An exploratory study on frugal tourists with reference to Consumer Behavior: for MBA students (information from perplexity.ai)
My question 1: "What is frugal tourists all about with reference to the subject of consumer behavior?"
The reply: "Frugal tourists, in the context of consumer behavior, are travelers who deliberately adopt cost-conscious and resourceful consumption habits to maximize value while minimizing expenses during their trips. This behavior reflects a proactive, intentional approach to spending that goes beyond mere economic necessity and involves careful planning, disciplined purchasing, and efficient use of resources.
: Frugality is a conscious choice rather than a forced response to financial constraints. Frugal tourists actively seek ways to reduce costs without compromising their travel experience quality, such as researching the best deals on airfare, accommodations, and attractions ahead of time36
: These tourists look for the best combination of price, quality, and convenience, often trading down to lower-cost options like private labels or discount outlets, but still maintaining a focus on value rather than just the lowest price510.
: Frugal behavior includes extending the use of products and services, repurposing, repairing, and reusing resources, which can also align with sustainable consumption goals32.
: Frugal tourists set spending guidelines and boundaries, which helps them avoid unnecessary expenses and debt. They plan their trips with a clear budget and prioritize expenditures that provide the most satisfaction or utility for their money6.
: Frugality differs from cheapness in that frugal tourists avoid cutting corners that harm quality or experience. They balance cost savings with enjoyment and are willing to spend on meaningful aspects of travel rather than indiscriminately minimizing all expenses109.
Frugal tourists often:
Use budget-friendly transportation options and accommodations such as hostels, home exchanges, or couchsurfing11.
Eat at affordable local eateries instead of expensive restaurants11.
Avoid frivolous spending on souvenirs or entertainment that does not add value to their experience9.
Conduct extensive research to find the best deals and plan their itinerary accordingly6
Frugality can also influence attitudes toward hedonic consumption in tourism, such as forest health tourism. Tourists with strong frugality habits may be less inclined to spend on luxury or leisure travel experiences, reflecting a more restrained consumption attitude shaped by cultural values and mental accounting of expenses8.
In summary, frugal tourists exemplify a consumer behavior pattern marked by intentional, value-driven, and resourceful consumption choices during travel. They balance cost savings with quality and experience, making deliberate decisions to optimize their travel budget without sacrificing enjoyment or sustainability."
My question 2: "What are the academic theories to study this topic?"
The reply: "Academic theories commonly used to study frugal tourists and frugal consumer behavior in tourism include:
1. Theory of Planned Behavior (TPB)
This theory explains how attitudes, subjective norms, and perceived behavioral control influence consumers' behavioral intentions and actions. In the context of frugal tourists, TPB helps analyze how frugality shapes attitudes toward travel choices and intentions to engage in specific tourism activities, such as forest health tourism36.
2. Mental Account Theory
Developed by Thaler, this theory posits that consumers mentally allocate budgets to different categories (accounts) of spending. Frugal tourists may restrict or close certain mental accounts (e.g., health or leisure accounts) to control spending, which affects their consumption decisions and intentions in tourism contexts36.
3. Cognition-Attitude-Behavior Model
This model links consumers’ awareness or cognition about a product or service to their attitudes and subsequent behavior. It is used to study how frugal tourists’ knowledge and beliefs about tourism benefits influence their attitudes and travel intentions, often mediating the effect of frugality36.
4. Consumer Ethics and Anti-Consumption Theory
Frugality is viewed as a moral and ethical consumption choice, emphasizing rational planning, avoidance of waste, and restraint of desires. This perspective frames frugal tourists as engaging in an anti-consumption lifestyle that values sustainability and ethical consumption3.
5. Cultural and Social Class Theories
These examine how cultural values and social class influence frugal consumption patterns, including tourism spending. For example, frugality as a traditional virtue in some cultures shapes tourists’ behavior and attitudes toward travel expenditure23.
These theories are often combined, such as integrating mental account theory with TPB, to provide a comprehensive framework for understanding how frugality shapes tourist consumer behavior and intentions36.
In conclusion, the study of frugal tourists in consumer behavior draws heavily on the theory of planned behavior, mental account theory, and cognition-attitude-behavior models, enriched by perspectives from consumer ethics and cultural studies to fully capture the motivations and constraints influencing frugal travel decisions."
My question 3: "What are the research gaps and research issues on this topic?"
The reply: "Research on frugal tourists and frugal consumer behavior in tourism has made significant progress, but several research gaps and issues remain:
Key Research Gaps and Issues
1. Limited Integration of Theories and Context-Specific Frameworks
Most studies apply single theories like the Theory of Planned Behavior (TPB) or Mental Account Theory separately. There is a gap in developing integrated, context-specific models that combine multiple theories to fully capture the complexity of frugal tourist behavior, especially in niche tourism sectors like forest health tourism3.
Prior research often lacks detailed contextualization of tourism types and specific consumption behaviors, limiting the measurement accuracy of attitudes and intentions3.
