Destination loyalty - Consumers' economic behavior

This paper analyzes the phenomenon of repeat visits to a holiday destination from an economic perspective. The analysis is based on three types of economic theory models: reputation, market with limited information, and consumer behavior. Several hypotheses on tourist expenditure patterns are tested with data from one of the Mediterranean's leading sun and sand destinations. The results show the explanatory power of repeat visitation, knowledge, and quality of a place as a motivation for tourist expenditure. In accordance with their better knowledge, repeaters spend less than first-timers. On the other hand, preference for quality and sense of place attachment imply a higher expenditure.