StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Economic Valuation of Travel Costs - Assignment Example

Cite this document
Summary
The assignment "Economic Valuation of Travel Costs" focuses on the critical analysis of the major issues in the economic valuation of travel costs. The travel cost analysis is an economic valuation method that is used in the analysis of cost-benefit in calculating the value of a product…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.8% of users find it useful
Economic Valuation of Travel Costs
Read Text Preview

Extract of sample "Economic Valuation of Travel Costs"

The first step is to collect the travel cost and the visitation information or rather the data. Direct costs are the costs used in this method. They are the costs which are normally related to the whole process of visiting the National Botanic Gardens directly. The costs of fuel, accommodation, food, and all other expenses that will be required in the whole process are used. It is very important to ensure that all the travel costs to the National Botanic Gardens are represented in the calculation. The next thing is the travel time. A lot of weight should be given to this area. The appropriate value to assign to the travel time should be considered very carefully. It should be the wage rate when people do not have the option to work during the weekends. The children should also be included in the travel time. Visit time is that time spent while at the National Botanic Gardens. The best method to use is the individual method where the visit rate is normally calculated per individual in a given period. The factors that influence this rate are for that specific person. It does not require averaging and a lot of calculations. Some of the challenges that are involved in using this method include the presence of substitute sites. Those who prefer one site over the others have higher values compared to other people. This should be differentiated. Statistical problems might also affect the obtained results. The choice of the variables and the method used should be done very carefully to avoid this. There are also those people who live near the site to reduce transport costs and time during this travel. Their value is higher and this should be noted keenly. Most people also view travelling as a hobby and hence a great experience and not a huge cost. This should be noted during the calculations.

Averages across the zones normally limit the number of observations because you will only take groups of people and then divide them by the population of that zone. Working with individual counting increases the number of observations and hence a much more accurate result.

Multiple regression analysis uses the following formula: y = ax3 + bx2 + cx + d + , where a, b, c, d and e are the variables used in the calculations.

The environmental management decisions that are made under the conditions of risk are normally in situations where people or rather the managers lack the complete information on the issue at hand. This condition is rather difficult since the manager may comprehend the alternatives and the problem at hand, he or she does not have a guarantee on how each of the solutions will work out. When an unfamiliar problem comes up, haste decisions which had not been planned before are normally used to solve the current situation. This decision normally involves human judgment more than computer assistance. Since risks are normally bound to happen, putting early warning information about crises, and developing management crisis plans are the best ways to help avert these problems. This is the condition of risk where virtually no information is available to help know what will happen in the future and be in a position to take the necessary precautions. The managers or rather the involved parties will therefore be risking and will rely heavily on emergency decisions.

In a condition of uncertainty, the information is normally poor and the managers cannot be in a position to know the outcomes that are likely to occur. This condition is very difficult and the managers are normally left to rely more on their creativity in solving the arising problems. Guessing and intuition normally come in handy here but still leave room for errors. Groups work well in this situation as it helps in figuring out the probable problems. It is always advisable to stay put and be ready for the occurrence of such a situation. The best method of environmental decision-making is the rational method. I would use it in each of the two circumstances. It is an up-to-a-point method which is most applicable in cases where the data is limited and more uncertainty levels. It uses a series of simple equations that are used to predict a certain outcome. This method gives the most precise prediction of an outcome and s widely used in other areas of prediction such as calculating the runoff. The lack of uncertainty in assessing an investment in a nuclear waste containment facility in a region where earthquakes can be expected to occur is evident. This is because earthquakes can trigger the spilling of nuclear waste into the environment which can be very hazardous to both the people working in the plant as well as the environment. This risk is very high due to the earthquakes and it increases the levels of uncertainty. Therefore, when assessing this risk, the level of certainty is very low. The investor will know the necessary precautions to take before venturing into this deal. They will have full information on what to expect and what they are going into and thus be in a position to plan for a future problem or rather accident.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“EXAM PAPER Assignment Example | Topics and Well Written Essays - 750 words”, n.d.)
EXAM PAPER Assignment Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/environmental-studies/1489639-exam-paper
(EXAM PAPER Assignment Example | Topics and Well Written Essays - 750 Words)
EXAM PAPER Assignment Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/environmental-studies/1489639-exam-paper.
“EXAM PAPER Assignment Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/environmental-studies/1489639-exam-paper.
  • Cited: 0 times

