This paper examines competitiveness and efficiency issues related to destinations in the Mediterranean region. Following a detailed discussion on methodology, a hedonic analysis is performed, in which the price of holiday packages is regressed on a number of package characteristics and operator and location scaling factors. Those that are statistically significant among the latter are subsequently used in a second-step correlation framework, which aims to offer a valid interpretation of the observed price differentials among core and peripheral holiday destinations. On these grounds, a number of policy measures are finally discussed.