2. Underexplored Psychological and Social Moderators
The role of social influences (subjective norms), cognitive awareness, and demographic moderators (age, gender, income, education) in shaping frugal tourists’ attitudes and intentions needs deeper exploration. For example, frugality’s negative effect on tourism intentions may be mitigated by positive cognition or social influence, but these moderating effects are not fully understood32.
How personal relationships and social contexts affect frugal behavior in tourism consumption remains underexamined2.
3. Ambiguity in Frugality Definitions and Measurement
There is inconsistency in defining frugality-whether it is purely economic restraint, a moral/ethical stance, or a lifestyle choice-and this affects comparability across studies134.
Measurement scales for frugality and frugal buying habits, especially in tourism, require further validation and refinement to capture nuances like planned consumption versus impulsive thriftiness5.
4. Limited Research on Hedonic vs. Utilitarian Consumption
Frugality’s impact on hedonic tourism consumption (e.g., forest health tourism) versus utilitarian or necessity-based travel is insufficiently differentiated. Research indicates frugality negatively affects hedonic consumption attitudes, but more empirical evidence is needed to understand this dynamic across tourism segments3.
The tension between frugality and luxury consumption in tourism remains a fertile area for investigation37.
5. Scarcity of Longitudinal and Behavioral Data
Most studies rely on cross-sectional surveys measuring intentions rather than actual behavior, limiting understanding of how frugality influences real travel decisions and expenditures over time3.
Longitudinal and experimental designs could better reveal causal relationships and changes in frugal behavior.
6. Insufficient Focus on Digital and Online Frugal Behaviors
With the rise of digital platforms, research on how frugal tourists use online tools (price comparison, deal hunting, mobile apps) to optimize travel spending is limited but growing5.
The impact of digital literacy and information transparency on frugal tourism behavior needs more investigation.
7. Sustainability and Ethical Consumption Overlaps
While frugality is linked to sustainability and ethical consumption, the interplay between these constructs in tourism contexts is underexplored. How frugal tourists balance cost-saving with environmental and social responsibility warrants further study678.
My question 4: "What have been the public media-reported issues on this topic over the past 15 years?"
The reply: "Over the past 15 years, public media has reported several key issues related to frugal tourists and frugal travel behavior, reflecting evolving consumer attitudes and economic conditions:
1. Growing Popularity of Budget and Frugal Travel
Media coverage has highlighted the rise of frugal travelers seeking to explore destinations on limited budgets by using cost-saving strategies such as staying in hostels, using public transport, and eating street food. For example, the New York Times’ "Frugal Traveler" blog and related articles have popularized tips on how to travel affordably, including in destinations like Barbados13. This trend reflects a widespread consumer interest in maximizing travel experiences while minimizing costs.
2. Shift in Tourism Market Focus: Quality vs. Frugality
Some reports argue that destinations like Hong Kong are moving away from prioritizing frugal tourists toward attracting "quality tourists" who spend more, emphasizing mindful and sustainable tourism rather than just cheap travel2. This shift addresses concerns that overly frugal visitors may contribute less economically and potentially strain local resources without significant benefit.
3. Impact of Economic Factors on Travel Spending
Media has documented how economic pressures, such as the post-pandemic economy and cost-of-living crises, have influenced frugal travel behaviors. Middle-income travelers, for instance, are increasingly opting for shorter stays, budget accommodations, and cheaper destinations, behaving more like lower-income travelers in terms of spending6. Despite financial constraints, many consumers still prioritize travel, often planning carefully to find the best deals5.
4. Generational Differences in Frugal Travel Behavior
Reports note that younger generations, especially Gen Z and millennials, are more inclined to plan ahead, seek out budget-friendly activities, and use digital tools for price comparison and deal hunting5. This demographic is characterized by a willingness to sacrifice some comfort for affordability, contrasting with older generations who may prioritize different travel experiences.
5. Use of Digital Platforms to Support Frugal Travel
Media sources emphasize the role of online resources and apps in enabling frugal travel, such as price comparison websites, budget airline alerts, and alternative lodging platforms like Couchsurfing and home exchanges3. This digital shift facilitates more informed, cost-conscious travel decisions.
In conclusion, public media over the last 15 years has focused on the rise and characteristics of frugal tourists, the economic and generational factors shaping this behavior, and the evolving tourism industry response balancing frugal and quality tourists. The narrative underscores frugality as both a practical response to economic realities and a lifestyle choice facilitated by digital innovation."
My question 5: "What have been the Hong Kong public media-reported issues on this topic over the past 15 years?"
The reply: "Over the past 15 years, Hong Kong public media have reported several significant issues related to frugal tourists and frugal travel behavior, reflecting concerns about the quality and economic impact of tourism in the city:
1. Preference for Quality Tourists over Frugal Visitors
Media and government officials have increasingly emphasized the need to shift from attracting large numbers of low-spending, frugal tourists toward welcoming "quality tourists" who spend more and seek mindful, sustainable tourism experiences. This shift aims to enhance Hong Kong’s reputation as a sophisticated, luxury destination rather than a budget travel hub167.
