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Anatolia: An International Journal of Tourism and Hospitality Research
Volume 17, Number 2, pp. xx-xx. 2006
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Expenditure Patterns by Travel Party Size:
British and German Tourists on Crete, Greece
MARIOS D. SOTERIADES
STAVROS E. ARVANITIS
Department of Tourism
TEI of Crete
P.O.Box 1939
GR – 71004, Iraklion
Crete
Greece
E-mail: [email protected]
Department of Accounting
TEI of Crete
P.O.Box 1939
GR – 71004, Iraklion
Crete
Greece
E-mail: [email protected]
ABSTRACT
Inbound visitors are the largest group of tourists to Crete, Greece. Given the importance of inbound pleasure
tourism, a deeper understanding of expenditure patterns is vital for policy planners and destination marketers. Using the 2003 Exit Survey data, this study investigates the spending behaviour of British and German
pleasure visitors to Crete. The analysis of two key variables - nationality and travel party size - were found to
make a significant contribution to explaining expenditure level variations (p<.05), and have a considerable
influence on expenditure distribution and spending patterns. These findings could be used for expenditurebased segmentation; policy and marketing implications are also derived.
Key words: Expenditure patterns, German and British pleasure tourists, travel party size, Crete.
Marios D. Soteriades is Associate Professor and Head of the Department of Tourism Industry, Technological
Educational Institute of Crete, Greece. He received his MSc in Hospitality Management in 1982 and his PhD in
Tourism Management in 2000 from the Université de Nice – Sophia Antipolis, Nice, France. He has undertaken
a variety of research and consultancy projects for both the public and private sectors. He is the author of three
books and three distance learning manuals on aspects of hospitality management and marketing. His research
and writing interests include hospitality and tourism management and marketing.
Stavros E. Arvanitis is Lecturer in the Department of Accounting, Technological Educational Institute of Crete,
Greece. He received his BSc degree in Economics in 1985 from the University of Thessalonica, Greece and an
MSc in Mathematical Economics & Econometrics in 1988 from the Université d’Aix-Marseille III, France. His is
currently conducting doctoral research in applied econometrics at the University of Piraeus, Greece. His research
interests focus on statistical analysis and econometrics and he has published journal articles in these areas.
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Expenditure Patterns by Travel Party Size: British and German Tourists on Crete, Greece
INTRODUCTION
There is strong marketing interest in the understanding of tourists’ expenditure and activities during their visit to a particular destination. Travel expenditure pa�erns are vital to destination planners, marketers, and business
managers. Studies of spending pa�erns help identify the factors influencing
consumption behaviour among market segments. A great deal of tourist expenditure research has been motivated by the documentation of the economic
impacts of tourism on the host country. With the continuing growth of international tourism and tourist spending, research interests have also extended
to those of consumer behaviour. However, such studies are still limited, and
there is a lack of supporting empirical work in tourism spending behaviour
literature. Understanding the expenditure pa�erns and activities of tourists
during their visit to a particular destination is a key issue in strategic planning
and marketing. In a competitive business environment, destination marketers
constantly a�empt to expand their market share by seeking visitors who are
heavy spenders.
The purpose of this study is to provide insights that will improve our understanding of tourism expenditure pa�erns. The study was motivated by the
need for an in-depth empirical analysis of pleasure tourists’ expenditure in a
mass tourism destination. To that end, analysis has been carried out to examine whether certain variables affect expenditure volume and distribution. The
study’s objectives are thus as follows: 1) to investigate German and British
tourists’ consumption behaviour in terms of expenditure pa�erns; 2) to examine whether clear differences exist in overall spending and expense categories
(i.e. package; catering; local transportation; products and services); and 3) to
examine whether two variables – nationality and travel party size - influence
pleasure tourists’ expenditure pa�erns.
