How does your holiday plan change when your income changes?

I always believe that all individuals are rational that they make their decisions based on their best information. Many people in the West are spending their holidays at the moment. In China, people usually spend their holidays around the Chinese New Year. When people have different levels of incomes, they can have different ways to spend their holidays.

When people are very poor, they do not have sufficient resources to support their basic living, so under such circumstances, they have to work as hard as possible to get as many resources as possible, they cannot have any holiday plan. When people are a little bit wealthier, as they are still facing great risk in the future, and they can earn a bit more during the holiday period than during the normal period, so they are more interested in working during the holiday season in order to get extra incomes to counter their future risk. When people have stable jobs and are wealthier, they can afford holidays and holiday is another type of consumption; therefore, the way of how they spend their holidays depends on their wealth levels and the length of their holidays also depends on their wealth level that when people are wealthier, they can afford more expensive holiday plans and enjoy longer holidays. However, the marginal returns of holidays are also diminishing. After a certain level of holiday lengths and expenditures, the marginal returns become negative, work becomes more scarce compared with luxury, then people could potentially stop consuming more what we consider is luxury and turn to work.

To conclude, if we assume diminishing marginal return is always true, then even super wealthy people would still work, as consuming additional luxury does not provide additional happiness or utility.