Tour operators' marketing strategies and their impact on prices of sun and beach package holidays

Abstract

The aim of this article is to quantify the impact of tour operators' marketing strategies on the price of sun and beach package holidays. The published information of 15 tourist destinations in Spain, Turkey, Egypt, Malta, and Cyprus, was examined from a hedonic price perspective. The analysis included 5789 holiday packages advertised in the brochures of the most relevant European holiday groups - TUI and Thomas Cook. The variables were divided into: country and destination variables, specific accommodation variables, and tour operator variables. The results confirmed the impact of tour operators' variables on price through their brands, ownership of accommodations, specific segments they target, awards and incentives, promotional space, and pictorial elements in their brochures. Besides, some accommodation elements that have been under-researched: Wi-Fi, water parks, or independent awards, were also significant. Finally, significant differences were found among the analysed destinations. The study could be relevant for tour operators, accommodations and destinations alike, in order to improve their negotiation and promotion.