DETERMINANTS OF PURCHASING FOR INTERNATIONAL TRAVEL INSURANCE OF THAI TOURISTS

Abstract

The objective of this paper is to investigate factors affecting the purchasing for international travel insurance of Thai tourists. The selected samples consisted of laborshaving age between 25 and 59 years old and lived in Bangkok. 393 selected samples were then separated into two groups including: 221 samples who had ever purchased the international travel insurance; and 172 samples who had never been purchased international travel insurance. Using the Probit model, this study revealed that factors affecting the purchasing for travel insurance of Thai tourists were the education level in bachelor degree, average income, frequency of traveling abroad in the past 1 year, month of traveling (especially in January and March), recognition of travel insurance, and the 7Ps marketing factors (particularly the product). These factors were positively correlated to the probability of purchasing insurance. On the other hand, this study also found that factors that were negatively correlated to the probability of purchasing insurance was the promotion of the insurance companies.