Decision-making in daily life and in tourism

Abstract

This article seeks to measure the potential risk tolerance in tourism and to determine whether individuals’ rationality in daily life is consistent with their choice of destination for foreign travel. Findings of the research, carried out among Israeli students, indicate such a consistency: individuals with higher general risk aversion also have higher risk aversion in tourism. These results can give tourism service providers greater insight into how tourists make decisions, thus enabling them to offer destinations that are personally adapted to the travel experience and general risk tolerance of tourists.

Keywords:

• Risk tolerance
• decision-making process
• risk perception
• tourists
• tourism
• Israel

Notes

1. WTTC, Travel and Tourism.

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17. Lepp and Gibson, “Tourist Roles, Perceived Risk,” 619.

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19. Reichel, Fuchs, and Uriely, “Perceived Risk,” 221.

20. Pearce, “Recent Research in Tourist,” 14.

21. Fuchs and Reichel, “Cultural Differences in Tourist,” 33.

22. Israel Central Bureau of Statistics.

23. Ibid.

24. Ibid.

25. Williams and Balaz, “Tourism, Risk Tolerance,” 210; Cohen, “Towards a Sociology,” 167.

26. Gilliam, Chatterjee, and Grable, “Measuring the Perception,” 39.

27. Barron and Erev, “Small Feedback‐based Decisions,” 229; Yechiam, Barron, and Erev, “The Role of Personal,” 437.

28. Desivilya Syna, Shahrabani, and Teitler-Regev, “The Effects of Conflict on Risk Perception and Travelling Intention of Young Tourists,” 126; Lepp and Gibson, “Tourist Roles, Perceived Risk,” 612; Sönmez and Graefe, “Determining Future Travel Behavior,” 174.

29. Richards and Wilson, “The Global Nomad,” 21.

30. Gilliam, Chatterjee, and Grable, “Measuring The Perception,” 42.

31. Grable and Lytton, “Financial Risk Tolerance Revisited,” 177.

32. Kahneman and Tversky, “Choices, Values, and Frames,” 341.

33. Beshear et al., “Behavioral Economics Perspectives.”

34. Williams and Balaz, “Tourism, Risk Tolerance,” 216.

35. Desivilya Syna, Shahrabani, and Teitler-Regev, “The Effects of Conflict on Risk Perception and Travelling Intention of Young Tourists,” 126; Lepp and Gibson, “Tourist Roles, Perceived Risk,” 612; Sönmez and Graefe, “Determining Future Travel Behavior,” 174.

36. Barron and Erev, “Small Feedback‐based Decisions,” 229; Yechiam, Barron, and Erev, “The Role of Personal,” 437.