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Tourism

Insights into Tourism Economics: A Study on Resort Quality and Pricing Strategies

Strategic Insights

— 2 min read

Researchers at the University of the Republic have employed an Agent-Based Model (ABM) to simulate interactions between tourists and resorts, providing valuable insights into market dynamics and the impact of pricing strategies on consumer behavior. The study focuses on the importance of access to market information and the need to balance short-term competitiveness with long-term sustainability. The findings suggest that heuristic pricing strategies promote market stability, consumer diversity, and firm resilience, while competitive strategies often lead to market homogenization and reduced profitability.

Key Takeaways:

  • The study uses an Agent-Based Model (ABM) to simulate interactions between tourists and resorts, incorporating key elements such as pricing strategies, budget constraints, and crowding effects.
  • The research found that heuristic approaches to pricing promote market stability, consumer diversity, and firm resilience, while competitive strategies often lead to market homogenization and reduced profitability.
  • The study highlights the importance of access to market information for enhancing consumer utility and fostering healthy competition.
  • The researchers propose that policymakers and destination managers should balance short-term competitiveness with long-term sustainability to promote market stability and resilience.
  • The study suggests that this research provides a foundation for further studies incorporating real-world data and addressing tourism market complexities.
  • The models employed in the study include pricing strategies, budget constraints, and crowding effects to simulate tourist-resort interactions.
  • The research was supported by Digital Transition and Innovation in the Labor Market and Mature Sectors, Taking Advantage of AI and Platform Economy (DILATO) - MCIN/AEI, European Union (EU), and Ibero-American Programme for Science and Technology for Development (CYTED).
  • The study was carried out by researchers at the University of the Republic, including Emiliano Alvarez, Juan Gabriel Brida, Pablo J. Cardenas-Garcia, and Luis Moreno-Izquierdo.

Statistics:

  • The study was funded by institutional grants from Digital Transition and Innovation in the Labor Market and Mature Sectors, Taking Advantage of AI and Platform Economy (DILATO) - MCIN/AEI, European Union (EU), and Ibero-American Programme for Science and Technology for Development (CYTED).
  • The research team consisted of 4 authors from the University of the Republic.
  • The study employed an Agent-Based Model (ABM) with a focus on pricing strategies, budget constraints, and crowding effects.
  • The research was published in a leading economics journal, Tourism Economics, with authors Emiliano Alvarez, Juan Gabriel Brida, Pablo J. Cardenas-Garcia, and Luis Moreno-Izquierdo.
  • The study aimed to provide insights into tourism market complexities and the impact of pricing strategies on consumer behavior.

Sources:

  • Price Dynamics and Market Competition In Resort Industry: an Agent-based Modelling Approach. Tourism Economics, 2025.
  • NewsRx. Findings on Tourism Economics Reported by Investigators at University of the Republic (Price Dynamics and Market Competition In Resort Industry: an Agent-based Modelling Approach). Economics Week. July 25, 2025; p 184.

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