CHECK THESE SAMPLES OF Economic Valuation of Travel Costs

The Problems of Innovating Travel

The paper "The Problems of Innovating travel" discusses that the impact of the global financial meltdown was also visible in the travel industry, particularly in the air travel and tour business.... Paradise Travels represents the majority of small independent air travel and tour operators and is the epitome of the problems and prospects they face.... Packaged travel market by tour operators and online travel agency packages, 2000-2008 (US$B) 3 Figure 2: U....
11 Pages (2750 words) Essay

The low-cost Airline Ryanair

The start-up costs as well as any materials and services the airlines use for their planes or operations make a large proportion of their costs.... In any industry, several forces in conjunction form the success or failure of any firm that operates in it.... These forces include those factors, which affect a business from outside its immediate environment, which is the macro environment....
3 Pages (750 words) Essay

Effect of sound on oyster

Effect of Sound on Oyster: Budget Proposal and Justification [Name of student] [Course code] [Instructor] [Date Due] Effect of Sound on Oyster: Budget Proposal and Justification The project is to take place at the Aquaculture Genetics and Breeding Technology Center (ABC) and is expected to take a maximum of 3 years when the oysters will be expected to have reached the market size and due for harvesting....
3 Pages (750 words) Essay

Marketing Service of Travel Agents

The author of the following paper "Marketing Service of travel Agents " argues in a well-organized manner that Thomas Cook was the first travel agent of the world when he began to run rail tours from Leicester to the region of Loughborough during the 1800s.... A personal credit card is mandated when any other vendor other than the UK is used and the amount of travel is reimbursed after the travel.... The aim of travel agents is to make the business efficient and pleasurable for the customers....
6 Pages (1500 words) Essay

Applications of Environmental Valuation for Determining Costs

The authors of the following article claim that in order to assess the effectiveness of the measures taken to control the environmental impact it becomes important that the costs and benefits of such measures are reduced to dollar terms so that a comparison is made possible.... This becomes necessary to guide the regulators and the companies to fix the priorities in adapting various technologies on the basis of the costs and benefits of the individual processes involved....
6 Pages (1500 words) Article

Critical Analysis of the Trends in Vehicle Miles Traveled

The travel frequency increases as a person matures to middle age.... Children may not directly produce VMT but they increase the travel demands for their parents.... travel requirements decreases as a person ages due to the decrease in the activity level and decrease in work related travels.... This is because the decreased levels caused by the aging population are countered by the increasing travel levels caused by the maturing young adults....
7 Pages (1750 words) Term Paper

A Significant Problem of the Airline Industry and the Profitability of the Company

Others reasons that intensify rivalry among budget airlines are the high fixed costs that require airlines to implement strategies to attract passengers and fill the airlines into the full capacity to attain the lowest cost per unit.... Because of these high fixed costs, a firm finds it hard to make an exit in the industry.... At present, there are 10 best budget airlines operating in Asia that has been rated by Smart Asia travel, an online travel magazine (rediff....
13 Pages (3250 words) Research Paper

Detailed Marketing Plan for Unlimited Travel International

The paper 'Detailed Marketing Plan for Unlimited travel International" is an exciting version of a case study on marketing.... The paper 'Detailed Marketing Plan for Unlimited travel International" is an exciting version of a case study on marketing.... The paper 'Detailed Marketing Plan for Unlimited travel International" is an exciting version of a case study on marketing.... TI should be considered as an agency delivering all services and which sells standard goods as well as services offered by travel agencies, including travel packages along with airfare....
13 Pages (3250 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us