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Research Note: Does Method of Payment Affect Total Trip Expenditure?

Author

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  • Christer Thrane

    (Faculty of Economics and Organization Science, Lillehammer University College, Box 952, 2604 Lillehammer, Norway, and Institute of Transport Economics, Gaustadalléen 21, NO 0349 Oslo, Norway)

Abstract

Method of payment — debit card, credit card or cash — is known to affect consumer spending on various items. The purpose of this study is to scrutinize the relationship between the method of payment and the total trip expenditure of Norwegian winter tourists. There are two main findings: (a) credit card and debit card users — the so-called ‘plastic money’ segments — spend more money in total on their trip than cash users; (b) of the two plastic money segments, credit card users are the bigger spenders. The scholarly and strategic implications are offered.

Suggested Citation

  • Christer Thrane, 2015. "Research Note: Does Method of Payment Affect Total Trip Expenditure?," Tourism Economics, , vol. 21(3), pages 669-676, June.
    • Handle: RePEc:sae:toueco:v:21:y:2015:i:3:p:669-676
    DOI: 10.5367/te.2013.0371
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    References listed on IDEAS

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    1. Amy Moore & Michael Taylor, 2011. "Time to Cut Up Those Debit Cards? Effect of Payment Mode on Willingness to Spend," Journal of Consumer Policy, Springer, vol. 34(4), pages 415-422, December.
    2. Feinberg, Richard A, 1986. "Credit Cards as Spending Facilitating Stimuli: A Conditioning Interpretation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 13(3), pages 348-356, December.
    3. Carl H. Marcussen, 2011. "Determinants of Tourist Spending in Cross-Sectional Studies and at Danish Destinations," Tourism Economics, , vol. 17(4), pages 833-855, August.
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    Cited by:

    1. Faruk Urak & Nihat Küçük & Abdulbaki Bilgiç & Steven T Yen, 2023. "Modeling censored tourism expenditures in Turkey with non-normal and heteroscedastic errors: An application of the inverse hyperbolic sine double-hurdle model," Tourism Economics, , vol. 29(3), pages 718-741, May.

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