The paper about to read presents a comparative analysis of the price component of the physical characteristics and location of both apartments and hotels in order to compare their effect on the final price of both types of accommodation. Nowadays, new forms of accommodation have strongly emerged among tourist demands, having all of those news accommodations a certain degree of substitutability. This substitutability can be broken down by comparing the price component of shared characteristics. To compare it, this paper sets out prices them using a hedonic price method, distinguishing between two basic forms of accommodation: hotels and apartments. To sum up, a hedonic price analysis will be conducted of the price of hotels (rooms) and apartments (units) in certain coastal sun and sand resorts in the Pyrenean-Mediterranean and coastal Mediterranean Euro region.
The hedonic price model us basically used on econometrics studies to explain the price of heterogeneous products made up of different characteristics, because the implicit marginal price of these characteristics can be ascertained by estimating a model that explains the price of a product based on its characteristics. The data are taken from hotel and apartment prices among those municipalities: Lloret de Mar and Alt Maresme (Catalonia), Dénia and Calp (Alicante), Calvià and Alcúdia (Balearic Islands) and Argelès-sur-Mer and Collioure (Languedoc-Roussillon). All of them are on the coast and they can be considered homogeneous from the point of view of truism specialization index. Once the municipalities had been selected, a search was made in tour operators’ paper travel brochures and exhaustive data were compiled from their website. The database contained the prices and characteristics of tourist apartments and hotel rooms from May to October 2007. The dependent variable was the price per night in euros of a room in the case of hotels and of an entire unit in the case of apartments. The explanatory variables were varied, being all of them dummy variables: the resort, the category, the type of board (only for hotels), type of room (hotels only), number of rooms, the presence of swimming pool, car park, garden or terrace and weeks.
The main findings of this paper was to price3 the locations of the different kind of accommodations analyzed and the time of the demand for hotels and apartments. Pricing location provided indirect evidence of the destination’s quality. The authors concluded that greater differences in the quality of the chosen destinations as perceived by tourists staying in hotels in relation to differences in the quality of these destinations as perceived by tourists staying in apartments. In the case of hotels, the lower quality of the destinations as perceived by the tourists to these resorts is the result of a policy based heavily on prices aimed at tourists of low socio economic level who base decisions on this variable alone. In the case of apartments, the price policy for these resorts does not seem so visibly aggressive. Results suggest similar and strongly seasonal evolution for both types of accommodations, although there are few differences. To conclude, knowing the estimated price components of accommodation it’s a key factor in the development of destinations management strategies.