New Developments in Tourism and Hotel Demand Modeling and Forecasting

Abstract Purpose The purpose of the study is to review recent studies published from 2007-2015 on tourism and hotel demand modeling and forecasting with a view to identifying the emerging topics and methods studied and to pointing future research directions in the field. Design/Methodology/approach Articles on tourism and hotel demand modeling and forecasting published in both science citation index (SCI) and social science citation index (SSCI) journals were identified and analyzed. Findings This review found that the studies focused on hotel demand are relatively less than those on tourism demand. It is also observed that more and more studies have moved away from the aggregate tourism demand analysis, while disaggregate markets and niche products have attracted increasing attention. Some studies have gone beyond neoclassical economic theory to seek additional explanations of the dynamics of tourism and hotel demand, such as environmental factors, tourist online behavior and consumer confidence indicators, among others. More sophisticated techniques such as nonlinear smooth transition regression, mixed-frequency modeling technique and nonparametric singular spectrum analysis have also been introduced to this research area. Research limitations/implications The main limitation of this review is that the articles included in this study only cover the English literature. Future review of this kind should also include articles published in other languages. The review provides a useful guide for researchers who are interested in future research on tourism and hotel demand modeling and forecasting. Practical implications This review provides important suggestions and recommendations for improving the efficiency of tourism and hospitality management practices. Originality/value The value of this review is that it identifies the current trends in tourism and hotel demand modeling and forecasting research and points out future research directions

Modelling tourism demand to Spain with machine learning techniques. The impact of forecast horizon on model selection

This study assesses the influence of the forecast horizon on the forecasting performance of several machine learning techniques. We compare the fo recastaccuracy of Support Vector Regression (SVR) to Neural Network (NN) models, using a linear model as a benchmark. We focus on international tourism demand to all seventeen regions of Spain. The SVR with a Gaussian radial basis function kernel outperforms the rest of the models for the longest forecast horizons. We also find that machine learning methods improve their forecasting accuracy with respect to linear models as forecast horizons increase. This results shows the suitability of SVR for medium and long term forecasting.Peer ReviewedPostprint (published version

Analysing and forecasting tourism demand in Vietnam with artificial neural networks

Mestrado APNORVietnam has experienced a tourism boom over the last decade with more than 18 million international tourists in 2019, compared to 1.5 million twenty-five years ago. Tourist spending has translated into rising employment and income for the tourism sector, making it the key driver to the socio-economic development of the country. Facing the COVID-19 pandemic, Vietnam´s tourism has suffered extreme economic losses. However, the number of international tourists is expected to reach the pre-pandemic levels in the next few years after the COVID-19 pandemic subsides. Forecasting tourism demand plays an essential role in predicting future economic development. Accurate predictions of tourism volume would facilitate decision-makers and managers to optimize resource allocation as well as to balance environmental and economic aspects. Various methods to predict tourism demand have been introduced over the years. One of the most prominent approaches is Artificial Neural Network (ANN) thanks to its capability to handle highly volatile and non-linear data. Given the significance of tourism to the economy, a precise forecast of tourism demand would help to foresee the potential economic growth of Vietnam. First, the research aims to analyse Vietnam´s tourism sector with a special focus on international tourists. Next, several ANN architectures are experimented with the datasets from 2008 to 2020, to predict the monthly number of international tourists traveling to Vietnam including COVID-19 lockdown periods. The results showed that with the correct selection of ANN architectures and data from the previous 12 months, the best ANN models can forecast the number of international tourists for next month with a MAPE between 7.9% and 9.2%. As the method proves its forecasting accuracy, it would serve as a valuable tool for Vietnam´s policymakers and firm managers to make better investment and strategic decisions to promote tourism after the COVID-19 situation.O Vietname conheceu um boom turístico na última década com mais de 18 milhões de turistas internacionais em 2019, em comparação com 1,5 milhões há vinte e cinco anos. As despesas turísticas traduziram-se num aumento do emprego e de receitas no sector do turismo, tornando-o no principal motor do desenvolvimento socioeconómico do país. Perante a pandemia da COVID-19, o turismo no Vietname sofreu perdas económicas extremas. Porém, espera-se que o número de turistas internacionais, pós pandemia da COVID-19, atinja os níveis pré-pandémicos nos próximos anos. A previsão da procura turística desempenha um papel essencial na previsão do desenvolvimento económico futuro. Previsões precisas facilitariam os decisores e gestores a otimizar a afetação de recursos, bem como o equilíbrio entre os aspetos ambientais e económicos. Vários métodos para prever a procura turística têm sido introduzidos ao longo dos anos. Uma das abordagens mais proeminentes assenta na metodologia das Redes Neuronais Artificiais (ANN) dada a sua capacidade de lidar com dados voláteis e não lineares. Dada a importância do turismo para a economia, uma previsão precisa da procura turística ajudaria a prever o crescimento económico potencial do Vietname. Em primeiro lugar, a investigação tem por objetivo analisar o sector turístico do Vietname com especial incidência nos turistas internacionais. Em seguida, várias arquiteturas de ANN são experimentadas com um conjunto de dados de 2008 a 2020, para prever o número mensal de turistas internacionais que se deslocam ao Vietname, incluindo os períodos de confinamento relacionados com a COVID-19. Os resultados mostraram, com a correta seleção de arquiteturas ANN e dados dos 12 meses anteriores, os melhores modelos ANN podem prever o número de turistas internacionais para o próximo mês com uma MAPE entre 7,9% e 9,2%. Como o método evidenciou a sua precisão de previsão, o mesmo pode servir como uma ferramenta valiosa para os decisores políticos e gestores de empresas do Vietname, pois irá permitir fazer melhores investimentos e tomarem decisões estratégicas para promover o turismo pós situação da COVID-19

