Determinants in Tourist Expenditure Composition — The Role of Airline Types

Abstract

The reduction in transportation costs when travelling with a low-cost airline (LCA) seems to have modified the composition of the trip budget. An understanding of expenditure composition when comparing LCA and legacy airline travellers is vital for destination marketers. Using micro official statistics data for air travellers to Spain in 2010 and the compositional data analysis (CODA) methodology, this study analyses the determinants of trip budget composition and its differences between airline types. The authors consider transportation expenses, as well as basic (accommodation and food) and discretionary (activities, shopping, etc) at-destination expenses. Log-ratios of budget share are fitted to a MANOVA, with travellers' attributes as explanatory factors along with the moderating effect of the airline type. Among the findings are that high-income LCA travellers spend relatively more at the destination, LCA touristsThe authors are pleased to acknowledge the support of the Spanish Institute of Tourism Studies (Instituto de Estudios Turísticos) in providing them with the raw data.

An Alternative Approach to Analyze Ipsative Data. Revisiting Experiential Learning Theory

“…CODA has the twofold objective of making compositional data statistically treatable and of getting the most of the relative information carried by the data. Social scientists have recently become aware of the CODA tradition, and have successfully used it when faced to similar problems (e.g., Coenders et al, 2011; Fry, 2011; Kogovšek et al, 2013; Ferrer-Rosell et al, 2015, in press; Trendafilov and Gallo, 2015; van Eijnatten et al, 2015; Vives-Mestres et al, 2015). The problem of possible fixed sum representation and the interest in relative information are shared by KLSI researchers who can thus benefit from using CODA.…”

The effect of tourism taxation on tourists’ budget allocation

“…Thus, the CODA method is preferred for this study because its log-ratio approach can transform the compositional data into a suitable form using standard and well-understood statistical techniques (Ferrer-Rosell et al, 2015;Ferrer-Rosell et al, 2016). In short, CODA uses shares that have been transformed by the logarithms of the ratios instead of the raw shares, and thus can recover the full unconstrained -∞ to ∞ range.…”

“…Both the structure and amount of these expenditures are worth examining. Tourist expenditure is typically examined in absolute terms (e.g., Engström & Kipperberg, 2015;Marksel, Tominc, & Božičnik, 2016;Zheng & Zhang, 2013), and little attention has been paid to its composition (Ferrer-Rosell, Coenders, & Martínez-Garcia, 2015).…”

An almost ideal demand system (AIDS) analysis of Korean travelers' summer holiday travel expenditure patterns

“…Travel duration, or length of stay, is one of the most frequently used determinants in AIDS assessments (Anderson, 2010;Barros & Machado, 2010;Ferrer-Rosell, Coenders, & Martínez-Garcia, 2015;García-Sánchez, Fernández-rubio, & Collado, 2013;Gokovali, Bahar, & Kozak, 2007;Jang, Ismail, & Ham, 2001;Laesser & Crouch, 2006;Mok & Iverson, 2000). The number of nights away from home that a tourist stays represents a continuous measurable variable (Jang et al, 2001).…”