Analysis of Korean millennials’ travel expenditure patterns: an almost ideal demand system approach

ABSTRACT

Generational cohorts can differ in their consumption patterns and preferred travel behavior. As the millennial generation represents an important economic force and influences new consumption trends, this study utilizes nationwide data and almost ideal demand system (AIDS) approach to examine expenditure patterns of Korean travelers during holidays. In this process, the joint effects of travel-related characteristics are also examined. The results of the AIDS estimation on data from 871 domestic travelers reveal significantly different travel expenditure patterns for cohorts. The findings contribute to furthering the understanding of how different generational cohorts allocate their travel budgets to respective travel expenditure categories.

KEYWORDS:

• Almost ideal demand system (AIDS)
• travel expenditure
• domestic travel
• generational cohort
• millennial generation
• generation X
• baby boomer generation
• travel duration
• travel party size
• travel distance

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This work was supported by Ministry of Education of the Republic of Korea and National Research Foundation of Korea [NRF-2016S1A5B8914028].