| A
growth in senior travellers’ market has caused an
increasing interest of marketers in this segment, promising
new pastures. This paper delves into this group to explore
variables that affect the choices that these people make.
Using the 1995 Consumer Expenditure Survey, this study (a)
examines the travel-related expenditure patterns of U.S.
households headed by those 55 years old and older; and (b)
uses a double-hurdle model to identify factors that influence
the decision to travel and the level of travel expenditure
among this elderly segment. In order to reflect the heterogeneity
among the elderly, the total sample (n=1,588) is divided
into three groups: young-old (aged 55 to 64), old (aged
65 to 74) and very old (aged 75 and above). Elderly households
spend the most on transportation, followed by food, lodging,
sightseeing and entertainment, and other travel expenses.
Probit results show that elderly who are Whites, those who
have high school or college education, those who are married,
and those who are homeowners are more likely to travel than
their counterparts. High levels of after-tax income, liquid
assets, and non-liquid assets increase the likelihood of
travelling by the elderly. The results of truncated regression
analysis indicate a curvilinear relationship between age
and travel expenditure, with travel expenditures increasing
at early stages of aging but decreasing at late stages of
aging. Travel expenditures increase as household after-tax
income increases. Implications relative to the travel industry
are drawn. |
