we want christmas presents!

My colleague is recommending rational choice paradigm of decision making.

It depends.

It is relevant in this situation that in view of the company's expenses, they should employ this decision-making approach when deciding the trip. Using this approach, all the factors would be weighed with no biasness and the best option would be chosen. This will be in view with the company's benefit and the least cost option chosen. As such, the colleague, who is under the financial planning department of the company, recommended this approach.
However, there are other implications, not only the importance of helping the company to save money. The best option for the company might not be the best for the employees. The 2000 employees will definitely have different needs and requirements. As such, it cannot be viewed only from the companies perspective and choose the best option to the company. Also, this approach is rather idealistic. As humans are defintely bias in our decision making, we often will be swayed by other factors such as emotions and judgements. Thus, we often choose a solution that is good but not necessary the best, and definitely not the best to everyone.
I think a better approach would be having a few options available and then allowing the employees to choose. They can have different trips to different places of their choice and perhaps this will be more satisfying than just 1 option.

tecky the living dead
and dokey the donut that died.