Evaluation of segment attractiveness by risk-adjusted market potential: First-time vs. repeat visitors

Amir Shani, Arie Reichel, Robertico Croes

Research output: Contribution to journalArticlepeer-review

13 Scopus citations

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.

Original languageEnglish
Pages (from-to)166-177
Number of pages12
JournalJournal of Travel Research
Volume51
Issue number2
DOIs
StatePublished - 1 Jan 2012

Keywords

  • expenditure risk
  • repeat visitors
  • segment attractiveness
  • size risk

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Transportation
  • Tourism, Leisure and Hospitality Management

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