LITERATURE REVIEW
From the perspective of the host countries and regions, tourism research to
date has focused on the definition of factors influencing tourist expenditure
level and composition (Soteriades and Varvaressos 2004). A clear definition of
visitor consumption is needed before the relevant literature is reviewed. The
World Tourism Organization defines visitor consumption (or tourist expenditure) as “the total consumption expenditure made by a visitor or on behalf of
a visitor for or during his/her trip and stay at a destination and which expenditure is related to that trip and which trip is undertaken outside the usual environment of the tourist” (UN and WTO 1993). It has been recommended that
inbound tourism expenditures should be classified under the headings of accommodation, food and drink, transport, recreation and entertainment, and
shopping within the host country (WTO 1991). The various factors influencing the level and distribution of tourists’ expenditure have been examined in
research projects and studies. Expenditure surveys should be able to capture
tourist characteristics and behaviour (spending pa�erns), permi�ing a rich
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Marios D. Soteriades - Stavros E. Arvanitis
and comprehensive analysis of data. The results of such analyses are o�en
useful to policy makers and marketers. A review of past studies on tourism
expenditure offers some insights into the preoccupations of researchers.
Related Research
Sheldon (1994) argued that tourism expenditure research falls into two general categories. The first category focuses on methodologies used to measure
and document spending by tourists, the aim being to determine the economic
significance of tourism in an economy. The second category focuses on the
creation of tourism expenditure models to be�er explain and understand the
volume and nature of tourist spending. The present study focuses on the latter, by using data to analyze the level and distribution of inbound tourists’
spending.
Effect of tourist characteristics on expenditures: The issue of tourist characteristics affecting expenditures has been analysed in several studies. According to
the findings of these studies, factors distinguishing consumers according to
their expenditure level fall into two categories: (a) Socio-demographic characteristics including: nationality/country of origin; educational and marital
status; socio-professional category; sex and age group (Pizam and Reichel
1979; Woodside, Cook and Mindak 1987; Pizam and Sussmann 1995; Legoherel 1998; Juaneda and Sastre 1999; Becken and Gnoth 2004). (b) Travel-related factors including: travel party size; length of stay; visit purpose / travel
motive; previous visits; and travel mode (Mak, Moncur and Yonamine 1977;
Uysal, McDonald and O’Leary 1988; Spo�s and Mahoney 1991; Legoherel
1998; Mok and Iverson 2000; Jang, Ismail and Ham 2001; Becken and Gnoth
2004; Soteriades, Arvanitis and Varvaressos 2005). Hsieh, Lang and O’Leary
(1997) argued that for foreign travel markets, travel-related characteristics often contribute to an explanation of total expenditure more than socio-demographic factors. Their study suggested that travel party size is one of the most
important factors positively affecting the level of travel expenditure.
Tourist expenditure distribution: Some other studies have analysed the categories of goods that tourists tend to purchase, as well as spending levels in each
category (i.e. accommodation, catering, transportation, entertainment / recreation, and shopping) on vacation in a destination. Factors affecting leisure
travel expenditure pa�erns for products and services include: income; nationality; education level; employment status; number of children; age group; and
marital status (Cai, Hong and Morrison 1995; Cai 1998; Kincade and Woodard
2001, among others). Evidence shows that demographic, socioeconomic and
cultural factors have a varying effect on each of these expenditure categories.
Research evidence indicates that there is a lack of supporting empirical work
in tourism spending behaviour. More research work is needed to be�er understand expenditure pa�erns of specific tourism segments. There is also a
need for a more in-depth understanding of spending pa�erns on holidays
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Expenditure Patterns by Travel Party Size: British and German Tourists on Crete, Greece
(Perez and Juaneda 2000). Furthermore, the review of literature indicates that
the ma
majority of studies to date have been conducted in the US and Asian – Pacific
region. Other than recent studies investigating tourism expenditure on the
Spanish islands (Juaneda and Sastre 1999; Perez and Juaneda 2000; Díaz-Pérez, Bethencourt-Cejas and Álvarez-González 2005), li�le research has been
done regarding Europeans’ spending behaviour on holiday. We believe that
more expenditure studies should be conducted in Europe in order to gain insight into the factors affecting expenditure pa�erns within a leisure tourism
destination. Such studies could provide detailed information to assist policy
planners and marketers in decision-making. This study constitutes an a�empt
in this direction. It focuses on inbound tourism expenditure pa�erns in a wellestablished Mediterranean destination.
Inbound Tourism to Crete
The analysis of tourism expenditure within Crete, the most popular Greek destination, is of considerable interest. Crete is a traditional mass destination in the
Mediterranean, whose economy depends mainly on tourism. The historical,
cultural and natural resources, as well as the climatic conditions on the island
have contributed to mass tourism development, which has had a considerable
economic impact. Table 1 shows the evolution of inbound tourism flows since
1995.
