Heavy Spenders Research Articles

Determining Tourist Expenditures: Do Metrics and Levels Matter?

This article seeks to analyze and compare expenditures made by independent tourists, measured using various metrics. The empirical application relies on quantile regression analysis and examines the determinant factors of different types of expenditure, while also accounting for spending variations among heavy, moderate, and light spenders.
 The empirical findings confirm the high complexity of the nature of tourist expenditures. The evidence indicates that the effects of the independent variables vary not only with respect to the expenditure metric but also as a function of expenditure level. Independent tourist expenditures across all quantiles and metrics depend upon the size of the traveling party, duration of stay, type of accommodation, and whether the tourists are from the US Moreover, men spent more than women among light and heavy spenders; social media increases the expenditure for moderate and heavy spenders; and for heavy spenders, business traveler expenditure is less than other travelers.

A Study of Tourist Expenditure Pattern in Jammu and Kashmir: An Inter-regional Analysis

The main purpose of this study is to examine the expenditure pattern of tourists in three geographical regions of erstwhile Jammu and Kashmiri. The study further investigates the nature of tourist spending with respect to different seasons - summer and winter. A survey method has been deployed to collect the primary data for the study. The regional and seasonal differences with respect to the expenditure pattern of the Jammu and Kashmir tourists are analysed with the help of ANOVA. From the ANOVA test, it is found that there is a significant difference in the mean expenditure of tourists visiting the three regions of Jammu and Kashmir. It was further analysed that the seasonal effect on tourist expenditure is stronger in Ladakh than in the Kashmir and Jammu regions and is stronger than the regional effect. The regression analysis has also been used to determine the impact of socioeconomic, demographic, travel-related, and expenditure-related variables on the total expenses of tourists. The regression results confirm that almost all variables significantly impact tourist expenditure. Still, travel-related variables have a more decisive influence than socioeconomic and demographic variables. This study enables the policymakers to obtain the necessary information to implement an adequate policy to attract tourists, who are heavy spenders. It is also beneficial for marketers and tour operators to know the attributes of tourists at a destination, provide them facilities accordingly, and offer them genuine, affordable, and attractive packages to boost their business and tourism inflow to Jammu and Kashmir.

Revisit to Expenditure-Based Segmentation: The Case of the US Kids Golf World Championship

The current study segments the youth golf event market based on expenditure of families who participated in the US Kids Golf World Championship. Expenditure was analyzed from the perspective of parents of young golfers who played at the event. Analysis confirmed the existence of three dissimilar groups of spenders that included light spenders, medium spenders, and heavy spenders. These spenders significantly differed in 1) the expenditure variables such as lodging, food & beverage, golf, retail, transportation, and entertainment & recreation, 2) the overall satisfaction with the event, and 3) trip characteristics. The findings help better appreciate the expenditure patterns and characteristics of families who attended the special youth golf event, a market that has hitherto been infrequently addressed in the literature. Marketing implications are discussed for golf event marketers and associated businesses.

Expenditure-based segmentation of freight travel markets: Identifying the determinants of freight transport expenditure for developing marketing strategies

There is a substantial body of literature relating to freight transport sector's economic impact at the macro-level, but less is known about how freight demand gets translated to an establishment's expenditures at the micro-level. This paper addresses this research gap by collecting data about expenditure patterns of establishments and applying market segmentation technique based on finite mixture models. Three latent segments - heavy spenders, medium spenders and light spenders – and their associated profiles are identified. The results indicate that significant differences exist between the three expenditure-based segments of establishments in terms of spending patterns, business size indicators, locational characteristics and freight travel patterns. The heavy spenders tend to be strongly influenced by employment, gross-floor area, business age and fleet ownership levels. The length of haul and truck type choice have a strong incremental effect on the volume of expenditures and larger shipment sizes are associated with expenditure reduction due to economies of scale. The diverging characteristics of expenditure segments emphasizes the need of the logistics providers to “identify their markets” and planners to “identify how demand translates to transport expenditures”. The overall conclusion is that segmenting establishments based on unobservable heterogeneity with respect to their freight transport expenditure is preferable and more informative than treating them as one homogeneous group. The study findings provide important information that planners and logistics providers can utilize in developing effective logistics plans and marketing strategies.

