Expenditure-based segmentation of sport tourists

Abstract

Destinations throughout the USA and world compete against each other for the opportunity to host professional and amateur sporting events. The primary motivation for these destinations is the anticipated economic impact generated by sport tourists' expenditures while attending sporting events. Although the economic impact of sporting events has been widely studied, the analysis of individuals' expenditures has been neglected. Since tourists' expenditures are considered one of the most important variables in the economic analysis of a destination's tourism industry, segmenting tourists based on expenditures is a valuable alternative to more common segmentation approaches. In this study, sport tourists attending a Professional Golfers' Association of America tournament were divided into three groups (low, medium, and high spenders) based on their total per day spending. The mean per day total expenditures of the low-spender segment were $69.21, the medium spenders' mean total per day expenditures were $219.25, and the high-spender segment averaged $759.03 in total per day expenditures. The results indicate that a significant difference exists between the three expenditure-based segments of sport tourist spectators in terms of spending patterns, trip characteristics, and trip preferences. Expenditure-based segmentation of sport tourist spectators provides important information that event organizers and local tourism stakeholders can utilize in developing effective and efficient short- and long-term management and marketing strategies.