Simultaneous analysis of whether and how long to go on holidays

Juan Nicolau () and Francisco J. Más

The Service Industries Journal, 2006, vol. 29, issue 8, 1077-1092

Abstract: This article assumes that the decision to go on holiday and the length of stay are nested and non-independent, thus the objective of this study is to propose a two-stage choice process: going on holiday and length of stay. To do this, we rely on the random-parameter logit model, which accounts for the unobserved heterogeneity of individuals and allows representation of different correlation patterns among non-independent alternatives. We propose hypotheses on the effect on the above decisions of individual's characteristics relating to the destination, personal restrictions and socio-demographic and psychographic characteristics. The empirical application, which is carried out in Spain on a sample of 3781 individuals, evidences the proposed two-stage choice process, and that these decisions also explained by individual tourist characteristics.

Date: 2006
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Citations: View citations in EconPapers (7)

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DOI: 10.1080/02642060902764467

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