Identifying the factors affecting tourism expenditure with emphasis on the family life cycle

Document Type : Research Article

Authors

1 Department of Tourism Management, Faculty of Management & Accounting, Allameh Tabataba’i University, Tehran, Iran

2 Tourism Management, Faculty of Management & Accounting, Allameh Tabataba’i University, Tehran, Iran

Abstract

Abstract
A proper understanding of tourists' spending patterns makes it possible for policy makers, planners, marketers and researchers to examine the economic interaction of tourists with the destination community. Families are the main consumers of tourism products; Therefore, it is important to understand and explain the characteristics of household consumption and the factors affecting it, so that tourism policies and marketing strategies are well adopted. The basic question in this research is whether the amount of money spent by Iranian households per household member on domestic trips undergoes significant changes due to economic, demographic, psychological and travel-related characteristics; And to what extent do these factors determine the cost? This research, using a systematic approach at the level of micro-economics, has answered this question and tries to encourage other researchers to enter this issue. The data of this research includes the economic, demographic and psychological characteristics of 628 Iranian households and information related to their last domestic trip until the end of 2018 and before the official outbreak of the corona virus in Iran. The results of this research show the influence of the amount of expenses of the households on the indicators of income, age, education and the type of occupation of the caretaker, the number of dependent and independent children, the number of family members on the trip, the use of a private vehicle and staying at relatives' houses during the trip and the importance Recreational trips are in the consumption basket of the household. Also, after comparing the amount of expenditure of households in different stages of the household life cycle, it was found that the stages of couples without children, single, the third phase of full nest and single parent, respectively, have the highest amount of expenditure on tourism, and the least amount belongs to widowed households. . At the end, suggestions were presented in order to increase financial circulation and benefit as much as possible from the supply chain of tourism in Iran, which can be a suitable guide for future policies in tourism.
Extended Abstract
Introduction
Studying travel behavior patterns is one of the necessities for managers involved in strategic and sustainable tourism plans; for example, a proper understanding of tourist expenditure patterns allows policymakers, planners, marketers, and researchers to examine tourist economic interaction with tourism destinations. In addition, families are the main consumers of tourism products; therefore, it is important to understand and explain the characteristics of household consumption and the factors affecting it; also, since tourism is generally a recreational activity, children are expected to play an important role in choosing destination tourism activities and household expenses. The main question in this study is whether the expenditure level of Iranian households per member on domestic trip is significantly affected by economic, demographic, psychological, and trip-related characteristics, and to what extent do these factors determine the expenditure? Considering the demographic characteristics of household size and composition, the study of expenditure changes during different family life cycle stages is another goal of this study. Lack of studies on tourist expenditure and the factors affecting it in Iran, as well as the lack of basic attention to household structure, as a powerful factor affecting the behavior of tourists, are the distinguishing features and motivations of this study.
 
Methodology
Using a systematic approach at the microeconomic level, this research answers this question and encourages other researchers to enter into this issue. This research is scientifically based on the purpose, and in terms of method and nature, is a correlation study. The data of this study include economic, demographic and psychological characteristics of 628 Iranian households and information related to their last domestic trip until the end of 2020 March, and before the official outbreak of Covid-19 in Iran, which was collected through an electronic questionnaire. To analyze the data of this study and examine the correlation between independent and dependent variables, ANOVA and multivariate regression tests in SPSS 26 software were used. According to the conceptual framework of the research, 12 independent variables were selected for the study, which are: income, age and education of the caregiver, type of job and conservatism of the householder, number of family members traveling, use of personal vehicle and staying at relatives at the destination, number of independent and dependent children, family life cycle and the importance of recreational trips in the household consumption basket. The dependent variable in this study is the amount of household expenditure per person/per night during the trip.
 
Results and Discussion
The results of this study show a positive correlation between household expenditure per person/per night with the variables of household income, age and education of the householder, and also the importance of leisure trips in the household consumption basket. On the other hand, it was found that if you use a personal vehicle and stay at relatives' during the trip, expenditure will be significantly reduced. Also, with the increase in the number of family members present on the trip and the number of dependent and independent children, the expenditure decreases. Considering the comparison of the average household expenditure with different types of occupations, it was found that householders with non-governmental occupations had the highest expenditure and students the lowest. Finally, after comparing the average household expenditure in different stages of the family life cycle, it was found that the stages of a married couple without a child, single, complete nest phase 3 and single parent, respectively, have the highest expenditure, while the lowest belongs to widows.
 
