sunk cost, 294
Supply-side approach, 48–50
Supranational firm, 474
Surplus, 150
Sustainability, 106
Sustainable development, 554
Sustainable tourism, 550, 555, 557
Sustainable Tourism Development (STD), 558
Sustainable Tourism-Eliminating Poverty (ST-
EP) program, 569
Sustainable Tourism Growth (STG), 160
Swap transaction, 505
Switching costs, 403, 409
Symbiosis, 552
TTable of mobility, 28
Table of sectoral interdependence, 51–53
Takeover, 320
TALC. See Tourism area life cycle model
(TALC)
Target profit, 275
Taxes, 536–539
Team project, 213
Technical coefficients of production, 54
Technological criterion, 47
Technological uncertainty, 188
Technology, 238–242
Terms of trade, 458
TEV. See Total Economic Valuation (TEV)
Theme parks, 293
Theorem of purchasing power parity, 502
Theory of comparative advantage, 486
Third-degree price discrimination, 300–303
Time constraint, 145
Time series analysis, 125
TKIG. See Tourism-capital import growth
(TKIG)
TLG. See Tourism-led growth (TLG)
Total Economic Valuation (TEV), 582
Tour
management, 250
operator, 91, 245–260
operators, 217
organizer, 246
Tourism, 5–8, 26
attraction, 292
balance of trade, 62, 71
basket, 33, 137–138
budget, 144
consumption, 134, 441
demand, 55, 75–85, 133
demand forecasting, 124–129
departments, 49
destinations, 10, 12–13, 73, 85, 496
development, 441–444
districts, 465
economics, 3, 8–12
enclave, 434
expenditure, 39–42, 430
expenditure multiplier, 428
exports, 483
generating region, 496
industry, 47, 56
investment, 40, 134
mix, 238
multiplier, 428–430
multiplier of income, 432
policy, 541
product, 9–10, 32–36, 41, 134, 330, 514
production, 208–210
resource, 106
sector, 46–51
space, 23
super-multiplier, 435–437
take-off, 442
and travel industry, 56
and travel system, 56
Tourism area life cycle model (TALC), 114
Tourism-capital import growth (TKIG), 462
Tourism-led growth (TLG), 462
Tourism Satellite Account (TSA), 63
Tourists, 26, 30
investment, 40, 155, 158–160
Tradable goods, 502
Trade unions, 546
Tragedy of the commons, 464
Transaction costs, 212, 215
Transit tourism, 28
Transnational firm, 474
Transport sector, 282
Travel
agencies, 217
agency, 260–267
cost, 178
and tourism industry, 23
Traveler’s cheques, 506
Trend, 219
Triangular arbitrage, 508
Index 615
Trip Advisor, 341
Trip frequency, 43
Two-part tariff, 296, 303, 411
UUncertainty, 361
Uncertainty of the alternatives, 188
Uncoordinated firms, 88–89
Unfriendly tourism, 532–534, 550
United Nations World Tourism Organization
(UNWTO), 543, 545
Unit (daily) price, 137
UN Millennium Development Goals, 570
UNWTO. See United Nations World Tourism
Organization (UNWTO)
Upgrading, 298
User price, 158
Utility function, 135
VVal di Fassa, 223
Value added, 53
Variable costs, 273
Variety, 330–334
proliferation, 411
theorem, 10
VAT. See Ad valorem tax (VAT)
Veblen effect, 187
Vertical collaboration, 377
Vertical differentiation, 321
Vertical integration, 247, 319, 373, 387
ViaMichelin, 342
Visitor, 26
Voice, 578
Voluntary tourism, 546
WWarranted growth rate, 445
Weak separability, 143
Wealth effect, 167
Welfare economics, 314
Wholesale level, 217
Willingness to pay, 518
Word of mouth, 341–343, 351–354, 415
Working time, 167
World Travel & Tourism Council (WTTC), 66
YYield management, 296–298
Yield per Room (YPR), 282
616 Index
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