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The economics of destination cards

Bibliographic Data

ID11235176
AuthorsSonia Messori (0000-0001-8998-8833, Free University of Bozen-Bolzano, corresponding author), Alessandro Fedele (0000-0002-0528-0131, Free University of Bozen-Bolzano), Paolo Figini (0000-0003-3625-6828, Universitat de Barcelona)
Year2025
Volume115
Pages104036
Publication date2025-11-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueAnnals of Tourism Research (JOURNAL)
Journal identifiersISSN: 0160-7383 • E-ISSN: 1873-7722
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.annals.2025.104036
OpenAlexW4414482804
LanguageEN
Citations received1
References cited41

Destination cards have been recognized as effective tools for promoting tourism destinations. However, their role as mechanisms for coordinating tourism service providers within the destination remains underexplored. We address this gap by developing an enriched version of the Hotelling price competition model to investigate the welfare effect of destination cards. We assume that a destination with two price-setting attractions and one complementary good (transportation) introduces a card offering discounts on attractions and free access to local transportation. We find that the card is welfare-improving, although it also alters the pricing strategy of the attractions and, under certain conditions, might reduce tourist surplus. • Destination cards allow to exogenously introduce coordination within a destination. • We develop an enriched version of the Hotelling price competition model. • We investigate welfare effects with and without destination cards. • We show that total welfare never decreases and that producer surplus increases. • We derive conditions under which consumer surplus reduces

Competition (biology · Consumer welfare · Economic surplus · Price discrimination · Service (business · Service provider · Tourism · Welfare · Consumer Market Behavior and Pricing · Digital Platforms and Economics · Sharing Economy and Platforms

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Unique citing works1
Citations per year1
Citation span2026 - 2026 (1)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 1

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