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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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    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.
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