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The impact of changes in household vacation expenditures on the travel and hospitality industries

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  • Fleischer, Aliza
  • Peleg, Gil
  • Rivlin (Byk), Judith

Abstract

Two large tourism industries, travel and hospitality, are strongly affected by changes in household demand for vacations. In recent years, rising income and declining prices per unit of quality have led to changes in patterns of household vacation consumption. To understand the impact of these changes on the travel and hospitality industries, we develop a theoretical model distinguishing between travel and on-site expenditures and apply it to Israeli data. We find that under certain circumstances, the changes in income and prices are responsible for a shift toward multiple, short vacations. This trend can be a boon to the travel industry but a disadvantage for the hospitality industry. Both industries are expected to face a rise in the demand for high-quality products.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:touman:v:32:y:2011:i:4:p:815-821
    DOI: 10.1016/j.tourman.2010.07.003
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    References listed on IDEAS

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    2. Ruben van Loon & Jan Rouwendal, 2013. "Vacation Behaviour: Frequency, Destination Choice and Expenditures," Tourism Economics, , vol. 19(5), pages 1005-1026, October.
    3. Carlos Sampaio & João Renato Sebastião & Luís Farinha, 2024. "Hospitality and Tourism Demand: Exploring Industry Shifts, Themes, and Trends," Societies, MDPI, vol. 14(10), pages 1-14, October.
    4. Wang, Yangjie & Zang, Shoujuan & Qiang, Hongjie & Wang, Jinxian, 2023. "Air pollution disclosing and tourism: Who are winners?," Annals of Tourism Research, Elsevier, vol. 103(C).
    5. Wang, Yu Shan, 2014. "Effects of budgetary constraints on international tourism expenditures," Tourism Management, Elsevier, vol. 41(C), pages 9-18.
    6. Gómez–Déniz, E. & Pérez–Rodríguez, J.V., 2019. "Modelling distribution of aggregate expenditure on tourism," Economic Modelling, Elsevier, vol. 78(C), pages 293-308.
    7. Berta Ferrer-Rosell & Germà Coenders & Glòria Mateu-Figueras & Vera Pawlowsky-Glahn, 2016. "Understanding Low-Cost Airline Users' Expenditure Patterns and Volume," Tourism Economics, , vol. 22(2), pages 269-291, April.
    8. Alén, Elisa & Nicolau, Juan Luis & Losada, Nieves & Domínguez, Trinidad, 2014. "Determinant factors of senior tourists’ length of stay," Annals of Tourism Research, Elsevier, vol. 49(C), pages 19-32.
    9. Grigolon, Anna B. & Kemperman, Astrid D.A.M. & Timmermans, Harry J.P., 2012. "The influence of low-fare airlines on vacation choices of students: Results of a stated portfolio choice experiment," Tourism Management, Elsevier, vol. 33(5), pages 1174-1184.
    10. Bronner, Fred & de Hoog, Robert, 2014. "Vacationers and the economic “double dip” in Europe," Tourism Management, Elsevier, vol. 40(C), pages 330-337.
    11. Chia-Yu Yeh & Kang Ernest Liu, 2019. "Modeling Household Participation Decisions Between Domestic And International Trips By Semi-Nonparametric Regressions," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(01), pages 191-211, March.
    12. Carmen Pérez-Cabañero & Amparo Cervera-Taulet & Walesska Schlesinger, 2017. "Analysis of the impact of length of stay on the quality of service experience, satisfaction and loyalty," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 14(2), pages 253-268, June.
    13. Losada, Nieves & Alén, Elisa & Domínguez, Trinidad & Nicolau, Juan Luis, 2016. "Travel frequency of seniors tourists," Tourism Management, Elsevier, vol. 53(C), pages 88-95.
    14. José F Baños-Pino & David Boto-García & Eduardo Del Valle & Inés Sustacha, 2023. "The impact of COVID-19 on tourists’ length of stay and daily expenditures," Tourism Economics, , vol. 29(2), pages 437-459, March.

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