Tourism discretionary spending choice behaviour

Studies of tourism demand are numerous. But studies of how consumers apportion discretionary resources to tourism and across other competing categories of discretionary expenditure are non-existent. Therefore, how individuals and households make trade-offs between, or assess the respective utilities of, the various categories of discretionary expenditure and allocate discretionary financial resources, appears to be unknown. This study seeks to address this need by examining discretionary expenditure through choice experiments. The data provide insights into how each type of discretionary expenditure is valued and how each type competes for a share of the discretionary expenditure ‘pie’. We discuss the results with an emphasis on the implications for tourism marketing.