The paper analyses how the bettering in the living standard affects Chinese households' decision-making process regarding tourism. The first novelty of this study relays on the role that living standard, proxy by happiness, Internet use and social connection spending, has on the tourism participation and how it impacts tourism expenditures. We estimate hurdle models and calculate income elasticity with respect to living condition; this is the second main novelty of this study. Empirical results show that living standard is associated with likelihood of participating in tourism and is an essential determinant for tourism consumption behaviour. Some recommendations are finally proposed.

Tourist decision studies focus on modeling decision-making behaviors, conceptualizing phases in decision making, and influential factors. Incorporating behavioral and choice-set model strategies, the current study proposes a generalizable cyclic model of tourist decision-making processes with a structure of repeatable behavioral stages integrated with relevant consideration sets. A “decision-making threshold” and “information loop limit” are introduced to control how and when the decision-making process starts or ends. The proposed model makes it possible to represent different decision-making styles by capturing the dynamic repetition of behavioral stages and the revision of consideration sets. The integration allows a novel approach for analyzing the formation of final decisions resulting from decision makers’ limited subjective evaluations and for studying decision rules as the combinations of “evaluation rule” and “information loop limit.” Practical implications and measures are provided for tourism practitioners to better understand and influence potential consumers. Future research questions are also suggested.