 
Conclusion
According to the findings of this study, most of the households used to travel in a personal vehicle and about half of them did not pay for their accommodation. This indicates the low expenditure for Iranian households as well as the preference for private vehicles over other modes of transportation, which is suggested that further research study the causes of this phenomenon. The results of this research model differ in different societies due to the diversity of demographic, economic and psychological characteristics. However, most researchers believe that enhance of economic situation and education lead to more spend money on travel, which underscores the importance of targeting the elite and wealthy markets, especially in less developed or developing countries. Finally, suggestions are provided to increase turnover and benefit the tourism supply chain in Iran as much as possible, which can be a proper guide for future policies in tourism; including the creation of recreational facilities, leisure activities and tourism experiences tailored to the tastes of children in domestic tourism destinations. These suggestions could be used by tourism policymakers, planners, and marketers.

Keywords


  1. Agarwal, V. B., & Yochum, G. R. (1999) Tourist spending and race of visitors, Journal of Travel Research, Vol.38, No.2, pp.173-176.
  2. Alegre, J., & Pou, L. (2016) US household tourism expenditure and the great recession: An analysis with the consumer expenditure survey, Tourism Economics, Vol.22, No.3, pp.608-620.
  3. Alegre, J., Mateo, S., & Pou, L. (2010) An analysis of households' appraisal of their budget constraints for potential participation in tourism, Tourism Management, Vol.31, No.1, pp.45-56.
  4. Alegre, J., Mateo, S., & Pou, L. (2013) Tourism participation and expenditure by Spanish households: The effects of the economic crisis and unemployment, Tourism Management, Vol.39, pp.37-49.
  5. Altinay, L., & Paraskevas, A. (2016) Planning research in hospitality and tourism, Translated by Sadegh Salehi, Pegah Izadi, Salar Kahzadi, & Zahra Pazoukinejad, Tehran: Mahkameh. 1) [In Persian]
  6. Asgari, A., & Mehregan, N. (2001) Estimating the willingness of visitors to pay for historical and cultural heritage using CVM: Sample of Hamedan Treasury, Journal of Growth and Sustainable Development Research (Economic Research), Vol.1, No.2, pp.93-115. 1) [In Persian]
  7. Badri, S. A., & Tayebi, S. (2012) Investigating the Factors Affecting the Costs of Religious Tourism Case Study: Holy Mashhad, Journal of Tourism Planning and Development, Vol.1, No.1, pp.153-177. 1) [In Persian]
  8. Bernini, C., & Cracolici, M. F. (2015) Demographic change, tourism expenditure and life cycle behavior, Tourism Management, Vol.47, pp.191-205.
  9. Cai, L. A. (1998) Analyzing Household Food Expenditure Patterns on Trips and Vacations: a Tobit Model, Journal of Hospitality & Tourism Research, Vol.22, No.4, pp.338-358.
  10. Carr, N. (2011) Children's and families' holiday experience, Vol. 22, Routledge.
  11. Chiappa, G., Loriga, S., & Meleddu, M. (2020) Determinants of travellers’ expenditures at airports, European Journal of Tourism Research, Vol.26, p.2605.
  12. Cox III, E. P. (1975) Family purchase decision making and the process of adjustment, Journal of Marketing Research, Vol.12, No.2, pp.189-195.
  13. Cragg, J. G. (1971) Some statistical models for limited dependent variables with application to the demand for durable goods, Econometrica: journal of the Econometric Society, Vol.39, No.5, pp.829-844.
  14. D’Urso, P., Disegna, M., & Massari, R. (2020) Satisfaction and tourism expenditure behavior, Social Indicators Research, Vol.149, pp.1081-1106.
  15. Dardis, R., Soberon-Ferrer, H., & Patro, D. (1994) Analysis of Leisure Expenditures in the United States, Journal of Leisure Research, Vol.26, No.4, pp.309-321.
  16. Downward, P., & Lumsdon, L. (2000) The demand for day-visits: an analysis of visitor spending, Tourism Economics, Vol.6, No.3, pp.251-261
