A Microeconomic Model of Multidestination Tourism Trips

Glauber Eduardo De Oliveira Santos, Vicente Ramos and Javier Rey-Maquieira

Tourism Economics, 2011, vol. 17, issue 3, 509-529

Abstract: A significant share of tourism trips includes visits to more than one destination. The only formal theoretical frameworks available for explaining consumers' choices of multidestination tourism trips (MTTs) are based on Lancaster's (1966) characteristics theory. This paper proposes a theoretical model of MTT choices based on the traditional economic theory of consumption. Some particularities of the traditional model regarding MTTs are discussed, such as the proper shape of utility functions, special transport costs and the existence of two budget constraints. The model shows that the MTT paradigm may unfold special demand effects. Negative income effects may be experienced by destinations considered as normal goods, and positive price effects may be experienced by non-Giffen destinations.

Keywords: multidestination tourism; microeconomic models; destination choice; tourism demand; consumer choice (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:17:y:2011:i:3:p:509-529

DOI: 10.5367/te.2011.0050

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