Mode Choice and Value of Time on Long-Distance Vacation Trips

Abstract

Long-distance travel for leisure purposes, especially international travel, has grown dramatically over the past decades. Although its share of the total number of trips is small, it accounts for a significantly larger share of total distance and greenhouse gas emissions, with the accompanying adverse environmental consequences. One remedy might be to urge tourists to travel on vacation by rail rather than car, which is less harmful to the environment. However, it is not clear how to persuade them to do so, since knowledge of the determinants of mode choice for international vacation travel is quite limited. To fill this gap, we collected survey data among tourists, mostly international, visiting the Austrian Alps and estimated a choice model between personal vehicle and rail. The results revealed a cost dumping effect, and the significant influence of factors related to overall travel convenience, luggage transport, travel party size, and the accessibility of the destination by rail. The tourists reacted with little elasticity to changes in cost and travel time, and exhibited a higher value of time than in other studies on long-distance travel, which was also higher than the hourly wage in their home countries. This article delivers valuable evidence that could contribute to improved long-distance rail services, more accurate project appraisals, and better marketing campaigns and transportation policies to make rail more competitive against the personal vehicle, and facilitate more sustainable vacation travel.