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Quality, Quantity and Duration Decisions in Household Demand for Vacations

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  • Aliza Fleischer
  • Judith Rivlin (Byk)

Abstract

A trend observed recently in the household demand for vacations has been towards multiple but shorter vacations and higher-quality tourism services. It is argued in this paper that analysing vacation expenditure without distinguishing between its components – the quality, quantity and duration of vacations – can be misleading. The authors develop a theoretical model to analyse the properties of household demand functions for these vacation components. By applying the model to Israeli data, they find that the rise in income and quality-adjusted price are responsible for the increase in the number of vacations and their level of quality. The increase in the wage rate (time cost) is the main impetus behind the observed trend towards short vacations.

Suggested Citation

  • Aliza Fleischer & Judith Rivlin (Byk), 2009. "Quality, Quantity and Duration Decisions in Household Demand for Vacations," Tourism Economics, , vol. 15(3), pages 513-530, September.
    • Handle: RePEc:sae:toueco:v:15:y:2009:i:3:p:513-530
    DOI: 10.5367/000000009789036558
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    References listed on IDEAS

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    1. Anat Tchetchik & Aliza Fleischer & Israel Finkelshtain, 2008. "Differentiation and Synergies in Rural Tourism: Estimation and Simulation of the Israeli Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 553-570.
    2. Lindsay W. Turner & Stephen F. Witt, 2001. "Factors Influencing Demand for International Tourism: Tourism Demand Analysis Using Structural Equation Modelling, Revisited," Tourism Economics, , vol. 7(1), pages 21-38, March.
    3. M. Thea Sinclair, 1997. "Tourism and Economic Development: A Survey," Studies in Economics 9703, School of Economics, University of Kent.
    4. Larry Dwyer & Peter Forsyth (ed.), 2006. "International Handbook on the Economics of Tourism," Books, Edward Elgar Publishing, number 2827.
    5. Dimitris Skuras & Anastasia Petrou & Gordon Clark, 2006. "Demand for rural tourism: the effects of quality and information," Agricultural Economics, International Association of Agricultural Economists, vol. 35(2), pages 183-192, September.
    6. Diansheng Dong & J.S. Shonkwiler & Oral Capps, 1998. "Estimation of Demand Functions Using Cross-Sectional Household Data: The Problem Revisited," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 466-473.
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    Citations

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    Cited by:

    1. Chuanyong Zhang & Guoliang Feng, 2018. "More wealth, less leisure? Effect of housing wealth on tourism expenditure in China," Tourism Economics, , vol. 24(5), pages 526-540, August.
    2. Wang, Yu Shan, 2014. "Effects of budgetary constraints on international tourism expenditures," Tourism Management, Elsevier, vol. 41(C), pages 9-18.
    3. Glauber Eduardo de Oliveira Santos, 2016. "An efficient method for modelling tourists’ length of stay," Tourism Economics, , vol. 22(6), pages 1367-1379, December.
    4. Nicolas Fleury & Sylvain Petit & Aurélie Cassette, 2012. "Income inequalities and international trade in goods and services: short and long-run evidence," Post-Print hal-01831503, HAL.
    5. Bernini, Cristina & Cracolici, Maria Francesca, 2015. "Demographic change, tourism expenditure and life cycle behaviour," Tourism Management, Elsevier, vol. 47(C), pages 191-205.
    6. Paulo H A Feitosa & Amanda B A Silva, 2022. "Length of stay and satisfaction shaping the competitiveness of international business tourism in São Paulo city, Brazil," Tourism Economics, , vol. 28(3), pages 728-747, May.
    7. Cristina Bernini & Maria Francesca Cracolici, 2014. "Is Participation in Tourism Market an Opportunity for Everyone? Some Evidence from Italy," Working Papers 2014.17, Fondazione Eni Enrico Mattei.
    8. Thrane, Christer, 2012. "Analyzing tourists’ length of stay at destinations with survival models: A constructive critique based on a case study," Tourism Management, Elsevier, vol. 33(1), pages 126-132.
    9. Fleischer, Aliza & Peleg, Gil & Rivlin (Byk), Judith, 2011. "The impact of changes in household vacation expenditures on the travel and hospitality industries," Tourism Management, Elsevier, vol. 32(4), pages 815-821.

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