Determinants of Travel Mode Choice of Senior ...

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Determinants of Travel Mode Choice of Senior Travelers to the United States a

a

Billy Bai MS , Shawn Soocheong Jang MBA , Liping a

A. Cai PhD & Joseph T. O'leary PhD

a

a

Department of Forestry and Natural Resources , Purdue University , USA Published online: 20 Oct 2008.

To cite this article: Billy Bai MS , Shawn Soocheong Jang MBA , Liping A. Cai PhD & Joseph T. O'leary PhD (2001) Determinants of Travel Mode Choice of Senior Travelers to the United States, Journal of Hospitality & Leisure Marketing, 8:3-4, 147-168, DOI: 10.1300/J150v08n03_10 To link to this article: http://dx.doi.org/10.1300/J150v08n03_10

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Determinants of Travel Mode Choice of Senior Travelers to the United States Billy Bai Shawn Soocheong Jang Liping A. Cai Joseph T. O’Leary

ABSTRACT. People 55 years or older make up a significant segment of the hospitality and tourism market. The senior market segment is substantial in size, as well as in growth rate. Further, the segment is known to have a higher propensity for long distance travel. This study was undertaken to investigate travel behavior patterns of international senior travelers to the United States. Specifically, the study analyzed the travel mode choice of international senior travelers by identifying the underlying factors that affected their participation in package versus non-package tours. The findings of this study should aid the package tour Billy Bai, MS, is Graduate Instructor, Department of Hospitality and Tourism Management, Purdue University. Shawn Soocheong Jang, MBA, is Graduate Instructor, Department of Hospitality and Tourism Management, Purdue University. Liping A. Cai, PhD, is Assistant Professor, Department of Hospitality and Tourism Management, Purdue University. Joseph T. O’Leary, PhD, is Professor, Department of Forestry and Natural Resources, Purdue University. Address correspondence to: Billy Bai, MS, Department of Hospitality and Tourism Management, 1266 Stone Hall, Purdue University, West Lafayette, IN 47907-1266 (E-mail: [email protected]). The data utilized in this study were made available by CIC Research, Inc. and the US Department of Commerce, Tourism Industries. Neither CIC Research, Inc. nor the US Department of Commerce, Tourism Industries bear any responsibility for the analysis or interpretations presented here. Journal of Hospitality & Leisure Marketing, Vol. 8(3/4) 2001 Ó 2001 by The Haworth Press, Inc. All rights reserved.

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marketers and wholesalers in the U.S. as well as in the three originating countries in better targeting and serving the needs of senior travelers from the UK, Germany, and Japan. [Article copies available for a fee from The Haworth Document Delivery Service: 1-800-342-9678. E-mail address: Website: © 2001 by The Haworth Press, Inc. All rights reserved.]

KEYWORDS. Senior traveler, travel mode choice, international travel, destination marketing, regression analysis

INTRODUCTION Senior travelers make up a significant segment of the hospitality and tourism market. By 2010, there will be 96 million Americans who are 50 or older, accounting for more than one-third of the U.S. population (Swartz, 1999). The size of the senior travel market indicates the great market potential and economic significance for the hospitality and tourism industry. Senior travelers are also known to have a higher propensity for long distance travel. The senior travel market has drawn increasing attention from both tourism policy makers as well as industry practitioners (Caro, 1989; Javalgi, Thomas & Rao, 1992; Miller, 1996; Moschis, Lee & Mathur, 1997; Sakai, Brown & Mak, 2000). From a European perspective, Marvel (1999) pointed out that the senior market represents the great growth opportunity for hoteliers over the next 20 to 30 years in the wealthy OECD countries, because younger age segments in certain regions may actually decline. Looking ahead, the senior travel market is expected to be big spenders because of their savings, investment income, and other assets. Numerous studies have been devoted to this market segment. The main research theme in this area of interest has focused on describing the socio-demographic and travel related activities of the senior travel market. Senior travelers are believed to possess more discretionary income and more leisure time as compared to younger participants. Their travel patterns and preferences for food, lodging, shopping and entertainment are different from other markets. Many studies are even designed to facilitate industry segmentation of the senior market in various ways (Shoemaker, 1989; Yesawich, 1989; Javalgi, Thomas & Rao, 1992; Lieux, Weaver & McCleary, 1994; Bai, Smith, Cai & O’Leary, 1999).


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Tourism Industries (2000) reported that international visitors to the United States rose to 48.5 million in 1999, setting a new record. Similarly, total U.S. international travel receipts reached $95.6 billion in 1999. The United States ranks third behind France and Spain in terms of international tourist arrivals for 1998 and 1999. However, limited research has been conducted to examine international senior travelers to the United States. Based upon previous studies, one of the important questions is that if senior travelers seem to prefer package travel in greater percentages than nonseniors (Javalgi, Thomas, & Rao, 1992), little is made known why packages are chosen, especially for inbound senior travelers to the U.S. Therefore, the purpose of this study was to investigate the senior markets travel choice mode to the United States. Specifically, the study was designed: (1) to profile the characteristics of overseas senior travelers taking package versus non-package tours from three major tourist generating countries (Japan, United Kingdom, and Germany); and (2) to identify the determinants for choosing package versus non-package tours by the senior travelers from these countries to the United States. TRAVEL BEHAVIOR OF SENIOR MARKET Senior travelers demonstrate unique characteristics of travel behavior compared to other markets when segmented by demographics and travel related behaviors. From a lodging marketing perspective, Ananth, DeMicco, Moreo, and Howey (1992) reported that older travelers require and prefer certain amenities over those preferred by younger travelers. Older travelers travel more for pleasure than the younger group. They also identified some attributes that are specific to a mature market including grab bars, night lights, extra blankets, and medical facilities. Another study by Javalgi, Thomas, and Rao (1992) indicated the different patterns of consumer behavior of seniors and nonseniors in the U.S. pleasure travel marketplace. They found that senior travelers are a less educated group than nonseniors and they tend to rely on a relatively fixed income at a level much below that of the nonsenior group. In addition, senior travelers were more likely to use travel agents for making travel arrangements. While visiting friends and relatives was preferred by both seniors and nonseniors, senior travelers were more likely to travel by bus or airplane and have taken a cruise or touring vacation but less likely to have taken a close-to-home pleasure


