Price Differences at European Restaurants and Possible Implications for Tourism

Abstract

The aim of this study was to document and compare price levels for restaurant services and discuss the possible implications for the tourist industry in Norway. The sample consisted of a total of 47 restaurants in Oslo, Stockholm, Copenhagen, Berlin and Paris. It was an exploratory research using a combination of qualitative methods (categorization and choice of menu items) and quantitative analyses. The result of the study indicated that price levels of restaurants in Oslo and Stockholm were clearly higher than price levels in Copenhagen, Paris and Berlin. The differences were distinct for alcoholic beverages, non‐alcoholic beverages and food. It was argued that high price levels gave strong effects for individual family tourists, travelling by car or other “free” transportation. If the tourists had low income or low budget, or if they originated from a country with a relatively low price level, the negative effects would be strengthened. The effects are probably not so strong for business travellers and package tourists. The author also argues that the restaurant industry might weaken the negative effects by calculating lower prices on menu items where tourists have a clear reference price, and by giving the tourists information about the reasons for high price levels.