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Return to Tourist Destination. Is it Reputation, After All?

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  • Francisco J. Ledesma
  • Manuel Navarro
  • Jorge V. Pérez-Rodríguez

Abstract

In this paper we study the hypothesis that the repeated purchases in the tourism markets could be considered as a consequence of asymmetrical information problems. We analyze this hypothesis with the case study of the Island of Tenerife by the estimation of a count data model. We obtain that the length of the stay and the information obtained from previous visits and/or relatives and friends might increase the return to a destination suggesting the presence of a reputation mechanism as proposed by Shapiro (1983). We also estimate the determinants of the willingness to return confirming the main results.
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  • Francisco J. Ledesma & Manuel Navarro & Jorge V. Pérez-Rodríguez, "undated". "Return to Tourist Destination. Is it Reputation, After All?," Working Papers on International Economics and Finance 03-01, FEDEA.
    • Handle: RePEc:fda:fdadef:03-01
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    References listed on IDEAS

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    1. Stiglitz, Joseph E., 1989. "Imperfect information in the product market," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 13, pages 769-847, Elsevier.
    2. Steven Tadelis, 1999. "What's in a Name? Reputation as a Tradeable Asset," American Economic Review, American Economic Association, vol. 89(3), pages 548-563, June.
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    5. F. J. Ledesma-Rodríguez & M. Navarro-Ibánez & J. V. Pérez-Rodríguez, "undated". "Panel data and tourism demand. The case of Tenerife," Working Papers 99-17, FEDEA.
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    11. Francisco J. Ledesma-Rodríguez & Manuel Navarro-Ibáñez & Jorge V. Pérez-Rodríguez, 2001. "Panel Data and Tourism: A Case Study of Tenerife," Tourism Economics, , vol. 7(1), pages 75-88, March.
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    Cited by:

    1. Antónia Correia & Carlos Pestana Barros & António Luís Silvestre, 2007. "Golf Tourism Repeat Choice Behaviour in the Algarve: A Mixed Logit Approach," Tourism Economics, , vol. 13(1), pages 111-127, March.
    2. Jarvis, Diane & Stoeckl, Natalie & Liu, Hong-Bo, 2016. "The impact of economic, social and environmental factors on trip satisfaction and the likelihood of visitors returning," Tourism Management, Elsevier, vol. 52(C), pages 1-18.
    3. Gómez-Déniz, E. & Pérez-Rodríguez, J.V., 2019. "Modelling bimodality of length of tourist stay," Annals of Tourism Research, Elsevier, vol. 75(C), pages 131-151.
    4. A. George Assaf & Carlos Pestana Barros & Luiz Pinto Machado, 2013. "Covariates of Repeat Tourism: An Endogenous Switching Poisson Model," Tourism Economics, , vol. 19(3), pages 531-542, June.
    5. Jorge V Pérez-Rodríguez & Francisco Ledesma-Rodríguez, 2021. "Unconditional quantile regression and tourism expenditure: The case of the Canary Islands," Tourism Economics, , vol. 27(4), pages 626-648, June.
    6. R. Randriamboarison & F. Rasoamanajara & B. Solonandrasana, 2013. "Tourism Return Frequency Demand in Madagascar," Tourism Economics, , vol. 19(4), pages 943-958, August.
    7. Yang, Zhenshan & Cai, Jianming, 2016. "Do regional factors matter? Determinants of hotel industry performance in China," Tourism Management, Elsevier, vol. 52(C), pages 242-253.
    8. Jingchao Zhou & Jinfeng Wu & Zihao Wang, 2023. "Destination Reputation Management: The Divergent Role of Tourists’ Word of Mouth in Urban China," Sustainability, MDPI, vol. 15(16), pages 1-16, August.
    9. Gómez–Déniz, E. & Pérez–Rodríguez, J.V., 2019. "Modelling distribution of aggregate expenditure on tourism," Economic Modelling, Elsevier, vol. 78(C), pages 293-308.
    10. Carlos Barros & Vera Barros & Peter Dieke, 2012. "Tourism and Human Development in Mozambique: an analysis for Inhambane province," CEsA Working Papers 100, CEsA - Centre for African and Development Studies.
    11. V. J. Cano Fernandez & G. Guirao Perez & M. C. Rodriguez Donate & M. E. Romero Rodriguez, 2009. "An analysis of count data models for the study of exclusivity in wine consumption," Applied Economics, Taylor & Francis Journals, vol. 41(12), pages 1563-1574.
    12. Jorge Moll-de-Alba & Lluís Prats & Lluís Coromina, 2016. "The need to adapt to travel expenditure patterns. A study comparing business and leisure tourists in Barcelona," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(2), pages 253-267, August.
    13. Joaquín Alegre & Magdalena Cladera, 2010. "Tourist Expenditure and Quality: Why Repeat Tourists Can Spend Less than First-Timers," Tourism Economics, , vol. 16(3), pages 517-533, September.
    14. Mukesh Kumar & Sanjeev Prashar & RK Jana, 2019. "Does international tourism spur international trade and output? Evidence from wavelet analysis," Tourism Economics, , vol. 25(1), pages 22-33, February.
    15. Ana Isabel Moniz, 2012. "A Dynamic Analysis of Repeat Visitors," Tourism Economics, , vol. 18(3), pages 505-517, June.

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    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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