Heckit modelling of tourist expenditure: evidence from Spain

Purpose - This study intends to decompose the tourist choice process into two stages (decision to take a holiday and tourist expenditure), and to propose and test various expectations on the dimensions which explain the above decisions. Design/methodology/approach - In order to simultaneously model the two decisions, we use a system of equations based on the Heckit model. Findings - The dimensions affecting the decision to go on holiday are income, household size, education, size of the city of origin and opinion of going on holiday. The determinant factors influencing the level of expenditure are distance between origin and destination, type of accommodation, income, household size, age, marital status and length of stay. An important finding of this analysis is the differentiated effect of a given dimension on each decision. Research limitations/implications - The lack of information on some explanatory dimensions. Joint modelling. The spending decision should be modelled jointly with the decision to go on holiday due to the dependency between them. Practical implications - The promotion of destinations should be developed with special attention paid to some faraway markets of origin, due to the expected propensity for these tourists to spend longer periods at the destination. The specialisation of destinations in terms of accommodation type and length of stay. The design of holiday packages should be adapted to the needs of the tourists identified, as they represent the most profitable tourist profiles. Originality/value - The particular findings, and the research and practical implications proposed show the relevance of the topic analysed. Also, these aspects are backed by a sample of 3,781 individuals, which assures the robustness of the results.