TY - JOUR
T1 - An application of Multinomial Logit Model (MNL) on tourist destination choices
AU - Nurlaela, S.
N1 - Publisher Copyright:
© Published under licence by IOP Publishing Ltd.
PY - 2018/11/27
Y1 - 2018/11/27
N2 - This paper provides an analysis of multinomial logit model (MNL) on tourist destination choice. The choice set consisted of the Tropical North Queensland (TNQ), competed with the California Beach, the Cornwall Beach, and "No Travel" choice. The MNL model was used to identify the best scenario that gave the TNQ a market leadership in accordance with good budget performances. A scenario was developed by testing variable price combined with dummy variable of increasing family facilities; then testing the scenario based on the combination of willingness to pay (WTP) and elasticity analysis. Findings reported the best scenario was a combination of policy on the price and family facilities which made TNQ lead the markets and gave the highest revenues. Furthermore, the elasticity analysis was conducted to understand the impact of policy changes on the model outputs. The result showed that the market share and revenue of TNQ under the chosen scenario still exceed the performances of other scenarios. It was worth noting that these additional revenues raised from the chosen scenario ($71.662) cannot exceed the cost for family facility improvements; otherwise there was no policy visible than "do nothing" scenario.
AB - This paper provides an analysis of multinomial logit model (MNL) on tourist destination choice. The choice set consisted of the Tropical North Queensland (TNQ), competed with the California Beach, the Cornwall Beach, and "No Travel" choice. The MNL model was used to identify the best scenario that gave the TNQ a market leadership in accordance with good budget performances. A scenario was developed by testing variable price combined with dummy variable of increasing family facilities; then testing the scenario based on the combination of willingness to pay (WTP) and elasticity analysis. Findings reported the best scenario was a combination of policy on the price and family facilities which made TNQ lead the markets and gave the highest revenues. Furthermore, the elasticity analysis was conducted to understand the impact of policy changes on the model outputs. The result showed that the market share and revenue of TNQ under the chosen scenario still exceed the performances of other scenarios. It was worth noting that these additional revenues raised from the chosen scenario ($71.662) cannot exceed the cost for family facility improvements; otherwise there was no policy visible than "do nothing" scenario.
KW - Choice modeling
KW - Multinomial logit model (MNL)
KW - the Elasticity analysis
KW - the Willingness to pay (WTP)
KW - tourist destination choice
UR - http://www.scopus.com/inward/record.url?scp=85058093526&partnerID=8YFLogxK
U2 - 10.1088/1755-1315/202/1/012021
DO - 10.1088/1755-1315/202/1/012021
M3 - Conference article
AN - SCOPUS:85058093526
SN - 1755-1307
VL - 202
JO - IOP Conference Series: Earth and Environmental Science
JF - IOP Conference Series: Earth and Environmental Science
IS - 1
M1 - 012021
T2 - 2017 CITIES International Conference: Multi Perspectives on Peri-Urban Dynamics Towards Sustainable Development
Y2 - 18 October 2017
ER -