Modeling the Tourism Market Behavior Based on Discrete Equilibrium Models “Supply – Price – Demand”

Novakivskyi Ihor, Kulyniak Ihor, Dziurakh Yurii (), Ohinok Solomiya and Ukrainets Lilia
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Novakivskyi Ihor: Lviv Polytechnic National University, Lviv, Ukraine
Kulyniak Ihor: Lviv Polytechnic National University, Lviv, Ukraine
Dziurakh Yurii: Lviv Polytechnic National University, Lviv, Ukraine
Ohinok Solomiya: Lviv Polytechnic National University, Lviv, Ukraine
Ukrainets Lilia: Ivan Franko National University of Lviv, Lviv, Ukraine

Economics, 2024, vol. 12, issue 3, 33-53

Abstract: The work is devoted to the modeling of the behavior of the tourism market in the conditions of a supply random lag, distributed according to normal and uniform distribution laws. The behavior of dependences on the tourist market of supply and demand on the price is considered. The modeling of the behavior of the tourism market was carried out using a market dynamic model in the plane of variables “supply – price – demand” taking into account the interests of different groups of consumers, primarily from the point of view of pricing. The delay between changes in supply and demand volumes is taken into account using a Cobweb model. To test this method, information was collected on family expenses when traveling abroad (outbound tourism, tourist vacations lasting 7-15 days) by surveying the employees of 38 travel organizations as of 2021. Three segments of the tourism market are identified: low ($2000 − 4000), medium ($4000 − 12000), and VIP-segment ($12,000 − 20,000). The analysis of the modeling results showed that the behavior of tourists of different segments can significantly influence the market dynamics. The use of a Cobweb model allowed for determining the level of stability of tourist behavior and assessing the possibility of consumer migration from one segment to another. Sensitivity to price changes and response to new offers from different segments can be different, which is important for determining pricing strategies, marketing, and the development of new tourism products.

Keywords: tourism; demand function; supply function; price; market segments; lag; Cobweb model (search for similar items in EconPapers)
JEL-codes: C68 E20 E31 Z30 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:econom:v:12:y:2024:i:3:p:33-53:n:1011

DOI: 10.2478/eoik-2024-0036

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