How Travel-Related Factors and the Socioeconomic Characteristics of Tourists Shape Tourism Demand? New Evidence from the Role of Satisfaction

Kieu-Thi Phan, Sheng-hung Chen, Wei-Tse Pai, Jie-Min Lee and Chi-Jung Hsieh

SAGE Open, 2025, vol. 15, issue 2, 21582440251335471

Abstract: This study examines expenditure and price elasticities for five major travel products, considering tourism satisfaction and traveler characteristics. Using Taiwan Tourism Bureau data (2016–2021) from 20,574 international visitors, the Almost Ideal Demand System (AIDS) model reveals that accommodation and shopping spending are relatively inelastic compared to food, transportation, and other expenses. Tourism satisfaction significantly influences spending, particularly on accommodation, transportation, and shopping. Shorter trips, prior travel experience, and planned travel increase expenditure elasticity. Female and high-income tourists are more responsive in their spending. Education and generation cohorts also impact demand elasticities. Practical implications highlight the need for satisfaction-driven strategies. Policymakers should enhance infrastructure, streamline visa policies, and integrate digital tools like mobile payments to attract diverse tourists and navigate economic uncertainties. Businesses should use differentiated pricing, improve service quality, and leverage digital marketing to appeal to budget and high-income travelers. Stakeholder collaboration can strengthen tourism competitiveness, sustainability, and economic resilience.

Keywords: inbound tourists; almost ideal demand system (AIDS) model; price elasticity; expenditure elasticity; travel-related factors; socioeconomic characteristics (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:15:y:2025:i:2:p:21582440251335471

DOI: 10.1177/21582440251335471

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