The Value of Destination Loyalty: Myth or Reality?

Abstract

Given the growing appeal of the concept of destination loyalty in tourism marketing, it is highly important to investigate the travel expenditures of loyal vs. non- or less loyal visitors. Adopting the behavioral approach to loyalty, this study examines the spending patterns of visitors to Kissimmee-St. Cloud, while comparing between the different loyalty segments: no previous visit, one previous visit, and multiple visits. The analysis is based on an intercept survey conducted by the Kissimmee-St. Cloud Convention and Visitors Bureau∗ (KSCVB, 2006), which yielded a sample of 4,301 visitors. In contrast to the prevalent concept, the results show that first timers spend more than the more loyal segments, both in per-trip and per-day total expenditures. However, the loyalty segments are distinguished in their spending patterns at the destination, when first timers spend more on lodging, food and restaurants, and car rental, and the those with one or more previous visits spend more on gasoline, activities and entertainment, and shopping. The paper ends with an assessment of the contribution of the findings both to the literature on loyalty and to tourism destination marketers.

KEYWORDS:

• Destination loyalty
• repeat visitation
• expenditures

Notes

∗Note. The authors note that the Kissimmee-St. Cloud Convention and Visitors Bureau referred to in this article has since changed its name to the Kissimmee Convention and Visitors Bureau. However, in the current article, it is still referred to by the previous name, as it was active at the time of the study.