Segmenting Visitors To A Destination Region Based On The Volume Of Their Expenditures

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Abstract
This article discusses the viability of targeting heavy spenders (as distinguishedfrom heavy users) in regional travel marketing. A sample ofsummertravel parties, contacted in a three-county region in Michigan's UpperPeninsula, was divided into light, medium, and heavy spenders based on each party's total expenditures in the region. Although only 33% of the parties were classified as heavy spenders, the expenditures ofthis segment accounted for 78% of the expenditures of the sample as a whole. Heavy spenders were distinguishable from the othersegments on the basis oftheirlargerparty sizes, longer length of stay, greater involvement with recreation, andgreaterpropensity to use information disseminated by the region's travel industry. Findings suggest how the region's appeal to heavy spenders could be maximized and how its existing market ofheavy spenders could be encouraged to stay longer and return in thefuture. However, few insights emerged on how potential heavy- spenders who have never visited the region could be reached.

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