Evaluation of Segment Attractiveness by Risk-Adjusted Market Potential

Keywords

repeat visitors, segment attractiveness, expenditure risk, size risk

Abstract

Numerous studies on destination marketing assume that repeat visitors are a more attractive market segment than first-time visitors. The current study questions this assertion, by focusing separately on the balance between economic potential, as determined by tourists’ spending, and risk. Specifically, the methodology adopted here integrates assessment of risks involved with targeting the two separate market segments. Consequently, it is possible to calculate a more comprehensive and accurate assessment of the relative attractiveness of different market segments. The study relies on a survey conducted in Kissimmee, Florida, a mature destination attempting to avoid decline by attracting more tourists. Analysis of the tourist data reveals that the commonly suggested attractiveness of the repeat visitors segment should be reconsidered. The economic potential of both segments varies across spending categories as well as according to whether per-trip or per-day expenditures are considered. Conclusions and implications for both research and practice are provided.

Publication Date

1-20-2011

Original Citation

Shani, A., Croes, R. and Reichel, A. (2012). Evaluation of Segment Attractiveness by Risk-Adjusted Market Potential: First Time vs Repeat Visitors. Journal of Travel Research 51(2), 166-177.

Number of Pages

166-177

Document Type

Paper

Language

English

Source Title

Journal of Travel Research

Volume

51

Issue

2

College

Rosen College of Hospitality Management

Location

Rosen College of Hospitality Management

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