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A Random Parameter Logit Approach To The Two-Stage Tourist Choice Process: Going On Holidays And Length Of Stay

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Author Info

  • Francisco J. Mas

    ()
    (Universidad de Alicante)

  • Juan Luis Nicolau

    ()
    (Universidad de Alicante)

Abstract

This paper assumes that the decision to go on holiday and the length of stay are non independent, thus the objective of this paper is to propose a two-stage tourist choice process: going on holiday and length of stay. To do this, we rely on the Random-Parameter Logit Model, which accounts for the unobserved heterogeneity of tourists and allows representation of different correlation patterns among non independent alternatives. We propose hypotheses on the effect on the above decisions of tourist characteristics relating to the destination, personal restrictions and socio-demographic and psychographic characteristics. The empirical application, which is carried out in Spain on a sample of 3,781 individuals, evidences the proposed two-stage tourist choice process. In addition, these decisions are also explained by individual tourist characteristics.

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File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2004-46.pdf
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Bibliographic Info

Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2004-46.

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Length: 39 pages
Date of creation: Dec 2004
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2004-46

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Related research

Keywords: Tourism Marketing; Going on holiday; Length of stay; Random-Parameter Logit Model;

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  1. Morey, Edward R., 1985. "Characteristics, consumer surplus, and new activities : A proposed ski area," Journal of Public Economics, Elsevier, vol. 26(2), pages 221-236, March.
  2. Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May.
  3. Morey, Edward R, 1984. "The Choice of Ski Areas: Estimation of a Generalized CES Preference Ordering with Characteristics," The Review of Economics and Statistics, MIT Press, vol. 66(4), pages 584-90, November.
  4. Eymann, Angelika & Ronning, Gerd, 1997. "Microeconometric models of tourists' destination choice," Regional Science and Urban Economics, Elsevier, vol. 27(6), pages 735-761, November.
  5. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, April.
  6. Thanos Mergoupis & Max Steuer, 2003. "Holiday taking and income," Applied Economics, Taylor & Francis Journals, vol. 35(3), pages 269-284.
  7. Hellerstein, Daniel & Mendelsohn, Robert, 1993. "A Theoretical Foundation for Count Data Models," MPRA Paper 25265, University Library of Munich, Germany.
  8. Brownstone, David & Train, Kenneth, 1999. "Forecasting new product penetration with flexible substitution patterns," University of California Transportation Center, Working Papers qt1j6814b3, University of California Transportation Center.
  9. Louviere, Jordan J & Hensher, David A, 1983. " Using Discrete Choice Models with Experimental Design Data to Forecast Consumer Demand for a Unique Cultural Event," Journal of Consumer Research, University of Chicago Press, vol. 10(3), pages 348-61, December.
  10. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  11. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
  12. Rugg, Donald, 1973. "The Choice of Journey Destination: A Theoretical and Empirical Analysis," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 64-72, February.
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