Demand modeling research has a long history; the earliest work can be traced back to the 1960s. It is the study of consumers’ decision-making process using statistical methods, and it provides a scientific instrument used to gain a better understanding of the nature of its processes. Tourism demand modeling is the foundation for elasticity analysis and forecasting, on which related business decisions ultimately rest.
Determinants
Among the various disciplines, economics, and in particular the neoclassical consumer theory, contributes the most in terms of providing rigorous theoretical support for tourism demand modeling. The key determinants include the price of the product under study, the prices of its substitutes, tourists’ income, tourists’ preferences, marketing expenditure, and other social, cultural, geographical, and political factors.
Taking aggregate demand for a destination as an example, the demand function for destination i by tourists from origin j can be written as
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References
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Li, G., Song, H. (2023). Demand Modeling in Tourism. In: Jafari, J., **ao, H. (eds) Encyclopedia of Tourism. Springer, Cham. https://doi.org/10.1007/978-3-319-01669-6_50-2
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DOI: https://doi.org/10.1007/978-3-319-01669-6_50-2
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Demand Modeling in Tourism- Published:
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DOI: https://doi.org/10.1007/978-3-319-01669-6_50-2
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DOI: https://doi.org/10.1007/978-3-319-01669-6_50-1