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

• David Boto-García ^[1] ; Petr Mariel ^[2] ; José Baños Pino ^[1] ; Antonio Alvarez ^[1]
  1. [1] Universidad de Oviedo

     Universidad de Oviedo

     Oviedo, España

     
  2. [2] Universidad del País Vasco/Euskal Herriko Unibertsitatea

     Universidad del País Vasco/Euskal Herriko Unibertsitatea

     Leioa, España

     
• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 28, Nº. Extra 2, 2022 (Ejemplar dedicado a: Advances in Tourism Economics: The 7th International Conference of IATE), págs. 349-370
• Idioma: inglés
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• Resumen

  • 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.