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Tourism Demand: Characteristics, Segmentation and Aggregation

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  • Clive L. Morley

    (Graduate School of Business, Royal Melbourne Institute of Technology, GPO Box 2476V, Melbourne, Victoria, 3001, Australia)

Abstract

This paper aims to advance the understanding of the micro-economic foundations of tourism demand theory, particularly through bringing out some of the implications of the tour characteristics approach to utility analysis, and also through explicitly linking the micro-economic theory of the individual tourist to the aggregate level demand models as actually estimated. Important implications of the tour characteristics theory are that it yields theoretical rationales for the importance of market segmentation of tourism demand, and for tourism product differentiation. Consideration of the aggregation issues in the particular context of tourism demand shows aggregation to be justified and feasible when the market is segmented. Market segmentation is shown to be theoretically important for good tourism demand models, supporting its generally observed practical usefulness. Alternatively, aggregation can be justified through a random utility argument that assumes independence of individuals' tour decisions.

Suggested Citation

  • Clive L. Morley, 1995. "Tourism Demand: Characteristics, Segmentation and Aggregation," Tourism Economics, , vol. 1(4), pages 315-328, December.
    • Handle: RePEc:sae:toueco:v:1:y:1995:i:4:p:315-328
    DOI: 10.1177/135481669500100401
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    Cited by:

    1. Rinaldo Brau & D. Cao, 2005. "Uncovering the macrostructure of tourists' preferences. A choice experiment analysis of tourism demand to Sardinia," Working Paper CRENoS 200514, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    2. Jean-Jacques Nowak & Sylvain Petit & Mondher Sahli, 2012. "Intra-Tourism Trade in Europe," Tourism Economics, , vol. 18(6), pages 1287-1311, December.
    3. Morley, Clive & Rosselló, Jaume & Santana-Gallego, Maria, 2014. "Gravity models for tourism demand: theory and use," Annals of Tourism Research, Elsevier, vol. 48(C), pages 1-10.
    4. Francisco J. Más & Juan Luis Nicolau, 2006. "A New Marketing Segmentation Approach Based On Marginal Individual Utilities: Applying Crm Is Not A Chimera Anymore," Working Papers. Serie EC 2006-16, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    5. Jaume Rosselló-Nadal & Jianan HE, 2020. "Tourist arrivals versus tourist expenditures in modelling tourism demand," Tourism Economics, , vol. 26(8), pages 1311-1326, December.

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