The following conclusions can be drawn from this table. The total number
of tourist arrivals between 1995 and 2004 rose by an accumulative yearly average of 2.1%. Nevertheless, the trend is subject to fluctuation. One should
note that there is an increase in arrivals when the share of charter flights rises.
This is a�ributable to the dependency on the large European tour operators.
It is estimated that (a) while saturation point has not been reached, loss of
competitiveness does pose a problem; (b) Crete faces all the typical structural
Table 1. Inbound tourist arrivals in Crete, years 1995 to 2004
Year
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Inbound tourist
Arrivals
Charter flight
arrivals
(share in percent)
1,971,013
1,855,554
2,061,784
2,213,478
2,565,621
2,470,435
2,508,233
2,390,597
2,529,896
2,385,562
95.82
94.91
95.58
95.53
95.50
93.24
95.45
93.76
95.32
94.18
Source: Greek National Statistics Service (www.statistics.gr), 2005
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Share of Total
Greek tourist flows
(in percent)
18.40
18.97
18.62
17.73
20.35
18.21
19.18
18.25
18.11
18.45
Marios D. Soteriades - Stavros E. Arvanitis
and organizational problems of Greek tourism that have their roots mainly
in planning, marketing and management of tourism development (Bastakis,
Buhalis and Butler 2004), resulting in a poor quality product. Further growth
of tourism in Crete is sustainable under certain conditions. The main issue is
not growth in quantitative terms (more tourists), but in terms of profitability,
i.e. increased income for the regional economy. This can only be achieved
by a�racting and catering for the appropriate tourist segments (Perez and
Juaneda 2000).
The main type of tourism to Crete is pleasure tourism, i.e. popular-package
tours involving substantially sized groups. These groups are primarily seeking sun-sea-sand and sporting activities, a change and rest. The main source
markets are Western European countries, representing 93% of total tourism
flows. The British and German markets are the principal demand markets,
rating at about 64% (C.A.A. 2005).
METHODOLOGY
With the exception of studies relating to the Balearic Islands (see 2.2 above),
li�le research has been carried out into the expenditure of European tourists
on vacation in the Mediterranean. To fill this gap, the objectives of this study
are to examine expenditure pa�erns of European pleasure holidaymakers
visiting Crete and investigate whether certain factors affect expenditure level
and composition of pleasure tourists within the destination. To this end, two
important variables, namely Nationality and Travel party size, have been
investigated. It is worth noting that the study’s aims are similar to that performed by Juaneda and Sastre (1999) for the Balearic Islands, in which the researchers tried to identify differences among German and British tourists including demographic profiles; and that conducted by Díaz-Pérez et al. (2005)
for the Canary Islands. The Balearic and Canary Islands have similar features
to Crete; i.e. mass tourism destinations offering a package leisure product.
The present study differs from that performed by Perez and Juaneda (2000),
in which the objective was to analyse tourism expenditure and determine relevant pa�erns in the Balearic Islands for different market segments. In that
particular case, use was made of regression models to distinguish between
expenditure made in the origin country and at the destination.
The data used is derived from a survey carried out by the Technological Educational Institute (TEI) of Crete. An exit sample survey first conducted during 1998 was repeated in 2003. The method used was a recall questionnaire
administered to a total of 3,202 foreign tourists. Total expenditure included
prepaid and local expenditures as follows: a) Prepaid expenditures including
airfare, hotel, meals, airport transfers, which are purchased mainly as a package tour; b) Local expenditures were any expenses not prepaid, which could
include meals, organized tours, shopping, local transportation, and entertainment. Spending was classified in five categories, namely: package; catering (food and drink); local transports (organized tours, car and motor hire);
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Expenditure Patterns by Travel Party Size: British and German Tourists on Crete, Greece
products (gi�s, souvenirs and other purchases); and services (entertainment,
recreation and other spending). The approach of this study was to use a data
set of inbound visitors gathered in 2003 (this being the most recent survey).
Main variables of the data set are shown in Table 2.
From Table 2 the following profile of the inbound tourists may be derived:
The visitors to Crete are mainly British and Germans (67.7%). A substantial
share (43.5%) of these visitors take their holidays during the high season.
