The objective of this paper is to assess the precise impact of status on prices of Bordeaux fine wines. We identify several variables that can be used to model a wine’s status and make use of the coexistence of the longstanding 1855 classification in Pauillac and the very short-lived 1943 classification in Pomerol to examine the effect of status on the wine market. Overall, we show that quality, reputation and status jointly contribute at explaining wine prices. Status-related variables have a highly significant impact on Pomerol wines for which a current classification system is inexistent, while in Pauillac status is subsumed by the 1855 classification.
We examine how the systematic risk of large commercial real estate owners is associated with geographic diversification. In particular, we analyze time-varying equity betas and geographic exposure of publicly traded pure-play lodging REITs. Contrary to popular expectation, we find that stock investors perceive smaller risk in geographic focus rather than diversification. Further, regional focus becomes insignificant in reducing the risk if the focus expands beyond two or three regions. The findings are robust to multiple measures of geographic diversification. Our study re-affirms the impact of geographic focus in the context of commercial real estate as a risk minimization strategy.
Despite the prevalence of peer-to-peer accommodation-sharing platforms, what incentivizes individual hosts to expand their listings on platforms such as Airbnb remains unknown. This study investigates the economic/financial, social, and community incentive of hosts to expand listings and the interplay among these incentives in driving the listing expansion. Using large-scale but granular field data collected from an emerging accommodation-sharing platform in Beijing, China, we found that economic/financial, social, and community incentives significantly affect listing expansion in accommodation-sharing services. In addition, while the economic/financial and social incentives jointly motivate hosts to expand, such effects are both mitigated as the hosts’ experiences of accommodation sharing increases. This study adds to the extant literature a unique but less studied perspective of host expansion and provides important implications on incentivizing and regulating hosts for a healthy and viable accommodation sharing community.
We use the vector autoregressive model (VAR) to test the impact of tourism on the New Zealand economy. The variables of interest used in this study are: the index of real exchange rate between the NZ dollar and currencies of the 14 New Zealand’s top trading partners, the travel export in New Zealand and the real GDP of New Zealand. The variables contain all a unit root and are collected at quarterly frequency from 1990 to 2013. The model is fitted first for the whole period from 1990 to 2013 and then for the two sub periods anticipating and following the 2008 financial meltdown (i.e. 1990-2008 and 2008-2013). The results show that before the financial crisis the variables were linked by long run relationships that then disappeared once the financial crisis hit New Zealand. Between 1990 and 2008, an increase in GDP leaded to an appreciation while a depreciation of the exchange rate leaded to an increase in tourist receipts in the long run. In the short run, an increase of tourist receipts leaded to an appreciation for both the entire period and the sub period following the financial crisis while an increase in GDP leaded to an appreciation only for the sub period from 2008 to 2013.
Tourism is a data rich domain and the tourism industry is one of the core areas where effective use of data analytics can change the way business is done. Tourism businesses have recognized the importance of big data analysis, but they face an incredible volume and variety of data to work with. Although the amount of data available today is increasing exponentially, organizations easily get confused by the complexity of data. Data visualization makes huge amounts of data more accessible and understandable and helps to communicate complex information more accurately and effectively. Therefore, this study attempts to discuss how to utilize user-generated data in the tourism industry by comparing the results of three text analysis tools.
We use a unique and very deep database to examine the performance of wine investments during 2003–2014. Our results reveal that the returns stemming from those investments are important but can largely be explained by their exposure to common risk factors. As such and contradicting prior evidence, fine wines do not seem to offer abnormal returns. While explicitly accounting for non-synchronous trading, we indeed show that the market beta of wine is always positive and significant. Liquidity risk also turns out to be an essential determinant of wine returns. The fact that the liquidity factor, which is estimated on the basis of stock returns, can explain the returns on an exotic asset such as wine suggests that illiquidity is a common, cross-asset source of risk. Hence, this paper contributes to the literature on alternative investments and wine as an asset class and provides additional evidence regarding the nature of liquidity risk.
Extensive resources are invested in digital marketing in the hotel sector, however, few studies examine the efficacy of these tactics. This study examines (1) the range of digital marketing tactics utilised and (2) the metrics used to monitor digital marketing performance. The research concentrates on hotels within Switzerland, and the analysis was conducted based on a survey with 31 respondents. Preliminary results indicate that a clear website address and informative content are perceived to be the highest ranked digital marketing tactics, while the highest ranked marketing performance metric are referrals to the website and social media likes and shares.
Environmental practices impact on operations and customer behavior, and may contribute to employees’ job satisfaction and organizational commitment and resource efficiency in hotels. This research updates the current green practices implemented in hotels in England, and examined employees’ perceptions of the importance and performance of green practices. Findings from an online survey of 42 hotels certified by Green Tourism Business Scheme showed that employees ranked most green practices as important and were well performed. Furthermore, of the 28 green practices surveyed and allocated into an Importance Performance Analysis (IPA) quadrants, indicated that most items are located in the second quadrant, “Keep up the good work”. Hoteliers are encouraged to benchmark their green practices with the findings presented here.
