The Demand For Package Tours: A Mode Choice Model

Abstract

A model is presented to explain a traveler's choice of vacation mode. The possible modes considered are independent travel, travel on an inclusive package tour, and travel on a basic package tour. The model is tested using logit analysis and survey data on travel to the Hawaiian Islands. The results indicate that purchasers ofpackage tours are likely to be elderly, be intent on visiting several destinations, contain few people in the party, intend to make short visits, and be first-time visitors to the destination.