Tourism season in Crete usually lasts seven months – from April to October
– and is divided into three subperiods as follows: Low season (April; first half
of May; and October); Medium season (second half of May; June; and second
half of September); and High season (July; August; and first half of September). They belong mainly to the 26-35 age group (30.4%), travel mainly as
couples (58.3%) and stay an average of 10.7 days (10 overnights). It is worth
noting that the length of stay falls into three different durations: One week
(i.e. 4 to 8 days); Two weeks (9 to 16 days); and Three weeks (17 to 23 days).
The subjects mainly choose hotel accommodation (45.3%) in three or four star
hotels (65.2%), opting principally for self-catering and half board (46.9% and
30.4% respectively); 59.7% of them had visited Crete once and a very high
proportion (64.7%) was fully satisfied and intended to come back on holiday
(47.4%). Finally, expenditure was distributed as follows: 44.5% on package,
24.7% on products, 15.2% on catering, 11.3% on local transport, and 4.3% on
services.
DISCUSSION OF FINDINGS
Analysis of Variance (ANOVA) was performed to examine tourist expenditure. The purpose was to investigate whether two crucial factors – Nationality
(British and German) and Travel party size (single, couple and family) – influence expenditure volume and composition. The results are presented herein
(Tables 3 and 4). In Table 3, the survey’s findings are classified using the travel
party size of inbound tourists as the criterion. It can be seen that those travelling in couple are the biggest group (58.3%), followed by those taking their
holidays as a family (30.9%) and the singles (10.8%). More specifically, the
tourist profiles of the three groups are as follows:
• Couples: They preferred to take their holidays during high or medium season (40.4% and 39.0% respectively), they were 26 to 35 years of age (61.4%) and their
length of stay was two weeks. They choose hotel accommodation (45.4%) of three
stars (36.0%) and the arrangement was mainly self-catering (45.5%). 64.2% of
this group had been to Crete on vacation in the past, 64.5% were fully satisfied
and 43.8% stated their intention to return in the future. Regarding the use of
local transport, findings showed that 30.0% participated in organized excursions, 40.3% rented a self-drive car, 17.5% hired a motorcycle and 24.6% made
a journey by sea. Mean expenditure per person per trip was 937.36 euros.
• Singles: they mainly visited Crete during the medium season (43.5%), they
were principally 26 to 35 years of age (67.0%) and they stayed for a week (48.1%).
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Table 2. Key demographic and trip-related variables for inbound
Variables
Groups
Proportion of inbound tourists (%)
Nationality / Country of residence
British
German
Swedish
Dutch
French
Others
41.7%
26.0%
5.5%
5.2%
3.0%
18.6%
Visit Period
Low season
Medium season
High season
19.0%
37.5%
43.5%
Age Group
16-25 years
26-35
36-45
46-55
56 years and +
22.3%
30.4%
19.9%
17.0%
10.4%
Travel Party Size
Single
Couple
Family
10.8%
58.3%
30.9%
Length of Stay
One week
Two weeks
Three weeks
Mean/median
Accommodation Type a
Hotel
Apartment
Rented rooms
Campground
Other type (villas and bungalows)
45.3%
37.1%
12.6%
1.6%
3.4%
Accommodation Category
Deluxe
Four star
Three star
Two star
One star
10.3%
30.3%
34.9%
21.6%
2.8%
Terms of accommodation
Self catering
Bed & Breakfast
Half board
Full board
46.9%
21.2%
30.4%
1.5%
Degree of satisfaction
Fully
Quite
Partially
Not at all
N/O (no opinion)
64.7%
28.9%
2.6%
1.1%
2.7%
Intention to repeat visit
Yes
No
Eventually
N/O
47.4%
5.1%
44.7%
2.8%
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35.1%
55.6%
9.3%
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Expenditure Patterns by Travel Party Size: British and German Tourists on Crete, Greece
Table 2. Key demographic and trip-related variables for inbound Continued)
Variables
Groups
Proportion of inbound tourists (%)
Previous visits to Crete b
Once
Twice
Three
Four
More than four
N/O
Expenditure
Total:
3,228,642.57 €
Package: 1,438,851.59 €
Catering:
489,922.62 €
Transports: 363,420.37 €
Products:
796,620.55 €
Services:
139,827.43 €
59.7%
19.5%
6.6%
6.5%
4.8%
3.0%
100.0%
44.5%
15.2%
11.3%
24.7%
4.3%
Note.
a Accommodation Type: this item includes all types of officially classified establishments; i.e. (hotels,
apartments, self-catering rooms, campings, villas, bungalows). Unofficially operating accommodation establishments were excluded.
b Tourists who had never visited Crete before were classified under “N/O”.