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trip, a city trip, an outdoor vacation, a resort vacation, and a trip to a theme park. Bai, Smith, Cai, and O’Leary (1999) segmented the senior market by age and found that senior travelers are not one homogeneous market as implied in many studies. Instead, it could be differentiated into two distinct segments with a unique profile for each. Also, the younger group in the senior travel market seems to be more economically independent and possess more discretionary funds compared to older travelers. Looking at the aging population in Japan and international travel in the 21st century, Sakai, Brown, and Mak (2000) stated that increasing numbers of Japanese will travel abroad in the 21st century although at a much slower pace. In their study, demographics such as age and gender were included in the analysis of international travel demand. More importantly, older people were found not to have lower propensities to travel. Instead, travel propensities after age 60 are higher than those in any other age group for both men and women. Studies on what influences senior travel are another major area of research. Zimmer, Brayley, and Searle (1995) studied important influences on seniors’ decisions to travel using the sample from Manitoba, Canada. They found that a variety of factors such as income, education, rural residency, willingness to spend money on recreation, and health status influence the choice of destination. Manitoba seniors who are better educated, have more money, and are predisposed toward spending money on recreation tend to travel farther from home, while those with health problems tend to travel to nearby U.S. destinations. Hong, Kim, and Lee (1999) looked at travel expenditure patterns of elderly households in the U.S. Using the 1995 Consumer Expenditure Survey, Hong et al. (1999) found that elderly households spend the most on transportation, followed by food, lodging, sightseeing and entertainment, and other travel expenses. In addition, elderly who are White, with high school or college education, married, and homeowners are more likely to travel than their counterparts; travel expenditures increased as household after-tax income increases. STUDIES ON CHOICE OF TRAVEL MODE Travel mode choice can be expressed in three ways: escorted tours, package tours, and fully independent travel (Yamamoto & Gill, 1999).


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Package tour is the area where numerous studies have focused. While it is difficult to conclude what the package tour can accomplish for the people who choose it, Enoch (1996) stated that the package tour can accommodate a variety of requirements for people from different walks of life. The package tour can be attractive to first-time travelers and popular among people with advanced age or lack of language skills, who are hesitant to travel on their own, or those educated middle-class with no time for arranging a trip by themselves. The sociocultural contents of package tours are examined by Enoch (1996). The analysis of the contents of package tours originating in the United Kingdom, Denmark, and Israel indicated that the composition of the tour package is a reflection of the geopolitical situation and the social structure of the originating country. It was expected that in the UK and Israeli market, the package tour to Europe might be declining both in the number and the variety. A perceived or social distance between the originating country and the target area seemed to exist. In an effort to find out the use of package trips by seniors and nonseniors in the U.S., Javalgi, Thomas, and Rao (1992) concluded that less than one-fourth of the trips were package arrangements. In comparison, senior travelers were found to prefer package tours more than nonsenior travelers. Education, income, occupation, and other travel related variables including the use of travel agents for booking the trip were included in the analysis. However, it is not clear what determines this choice of travel mode by the seniors. The choice model of package tours by Australian outbound travelers revealed that package purchasers are likely to be older, tend to travel with larger party size for touring/city/resort/cruise trip type, and seek a “being and seeing” benefit (Hsieh, O’Leary, Morrison, & Chang, 1993). In addition to demographic variables, psychographic variables–factors of travel benefits sought were also included in the choice model. Distinguishing characteristics between package tourists and nonpackage tourists also exist. While previous studies claimed that Asian travelers choose the package tour as one of the major modes of outbound travel in general (Wang, Hsieh, & Huan, 1999), Yamamoto and Gill (1999) found that there is a decline in package tourism for Japanese overseas tourists and more Japanese tourists prefer to travel independently. However, evidence suggests the continuing demand for package tours by Japanese. For example, among nonpackage tourists, more than one-third of them used a travel agent for arranging their trips and about 30% of them indicated travel agents as an important source of travel information. Many variables in Yamamoto and Gill’s (1999) study in-


