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Climate preferences and destination choice: a segmentation approach

Author

Listed:
  • Jacqueline M. Hamilton
  • David J. Maddison
  • Richard S.J. Tol

    () (Economic and Social Research Institute, Dublin)

Abstract

A data set of the holiday destination choices of German tourists is segmented using phase in the life cycle; second, holiday motivation and holiday activities and third, the region of residency. For each segment demand is estimated using data on environmental and economic characteristics of countries. The optimal temperature, where demand peaks, ranges from 22°C to 24°C across the segments. More interestingly, the steepness of the temperature demand relationship is different for different segments. Even though the temperature optima are similar, changes in temperature, for example caused by climate change will have a larger effect on demand depending on the steepness of the temperature-demand relationship. A climate index is calculated for each country using climate data and the respective coefficients from the estimated demand equations. The climate index values are different across the segments: the segment containing those tourists who were swimming and sunbathing while on holiday has the highest index values of all of the segments.

Suggested Citation

  • Jacqueline M. Hamilton & David J. Maddison & Richard S.J. Tol, 2005. "Climate preferences and destination choice: a segmentation approach," Working Papers FNU-90, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2005.
  • Handle: RePEc:sgc:wpaper:90
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    File URL: http://www.fnu.zmaw.de/fileadmin/fnu-files/publication/working-papers/FNU-90_segment_jh.pdf
    File Function: First version, 2005
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    Citations

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    Cited by:

    1. Seán Lyons & Karen Mayor & Richard S.J. Tol, 2007. "Holiday Destinations: Understanding the Travel Choices of Irish," Papers WP210, Economic and Social Research Institute (ESRI).
    2. Pushpam Kumar & Uwe A. Schneider, 2008. "Greenhouse gas emission mitigation through agriculture," Working Papers FNU-155, Research unit Sustainability and Global Change, Hamburg University, revised Feb 2008.
    3. Seán Lyons & Karen Mayor & Richard S. J. Tol, 2008. "The Climate Preferences of Irish Tourists by Purpose of Travel," Papers WP225, Economic and Social Research Institute (ESRI).
    4. Gary W. Yohe & Richard S.J. Tol & Dean Murphy, 2007. "On Setting Near-term Climate Policy while the Dust Begins to Settle: The Legacy of the Stern Review," Working Papers FNU-129, Research unit Sustainability and Global Change, Hamburg University, revised Mar 2007.

    More about this item

    Keywords

    tourism demand; segmentation; climate preferences;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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