  17. Farajzadeh, Z., Soltani, G., & Roustaie, M. (2009) Estimating the willingness of visitors to pay for Pasargad historical complex and analyzing the factors affecting it: Application of conditional valuation method (CVM), Quarterly Journal of Economic Research, Vol.9, No.4, pp.89-111. 1) [In Persian]
  18. Fratu, D. (2011) Factors of influence and changes in the tourism consumer behaviour. Bulletin of the Transilvania University of Brasov, Economic Sciences, Series V, Vol.4(53), No.1, pp.119-126.
  19. Fredman, P. (2008) Determinants of visitor expenditures in mountain tourism, Tourism Economics, Vol.14, No.2, pp.297-311.
  20. Ghaderi, E., Hosseinjani, F., & Moradi Gheshlaghi, F. (2016) Investigating the pattern of tourism expenditure among social classes, Journal of Heritage and Tourism, Vol.1, No.3, pp.13-35. 1) [In Persian]
  21. Hafeznia, M. (2020) Introduction to research methodology in human science, Tehran: SAMT. 1) [In Persian]
  22. Haq, Z. U., Ullah, Z., & Sajjad. (2019) Households’ participation in and expenditure on recreation and tourism in Pakistan, Asia Pacific Journal of Tourism Research, Vol.24, No.3, pp.206-218.
  23. Hayati, B., & Khadem Baladipour, T. (2012) Estimating the recreational value and determining the factors affecting the willingness of visitors to pay in Ghouri ‌Gol wetland, Journal of Agricultural Economics & Development, Vol.26, No.1, pp.22-30. 1) [In Persian]
  24. Hong, G.-S., Fan, J. X., Palmer, L., & Bhargava, V. (2005) Leisure travel expenditure patterns by family life cycle stages, Journal of Travel & Tourism Marketing, Vol.18, No.2, pp.15-30.
  25. Hong, G.-S., Kim, S. Y., & Lee, J. (1999) Travel expenditure patterns of elderly households in the US, Tourism Recreation Research, Vol.24, No.1, pp.43-52.
  26. Hong, G.-S., Morrison, A. M., & Cai, L. A. (1996) Household expenditure patterns for tourism products and services, Journal of Travel & Tourism Marketing, Vol.4, No.4, pp.15-40.
  27. Hung, W.-T., Shang, J.-K., & Wang, F.-C. (2013) A multilevel analysis on the determinants of household tourism expenditure, Current Issues in Tourism, Vol.16, No.6, pp.612-617.
  28. Jisana, T. (2014) Consumer behaviour models: an overview, Sai Om Journal of Commerce & Management, Vol.1, No.5, pp.34-43.
  29. Kotler, P., & Caslione, J. A. (2009) How marketers can respond to recession and turbulence, Journal of Customer Behaviour, Vol.8, No.2, pp.187-191.
  30. Lawson, R. (1991) Patterns of tourist expenditure and types of vacation across the family life cycle, Journal of Travel Research, Vol.29, No.4, pp.12-18.
  31. Lin, VS., Qin, Y., Li, G., & Wu, J. (2020) Determinants of Chinese households' tourism consumption: Evidence from China Family Panel Studies, International Journal of Tourism Research, Vol.23, Issue.4, pp.542-554.
  32. Mihalič, T. A. N. J. A. (2002) Tourism and economic development issues, Channel View Publications, pp.81-111.
  33. Mora-Rivera, J., & García-Mora, F. (2020) International Remittances as a Driver of Domestic Tourism Expenditure: Evidence from Mexico, Journal of Travel Research, Vol.60, Issue.8, pp.1752-1770.
  34. Mortazavi, R. (2021) The relationship between visitor satisfaction, expectation and spending in a sport event, European Research on Management and Business Economics, Vol.27, No.1, pp.1-7.
  35. Neulinger, A., & Simon, J. (2011) Food consumption patterns and healthy eating across the household life cycle in Hungary, International Journal of Consumer Studies, Vol.35, No.5, pp.538-544.
  36. Oh, Y. J. (2007) An exploration of tourist shopping, Texas A&M University.
  37. Park, S., Woo, M., & Nicolau, J. L. (2020) Determinant factors of tourist expenses, Journal of Travel Research, Vol.59, No.2, pp.267-280.
  38. Pellegrini, A., Sarman, I., & Maggi, R. (2021) Understanding tourists’ expenditure patterns: a stochastic frontier approach within the framework of multiple discrete–continuous choices, Transportation, Vol.48, No.2, pp.931-951.
  39. Perles-Ribes, J. F., Moreno-Izquierdo, L., Torregrosa-Marí, M. T., & Such-Devesa, M. J. (2020) The relationship between satisfaction and tourism expenditure in ‘sun and beach’destinations: a structural equation modelling approach, Current Issues in Tourism, Vol.24, Issue.18, pp.2643-2657.
