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 invol...

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Main Authors: Wen, Long, Liu, Chang, Song, Haiyan, Liu, Han
Format: Article
Language:English
Published: 2020
Subjects:
Online Access:https://eprints.nottingham.ac.uk/60293/
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author Wen, Long
Liu, Chang
Song, Haiyan
Liu, Han
author_facet Wen, Long
Liu, Chang
Song, Haiyan
Liu, Han
author_sort Wen, Long
building Nottingham Research Data Repository
collection Online Access
description 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.
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spelling nottingham-602932020-04-13T01:15:26Z https://eprints.nottingham.ac.uk/60293/ Forecasting tourism demand with an improved mixed data sampling model Wen, Long Liu, Chang Song, Haiyan Liu, Han 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. 2020-03-16 Article PeerReviewed application/pdf en cc_by https://eprints.nottingham.ac.uk/60293/1/Long%20wen%20merged.pdf Wen, Long, Liu, Chang, Song, Haiyan and Liu, Han (2020) Forecasting tourism demand with an improved mixed data sampling model. Journal of Travel Research . 004728752090622. ISSN 0047-2875 (In Press) Tourism demand forecasting; MIDAS; Search query data; Generalised dynamic factor model; Nowcasts http://dx.doi.org/10.1177/0047287520906220 doi:10.1177/0047287520906220 doi:10.1177/0047287520906220
spellingShingle Tourism demand forecasting; MIDAS; Search query data; Generalised dynamic factor model; Nowcasts
Wen, Long
Liu, Chang
Song, Haiyan
Liu, Han
Forecasting tourism demand with an improved mixed data sampling model
title Forecasting tourism demand with an improved mixed data sampling model
title_full Forecasting tourism demand with an improved mixed data sampling model
title_fullStr Forecasting tourism demand with an improved mixed data sampling model
title_full_unstemmed Forecasting tourism demand with an improved mixed data sampling model
title_short Forecasting tourism demand with an improved mixed data sampling model
title_sort forecasting tourism demand with an improved mixed data sampling model
topic Tourism demand forecasting; MIDAS; Search query data; Generalised dynamic factor model; Nowcasts
url https://eprints.nottingham.ac.uk/60293/
https://eprints.nottingham.ac.uk/60293/
https://eprints.nottingham.ac.uk/60293/