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cluded age, gender, income, trip length, number of people in the travel party, information source for travel planning, and travel activities undertaken. Little research has been done in understanding the travel mode choice by inbound overseas travelers to the U.S. In addition, as observed by Hsieh, O’Leary, Morrison, and Chang (1993), different travel choice patterns may emerge because of the nature of travel–international versus domestic. The significance of this study lies with the generation of travel profiles and the factors that affect travel choice by the three major overseas senior travelers from Japan, the United Kingdom, and Germany to the U.S. METHODOLOGY Data and Sample The study used the data from the “In-Flight Survey of International Air Travelers” issued by US Tourism Industries in 1997. The in-flight survey was initiated and conducted by the former U.S. Travel and Tourism Administration (USTTA), Department of Commerce. The survey covering all overseas air travelers to the U.S. has been in existence since 1982. The responsibilities of the in-flight survey were moved to the International Trade Administration (ITA) after the closure of USTTA. The survey had been voluntarily conducted by selected major U.S. and international airlines on a sample of their international flights departing U.S. airports over the whole year of 1995. All overseas travelers to the U.S. as well as U.S. residents traveling overseas and to Mexico by air are included in the survey. Of the original 6,134 flight packages mailed to airlines during the period, 4,231 were returned completed, yielding an overall flight response rate of 69%. The survey questionnaire is designed to be self-administered by the in-flight passengers. The in-flight surveys are available in twelve languages, including English, Japanese, and German. The information collected includes the following: destination/gateway information, trip planning information, ratings information, and socio-demographic information. The sample used in this study consists of 1,620 elderly pleasure travelers who were 55 years old or above and were from the three most important sources of inbound tourists to the U.S.: Japan (1,013), the United Kingdom (274), and Germany (273).

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Variables and Statistical Analysis The dependent variable at the multivariate level was the logarithm of the odds that package tours were selected by overseas senior travelers. The independent variables included the following: socio-demographic information and travel related information. The socio-demographic information consisted of age, gender, household income, and occupation; travel related information contained the number of people in the travel party, the number of nights away from home, first time trip, travel companion, and leisure activities. The analysis of data took three steps. First, statistical comparisons were conducted using chi-square tests for categorical variables and one-way analysis of variance (ANOVA) for continuous variables to verify whether statistical differences exist between the package tour and non-package tour groups in association with socio-demographic and trip-related variables. Second, factor analysis was introduced to investigate the underlying dimensions of leisure activities for the three overseas senior markets. Finally, logistic regression was employed to identify the factors significantly influencing the choice of travel mode. Three logistic regression models were tested separately for Japan, the United Kingdom, and Germany. Significance was identified at the p ⱕ .05 level. RESULTS Profile of Overseas Senior Markets Travel Mode Choice by Country Table 1 provides the characteristics of travel mode choice by country. The Japanese elderly showed the highest preference for package tours (62.5%) among the tourists from the three countries, while travelers from U.K. appeared to most prefer non-package opportunities. Statistical significance was found between the two countries. On the other hand, German seniors were found to choose almost equally between the two travel mode choices. Socio-Demographic Variables The profile of the senior travelers who chose package or non-package tour provides information on who travel marketers need to target.

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TABLE 1. Characteristics of Travel Mode Choice by Country Country Japan

Whole Sample

Package Tour

Non-Package Tour

c2

Sig.

1,073

671 (62.5%)

402 (37.5%)

67.44

0.000

U.K.

274

94 (34.3%)

180 (65.7%)

26.99

0.000

Germany

273

127 (46.5%)

146 (53.5%)

1.32

0.250

Cross-tabulations were employed to profile the three senior travelers’ group by country. Chi-square analyses or one-way analysis of variance (ANOVA) were conducted to verify whether significant differences existed between the two travel mode groups. For Japanese seniors, age, gender, and occupation were not important variables in deciding package or non-package tourists (Table 2). Mean age of Japanese elderly tourists was 62.0 years and more males traveled to the U.S. The tourists consisted of a large proportion of persons with incomes ranging from $20,000 to $99,999 (62.6%). More of the Japanese elderly worked as managers and executives while fewer were homemakers and retirees than those from the U.K. and Germany. Income was found to be significant at p ⱕ 0.05 level. As shown in Table 2, there were generally more package tourists in the lower income categories whereas more non-package tourists belonged to the higher income groups. The general tendency for Japanese to prefer the package tour was consistent with the prior research on Japanese package tourism (Yamamoto & Gill, 1999). No socio-demographic variables for U.K. senior travelers were statistically significant (Table 3). The socio-demographic characteristics were very similar to the Japanese results except for occupation. Mean age was 61.9 years and there were more male visitors. Tourists with incomes of $20,000 to $99,999 represents 75.6% of the travelers. The majority of them were retired and many worked as managers and executives (20.1%). With respect to German senior travelers, all socio-demographic variables significantly contributed to explaining the travel mode choice (Table 4). The mean age of the sample was 60.9 years and the package and non-package groups were not statistically different in terms of age. As for gender, German male tourists were more likely to take non-package tours than female tourists. More low income earners with incomes less than $60,000 tended to choose package travel and more medium and high-income tourists of $60,000 or above were likely to take a non-package tour. With regard to occupation, those who held cleri-


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TABLE 2. Socio-Demographic Characteristics of Japanese Senior Travelers by Travel Mode Variables

Whole Sample (n = 1,073)

Age (Mean)

62.0

Package Tour (n = 671) 61.9

NonPackage (n = 402) 62.2

Gender Male Female

67.9% 32.1

67.7% 32.3

68.1% 31.9

Income Under $20,000 $20,000-$39,999 $40,000-$59,999 $60,000-$79,999 $80,000-$99,999 $100,000-$119,999 $120,000-$139,999 $140,000-$159,999 $160,000-$179,999 $180,000-$199,999 $200,000 or above

4.3 15.1 17.4 14.1 16.0 7.0 7.3 3.0 4.4 1.3 10.3

4.0 16.3 18.3 14.1 18.1 6.8 7.3 2.2 2.6 1.1 9.3

4.7 13.1 15.9 14.0 12.5 7.5 7.2 4.4 7.5 1.6 11.8

Occupation Manager/executive Professional/technical Clerical/sales Craftsman/mechanical Government/military Homemaker Retired Other

31.9 11.9 6.5 2.7 0.9 21.2 22.6 2.4

29.5 12.0 6.7 3.0 0.9 22.2 23.4 2.2

35.8 11.7 6.1 2.0 0.8 19.5 21.3 2.8

c2 or F

Sig.