They choose hotel accommodation (39.7%) in three star hotels (40.0%), with a
preference for self-catering (53.6%). 49.6% of them had been to Crete at least
once in the past; they were fully satisfied (58.8%) and 53.6% stated that they
were intending to come back for holidays. With regard to local transport, results showed that a small proportion of single visitors used them; only 16.2%
participated in organized excursions, 23.8% rented a self-drive car, 12.8% hired
a motorcycle, and 16.2% made a journey by sea. Their mean expenditure was
877.11€.
• Families: they preferred to travel during the high season (51.6%), the majority was between 36 and 55 years (54.0%) and their trip lasted two weeks
(62.0%). They mainly choose hotel or apartment (46.9% and 44.8% respectively) in four star hotels (36.0%), preferring self-catering (47.3%). 54.7% of
them had previously visited Crete once; they were fully satisfied (67.2%) and
52.1% stated that they intended to revisit the island. Regarding the use of local transport, it emerged that 26.7% participated in organized excursions; a
significant proportion (52.7%) rented a self-drive car, 7.2% hired a motorcycle
and 19.0% made a journey by sea. The families’ mean expenditure per trip /
person was 1,188.43€.
Regarding the composition of the mean expenditure, a further study was conducted by performing Duncan’s test. Findings are shown in Tables 4a, 4b and
4c. These tables show, on one hand, the mean expenditure distribution with
regard to the various categories (package, catering, local transports, products
and services) for the whole sample and for the two nationalities (Germans and
British), as well as with regard to travel party size (single, couple and family),
and on the other, the statistical significance of the mean expenditure per spending category regarding the party size, by applying one-way ANOVA.
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Table 3. Party size groups and descriptive variables
Descriptive Variables
Travel Party Size Groups
Couple
N = 1,868 (58.3%)
Family
N = 989 (30.9%)
Single
N=345 (10.8%)
Nationality:
British
German
Other nationalities
Total
41.3%
27.6%
31.1%
100.0%
45.0%
20.3%
34.7%
100.0%
34.5%
34.2%
31.3%
100.0%
Visit Period:
High season
Medium season
Low season
Total
40.4%
39.0%
20.6%
100.0%
51.6%
32.6%
15.8%
100.0%
36.8%
43.5%
19.7%
100.0%
Length of Stay:
One week
Two weeks
Three weeks
Total
35.3%
56.1%
8.6%
100.0%
30.1%
62.0%
7.9%
100.0%
48.1%
34.8%
17.1%
100.0%
Age Group:
16-25 years
26-35
36-45
46-55
56 years and +
Total
27.6%
33.8%
14.0%
15.1%
9.5%
100.0%
10.2%
20.9%
31.7%
22.9%
14.3%
100.0%
28.4%
38.6%
18.3%
10.4%
4.3%
100.0%
Accommodation Type:
Hotel
Apartment
Rented rooms
Campground
Other
Total
45.5%
35.5%
14.1%
2.1%
2.8%
100.0%
46.9%
44.8%
4.6%
0.3%
3.4%
100.0%
39.7%
23.8%
27.5%
2.3%
6.7%
100.0%
Accommodation Category:
Deluxe
Four star
Three star
Two star
One star
Total
7.8%
28.8%
36.0%
23.9%
3.5%
100.0%
16.7%
36.0%
31.2%
14.9%
1.2%
100.0%
5.8%
21.7%
40.0%
29.0%
3.5%
100.0%
Terms of accommodation:
Self catering
Half board
Bed & Breakfast
Full board
Total
45.5%
29.4%
23.7%
1.4%
100.0%
47.3%
33.8%
17.1%
1.8%
100.0%
53.6%
25.5%
20.0%
0.9%
100.0%
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Expenditure Patterns by Travel Party Size: British and German Tourists on Crete, Greece
Table 3. Party size groups and descriptive variables (Countinuied)
