A Microeconomics Analysis of the Per Diem Expenditure of British Travellers

Abstract The aim of this paper is to analyse factors that affect expenditure patterns of British travellers. It is the first study which focuses solely on this market. Using an original questionnaire, data are collected and a sample of 1178 is retained. To obtain robust estimates, the data are analysed using quantile regression technique. The study shows that income length of stay, employment status and types of accommodation used are important factors affecting per diem expenditure. The study contributes to the literature by investigating an additional dimension of demand determinant by analysing the effect of variables related to the home country. Transfer cost in the UK is found to be significant in determining total tourism expenditure abroad.