A microeconomic model of multidestination tourism trips

Authors: Santos, Glauber Eduardo de Oliveira; Ramos, Vicente; Rey-Maquieira, Javier

Source: Tourism Economics, Volume 17, Number 3, June 2011 , pp. 509-529(21)

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Abstract:

A significant share of tourism trips includes visits to more than one destination. The only formal theoretical frameworks available for explaining consumers' choices of multidestination tourism trips (MTTs) are based on Lancaster's (1966) characteristics theory. This paper proposes a theoretical model of MTT choices based on the traditional economic theory of consumption. Some particularities of the traditional model regarding MTTs are discussed, such as the proper shape of utility functions, special transport costs and the existence of two budget constraints. The model shows that the MTT paradigm may unfold special demand effects. Negative income effects may be experienced by destinations considered as normal goods, and positive price effects may be experienced by non-Giffen destinations.

Keywords: MULTIDESTINATION TOURISM; MICROECONOMIC MODELS; DESTINATION CHOICE; TOURISM DEMAND; CONSUMER CHOICE

Document Type: Research article

DOI: http://dx.doi.org/10.5367/te.2011.0050

Publication date: 2011-06-01

More about this publication?

Tourism Economics, published bimonthly, is a peer-reviewed journal devoted to the economics and finance of tourism worldwide. Articles address the components of the tourism product (accommodation; restaurants; merchandizing; attractions; transport; entertainment; tourist activities); and the economic organization of tourism at micro and macro levels (market structure; role of public/private sectors; community interests; strategic planning; marketing; finance; economic development).
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