Econometric Models for Discrete Choice Analysis of Travel and Tourism Demand

Abstract

Abstract Discrete choice analysis is theory-driven and has proved valuable in empirical applications. It is an effective way to determine preferences and assess the tradeoffs that individuals make in considering various product and services bundles. Discrete choice analysis deals with qualitative choice behaviour on discrete choice situations. In travel and tourism research, random utility models have received considerable academic and industry attention and become a well-established framework. These models relate to discrete choice behaviour and permit structural analyses of demand at the level of individual decision. This approach exploits the theoretical infrastructure of utility maximization and heterogeneity in decision-makers and choice alternatives. Applied to travel research, discrete choice analysis refers to travel mode choices that differ in their attributes such as cost, comfort, safety, and travel time. This paper focuses on the application of analysis of travel and tourism demand.