A brand is a name, symbol or any other type of marker that distinguishes a product or service from the competition. The territorial branding, such as the so-called “Marca España”, influences the selection of destination by tourists and their future behavior. However, a measurement of the power and influence of this concept in the decision making
The empirical framework developed in this study is an estimation based on linear equations determining the price per room. Different equations are estimated for the different study areas, ie, the resorts of Catalonia, Valencia, the Balearic Islands and Languedoc-Roussillon. The aim of the equation is to analyzed to obtain the price of a hotel room based on their characteristics and the analyzed week in order to control the temporal effect. It applies the conventional Oaxaca-Blinder decomposition to decompose the average gap between the variable outcome between French and Spanish resorts. This type of breakdown is called double decomposition because the difference in the output is divided into two parts. As discussed above, the data from this study was obtained from the price of hotels in coastal towns of the Pyrenees and the Mediterranean area of the Euro Area and the community of Valencia. The chosen regions were: Lloret de Mar and Alto Maresme (Catalonia), Denia and Calpe (Valencia) and Alcudia Calvià (Balearic Islands) and finally Argeles-Sur-Mer and Collioure (Languedoc-Roussillon). They were chosen because they are all located on the coast, have a minimum population and can be considered homogeneous from the point of view of tourism specialization index, ie the ratio of second homes between primary residences. For all selected municipalities, we had a total of 11,910 observations, 11,032 of them being Spanish hotels and the remaining 878 of French hotels. The dependent variable of the study, of course, is the price in euros per night for a room in their logarithmic function. The exploratory variables are: hotel area, it’s category and finally type of hotel.
The results of the study are clear. These highlight the importance of the territorial brand promotion as an explanatory variable for much of the differences in the prices of the services provided to tourists in the resorts analyzed. The estimation obtained in this analysis shows that almost 55% of the gap in prices of hotels between Spanish and French resorts can be attributed to territorial development policies, while only the remaining 45% is explained by differences in the characteristics analyzed. These results can be interpreted as an additional motivation for both public and private authorities to enhance the promotion of the major tourist localities.