Domestic overnight travel is one of the most significant sectors in the Australian tourism industry. Understanding the extent to which the crucial factors influence tourists� choice of overnight trip can be a key to successful marketing and strategic planning in the domestic travel industry. To understand the characteristics of the domestic overnight tourists, this paper analyses the data by means of a proposed new impact analysis approach, which overcomes some limitations of the conventional impact analysis approach. It also investigates how socio-demographic factors, fuel price and domestic airfares affect the probability of tourists opting for domestic overnight trips. Impact analysis is a method for analysing the association of the impact factor with the response variable in terms of estimated probability. This research demonstrates that household income, country of birth, life-cycle stage and home state are four of the most significant categories that generate the highest maximum impact on the overnight trip decision.
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