Definition: Prices on tourism

Category: Tourism

Prices on tourism can be considered as: 
· prices (including tariffs) of goods and services linked to tourism, the level of which influence tourism expenditure. The prices of these goods and services are related to the demand side of tourism and are consumer prices;
· prices of goods and services which determine the cost of tourism production. The prices of these goods and services refer to the supply side of tourism and are called either cost of production prices or input prices on tourism.
The level of prices paid by visitors is influenced by tourism demand. Increasing demand for goods and services related to tourism will have an impact on their prices. On the other hand, the level of prices of goods and services related to tourism affects tourism demand.
Prices related to goods and services of intermediate consumption for tourism activities, the remuneration of the factors of tourism production and the prices for goods and services contributing to fixed capital formation on tourism sector affect the cost of tourism supply.
Although in many cases the real prices and changes are interesting to measure (e.g. average price of a hotel room, meals, or any other tourism product), this section will focus on price changes measured by constructing price indices which combine the different changes in prices of individual items in such a way that a single number (index number) can be used to indicate the overall change in prices.