Evaluation of Segment Attractiveness by Risk-Adjusted Market Potential: First-Time vs. Repeat Visitors

    Authors

    A. Shani; A. Reichel;R. Croes

    Comments

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    Abbreviated Journal Title

    J. Travel Res.

    Keywords

    repeat visitors; segment attractiveness; expenditure risk; size risk; JAPANESE PLEASURE TRAVELERS; BEHAVIORAL LOYALTY; CUSTOMER LOYALTY; TOURISM; EXPENDITURE; STRATEGY; PROGRAMS; QUALITY; MODEL; CYCLE; Hospitality, Leisure, Sport & Tourism

    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.

    Journal Title

    Journal of Travel Research

    Volume

    51

    Issue/Number

    2

    Publication Date

    1-1-2012

    Document Type

    Article

    Language

    English

    First Page

    166

    Last Page

    177

    WOS Identifier

    WOS:000299891600005

    ISSN

    0047-2875

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