Optimal targeting of latent tourism demand segments

This paper identifies for the first time the optimal target markets employing the latent tourism demand expenditure, a novel concept in tourism literature. The study quantifies latent tourism demand between each pair of origin-destination through distinguishing by type of tourism and seasonality. It...

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Bibliographic Details
Published in:Tourism management (1982) 2023-04, Vol.95, p.104685, Article 104685
Main Authors: Cazorla-Artiles, José M., Eugenio-Martin, Juan L.
Format: Article
Language:English
Subjects:
Latent demand
Market segmentation
Marketing campaign
Target markets
Tourism expenditure
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Summary:This paper identifies for the first time the optimal target markets employing the latent tourism demand expenditure, a novel concept in tourism literature. The study quantifies latent tourism demand between each pair of origin-destination through distinguishing by type of tourism and seasonality. It works with market shares that are estimated via a fractional regression model. Moreover, latent demand is clustered using a market segmentation approach based on a latent class regression. Finally, the optimal target markets are chosen depending on the expected latent tourism expenditure. The result has clear policy implications in terms of which markets are promoted, the optimal channels of communication and the maximum budget for each marketing campaign.
ISSN:0261-5177
1879-3193
DOI:10.1016/j.tourman.2022.104685