The Impact of Socio-Demographic Factors on Domestic Tourism Consumption Expenditure in Ghana

This study applies quantile regression approach to analyse socio-demographic factors that affect domestic tourism consumption expenditure in Ghana. The approach uses household domestic tourism expenditure as a response variable. The internet access of the household, whether a household owns a mobile phone, and /or at least one car or not are represented as proxies for information and transport accessibility, respectively. Other variables included to constrain household domestic travel budgets are yearly household income and household loan. The rest are demographic characteristics such as age and educational level of household heads. The empirical results show that relatively older and well educated household heads with higher earnings are prepared and willing to expend more on domestic tourism in Ghana. The results further show that, in Ghana, household loans are one of the major constraints of domestic tourism spending for medium and heavy spenders, but positively and significantly influence light domestic tourism expenditure households. Internet access, ownership of a car and mobile phone have no relation with the amount of money spent on domestic tourism in Ghana. Keywords: domestic tourism, quantile regression, tourism consumption expenditure, socio-demographic variables, same-day visitors and overnight tourists. DOI : 10.7176/JTHS/41-05 Publication date :May 31 st 2019

Do generations matter for wine segmentation?

ABSTRACTSegmenting wine consumers by generation is a popular and commonly discussed marketing strategy. However, much of the academic research related to generational segmentation is dated and in need of further study. Wine tastes are malleable, and as consumers within each generation age, their preferences for wine and wine buying habits change. The aim of this research was to further define the differences between generations with regard to wine preferences and purchasing behavior, paying specific attention to those that are heavy spenders. Through statistical tests and a binary probit model, results suggest significant differences between generations and an apparent need for distinctly different marketing strategies when targeting one generation compared to the other. Heavy spenders tend to be male, Baby Boomers, use magazines for information about wine and are wine enthusiasts.

Are heavy players really loyal customers in the Korean casino industry?

This study explores whether heavy spenders in casinos are really loyal customers. It applies a volume segmentation technique in order to identify segments of the Korean casino market and then examines differences among emergent segments in terms of service quality, satisfaction, and loyalty. An onsite survey was conducted for casino gamblers at K casino, which allowed the research team to interview gamblers in a live gambling situation. A total of 470 usable questionnaires were collected. A two-step cluster analysis identified three emergent segments: recreational players, high spending players, and high frequency players. The results show that high frequency players were less satisfied with all four dimensions of casino service quality than recreational players. Ratings for satisfaction, loyalty, recommendation, and word-of-mouth were significantly lower for high frequency players and high spending players than for recreational players. These findings imply that, interestingly, traditional assumptions regarding customer loyalty do not seem to apply to the casino market. Casino marketers should focus on identifying truly loyal customers rather than merely heavy players to ensure their sustainable operation. This study addressed that volume segmentation appeared to be important in the casino industry and revealed unique characteristics of the Korean casino market.

Analysing off-season tourist expenditure

The majority of researches deal with the issue of micro-level expenditure in the high season, leaving off-season expenditure an under-researched topic. Moreover, the relationship between tourist satisfaction and expenditure has been also rarely explored. Thus, the aim of this study is to determine the factors that influence the off-season expenditure levels of light spenders and heavy spenders. Among the set of predictors, various dimensions of satisfaction were tested as possible off-season expenditure predictors. Descriptive analysis was used for sample profiling, independent t-tests were conducted to determine significant differences between light and heavy spenders in terms of their characteristics, and Principal Components Analysis (PCA) was applied to identify the dimensions of tourist satisfaction with the destination’s offering. In the end, multiple regression analyses were made to identify the expenditure determinants of light and heavy spenders. The main findings indicate that different predictors influence the daily off-season expenditure levels of light and heavy spenders. When it comes to light spenders, among the set of other significant predictors, it was found that those who are more satisfied with the cleanliness and preserved environment tend to spend more in the destination in comparison with those who are less satisfied with this dimension. In the case of heavy spenders, the results revealed that satisfaction with safety, quality and hospitality turned out to be a statistically significant predictor of their daily off-season expenditure.

Enhancing Financial Impact of Tourism While Preserving Sustainability in the City of Barcelona

Barcelona is a successful tourist destination, but currently it is reaching the limit of its carrying capacity. Consequently, far from increasing the number of visitors and overnight stays, interest should be to recruit those tourists that generate the highest average daily expenditure. To achieve this goal, the following procedure was carried out. In a first phase, from a survey of Turisme de Barcelona, the market was segmented based on the average daily spending per tourist. As a result, three distinct and easily identifiable groups emerged. In the second phase, the group of heavy spenders was selected and an in-depth analysis of their behaviour was conducted, both in terms of total expenditure and by specific categories of goods and tourism services. Results allow making recommendations on how to attract the high-spending market. Promoting tourism for middle-age and older travelers, encouraging short stays and intensifying efforts to increase business versus leisure tourism are some of the measures that would help achieve a greater daily expenditure per person. It would also be helpful to design and develop some tourism products that may be attractive to tourists traveling alone.