  40. Raghfar, H., & Babapoor, M. (2014) The intergenerational analysis of urban household expenditure by using the Pseudo panel, Journal of Applied Economics Studies, Iran, Vol.3, No.10, pp.177-199. 1) [In Persian]
  41. Rahimi, E. (2015) Product characteristics and environmental factors affecting the purchase of tourists (Case study: Isfahan) [Unpublished master’s thesis], Tehran University of Science and Culture, Faculty of Tourism Sciences. 1) [In Persian]
  42. Rhoden, S., Hunter-Jones, P., & Miller, A. (2016) Tourism experiences through the eyes of a child, Annals of Leisure Research, Vol.19, No.4, pp.424-443.
  43. Shabanzadeh, P., Bani Asadi, M., Hayati, B., & Raheli, H. (2015) Economic Valuation of Recreational Services and Determining the Willingness of Visitors to Pay for Visiting Urban Tourism Places (Case Study: Isfahan Flower Garden), Journal of Economics and Urban Management, Vol.4, No.13, pp.1-17. 1) [In Persian]
  44. Skuras, D., Petrou, A., & Clark, G. (2006) Demand for rural tourism: the effects of quality and information, Agricultural Economics, Vol.35, No.2, pp.183-192.
  45. Statistical Centre of Iran (2016) Population and household respectively province, city. Results of the General Population and Housing Census 2016. 1) [In Persian]
  46. Sun, P. C., Lee, H. S., & Chen, T. S. (2015) Analysis of the Relationship between Household Life Cycle and Tourism Expenditure in Taiwan: An Application of the Infrequency of Purchase Model, Tourism Economics, Vol.21, No.5, pp.1015-1033.
  47. Sung, H. H., Morrison, A. M., Hong, G. S., & O’Leary, J. T. (2001) The effects of household and trip characteristics on trip types: a consumer behavioral approach for segmenting the US domestic leisure travel market, Journal of Hospitality & Tourism Research, Vol.25, No.1, pp.46-68.
  48. Tahmasbi, A., & Roshanian, S. (2017) Characteristics and shopping behavior of tourists in Baneh, Quarterly Journal of Tourism Management Studies, Vol.11, No.36, pp.31-59. 1) [In Persian]
  49. Thornton, P. R., Shaw, G., & Williams, A. M. (1997) Tourist group holiday decision-making and behaviour: The influence of children, Tourism Management, Vol.18, No.5, pp.287-297.
  50. Thrane, C. (2002) Jazz festival visitors and their expenditures: Linking spending patterns to musical interest, Journal of Travel Research, Vol.40, No.3, pp.281-286.
  51. Thrane, C. (2016) The determinants of Norwegians' summer tourism expenditure: foreign and domestic trips, Tourism Economics, Vol.22, No.1, pp.31-46.
  52. Thrane, C., & Farstad, E. (2011) Domestic tourism expenditures: The non-linear effects of length of stay and travel party size, Tourism Management, Vol.32, No.1, pp.46-52.
  53. UNWTO (2008) International Recommendations for Tourism Statistics. Department of Economic and Social Affairs, United Nations Publication.
  54. Vu, H. Q., Li, G., Law, R., & Ye, B. H. (2015) Exploring the travel behaviors of inbound tourists to Hong Kong using geotagged photos, Tourism Management, Vol.46, pp.222-232.
  55. Wang, Y., & Davidson, M. C. (a). (2010) Chinese holiday makers' expenditure: Implications for marketing and management, Journal of Hospitality Marketing & Management, Vol.19, No.4, pp.373-396.
  56. Wang, Y., & Davidson, M. C. G. (b). (2010) A review of micro-analyses of tourist expenditure, Current Issues in Tourism, Vol.13, No.6, pp.507-524.
  57. Wang, Y., Rompf, P., Severt, D., & Peerapatdit, N. (2006) Examining and identifying the determinants of travel expenditure patterns, International Journal of Tourism Research, Vol.8, No.5, pp.333-346.
  58. Zargham, H., Atrsaiy, B. (2006) Relationship between demographic factors and buying behavior of European tourists' handicrafts in Isfahan, Quarterly Journal of Tourism Management Studies, Vol.4, No.11,12, pp.81-100. 1) [In Persian]
  59. Zheng, B., & Zhang, Y. (2013) Household expenditures for leisure tourism in the USA, 1996 and 2006, International Journal of Tourism Research, Vol.15, No.2, pp.197-208.