Start Date
6-1-2011 1:00 PM
End Date
6-1-2011 2:15 PM
Track
1. Track 1 – Formal Paper Presentation
Subject Area
Lodging
Faculty Member
Liping A. Cai, liping@purdue.edu Jonathon G. Day, gjday@purdue.edu
Abstract
The current research explores drive tourists’ lodging demand determinants and effects of external environment (e.g. fuel price and seasonality) on tourism. The authors assumed economic, socio-demographic and trip-related variables influence highway hotels and motels visitors’ lodging demand. Though 2SLS model, the effects were statistically tested, resulting in the identification of the drive tourism market’s characteristics and lodging demand determinants in highway hotel and motel industry. On the contrary to OLS estimation, 2SLS model showed good performance to deal with endogeneity problem and accurate results. The model verified economic variable’s effects on lodging demand. According to the descriptive analysis, typical profile of drive tourists take approximately 400 miles round trip and stay two nights at the hotel. It was revealed that gas price was highly influenced by seasonality. Gas price has played as instrument variable to reflect seasonal effect and travel cost. It was showed that fuel price/travel cost and income are most influential determinants for lodging demand in highway hotel and motel industry.
Keywords
2SLS model, Drive tourism, Gas price, Highway hotel and motel, Lodging demand
Drive Tourists’ Lodging Demand Determinants for Highway Hotels and Motels in U.S.
The current research explores drive tourists’ lodging demand determinants and effects of external environment (e.g. fuel price and seasonality) on tourism. The authors assumed economic, socio-demographic and trip-related variables influence highway hotels and motels visitors’ lodging demand. Though 2SLS model, the effects were statistically tested, resulting in the identification of the drive tourism market’s characteristics and lodging demand determinants in highway hotel and motel industry. On the contrary to OLS estimation, 2SLS model showed good performance to deal with endogeneity problem and accurate results. The model verified economic variable’s effects on lodging demand. According to the descriptive analysis, typical profile of drive tourists take approximately 400 miles round trip and stay two nights at the hotel. It was revealed that gas price was highly influenced by seasonality. Gas price has played as instrument variable to reflect seasonal effect and travel cost. It was showed that fuel price/travel cost and income are most influential determinants for lodging demand in highway hotel and motel industry.