F: 1.36

0.244

c2 : 0.891

0.471

c2 : 22.33

0.014

c2 : 6.02

0.645

Note: Percentage may not add to 100% due to rounding.

cal/sales jobs and were craftsman/mechanical workers or retirees were more likely to take package tours but German seniors who had managerial/executive and professional/technical jobs or who were government/military personnel tended to visit the U.S. independently. Trip-Related Variables Trip-related information may help understand the behavior of travelers. In this study, it indicates how many people were in the travel party, how long they traveled, with whom they took trips, and what kinds of leisure activities they enjoyed for their travel mode choice. For Japanese senior travelers, the package tour was significantly greater than non-package in terms of number of people in the travel party, 9.7 and 7.1, respectively (Table 5). Non-package tourists took longer trips than package tourists (7.8 versus 5.1 nights). Japanese travelers were found to take the shortest trips, compared with the other country counterparts. As for a travel companion, those who traveled with a spouse and tour


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TABLE 3. Socio-Demographic Characteristics of U.K. Senior Travelers by Travel Mode Variables

Age

Whole Sample (n = 274)

Package Tour (n = 94)

61.9

62.2

Non-Package Tour (n = 180) 61.7

Gender Male Female

71.2% 28.8

64.1% 35.9

74.9% 25.1


9.5 28.5 20.4 18.1 8.6 5.0 1.4 1.4 1.8 0.5 5.0

11.3 22.5 25.4 15.5 11.3 2.8 0.0 1.4 2.8 0.0 7.0

8.7 31.3 18.0 19.3 7.3 6.0 2.0 1.3 1.3 0.7 4.0


20.1 16.5 2.9 1.5 1.5 3.3 53.5 0.7

17.2 17.2 3.2 2.2 0.0 4.3 54.8 1.1

21.7 16.1 2.8 1.1 2.2 2.8 52.8 0.6

c2 or F

Sig.

F: 0.423

0.516

c2 : 3.41

0.068

c2 : 8.55

0.575

c2 : 3.92

0.789


group were more likely to take a package tour while Japanese seniors traveling alone or traveling with family/relatives tended to take more independent tours. For leisure activities, statistical differences were found in seven activities. Japanese package tourists were more likely to shop, go to amusement/theme parks, take commercial guided tours, participate in cruises, and enjoy sightseeing in cities. On the other hand, non-package tourists showed preference for golfing/tennis and ranch vacations. Table 6 shows the trip-related characteristics of U.K. senior travelers for package and non-package tours. There was an obvious tendency for larger travel parties to choose package tours. Average number of nights away from home was 16.4, and non-package tourists tended to take longer trips (8.0 versus 13.3 nights). U.K. travelers with companions in the tour group chose package tours but travelers without a companion took more non-package tours. One of the prominent findings was that only 16.6% of U.K. elderly were first time travelers. This was the lowest among the three countries. This may be partly explained by the relative


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TABLE 4. Socio-Demographic Characteristics of German Senior Travelers by Travel Mode Variables Age



60.9

60.8

Non-Package Tour (n = 146) 60.9

Gender Male Female

77.2% 28.8

68.3% 31.7

84.8% 15.2


5.0 26.6 22.5 14.2 8.7 8.3 3.7 4.1 1.4 0.0 5.5

5.2 40.2 22.7 13.4 7.2 4.1 3.1 1.0 1.0 0.0 2.1

5.0 15.7 22.3 14.9 9.9 11.6 4.1 6.6 1.7 0.0 8.3


20.3 11.4 10.7 5.5 3.3 2.2 42.8 3.7

12.7 10.3 16.7 7.1 2.4 2.4 45.2 3.2

26.9 12.4 5.5 4.1 4.1 2.1 40.7 4.1

c2 or F

Sig.

F: 0.022

0.883

c2 : 10.35

0.001

c2 : 24.44

0.004

c2 : 17.75

0.023


proximity to the U.S. in terms of geography, language, and culture. With regard to activities, U.K. package travelers did substantially more in visiting casinos/gambling, commercial guided tours, visiting national parks, visiting American Indian communities, sightseeing in cities, and visiting ethnic heritage sights. German travelers’ trip-related characteristics are presented in Table 7. The package tour group showed an average of 6.8 persons in the travel party and had significantly more people than those on a non-package trip (2.6 persons). The data also showed that non-package travelers tended to take longer trips than package travelers. One of the differences in the findings for German senior travelers was that the travel mode could be differentiated by first time travelers or repeat travelers. First time visitors who were package tourists were 46.5% of the group while the non-package travelers were only 20.5%. First time visitors were more likely to choose the package tour. Travel companion variables were not significant except for the tour group. As a whole, it is noteworthy that number of people in the travel party and the number of


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TABLE 5. Trip-Related Characteristics of Japanese Senior Travelers by Travel Mode Variables

Whole Sample (n = 1,073)


NonPackage Tour (n = 402)

c2 or F

Sig.

