Return to tourist destination. Is it reputation, after all?

Abstract

In this paper the hypothesis that repeated purchases in the tourism markets could be considered as a consequence of asymmetrical information problems is studied. This hypothesis is analysed with the case study of the island of Tenerife using the estimation of a count data model. It was found that the length of the stay and the information obtained from previous visits and/or relatives and friends might increase the return to a destination suggesting the presence of a reputation mechanism as proposed by Shapiro (1983 Shapiro, C. 1983. Premiums for high quality products as returns to reputations. Quaterly Journal of Economics, 98: 659–79. [Crossref], [Web of Science ®] , [Google Scholar]). The determinants of the willingness to return were also estimated, confirming the main results.