Abstract
Since the 1960s, there has been growing awareness of the importance of pleasure travel as a component of interregional trade and moreover, that travel has become increasingly multi-destinational. Recent increases in airfares have altered the relative costs of travel and intensified competition among vying destinations. How best to maintain one’s relative market position depends on an awareness of the determinants of visitor flows. Despite this, there exists little theoretical or empirical research on the individual demand for travel. This paper looks to fill that gap in the literature.
Highlights
Since the 1960's, there has been growing awareness of the importance of pleasure travel as a component of interregional trade and,that travel has become increasingly multi-destinational
Rugg alleges that a consumer's choice of trip destinations and lengths of stay depend on the attributes of individual destinations in addition to the usual economic variables found in conventional travel demand models
The use of aggregate travel flow data precludes the inclusion of individual traveler characteristics in the model specification, thereby further diluting the test by obscuring differences in individual preference functions
Summary
Since the 1960's, there has been growing awareness of the importance of pleasure travel as a component of interregional trade and ,that travel has become increasingly multi-destinational. Using Lancaster's (1966) approach to consumer theory, Rugg develops a model of consumer choice capable of simultaneously determining the tra veler's choices of journey destinations and journey duration. Rugg alleges that a consumer's choice of trip destinations and lengths of stay depend on the attributes of individual destinations in addition to the usual economic variables found in conventional travel demand models. The dependent variable in his model is not the number of days spent visiting each destination, as required by theory, but the total number of scheduled airline passengers traveling in both directions between each pair of nine European countries.' At best, his model can provide only a test of the tra velers' choices ofjourney destinations but not of their duration.
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