A regional perspective on the accuracy of machine learning forecasts of tourism demand based on data characteristics

In this work we assess the role of data characteristics in the accuracy of machine learning (ML) tourism forecasts from a spatial perspective. First, we apply a seasonal-trend decomposition procedure based on non-parametric regression to isolate the different components of the time series of international tourism demand to all Spanish regions. This approach allows us to compute a set of measures to describe the features of the data. Second, we analyse the performance of several ML models in a recursive multiple-step-ahead forecasting experiment. In a third step, we rank all seventeen regions according to their characteristics and the obtained forecasting performance, and use the rankings as the input for a multivariate analysis to evaluate the interactions between time series features and the accuracy of the predictions. By means of dimensionality reduction techniques we summarise all the information into two components and project all Spanish regions into perceptual maps. We find that entropy and dispersion show a negative relation with accuracy, while the effect of other data characteristics on forecast accuracy is heavily dependent on the forecast horizon

Forecasting tomorrow’s tourist

Purpose: This study aims to present a very recent literature review on tourism demand forecasting based on 50 relevant articles published between 2013 and June 2016. Design/methodology/approach: For searching the literature, the 50 most relevant articles according to Google Scholar ranking were selected and collected. Then, each of the articles were scrutinized according to three main dimensions: the method or technique used for analyzing data; the location of the study; and the covered timeframe. Findings: The most widely used modeling technique continues to be time series, confirming a trend identified prior to 2011. Nevertheless, artificial intelligence techniques, and most notably neural networks, are clearly becoming more used in recent years for tourism forecasting. This is a relevant subject for journals related to other social sciences, such as Economics, and also tourism data constitute an excellent source for developing novel modeling techniques. Originality/value: The present literature review offers recent insights on tourism forecasting scientific literature, providing evidences on current trends and revealing interesting research gaps.info:eu-repo/semantics/submittedVersio

Visa trial of international trade: evidence from support vector machines and neural networks

International trade depends on networking, interaction and in-person meetings which stimulate cross-border travels. The countries are seeking policies to encourage inbound mobility to support bilateral trade, tourism, and foreign direct investments. Some nations have been implementing liberal visa regimes as an important part of facilitating policies in view of security concerns. Turkey has been among the nations introducing liberal visa policies to support trade in the last decade and recorded significant increases in the volumes of exports. In this paper, we employed machine learning methodologies, Support vector machines (SVM) and Neural networks (NN), to investigate the facilitating impact of liberal visa policies on bilateral trade, using the export data from Turkey for the period of 2000–2014. The research disentangled the variables that have the strongest impact on trade utilizing SVM and NN models and exhibited that visa policies have significant impacts on the bilateral trade. More relaxed visa policies are recommended for the countries in the pursuit of increasing exports

Tourism demand modelling and forecasting : a review of recent research

2007-2008 > Academic research: refereed > Publication in refereed journalAccepted ManuscriptPublishe

A regional perspective on the accuracy of machine learning forecasts of tourism demand based on data characteristics

Working paperIn this work we assess the role of data characteristics in the accuracy of machine learning (ML) tourism forecasts from a spatial perspective. First, we apply a seasonal-trend decomposition procedure based on non-parametric regression to isolate the different components of the time series of international tourism demand to all Spanish regions. This approach allows us to compute a set of measures to describe the features of the data. Second, we analyse the performance of several ML models in a recursive multiple-step-ahead forecasting experiment. In a third step, we rank all seventeen regions according to their characteristics and the obtained forecasting performance, and use the rankings as the input for a multivariate analysis to evaluate the interactions between time series features and the accuracy of the predictions. By means of dimensionality reduction techniques we summarise all the information into two components and project all Spanish regions into perceptual maps. We find that entropy and dispersion show a negative relation with accuracy, while the effect of other data characteristics on forecast accuracy is heavily dependent on the forecast horizon.Preprin

Forecasting tourism demand with an improved mixed data sampling model

Search query data reflect users’ intentions, preferences and interests. The interest in using such data to forecast tourism demand has increased in recent years. The mixed data sampling (MIDAS) method is often used in such forecasting, but is not effective when moving average (MA) dynamics are involved. To investigate the relevance of the MA components in MIDAS models to tourism demand forecasting, an improved MIDAS model that integrates MIDAS and the seasonal autoregressive integrated moving average process is proposed. Its performance is tested by forecasting monthly tourist arrivals in Hong Kong from mainland China with daily composite indices constructed from a large number of search queries using the generalised dynamic factor model. The forecasting results suggest that this new model significantly outperforms the benchmark model. In addition, comparing the forecasts and nowcasts shows that the latter generally outperform the former