Determinants of sport-related expenditure of golf players and differences between light and heavy spenders

Purpose – Although participation in golf has increased in several countries and is associated with an evolving golf industry, research on golf and golf players is rather limited. Therefore, the purpose of this paper is to analyse the sport-related expenditure of golfers and diferences of heavy and light spenders. Design/methodology/approach – Primary data of golf players were collected in Germany using a written survey which resulted in a convenience sample of n=197 golfers. Findings – The regression results indicate that the social motive, time for playing and training, handicap, age, and income have a significant impact on sport-related expenditure. There are several significant difference between heavy and light spenders based on psychological, behavioural, demographic, and resources variables. Research limitations/implications – A convenience sample was drawn and the sample size with n=197 respondents could be improved. Nonetheless, the descriptive results revealed that the sample structure was similar to previous research with regard to socio-demographic variables. Practical implications – Since the underlying motives of golfers vary immensely indicating a range of target groups, sport managers need to address each target group differently to fully exploit the marketing potential. Originality/value – Expenditure of golfers seems to be under researched and the results reveal that the average sport-related expenditure of golfers confirms that golf can be an expensive sport and that golf players are willing to spend on average one monthly income on their sport over a 12-month period.

Micro-economic determinants of tourist expenditure: A quantile regression approach

We assess the effect of the main determinants of tourist expenditure by applying both linear and quantile regression models to individual micro data collected by a survey addressed to non-resident tourists who spent their holidays in Sardinia during the period April–October 2012. We find that, in addition to income and foreign nationality, tourist expenditure is crucially driven by trip-related (party size, stay length, accommodation, sea and sun typology and transport modality) and psychographic characteristics (repeated visits and holiday motivations). Moreover, our results indicate that the effects vary with respect to the expenditure component and the level of spending, thus confirming the high complexity of the tourism product. Higher positive effects were found for heavy spenders in the case of foreign nationality, previous visits and notoriety-motivated holidays, while party size and the number of visited sites contribute to reducing the level of expenditure for light-spending tourists.

Cruise Passengers' Expenditure in the Caribbean Port of Call of Cartagena de Indias: A Cross-Section Data Analysis

The cruise industry has become a significant component of the Colombian tourism economy and Cartagena de Indias has become the largest cruise port in the country. This paper provides a better understanding of the cruise industry by considering the expenditures of cruise ship passengers disembarking in Cartagena de Indias as a key variable in the economic analysis of the costs and benefits. The authors estimate two cross-sectional regression models for the cruising expenditure, showing the existence of different tourist profiles related to different expenditure levels. In particular, heavy spenders are distinguishable from the other segments in terms of age, hours spent off the ship, nationality, income levels and spending patterns.

An Analysis of Tourists' Expenditure on Winter Sports Events through the Tobit Censorate Model

This study analyses the economic impact of the Biathlon World Cup 2009 in Antholz-Anterselva. The survey concentrates on the immediate, direct and short-term additional revenue brought into the region by foreign sports event spectators. The authors first apply an expenditure-based segmentation technique to data collected during the event to separate respondents according to socio-demographic variables. Second, a Tobit analysis is applied to obtain an expenditure model that is useful in explaining the different determinants of trip expenditures by spectators of the event. The results reveal significant socio-demographic differences between the four expenditure groups. For instance, heavy spenders are composed mainly of mature tourists, arriving for the first time in medium-sized groups. Also, the most important factors in total expenditure are income level, the geographical origin of the spectator and the size of the travel group.

Understanding travel expenditure by means of market segmentation

Consolidated tourism destinations should expand their market share by focusing on tourism spending instead of number of travellers. This strategy emphasises satisfying the preferences and needs of tourists more dynamically in terms of their expenditure patterns. The purpose of this paper consists of evaluating the usefulness of an expenditure-based segmentation as a relevant instrument of tourism policy in order to increase the economic benefits from travellers to Andalusia. More specifically, by means of decision trees and linear regression statistical techniques, heavy spenders are identified as well as exploring which variables might be considered as the best predictors of travel expenditure. Finally, the implications of the results are discussed, as they may provide practical guidance for tourism practitioners at similar destinations.

