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An Analysis of the Microeconomic Determinants of Travel Frequency

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  • Joaquín Alegre

    ()

  • Llorenç Pou

    ()

Abstract

A critical factor in predicting the demand for tourism within a certain period of time is the number of trips individuals take. New tourists’ behaviour shows a tendency toward more frequent travel. Nevertheless, the frequency of travel has received little attention in empirical literature. This paper uses household data to examine the determinants of the number of quarters with positive tourist expenditure within a year. The results highlight the relevance in travel frequency analyses of distinguishing between the participation decision and the frequency decision conditional on participation. Many socio-demographic variables only show explanatory power for the participation decision. The two most relevant factors by far in explaining each decision are the previous year tourism demand decisions (suggesting evidence of habit persistence in tourism decisions) and disposable income, although with an income elasticity below the unit.

Suggested Citation

  • Joaquín Alegre & Llorenç Pou, 2006. "An Analysis of the Microeconomic Determinants of Travel Frequency," DEA Working Papers 18, Universitat de les Illes Balears, Departament d'Economía Aplicada.
  • Handle: RePEc:ubi:deawps:18
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    References listed on IDEAS

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    5. Hellström, Jörgen, 2002. "A Bivariate Count Data Model for Household Tourism Demand," Umeå Economic Studies 583, Umeå University, Department of Economics.
    6. Cameron, A Colin & Trivedi, Pravin K, 1986. "Econometric Models Based on Count Data: Comparisons and Applications of Some Estimators and Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 29-53, January.
    7. Ozuna, Teofilo, Jr & Gomez, Irma Adriana, 1995. "Specification and Testing of Count Data Recreation Demand Functions," Empirical Economics, Springer, vol. 20(3), pages 543-550.
    8. Timothy C. Haab & Kenneth E. McConnell, 1996. "Count Data Models and the Problem of Zeros in Recreation Demand Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 89-102.
    9. Karen E. Dynan, 2000. "Habit Formation in Consumer Preferences: Evidence from Panel Data," American Economic Review, American Economic Association, vol. 90(3), pages 391-406, June.
    10. Thanos Mergoupis & Max Steuer, 2003. "Holiday taking and income," Applied Economics, Taylor & Francis Journals, vol. 35(3), pages 269-284.
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    More about this item

    Keywords

    Tourism demand; frequency of travel; habit persistence; household data.;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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