The value assessed by the rational mind is that which takes into account the services and service quality received in relation to the prices paid and overall costs. This is usually the least important of the factors to assess the destination competitiveness, but it should not be disregarded, as the importance of every type of value depends on the type of target, and price sensitive tourists abound. In this regard, it is important that the destination offers a range of services –namely accommodation- to match all targets’ budget. There are many different issues to consider when assessing both Service quality and price.

Service quality

Service quality may be defined as compliance with the client’s expectations in all kinds of services provided throughout the trip:

  • Transport: punctuality, comfort, schedule availability and adequacy, staff attention, added services like entertainment, food, etc.
  • Accommodation: staff attention, compliance with the rating system & quality certifications.
  • Food & Beverage: taste, variety, originality, healthy production procedures, quality of the ingredients, cleanliness of the premises, etc.
  • Activities: safety, staff kindness, compliance with sales information, etc.


Price issues encompass many factors affecting the overall cost:

  • Currency exchange: both the exchange rate and commission may entail a significant cost
  • Package price: the bulk of the budget goes to transport and accommodation, especially when buying a holiday package
  • Tips: many countries are used to receiving tips in service businesses
  • Daily expenses: all costs related to daily life not included in the package, like meals, public transport, snacks, etc.
  • Shopping & souvenirs: this is sometimes one of the main activities or purposes of a trip, and so eventually accounts for a considerable percentage of the overall budget.

Improving cluster competitiveness is a complex challenge to tackle, as it entails a large array of variables which in many cases have to be coordinated. Further, it is important to know which of these factors are more and less important to our targets, to prioritize our efforts.

Do you think of other variables influencing the value for money?

Posted by Jordi Pera

Jordi Pera is an economist passionate about tourism, strategy, marketing, sustainability, business modelling and open innovation. He has international experience in marketing, intelligence research, strategy planning, business model innovation and lecturing, having developed most of his career in the tourism industry. Jordi is keen on tackling innovation and strategy challenges that require imagination, entail thoughtful analysis and are to be solved with creative solutions.

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