Current Income versus Total Expenditure Measures in Regression Models of Vacation and Pleasu re Travel

Abstract

This study compares the impact that life cycle income and current income have on the number of vacation and pleasure trips taken and trip expenditures of families. Total household expenditure is used as a surrogate for permanent or life cycle income. A stratified sample was taken from the U.S. Department of Labor consumer survey data. The impact of additional variables such as age of consumer unit, reference person, and number of old and young people in the household is also evaluated. The percentage spent on trips increases as the total expenditure quintile rises, while the percentage spent on trips decreases as the income quintile increases. Total household expenditures is the strongest variable for forecasting trips and the spending on them.