Love More and Buy More? Behavioral Economics Analysis of Travel Preference and Travel Consumption

Abstract

This study examined the interaction between travel preference and travel consumption from the perspectives of traditional and behavioral economics and analyzed the impact of travel preference on travel consumption using survey data. The WLS regression model was adopted to examine the influence of travel preference on travel consumption and the mediating role of travel demand in the relationship between travel Preference and travel consumption. The results showed that: (1) for domestic travel, the travel preference has a positive impact on travel consumption through the mediating role of travel demand; and (2) for outbound travel, the travel preference has a positive impact on outbound travel consumption through the mediating role of outbound travel demand under the transaction utility and loss aversion effects. Thus, our findings confirm previous evidence on the relevance of tourists’ preferences as a good predictor of travel consumption in the case of Chinese travelers.