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Research Note: Does Method of Payment Affect Total Trip Expenditure?

Christer Thrane
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Christer Thrane: Faculty of Economics and Organization Science, Lillehammer University College, Box 952, 2604 Lillehammer, Norway, and Institute of Transport Economics, Gaustadalléen 21, NO 0349 Oslo, Norway

Tourism Economics, 2015, vol. 21, issue 3, 669-676

Abstract: Method of payment — debit card, credit card or cash — is known to affect consumer spending on various items. The purpose of this study is to scrutinize the relationship between the method of payment and the total trip expenditure of Norwegian winter tourists. There are two main findings: (a) credit card and debit card users — the so-called ‘plastic money’ segments — spend more money in total on their trip than cash users; (b) of the two plastic money segments, credit card users are the bigger spenders. The scholarly and strategic implications are offered.

Keywords: payment method; willingness to spend; trip expenditure; spending; market segmentation; regression analysis (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:21:y:2015:i:3:p:669-676

DOI: 10.5367/te.2013.0371

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