No. of people in travel party

8.7

9.7

7.1

F: 7.65

0.006

No. of nights away from home

6.1

5.1

7.8

F: 16.02

0.000

c2: 2.57

0.116

First Visit Yes No

42% 58

44.1% 55.9

38.5% 61.5

Travel Companion Spouse Family/Relative Business Associate Friends Tour Group Traveling alone

45.8 24.8 7.5 20.3 16.6 6.0

48.1 22.7 7.9 19.5 20.3 4.5

41.8 28.4 6.7 21.6 10.4 8.5

Leisure Activities Shopping Dining in restaurants Amusement/Theme parks Visiting historical places Visiting casinos/Gambling Commercial guided tours Visiting small towns and villages Cultural heritage sights/activities Touring the countryside Water sports/Sunbathing Ranch vacations Cruises Hunting/Fishing Snow skiing Golfing/Tennis Camping/Hiking Ecological excursions Visiting national parks American Indian Communities Attending sports event Concert/Play/Musical Art gallery/Museum Sightseeing in cities Nightclubs/Dancing Ethnic heritage sights

91.6 78.0 20.5 21.9 8.9 51.1 30.9 19.6 16.8 12.5 2.3 23.9 0.7 0.1 16.4 1.5 1.2 23.2 3.7 0.7 8.3 6.4 68.3 6.9 12.4

94.9 79.9 23.2 21.5 10.1 60.4 32.2 18.6 17.7 12.1 1.5 28.0 0.7 0.0 12.1 1.9 1.0 25.2 3.1 0.6 8.3 5.1 73.9 8.0 12.7

86.1 74.9 15.9 22.6 7.0 35.6 28.6 21.1 15.2 13.2 3.7 16.9 0.7 0.2 23.6 0.7 1.5 19.9 4.7 1.0 8.2 8.7 59.0 5.0 11.9

Note: Travel companion and leisure activity were multiple answer variables

c 2:

4.08 4.39 0.51 0.69 17.52 7.12

0.043 0.036 0.549 0.433 0.000 0.011

25.7 3.67 8.28 0.20 3.10 61.8 1.64 1.01 1.18 0.29 5.55 17.06 0.29 1.67 24.5 2.43 0.42 3.94 1.79 0.54 0.01 5.53 26.0 3.70 0.12

0.000 0.057 0.004 0.648 0.097 0.000 0.219 0.340 0.311 0.634 0.022 0.000 0.630 0.375 0.000 0.191 0.351 0.052 0.122 0.347 0.517 0.210 0.000 0.062 0.402

.

nights away from home were found to be significantly different for the travel mode groups of all three countries’ senior travelers. German package tourists appeared to significantly enjoy leisure activities such as casinos/gambling, commercial guided tours, visiting American Indian Communities, and sightseeing in cities than non-package tourists. Independent travelers were found to prefer golfing/tennis, camping/hiking, concert/play/musical, and art gallery/museum. Reviewing leisure activities of the three countries’ senior tourists, there were a few common popular activities such as shopping, dining in


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TABLE 6. Trip-Related Characteristics of U.K. Senior Travelers by Travel Mode Variables




Non-Package Tour (n = 180)

c2 or F

2.9

3.9

2.4


16.4

13.3

18.0

F: 11.3

0.010

First Visit

16.6%

15.9%

17.0%

c2: 0.047

0.861


74.8 11.3 1.5 17.9 4.0 8.4

76.6 8.5 3.2 23.4 11.7 3.2

73.9 12.8 0.6 15.0 0.0 11.0


83.2 86.9 29.6 53.3 18.2 33.9 52.6 36.9 49.3 24.5 1.1 12.4 0.0 4.4 14.6 2.9 7.7 40.9 9.9 5.8 12.0 21.5 52.9 5.8 15.3

86.2 87.2 34.0 52.1 26.6 47.9 59.6 42.6 51.1 24.5 2.1 16.0 0.0 6.4 11.7 3.2 9.6 50.0 14.9 3.2 8.5 23.4 61.7 6.4 24.5

81.7 86.7 27.2 53.9 13.9 26.7 48.9 33.9 48.3 24.4 0.6 10.6 0.0 3.3 16.1 2.8 6.7 36.1 7.2 7.2 13.9 20.6 48.3 5.6 10.6

Note: Travel companion and leisure activity were multiple answer variables

F: 8.43

Sig.

c 2:

0.004

0.24 1.12 2.98 2.97 21.95 5.04

0.662 0.323 0.118 0.098 0.000 0.036

0.89 0.02 1.38 0.08 6.68 12.39 2.83 1.99 0.18 0.00 1.41 1.66 1.37 0.96 0.04 0.74 4.93 4.09 1.83 1.69 0.29 4.43 0.08 9.21

0.397 0.895 0.266 0.800 0.013 0.001 0.099 0.187 0.704 0.997 0.272 0.247 0.350 0.371 0.847 0.474 0.029 0.043 0.277 0.242 0.643 0.041 0.790 0.004

.

restaurants, and sightseeing in cities (Table 5, 6, and 7). Activities most preferred by Japanese seniors were shopping and cruises, compared with the other two senior markets. U.K. seniors were more likely to visit small towns and villages and go on ecological excursions than Japanese and German senior travelers. It was also noted that amusement/theme park, national parks, and American Indian Communities were relatively popular in the German senior market. It was noteworthy that there existed a difference between European travelers and those from Japan in leisure activities. The elderly tourists from U.K. and Germany showed higher preference for visiting historical places, cultural heritage sights, and countryside and enjoying water sports than those from Japan.


