Distance Models for New Zealand International Tourists and the Role of Transport Prices

Abstract

We analyse data on the distances travelled using car and air transport modes in New Zealand by a large sample of international tourists from six different countries of origin. We use two-stage hurdle models to relate both the decision to use each mode and the distance travelled by a mode if used to visitor characteristics and prices. In general we find little evidence of price sensitivity for either decision, although older tourists, those with longer stays, and non-tour group travellers may be more price-sensitive. The most important characteristics for determining transport behaviour are shown to be length of stay, purpose of visit and travel style (tour vs non-tour).

Examining tourists' long-distance transportation mode choices using a Multinomial Logit regression model

“…The same six-day "increase" in length of stay entails a 19 percentage point reduction in the probability of car transportation being chosen (79 − 60 = 19). This effect of length of stay stands in contrast to Becken and Schiff (2011), who reported that as length of stay increased, so did the probability of a private car being used. In the same manner as for length of stay, larger travel parties also tend more frequently than smaller ones to choose air or public transportation relative to private car.…”

“…This was partly touched upon in Section 2.2 as it is especially relevant for trip-related characteristics. Consider for example the effect of the variable length of stay -where this study's findings are at odds with those of Becken and Schiff (2011). The underlying behavioral model for the present study suggests that prospective tourists first decide on length of stay, and then later on transportation mode.…”

“…Since price generally affects demand (and fuel costs, air fares and public transportation fares are thus possible drivers of transportation mode choice) there is a chance of model misspecification. That said, however, Becken and Schiff (2011) found that tourists in general are not particularly price sensitive when it comes to making transportation mode decisions. Future research should cast more light on this issue.…”

“…Generally speaking these features all appear to be interrelated, albeit in varying degrees (Middelkoop et al, 2003;Woodside & Dubelaar, 2002). In this study, an underlying premise is that these trip-related characteristics are drivers of choice of transportation mode (Barros, 2012;Becken & Schiff, 2011;LaMondia et al, 2010). In other words, it is assumed that variation in tourists' trip-related characteristics -in short, trip complexity -will bring about "variation" in their choice of transportation mode.…”

Demand elasticity estimates for New Zealand tourism

“…Indeed, an earlier study on tourists' awareness and knowledge of prices of tourist attractions in Queenstown, New Zealand, found that accurate knowledge of prices is very low, and tourists' participation in an activity was more influenced by availability of time or appeal or previous experiences (Lawson, Gnoth, & Paulin, 1995). Recently, a study on the relationship between petrol prices and travel distance (by air or car) in New Zealand found that tourists are not sensitive to petrol prices but that factors such as length of stay, country of origin or travel style influence travel significantly (Becken & Schiff, 2010). Tourists' inelastic behaviour towards transport prices was also found in a study on rental cars in Spain (Palmer-Tous et al, 2007).…”