Determinants of vacation travel among Israeli seniors: theory and evidence

Abstract

This study investigates determinants of vacation travel among seniors. A consumer choice model is developed that incorporates effects of retirement and health on available leisure time, and effects of age and education on disposable income. The empirical implications of the model depend on leisure and income patterns, that in turn determine if time and budget constraints are binding. The model is illustrated using data collected from Israeli seniors. Results confirm theoretical predictions regarding the changing effectiveness of constraints as seniors grow older.