2. Challenges from Low-Cost Mainland Chinese Tour Groups
A major issue reported is the dominance of low-budget Mainland Chinese tour groups, often organized as "zero-fare tours" where tourists pay minimal fees, stay in cheaper hotels, eat inexpensive meals, and are taken to low-value shopping stops. These tours generate limited economic benefits and have caused dissatisfaction among local residents and officials, who worry about Hong Kong’s image and the sustainability of its tourism industry3.
3. Declining Visitor Spending and Shorter Stays
Recent media reports highlight a notable drop in visitor spending (19% decline in 2024) and a decrease in the average length of stay to about 3.2 days. This trend is attributed to factors such as a strong Hong Kong dollar, economic slowdown in Mainland China, and changing tourist preferences toward more cost-conscious, experience-driven travel. This has pressured hotels and tourism operators to adapt by creating more unique, high-value experiences to attract higher-spending visitors5.
4. Overtourism and Its Negative Effects
Despite the economic challenges, Hong Kong faces overtourism issues, with crowded attractions and infrastructure strain caused largely by high volumes of low-spending tourists. The government’s prior focus on increasing visitor numbers, especially from Mainland China, has led to tensions between local residents and tourists, and concerns about the city’s ability to maintain high-quality tourism services36.
5. Post-Pandemic Changes and Tourism Industry Transformation
The pandemic accelerated shifts in visitor behavior, with more short-haul and independent travelers seeking in-depth cultural and experiential tourism rather than traditional shopping tours. The government’s Tourism Industry Development Blueprint 2.0 stresses the need to enhance quality, sustainability, and personalized experiences to meet evolving visitor expectations and improve economic returns67.
6. Manpower Shortages and Rising Costs
Media and official reports also point to challenges such as manpower shortages in tourism and hospitality sectors post-pandemic and relatively high business costs in Hong Kong. These factors complicate efforts to improve service quality and attract higher-spending tourists, reinforcing the need to move away from low-cost, frugal tourism models67.
In conclusion, Hong Kong’s public media over the past 15 years have focused on the tension between frugal tourism and the city’s aspiration to be a high-quality, luxury destination. The issues revolve around the economic limitations of low-spending tourists, especially from Mainland China, overtourism impacts, and the urgent need for tourism industry transformation toward sustainability, quality, and enhanced visitor experiences."
My question 6: "Suggest 4 related research objectives and 2 relate research questions on this topic, in the context of Hong Kong. Also comments on the originality, academic and practical values of studying these objectives and questions."
The reply: "Here are suggested research objectives and questions related to frugal tourists in Hong Kong, along with comments on their originality, academic, and practical values:
Suggested Research Objectives
- To examine the impact of frugal tourist behavior on Hong Kong’s retail and tourism economy.This objective addresses the economic implications of frugality, especially given recent reports of declining retail sales linked to frugal tourists1.
- To analyze the attitudes and motivations of frugal tourists visiting Hong Kong, including their preferences for budget accommodations, shopping, and activities.Understanding tourist motivations helps tailor marketing and service offerings in a highly competitive tourism market2.
- To investigate the role of digital platforms and online tools in facilitating frugal travel behavior among tourists in Hong Kong.With the rise of digital deal-hunting and budget travel planning, this objective explores how technology shapes frugal consumption patterns.
- To explore the perceptions of local stakeholders (businesses, residents, policymakers) regarding the challenges and opportunities posed by frugal tourists.This objective captures the social and policy dimensions, especially the tension between attracting visitors and maintaining quality tourism1.
Suggested Research Questions
- How does frugal tourist behavior influence retail spending and overall economic contributions in Hong Kong’s tourism sector?This question directly links tourist behavior to measurable economic outcomes, addressing a critical concern for Hong Kong’s tourism recovery and growth1.
- What digital tools and strategies do frugal tourists use to plan and manage their travel expenses in Hong Kong, and how effective are these tools?This question investigates the intersection of technology and consumer behavior, relevant to current trends in travel planning and budgeting2.
Comments on Originality, Academic, and Practical Values
- Originality:While frugality in tourism is a known concept, focusing specifically on Hong Kong’s unique tourism environment-characterized by high costs, a shift toward quality tourists, and recent economic challenges-adds originality. The integration of digital behavior and stakeholder perspectives also provides fresh angles not extensively covered in existing literature.
- Academic Value:These objectives and questions contribute to consumer behavior and tourism studies by combining economic, psychological, and technological perspectives. They help fill gaps related to the measurement of frugality’s economic impact, the role of digital platforms, and the social implications within a major global tourism hub.
- Practical Value:The findings can guide Hong Kong’s tourism authorities and businesses in developing targeted marketing strategies, improving service offerings for budget-conscious travelers, and balancing the needs of different tourist segments. Understanding stakeholder perceptions also supports policy formulation aimed at sustainable tourism development and managing overtourism tensions.
In summary, these research objectives and questions are well-grounded in current issues reported in Hong Kong’s public media and address both theoretical and applied aspects of frugal tourist behavior in a complex urban tourism context."
A collection of blog notes on using chatgpt for research purpose.
