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

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.

Modeling censored tourism expenditures in Turkey with non-normal and heteroscedastic errors: An application of the inverse hyperbolic sine double-hurdle model

“…The literature has grouped the determinants of tourist expenditures into four main categories: economic, socio-demographic, travel-related, and psychological factors (Bernini et al, 2017;Lin et al, 2020;Mudarra-Fernández et al, 2019;Thrane, 2015aThrane, , 2015b. The relationship of these factors with tourism expenditure has been reviewed by Sainaghi (2012) and Brida and Scuderi (2013), as well as numerous analyses with cross-sectional data.…”