160


TABLE 7. Trip-Related Characteristics of German Senior Travelers by Travel Mode Variables




c2 or F

NonPackage Tour (n = 146)

Sig.

4.6

6.8

2.6

F: 11.24

0.001


17.8

14.6

20.6

F: 12.58

0.000

First Visit

32.3%

46.5%

20.5%

c2 : 17.14

0.000


55.3 19.0 0.0 10.3 16.8 16.1

58.3 23.3 0.0 11.8 32.3 11.8

52.7 14.2 0.0 8.9 3.4 19.9


80.6 75.5 49.1 61.2 16.1 39.2 44.7 45.8 56.4 34.4 0.7 5.9 0.7 1.1 8.1 7.0 1.1 57.5 21.2 2.6 16.1 24.5 63.7 3.7 7.3

83.5 75.6 55.1 55.1 22.8 54.3 39.4 48.0 55.9 32.3 0.1 7.9 0.1 2.4 3.9 2.4 0.8 63.0 29.9 0.8 10.2 13.4 79.5 3.1 8.7

78.1 75.3 43.8 66.4 10.3 26.0 49.3 43.8 56.8 36.3 1.4 4.1 1.4 0.1 11.6 11.0 1.4 52.7 13.7 4.1 21.2 34.2 50.0 4.1 6.2

c 2:

0.84 3.66 0.62 40.37 3.26

0.394 0.064 0.549 0.000 0.098

1.26 0.00 3.46 3.66 7.93 22.8 2.72 0.48 0.03 0.49 1.75 1.74 1.75 3.49 5.45 7.75 0.21 2.92 10.68 3.00 6.08 15.96 25.62 0.18 0.62

0.286 0.962 0.069 0.062 0.008 0.000 0.113 0.543 0.903 0.524 0.501 0.206 0.501 0.099 0.025 0.007 0.685 0.110 0.002 0.127 0.020 0.000 0.000 0.755 0.489

Note: Travel companion and leisure activity were multiple answer variables.

Results of Factor Analysis Factor analysis was performed to reduce the 25 leisure activity items to more meaningful underlying dimensions that would be used for the subsequent logistic regressions. For each of the three overseas senior markets, the leisure activities were individually factored to represent the unique features of each market. Therefore, there were three separate factor analyses conducted. For Japanese senior travelers, six factors were derived to represent the original 25 attributes, explaining 40.4% of the total variance (Table 8). The six factors were identified as “Visiting

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.545 .539 .535 .500 .464

Touring countryside

Environmental/ecological

Visit historical places

Ethnic heritage sights

Visit small towns/villages

.779 .491

Dining in restaurants

Sightseeing in cities

.542 .428

Visiting American Indian Communities

Visiting national parks

Amusement/theme parks

.756

Art gallery/museum

.594 .536

Water sports/sunbathing

Nightclubs/dancing

Note: F1 - F6 stand for Factor 1 - Factor 6.

.625

Attending sports event

Attending Sports (F6)

.764

Concert/play/musical

Attending Musical/Educational Activities (F5)

-.623

.497

Golfing/tennis

.584

Commercial guided tours

Cruises

Participating in Guided Tour (F4)

.776 .543

Visiting casinos/gambling

Visiting Parks (F3)

.806

Shopping

Shopping/Dining/Sightseeing (F2)

.669

Cultural heritage sights

Visiting Rural/Cultural Attractions (F1)

Japanese Group

German Group

Touring countryside Visit small towns/villages

.668 .626

Sightseeing in cities Amusement/theme parks

.718 .427

.402

Ethnic heritage sights


.789

.462

Golfing/tennis

Cruises


Participating in Water Sports/Cruises (F6)

Cruises

.610

Visiting casinos/gambling


.698

.599

.627

.449

.660

.794

.781

.853

-.421

Participating in Water Sports/Cruises (F6)

Golfing/tennis


.644




Watching/Observing (F5)

Shopping

.825

Shopping/Dining (F4)

.574


.567

.680

Visit historical places Art gallery/museum

.706

.694

.423

.735

.750

.434

.589

.686

.742

.685

Visiting Cultural/Arts Attractions (F3)


.752


Communities

Visiting American Indian


.749

Visiting Park/Rural Attractions (F1)

.791

Watching/Observing (F5)


Shopping

Shopping/Dining (F4)


Visit historical places

Art gallery/museum

Visiting Cultural/Arts Attractions (F3)

Amusement/theme parks

Sightseeing in cities



Visit small towns/villages

Touring countryside


Visiting Park/Rural Attractions (F1)

UK Group

TABLE 8. Factors of Leisure Activities by Japanese, UK, and German Senior Travelers



