Hotels and second homes: Consumer choice analysis and seasonality effects

This paper analyses whether there are differences with regard to the accommodation attributes that consumers take into account when selecting a hotel or a second home once a tourism destination has been chosen. Besides, it studies the differences in the seasonal patterns of prices for both types of accommodation choices. The analysis relies on a data base which includes prices and characteristics (drawn from brochures) for a sample of hotels and second homes in the Costa Brava area (Spain), along the lines of Haroutunian, et al. (2005), Thrane (2005) and Hamilton (2007). With the help of hedonic pricing methods, the paper undertakes an in-depth analysis to determine what the most significant variables for every accommodation choice are, as well as to study the differences in the seasonal patterns for each accommodation choice. The value attached by consumers to identical characteristics of accommodation differs for hotels and second homes. For example, hotels' customers find a car park more valuable with regard to second-home tourists. On the other hand, a swimming pool has a bigger effect on price in the case of the second homes. In terms of seasonality, second home prices are lower, on average, in peak-season periods but higher in low-season periods. The value given to identical characteristics of accommodation differ for tourists staying in second homes and in hotel. This implies that these accommodation options are not perfect substitutes. This finding is useful for both policy makers and private managers in order to implement public policies and tourism marketing strategies.