• Corpus ID: 19037411

Market Remedies for Information Problems : Evidence from the Market for Package Tourism

  title={Market Remedies for Information Problems : Evidence from the Market for Package Tourism},
  author={Sofronis Clerides and Paris Nearchou and Panos Pashardes},
Governments try to remedy asymmetric information problems in the tourism market by providing hotel ratings. We show that those ratings are not very accurate indicators of quality. Tour operators play a vital role in this market by pooling together information about different holiday destinations and providing their own ratings of accommodations. We find that although differences in facilities can explain a substantial part of price variation, information supplied by tour operators in brochures… 

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