Demand Factors

Disposable Income

Disposable income is the amount of money a person has left after paying expenses and taxes. It is also the amount of income left available for spending or saving. The growth in the global economy had led to the growth in income which had let people have more disposable income to spend. The spending can include for tourism purposes.

Example, the economy of countries like China and India had grown rapidly. People in the middle income and high income group has more disposable income, and some of them spent their income on tourism.

 

Leisure Time

Leisure time is a period of time where people have free time and can relax. Leisure time usually come in the form of paid leave, where the person is allowed away from work, for the middle income groups and the high income groups. Since 1950, in developed countries and less developed countries, people in any income groups have shorter working weeks, more public holidays and more paid annual leave. This increased the amount of free time the people have for them to tour around.

Example, in Australia, many employees can use paid overtime work for leaves. This increased the amount of leisure time for the employees to tour around.   

 

Changing Lifestyles

Changing lifestyles is the change in the way people live throughout their lifetime. The pace of life is faster today; many people from the workforce work for a longer time. This had made travelling a way to let people relax from their fast-paced work. The advancement in healthcare also give people more chance to travel. This is because the advancement of healthcare enable people to live longer and healthier. Therefore, they are more physically fit to travel. Retirees who are physically fit enough also like to travel around to spend the rest of their healthy life.
Example, cruise ships are popular with retirees. Retirees make up a large portion of the passengers in the Caribbean and Mediterranean Cruise ships.