First-time, first-repeat and multiple-repeat visitors: a conditional counterfactual quantile expenditure decomposition analysis

Usamah F. Alfarhan*, Khaldoon Nusair

*Corresponding author for this work

Research output: Contribution to journalLetterpeer-review

Abstract

We adapt a conditional counterfactual quantile decomposition structure to identify the contributions of relative consumption behaviours and potential market imperfections to observed expenditure differentials between first-time, first-repeat and multiple-repeat visitors to an emerging destination. This letter advances the discussion on the expenditure consequences of visitation frequency, with a parametric assessment of the contribution of market imperfections, such as visitors’ limited information and firms’ market power. Applicable to virtually any a priori segmentation, this approach offers a tool for the assessment of existing segmentation strategies, in pursuit of a more efficient resource allocation in the tourism industry, especially during high seasons.

Original languageEnglish
JournalCurrent Issues in Tourism
DOIs
Publication statusAccepted/In press - 2021
Externally publishedYes

Keywords

  • decomposition analysis
  • First-time visitors
  • repeat visitors
  • tourism expenditures

ASJC Scopus subject areas

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

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