Econometric Models

Researchers in the tourism and hospitality field use various econometric models to investigate complex economic phenomena relevant to the tourism and hospitality industry. The econometric models include techniques such as ordinary least squares regression for cross-sectional data, autoregressive integrated moving average for time series data, and panel fixed or random effects models for combined panel data analysis. Certainly, econometric modeling is a powerful tool for understanding economic relationships in the context of tourism and hospitality research. However, choosing the right model is crucial, as using the wrong model can lead to inaccurate, unreliable, and misleading results. Therefore, this chapter aims to serve as a practical guide on applying common econometric models in tourism and hospitality research, focusing specifically on economic models, to help tourism and hospitality researchers apply common econometric techniques appropriately, ultimately strengthening the rigor and validity of empirical studies in tourism and hospitality research.