Multiway clustering in tourism research

Journal of Travel Research

Baños-Pino

2023

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This study evaluates the changes in the expenditure–price elasticities of foreign tourists in the summer periods of 2019, 2020, and 2021. We first develop a theoretical characterization that combines microeconomic, loss aversion, price inequality and precautionary savings theories. Next, exploiting microdata for more than 34,000 foreign tourists visiting Spain, we estimate OLS and quantile regressions to empirically examine the expenditure elasticities with respect to the prices of transport services, leisure activities and bars and restaurants at the destination (17 regions). We find that (i) the expenditure–price elasticity of transportation (leisure activities) increases (decreases) during the pandemic, whereas that of bars and restaurants remains unchanged, (ii) foreign tourists are comparatively less expenditure–price elastic at high expenditure levels in transportation and bars and restaurants, and (iii) expenditure–price elasticities are highly heterogeneous depending on the origin country. Managerial and theoretical implications of the findings for firms’ pricing strategies are discussed.

Section: Resultsmentioning

confidence: 99%

Preference Shifts During Health Shocks: Foreign Tourists’ Expenditure–Price Elasticity Throughout the Pandemic

Journal of Travel Research

Baños-Pino

2023

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“…Column 2 reports the parameter for the fixed effects regression in (1). Standard errors have been clustered at the district level to control for potential cross-sectional dependence in the residuals of listings that share the same environment that would bias the standard errors ( Boto-García, 2021 ).…”

Section: Resultsmentioning

confidence: 99%

Heterogeneous price adjustments among Airbnb hosts amid COVID-19: Evidence from Barcelona

International Journal of Hospitality Management

2022

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COVID-19-induced travel restrictions have led to a sharp drop in Airbnb bookings. Confronted with a decrease in demand, hosts have implemented heterogeneous price responses. This study evaluates the different price adjustments developed by professional and non-professional hosts. Considering the city of Barcelona as the case study, I exploit monthly longitudinal data for 24,000 different Airbnb listings observed between June 2020 and April 2021. Using hedonic regressions with listing and neighbourhood fixed effects, I show that professional hosts have reduced prices to a greater extent, especially during the worst months of the pandemic. The findings support intertemporal price discrimination among professional hosts, which seem to adjust prices faster to meet demand and better adapt to market conditions.

“…Table 2 presents the coefficient estimates and the average marginal effects (AME) of the Probit regression model. Standard errors are clustered at the province level to acknowledge the potential cross-sectional correlation between units that belong to the same geographic area (Boto-García, 2021). Sample weights provided by the survey are used in the estimation to make the data valid for inference.…”

Section: Resultsmentioning

confidence: 99%

Deep habits and travel resilience after COVID-19

Baños-Pino

2021

Tourism Economics

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This research examines how deep travel habits in the form of habit formation and reduced substitutability between tourism travel and other leisure goods impact travel resilience after COVID-19. Using microdata for almost 3000 tourists in Andalusia (Spain), we relate post-pandemic outbreak tourism participation to pre-pandemic travelling intensity and whether taking a vacation is considered a priority good. In doing so, we control for standard sociodemographic characteristics and province fixed effects. Our results clearly show that the probability of continuing travelling during the summer of 2020 is positively associated with pre-pandemic travel intensity and tourism being considered a priority leisure activity. Travel resilience is found to be strongly associated with income, education level and the tenure of a second residence.