Agritourism: A hedonic approach of quality tourism indicators in South Tyrol

Abstract

This paper examines the prices of agritourism accommodation that include food services (i.e., the option to have breakfast) and related farm attributes. We analyze what tourists are willing to pay per night for a designated farm holiday stay in South Tyrol offered through the "Red Rooster" brand (n = 367). We first identify factors that may influence tourist decisions to book a holiday at a farm, which include the number of flowers (i.e., the red rooster quality-rating scheme), the type of accommodation, the distance to various leisure activities, and externalities related to agricultural practices. Second, the paper develops two hedonic models to estimate implicit prices for farm holiday accommodation rates. Specifically, the dependent variables are the prices paid by guests during the summer peak and low seasons. Independent variables are various accommodation attributes, the quality of food service, and the range of possible activities in the area surrounding the farm. The results of the study show that the red rooster quality-rating scheme (i.e., the number of flowers) and the quality of food services are highly significant and have a positive impact on guest willingness to pay. Farm types, such as fruit-growing and livestock operations, have a significant but negative effect on accommodation rates at least during the peak season, whilst wine production and organic farming display a positive influence on the accommodation rates during the low season. Implications for practitioners and policy-makers are discussed.