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

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  • Usamah F. Alfarhan
  • Khaldoon Nusair

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.

Suggested Citation

  • Usamah F. Alfarhan & Khaldoon Nusair, 2022. "First-time, first-repeat and multiple-repeat visitors: a conditional counterfactual quantile expenditure decomposition analysis," Current Issues in Tourism, Taylor & Francis Journals, vol. 25(15), pages 2377-2383, August.
  • Handle: RePEc:taf:rcitxx:v:25:y:2022:i:15:p:2377-2383
    DOI: 10.1080/13683500.2021.1960804
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