Heavy Spenders, Medium Spenders, and Light Spenders of Japanese Outbound Pleasure Travelers

Abstract

The two main objectives of this study were to profile expenditure-based segments (heavy, medium, and light spenders) of Japanese outbound pleasure travelers and to identify the determinants of travel expenditure. Identifying groups with different levels of expenditure and comparing the differences among those groups can be a useful method of segmentation for the travel organizers. The main findings indicate that (1) expenditures increase with age, party size and length of trip as expected, (2) those traveling with a spouse, boy or girl friend and parents spend more, (3) summer is the peak expenditure period, (4) travelers to U.S. mainland, Canada, Europe, and Oceania showed greater propensity to spend compared to travelers to Asian countries, but travelers to Hawaii and Guam spent less, and (5) honeymooners and traveling for combined business and pleasure purposes are big spenders.