When demand drops and prices rise. Tourist packages in the Balearic Islands during the economic crisis

摘要

The aim of this paper is to analyse the effects of the crisis on the prices of package holidays to the Balearic Islands sold by a sample of British and German tour operators. Three alternative price indexes are calculated. The results show that tour operators have reacted by using market strategies other than pricing, aimed at boosting their revenue even though they do not push up the number of tourists, thus protecting the tour operators' financial yield.