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Rural/Cultural Attractions,” “Shopping/Dining/Sightseeing,” “Visiting Parks,” “Participating in Guided Tour,” “Attending Musical/Educational Activities,” and “Attending Sports.” Table 8 also shows the results of the factor analysis with the responses from the UK senior travelers. Six factors were also identified to represent the original set of 25 leisure activities for the UK senior travelers with a total variance of 42.7% explained. The six factors included “Visiting Rural/Cultural Attractions,” “Participating in Guided Tour,” “Visiting Cultural/Arts Attractions,” “Shopping/Dining,” “Watching/Observing,” and “Participating in Water Sports/Cruises.” The results of factor analysis for German senior travelers indicate that the identified six factors explained 42.6% of the total variance, including “Visiting Park/Rural Attractions,” “Participating in Guided Tour,” “Visiting Cultural/Arts Attractions,” “Shopping/Dining,” “Watching/ Observing,” and “Participating in Water Sports/Cruises” (Table 8). The results of factor analyses are almost identical for the UK and German senior travelers. One explanation for this similarity may be due to the fact that UK and German senior travelers are in close proximity both geographically and culturally and as a result, they may seek similar patterns of leisure activities while traveling to the U.S. The factors derived were thus used to represent the leisure activity patterns in the subsequent logistic regression analysis for each of the three major overseas senior markets. Results of Logistic Analysis Three logistic regression models were empirically tested to examine the variables that influence the decision to take package versus nonpackage tours to the U.S. destinations by the three major overseas senior travel markets. The general logistic regression model can written as: Prob (taking package tour or nonpackage tour) = where Y is the linear combination Y = bo + b1 X 1 + b 2 X 2 + . . . + b k X k

b o - b k : estimatedcoefficients X l - X k : independent variables

1 1 + eY


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While they are the same for all three logistic regression models, the socio-demographic and travel related variables were collapsed for the multivariate analyses. In addition, the individual leisure activity items were replaced by the factors generated. The results of the logistic regression model for the Japanese senior market are shown in Table 9. It indicates that Japanese senior travelers whose income fell between $40,000 and $99,999 and who were traveling with a group, looked for shopping/dining/sightseeing, visited parks, and participated in guided tours were more likely to take package tours. However, those who were attending musical/educational activities seem to be less likely to take package tours. Table 9 also shows the results of a logistic regression model for UK senior travelers. Unlike the Japanese group, senior travelers from the UK who held clerical/sales job positions, traveled with a group, and participated in a guided tour were more likely to take package tours. However, those who seek to visit cultural/arts attractions and like to watch and observe leisure activities tended not to take package tours. German senior travelers showed that similar factors affected their travel mode choice compared to the UK senior market (Table 9). Both the parameter estimates and the odds ratio emerged to be identical to those found for the UK senior travelers. The similarities indicate that based on these data, the top two European senior markets in terms of package travel might be treated as one overseas senior market to the U.S. destinations. CONCLUSION AND IMPLICATION A demographic transition from high to low fertility and improved health care and security systems result in an aging trend in the world’s population. The latest statistics show that the United States received a record 48.5 million overseas travelers in 1999. The U.S. growth rate was one of the highest among the top visited countries worldwide. A better understanding of the overseas senior travel market to the United States will assist both policy makers and industry practitioners in formulating appropriate travel related polices and programs to effectively target this growing market segment. The study explored the profile of overseas senior travelers to the U.S. and examined the distinguishing characteristics of three major overseas senior markets–Japan, Germany, and the U.K. The results show that in comparison more Japanese senior travelers prefer package tours

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Income · $40,000-$99,999 Occupation · Clerical/Sales Travel Companion · Tour Group Leisure Activities · Shopping/Dining/Sightseeing · Visiting Parks · Attending Musical/Education Activities · Participating in Guided Tour · Visiting Cultural/Arts Attractions · Watching/Observing

Variables

0.000 0.000 0.022 0.048 0.000

0.762 0.357 0.161

-0.127 0.520

0.042

p

0.367

Parameter Estimate

Japanese Group

0.881 1.682

1.429 1.174

2.142

1.532

Odds Ratio

0.858

-0.449 -0.423

2.474

1.412

Parameter Estimate

0.000 0.004 0.029

0.000

0.007

p

UK Group

2.358 0.638 0.655

11.865

4.105

Odds Ratio

0.878

-0.467 -0.457

2.186

1.357

Parameter Estimate

0.000 0.003 0.015

0.000

0.009

p

German Group

2.405 0.627 0.633

8.903

3.886

Odds Ratio

TABLE 9. Results of Logistic Regression for the Travel Mode Choice by Japanese, UK, and German Senior Travelers



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whereas in the UK and Germany senior travelers tend to take more non-package tours. This finding is supported by Pizam, JansenVerbeke, and Steel (1997) that Japanese travel mostly in groups because of cultural value for collectivism. In terms of socio-demographics, the mean age of all three countries’ senior travelers ranged from 60.9 to 62.0 years old, which implies that senior travelers are relatively young in absolute terms. However, age did not appear to be significant for travel mode choice in all three senior markets. Previous studies have shown that senior travelers tend to prefer package tours (Javalgi, Thomas, & Rao, 1992). The present study extends the existing literature in showing that age in the already defined senior market does not have significant impact on the travel mode choice within the three major groups to the U.S. Income was found to be distinct for the travel mode choice for Japanese and German senior travelers. Those Japanese senior travelers who earn less than $100,000 annually as household income are more likely to take package tours, while German senior travelers with less than $60,000 household income tend to choose package tours. As for occupation, those senior travelers who hold managerial and executive positions tend to travel independently, whereas those who hold “blue collar” type of jobs such as craftsman, mechanical, and clerical or retirees seem to prefer package tours. Significant trip-related characteristics have also emerged from this study. The number of people in the travel party and the length of trip were found significantly different in travel mode choice for all three senior markets. Specifically, compared to the UK (2.9 persons) and German (4.6 persons) senior travelers, Japanese senior travelers tended to travel in a larger group (8.7 persons). The study provides further evidence of cultural togetherness on the part of Japanese travelers in general as observed by Pizam, Jansen-Verbeke, and Steel (1997). In terms of the length of travel, Japanese senior travelers took shorter duration trips to the U.S. (6.1 nights) compared to 16.4 nights and 17.8 nights for the UK and German senior travelers. The finding is consistent with that of Nozawa (1992) in that shorter stay abroad is a characteristic of the Japanese outbound travel market because of long working hours and difficulty in taking holidays. The length of travel also reveals that shorter time trippers preferred package tours in all three countries. The rationale for this phenomenon may be because the package tour makes it possible for travelers to efficiently utilize the time orchestrated by tour operators at the destination. For first visits, German senior travelers preferred package tours (46.5%) to non-package tours (20.5%). In this study, senior travelers traveling in groups were found to choose more


