Price competitiveness is a key factor in the overall tourism competitiveness of a country or a destination. Given its importance to overall destination competitiveness, various indicators of prices have been developed. Different indicators shed light on different aspects of competitiveness, and the measures which are most useful depend on what questions are being explored. The authors explore several of the different indicators aimed at measuring destination price competitiveness, describing the strengths and weaknesses of using each. Some of the key aspects which condition which indicators should be used are: the need for accuracy and tourism-specific detail versus timeliness; the need for cross-country (or cross-destination) comparisons of the prices tourists are actually paying; the need for estimates of changes in relative price competitiveness over time and the need to provide overall summary measures of a country's price competitiveness at a point of time or changes in it over time. The specific measure used will therefore depend on the particular analytical and practical need of researchers and destination managers.
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