Hedonic Pricing

The origin of hedonic pricing goes back to the 1900s. This model has been widely implemented in different industries, in addition to the automotive industry. Hedonic pricing in tourism means determining how certain characteristics of a tourist destination, such as amenities, location, nature, or experiences, affect its overall price. The sensitive structure of the tourism industry requires continuous evaluation in light of economic data, such as supply elasticity and price elasticity of demand in tourism. At this point, the concept of hedonic pricing makes it important to consider the premises and parameters of pricing in tourism. This chapter aims to provide a comprehensive review of recent advancements in the hedonic pricing model, with a particular focus on its applications in tourism.