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Tourists’ willingness to pay for holiday trip characteristics: A Discrete Choice Experiment

Author

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  • David Boto-García

    (University of Oviedo, Spain)

  • Petr Mariel

    (University of the Basque Country, Spain)

  • José Baños Pino

    (University of Oviedo, Spain)

  • Antonio Alvarez

    (University of Oviedo, Spain)

Abstract

This article studies the marginal rates of substitution and Willingness to Pay for holiday trip characteristics. Using a Discrete Choice Experiment, we examine how much individuals from four cities in Northern Spain are willing to pay for accommodation, mode of transport, travel time and length of stay. We estimate a Latent Class Model that accounts for taste heterogeneity based on sociodemographic characteristics. The welfare loss due to a tourism daily tax is also examined. Our results show that respondents place positive utility to travelling by plane, high-quality accommodation and longer stays. Specifically, they are willing to pay €170 more for plane travelling with respect to the use of car, €120 for staying at a four-star hotel relative to an apartment and €760 for a 10-day trip relative to a 3-day one. A daily tax of €1 per person would produce a larger welfare loss in coastal destinations.

Suggested Citation

  • David Boto-García & Petr Mariel & José Baños Pino & Antonio Alvarez, 2022. "Tourists’ willingness to pay for holiday trip characteristics: A Discrete Choice Experiment," Tourism Economics, , vol. 28(2), pages 349-370, March.
    • Handle: RePEc:sae:toueco:v:28:y:2022:i:2:p:349-370
    DOI: 10.1177/1354816620959901
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    Cited by:

    1. Boto-García, David & Mariel, Petr & Baños-Pino, José Francisco, 2023. "Intra-household bargaining for a joint vacation," Journal of choice modelling, Elsevier, vol. 47(C).

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