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

Abstract

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.

Understanding recreation activity participants as clientele groups of multi-use recreation areas

“…The survey was conducted in response to a request by the MTC for information to guide the product development, target marketing, and advertising purchase decisions necessary to increase aggregate visitor spending along the Trail. These marketing-oriented results are reported in Spencer (2010). Additional results on the characteristics and behaviour patterns of local versus tourist visitors are reported in Spencer (2012).…”

Market segmentation by expenditure: an underutilized methodology in tourism research

“…Despite the length of time since the early studies were published, Pizam and Reichel (1979) and Spotts and Mahoney (1991), along with Mok and Iverson (2000), continue to be regarded not only as pioneers in this area but as the point from which current studies begin. Spencer (2010), for example, specifically states that his methodology follows that of Mok and Iverson. This is notwithstanding the fact that the early papers were primarily concerned with exploring only the viability of using market segmentation in the tourism context.…”

“…Higher engagement with the destination's offerings or engagement with a specific activity appears to be the one common factor associated with high expenditure in all six studies. Spotts and Mahoney (1991) and Spencer (2010) note their high spenders are engaged in a range of activities. In other cases, the high-spending segment is involved in a specific activity, such as fishing and visiting open spaces (Wilton and Nickerson, 2006), challenging activities (Mehmetoglu, 2007), downhill skiing (Fredman, 2008) and mountain biking (Spencer).…”

“…that generates higher levels of local development" by focusing on high-spending niches. Spencer (2010) notes "destinations adopting this approach may be able to achieve their economic objectives with fewer visitors", and Botha et al (2011) suggest its use can help minimize the external costs of tourism. Overall, this method has as yet unrealized possibilities to assist destination planners maximize returns from smaller visitor numbers.…”

An experience economy analysis of tourism development along the Chautauqua-Lake Erie Wine Trail

“…Studies examining various special-interest tourism segments (e.g., rail-trail, fishing), of which wine tourism is one, have demonstrated that the number of activities participated in while visiting a region informs the tourist's experience (Oh & Schuett, 2010;Spencer, 2010).…”