Tourists’ willingness to pay for holiday trip characteristics: A Discrete Choice Experiment

David Boto-García, Petr Mariel, José Baños Pino and Antonio Alvarez
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David Boto-García: University of Oviedo, Spain
José Baños Pino: University of Oviedo, Spain

Tourism Economics, 2022, vol. 28, issue 2, 349-370

Abstract: This article studies the marginal rates of substitution and Willingness to Pay for holiday trip characteristics. Using a Discrete Choice Experiment, we examine how much individuals from four cities in Northern Spain are willing to pay for accommodation, mode of transport, travel time and length of stay. We estimate a Latent Class Model that accounts for taste heterogeneity based on sociodemographic characteristics. The welfare loss due to a tourism daily tax is also examined. Our results show that respondents place positive utility to travelling by plane, high-quality accommodation and longer stays. Specifically, they are willing to pay €170 more for plane travelling with respect to the use of car, €120 for staying at a four-star hotel relative to an apartment and €760 for a 10-day trip relative to a 3-day one. A daily tax of €1 per person would produce a larger welfare loss in coastal destinations.

Keywords: Discrete Choice Experiment; Latent Class Model; travel preferences; vacation choice; Willingness to Pay (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:28:y:2022:i:2:p:349-370

DOI: 10.1177/1354816620959901

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