A double-hurdle analysis of travel expenditure: Baby boomer seniors versus older seniors

Abstract

This study examined the socio-demographic and economic determinants of leisure travel expenditure and compared these determinants in baby boomer senior households and older senior households in the United States. Unlike previous studies, this study performed Heckman's double-hurdle analysis, using the Consumer Expenditure Survey (CES), to present a two-step process for making travel consumption decisions. The results revealed that more baby boomer senior households participated in leisure travels than older senior households. However, among those households that chose to travel, the mean expenditure of the older senior group was higher than for baby boomers. This study also showed similarities and differences in the determinants of travel consumption decisions between baby boomer seniors and older seniors. This two-step approach provided in-depth information on the processes involved in deciding to travel and how much to spend on travel. This additional information will be valuable in understanding senior consumers in the tourism industry.