Cruise Passengers Expenditure Analysis and Probability Of Repeat Visits to Costa Rica: a Cross Section Data Analysis

The present article considers the cruising expenditure in Costa Rica as a key variable in the economic analysis of the cost and benefits associated with the cruise industry. We applied a rarely accessible and very good quality database collected by the Costa Rica Tourism Board (ICT) to estimate our econometric models. We estimate a cross-sectional regression model for the cruising expenditure, showing the existence of different tourist profiles that are related to the expenditure levels. In particular, heavy spenders are distinguishable from the other segments in terms of age, hours spent out of the ship, nationality, income levels, and their spending pattern. In addition, we also use the data to analyze the determinants of the probability of returning. We show that this probability depends positively on the level of satisfaction declared by the passenger and the number of hours spent out the ship, among other variables. We also show that older visitors are more likely to return than younger ones; first-time visitors are also more likely to return than repeat visitors and tourists whose income is larger than US$41,000 are more likely to return than other visitors. Finally, men are more likely to return than women.

Country Segmentation of the International Tourism Market Using Propensity to Travel and to Spend Abroad

ABSTRACT Two new segmentation variables for the global international tourism market were operationalized. These variables were used to segment the countries of the world into nine market segments, which include heavy travelers, heavy spenders (HH); heavy travelers, medium spenders (HM); heavy travelers, light spenders (HL); medium travelers, heavy spenders (MH); medium travelers, medium spenders (MM); medium travelers, light spenders (ML); light travelers, heavy spenders (LH); light travelers, medium spenders (LM); and light travelers, light spenders (LL). The profile of these country segments were further examined using discriminant analysis. Implications of findings for targeting and promotion strategies are discussed, and directions for future research are given.

Segmenting special interest visitors to a destination region based on the volume of their expenditures: an application to rail-trail users

Various general tourist markets have been successfully segmented based on the volume of tourists’ expenditures in destination areas. However, the approach has been rarely employed in more narrowly defined ‘special interest’ tourist markets. This study tested the viability of expenditure-based segmentation in the case of a special interest market comprised of visitors to a rail-trail in the Black Hills of South Dakota, USA. Nonresident visitors were classified as light, medium, and heavy spenders based on their total expenditures in the region. Although heavy spenders comprised only 33% of the Trail’s market, their spending accounted for 65% of the expenditures of the market as a whole. Compared to their counterparts, heavy spenders were more likely to have been mountain biking aficionados, to have had higher incomes, and to have had longer lengths of stay and greater involvement with recreation in the study region. Findings suggest how heavy spenders can be successfully reached, attracted, and served.

An Analysis of Tourists’ Expenditure of Winter Sport Events through Tobit Censorate Model

The aim of this study is to analyze the economic impact of the Biathlon World Cup 2009 in Antholz-Anterselva. The survey concentrates on the immediate, direct and short-term additional revenue brought into the region by foreign sport event spectators. We first apply an expenditure-based segmentation technique to data collected during the event to separate respondents according to socio-demographic variables. Second, a Tobit analysis is applied to obtain an expenditure model that is useful in explaining the different determinants of trip expenditures by spectators of the event. Results reveal significant socio-demographic differences between the four expenditure groups. For instance, heavy spenders are mainly composed by mature tourists, arriving for the first time in medium groups. We also show that the most important factors of total expenditures are income level, geographic origin of the spectator and the size of the travel group.

Applying Expenditure-based Segmentation on Special-Interest Tourists: The Case of Golf Travelers

Given the growing competition among golf travel destinations and the increasing costs of managing and maintaining related facilities, it is important to investigate and understand the expenditure patterns of golf travelers. The results of this research provide useful information for golf destination marketers in the development of strategies to attract and retain golf travelers. This study uses an expenditure-based segmentation of golf travelers visiting a Southern Gulf region in the United States. The findings indicate that the heavy spenders exhibit clear spending patterns and are responsible for most of the sample’s total expenditures. The heavy spenders also are well differentiated along golfographic and tripographic measures, but not along sociodemographics and information sources used prior to the vacation. The article ends with an assessment of the contributions of the findings both to the literature on travel expenditure and to golf destination marketers.

Expenditure-Based Segmentation and Visitor Profiling at the Quays in Salford, UK

There is a substantial body of literature relating to tourism's economic impact at the macro level, but less is known about tourist expenditure at a micro scale. This paper reports findings from a survey of day-visitor expenditure by category at The Quays in Salford, UK. Expenditure is influenced strongly by the visitor's age, frequency of visitation and visit motivation. Heavy, medium and light expenditure segments and associated profiles are identified. ‘Heavy spenders’ are more likely to be female, in a family group and have shopping as the main motivation for the visit. The implications of the findings are discussed.