Environmental amenities and services-differentiation: the case of the rural tourism market in France

Tourist services can only be used on-site, and location therefore becomes a service-specific characteristic for consumers and a factor influencing their cost and quality for providers. These services are a fine illustration of territorial rent differential. This territorial rent differential can be tested empirically in a French context by applying the hedonic pricing method to the quality-assured holiday cottage market. It is also possible to explore the role of environmental and territorial variables as service differentiation tools for tourism managers. The results of econometric analysis on market prices for quality-assured holiday cottages show that not only the inherent attributes of the holiday cottages but also environmental variables act as service differentiation tools. However, the actors do not use immediate natural environment variables in their differentiation strategy, which operates more on territorial variables. Two baseline territories were selected: one currently enjoying renewed consumer interest (the Aubrac territory, set deep in the Massif Central), and another more longstanding favourite with tourists (the Baronnies territory in the Drome). Comparative analysis showed a catch-up trend for up-and-coming territories that are increasingly valued by the market.