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).