Analysis of attendees' expenditure patterns to recurring annual events: Examining the joint effects of repeat attendance and travel distance

This study examines the changes in expenditure patterns of attendees to recurring annual events, with specific emphasis on the effects of repeat attendance and travel distance. This study utilizes a unique dataset accumulated from six consecutive years at a recurring annual event hosted in Miami, United States. By using the Almost Ideal Demand System (AIDS), we estimate price elasticities and cross-price elasticities among tourist expenditure categories, while jointly examining the effects from the trip characteristics of repeat attendance and travel distance. From the econometric analysis, we find expenditure, own-price, and cross-price elasticities that conform to the literature and confirm the strong inter-relationship among the respective categories of the overall travel budget. In addition, our results confirm a significant difference in expenditure patterns between first time and repeat attendees, as well as between long haul and short haul travelers.