Pricing Attributes Of Day Cruises In Nha Trang Bay Using Hedonic Pricing

This study employs a Hedonic price model to investigate the relationship between package prices of one-day island tours and the different attributes associated with them. 127 observations of prices were obtained from 24 tour operators in Nha Trang City. Through OLS regression method, the results show that the differences in prices among tours to a large degree can be explained by the differences in five various characteristics. Specifically, the quality of lunches, the availability of VIP tour, and the inclusion of seafood serving and diving activity have positive and significant effects on prices while the number of destinations has a negative effect on prices. With regard to the empirical estimates of attributes’ relative importance, the quality of lunches holds first position in the ranking list. While other factors remain unchanged, the inclusion of scuba diving affects price variations the most. The results of this study are expected to assist business managers and policy makers in making strategies for the improvement and investment in tourism