From heritage tourism to sun and beach destinations: the explanatory role of environmental factors on the average daily rate

Abstract

Purpose – This study aims to analyse whether the impact of external factors on the average daily rate (ADR) varies according to the type of destination. The study measures the effects of length of stay, share of international tourism and seasonality on hotel rates for sun and beach tourism, city tourism and heritage destinations.. Methodology/Design/Approach –We collected monthly data from January 2021 to June 2023 and conducted a regression analysis to measure how international tourism, length of stay or seasonality differ by destination type and what impact these factors have on ADR. The data refers to the 106 tourist destinations defined by the Spanish Statistics Institute (INE). Findings – Increasing the length of stay has a positive effect on ADR for cultural heritage destinations. In all types of destinations, a higher share of international tourism increases ADR, but the effect is particularly strong for city tourism. Greater seasonality is associated with higher hotel prices and is particularly relevant for sun and beach destinations. Originality of the research –A better understanding of ADR determinants, depending on the different destination types, is important for hotel managers and those designing tourism policies at destination level.

Keywords

• average daily rate (adr)
• seasonality
• international tourism
• heritage tourism
• urban tourism
• sun and beach destination