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package tours in all three countries. This result is supported by Javalgi, Thomas, and Rao (1992). In terms of leisure activities, three activities were ranked at the top of the list in all the three countries–shopping, dining in restaurants, and sightseeing in cities. These activities represent a typical travel pattern that senior travelers to the U.S. appear to be seeking. The factor analyses on the leisure activities indicated that the Japanese senior travelers have a different structure in the underlying dimensions of leisure activities than those from the UK and Germany. The latter two markets demonstrate identical patterns in leisure activities at U.S. destinations. The logistic regression models showed that traveling in groups and participating in guided tours significantly increase the likelihood of taking a package tour by all three senior travel markets. The study findings present important implications for destination marketing planners and practitioners with emphasis on developing packaged tour products. First, it may be beneficial to launch package tour marketing programs regardless of age within senior markets to the U.S. Senior travel markets may be targeted at a relatively lower income level in Japan and clerical and sales job holders in UK and Germany. Second, packaged tour products may be designed at different lengths or durations that cater to various needs of senior markets. Specially, package tours for Japanese senior travelers should be shorter than for the UK and German senior markets. A weeklong package tour is appropriate for Japanese senior travelers while in the UK and German senior markets two and half week long package tours can be promoted. Third, traveling in groups will increase the likelihood of taking package tours for all three senior markets. Thus, marketing efforts should be focused on the market segments that seek to travel in groups such as commercial and non-commercial associations. The design and implementation of marketing programs should also reflect the size of the travel group in different countries’ senior markets. Fourth, participating in a guided tour will contribute to the probability of taking package tours. It requires destination marketers and industry practitioners to design the packaged tour products that are complemented by tour guides or escorts. In addition, the popular leisure activities sought by senior markets should be carefully studied. Since shopping, dining in restaurants, and sightseeing in cities remain the most important, priority should be given to ensure the quality of these products. For example, Japanese are known as shopping lovers (Ahmed and Krohn, 1992). Thus, enough time needs to be arranged for them to shop. A variety of shopping places such as factory outlets, brand stores, or shopping malls work well for Japanese senior


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travelers. Fifth, from the stance of marketing efficiency, marketing efforts should not be recommended to highlight those leisure activities that decrease the chance of taking package tours by the three senior markets, which include attending concerts, plays, and musicals, and visiting art galleries and museums. As a limitation, this study only utilized socio-demographic and trip-related variables due to the nature of the secondary data. Psychographics would have provided a more complete understanding of the overseas senior markets. Moreover, additional countries can be added for further analysis. REFERENCES Ahmed, Z., & Krohn, F. (1992). Understanding the unique consumer behavior of Japanese tourists. Journal of Travel & Tourism Marketing, 1 (3), 73-86. Ananth, M., DeMicco, F., Moreo, P., & Howey, R. (1992). Marketplace lodging needs of mature travelers. The Cornell Hotel and Restaurant Administration Quarterly, 33 (4), 12-24. Bai, B., Smith, W., Cai, L., & O’Leary, J. (1999). Senior sensitive segments: Looking at travel behavior. In K. S. Chon (Ed.), The Practice of Graduate Research in Hospitality and Tourism (pp. 75-89). New York: The Haworth Hospitality Press. Caro, M.R. (1989). The mature market: destroying the myths. Lodging, 14, 27-30. Enoch, Y. (1996). Contents of tour packages: A cross-cultural comparison. Annals of Tourism Research, 23 (3), 599-616. Hong, G., Kim, S., & Lee, J. (1999). Travel expenditure patterns of elderly households in the US. Tourism Recreation Research, 24 (1), 43-52. Hsieh, S., O’Leary, J., Morrison, A., & Chang, P. (1993). Modeling the travel mode choice of Australian outbound travelers. The Journal of Tourism Studies, 4 (1), 51-61. Javalgi, R., Thomas, E., & Rao, S. (1992). Consumer behavior in the U.S. pleasure travel marketplace: An analysis of senior and nonseniors travelers. Journal of Travel Research, 31 (2), 14-19. Javalgi, R.G., Thomas, E.G., & Rao, S.R. (1992). Consumer behavior in the U.S. pleasure travel marketplace: an analysis of senior and nonsenior travelers. Journal of Travel Research, 26 (2), 14-19. Lieux, E. M., Weaver, P. A., & McCleary, K. W. (1994). Lodging preferences of the senior tourism market. Annals of Tourism Research, 21 (4), 712-728. Marvel, M. (1999). Competing in hotel services for seniors. International Journal of Hospitality Management, 18, 235-243. Miller, J. (1996). On Design: golden opportunities: seniors travel frequently, and accommodating their needs can quickly produce profits. Hotel & Motel Management, 211, 45-46. Moschis, G.P, Lee, E., & Mathur, A. (1997). Targeting the Mature Market: Opportunities and Challenges. Journal of Consumer Marketing, 14 (4): 282-293.


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