Analysis of the Relationship between Household Life Cycle and Tourism Expenditure in Taiwan: An Application of the Infrequency of Purchase Model

Abstract

The infrequency of purchase (IP) model was used to explore the impact of financial factors, limiting factors, social status and household life cycle on family travel intention and travel expenditure in Taiwan. The empirical results indicate that family travel intention and level of expenditure vary at different stages of the household life cycle. Additionally, family incomes, the education level of the head of the household, women's employment and home ownership have significantly positive impacts on travel intention and level of expenditure. The findings also suggest that the presence of a family member's health problems or the number of seniors over 65 years of age in a household will reduce travel intention and thus the level of travel expenditure.

Determinants of Chinese households' tourism consumption: Evidence from China Family Panel Studies

“…Hung et al (2013) pointed out that Taiwanese households with loans had lower tourism expenditure and households with vehicles had higher tourism expenditure. Sun et al (2015) also referred to data from Taiwan and found that house ownership positively affected household tourism expenditure; household healthcare expenditure, a proxy for health status, adversely influenced household tourism expenditure.…”

“…The gender of the head of household has received much attention as well, yet empirical findings regarding the effect of this variable on household tourism expenditure are similarly ambiguous. Zheng and Zhang (2013), Sun, Lee, and Chen (2015), and Haq et al (2019) found that the head of household's gender had no significant effect on household tourism expenditure. Fleischer and Rivlin (2009) and Zhang and Feng (2018) noted that households with male heads of household spent less per trip, while Kuo and Lu (2013) and Alegre and Pou (2016) came to the opposite conclusion.…”

“…Some studies have combined the head of household's age and marital status, presence of children, and age of children (if applicable) to represent the family life cycle. Results have shown that households' travel expenditure differs significantly across the life cycle (Bernini & Cracolici, 2015; Sun et al, 2015). In terms of the head of household's education level, most studies have reported significant positive effects (Alegre et al, 2013; Alegre & Pou, 2016; Hong, Morrison, & Cai, 1996; Sun et al, 2015; Zhang & Feng, 2018; Zheng & Zhang, 2013), although a few have found no effects at all (Haq et al, 2019).…”

“…Hung et al (2013) pointed out that Taiwanese households with loans had lower tourism expenditure and households with vehicles had higher tourism expenditure. Sun et al (2015) also referred to data from Taiwan and found that house ownership positively affected household tourism expenditure; household healthcare expenditure, a proxy for health status, adversely influenced household tourism expenditure. According to Brida and Scuderi (2013) and Lin et al (2015), health status was classified into economic constraints; the health status of the head of household could directly influence the household's wealth status and its level of general consumption, including leisure and tourism.…”

Family life cycle and preferences for a mega-sporting event package: The case of the 2018 PyeongChang Winter Olympic Games

“…age, family situation, and socioeconomic status) to different travel- and leisure-related decisions—i.e. both facilitating and constraining (Backer and Lynch, 2017; Bernini and Cracolici, 2015; Choi et al, 2010; Fodness, 1992; Hong et al, 2005; Oppermann, 1995; Sun et al, 2015). According to the life cycle theory, the members of a family rationalize their decision-making process and behaviors based only on the resources available to them at the time of their decision (Bernini and Cracolici, 2015; Laszloffy, 2002).…”