Descriptive Variables
Travel Party Size Groups
Couple
N = 1,868 (58.3%)
Family
N = 989 (30.9%)
Single
N=345 (10.8%)
Use of local transport:
Self drive car
Rented motorcycle
Sea travel
Air travel
Organized excursions
40.3% (151.50 €)
17.5% (56.10 €)
24.6% (24.00 €)
1.2% (80.00 €)
30.0% (51.00 €)
52.7% (186.53 €)
7.2% (60.70 €)
19.0% (24.50 €)
1.3% (91.00 €)
26.7% (55.50 €)
23.8% (116.60 €)
12.8% (66.70 €)
16.2% (18.40 €)
1.4% (70.00 €)
16.2% (50.30 €)
Degree of satisfaction
Fully
Quite
Partially
Not at all
N/O
Total
64.5%
29.8%
2.1%
1.0%
2.6%
100.0%
67.2%
27.0%
3.0%
0.8%
2.0%
100.0%
58.8%
29.3%
4.3%
2.7%
4.9%
100.0%
Intention to repeat visit
Yes
Eventually
No
N/O
Total
43.8%
48.3%
5.2%
2.7%
100.0%
52.1%
41.3%
4.6%
2.0%
100.0%
53.6%
35.1%
5.5%
5.8%
100.0%
Previous visits to Crete
Once
Twice
Three
Four
More than 4 times
Total
64.2%
19.5%
4.9%
5.0%
6.4%
100.0%
54.7%
20.1%
9.3%
7.6%
8.3%
100.0%
49.6%
17.4%
7.8%
11.0%
14.2%
100.0%
1,750,992.19 €
1,175,048.72 €
302,601.65 €
Expenditure
Total expenditure
In Table 4a, the mean expenditure of the whole sample was found to be 1,008.32€,
comprising 44.5% for package, 15.2% for catering, 11.3% for local transport,
24.7% for products, and 4.3% for services. The composition of mean spending made by visitors taking holidays as a couple and as a family do not seem
to significantly differentiate from total mean expenditure. On the contrary,
the mean spending of singles was significantly variable with regard to the
catering and local transport categories. In other words, single holidaymakers spent more on catering and less on transport; this means less mobility
within the destination. Turning to the tourists’ nationality (Tables 4b and 4c),
the mean expenditure of Germans was 1,070.90€ and that of Britons 1,037.71€.
This expenditure was higher than the average for all nationalities included in
the sample, and had a variable distribution by category. It seems that German
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Products
Services
261.10
53.97
130.30
Local Transport
449.36
177.57
a
1,008.32
(in €)
Mean
All
24.7%
4.3%
11.3%
15.2%
44.5%
100.00%
Distribution
(per cent)
Tourists
Catering
Package
Total
(Mean)
Expenditure
235.39
52.54
90.50
196.73
382.79
870.45
Mean
(€)
25.0%
4.3%
7.4%
19.7%
43.6%
100.00%
Distribution
(%)
Single
238.36
51.57
123.85
160.68
420.44
935.63
Mean (€)
24.2%
4.5%
11.6%
14.8%
44.9%
100.00%
Distribution
(%)
Couple
Party Size
312.10
58.90
153.17
203.15
527.21
1,182.70
(€)
Mean
25.3%
4.1%
11.7%
14.5%
44.4%
100.00%
Distribution
(%)
Family
F(2,3048)=23.0; p<0.000
F(2,2588)=3.22; p<0.040
F(2,786)=31.92; p<0.000
F(2,2756)=12.55; p<0.000
F(2,3199)=55.73; p<0.000
F(2,3199)=75.68; p<0.000
All effects results
n
Couple - Family (p=0.000)*
Single – Family (p=0.000)*
Single – Couple (p=0.850)
Couple - Family (p=0.102)
Single – Family (p=0.133)
Single – Couple (p=0.819)
Couple - Family (p=0.000)*
Single – Family (p=0.000)*
Single – Couple (p=0.000)*
Couple - Family (p=0,000)*
Single – Family (p=0.602)
Single – Couple (p=0.003)*
Couple - Family (p=0.000)*
Single – Family (p=0.000)*
Single – Couple (p=0.015)*
Couple - Family (p=0.000)*
Single – Family (p=0.000)*
Single – Couple (p=0.048)*
Duncan’s test
1 – way ANOVA Analysis
Marios D. Soteriades - Stavros E. Arvanitis
Table 4a. Distribution of mean expenditure per trip – Total of tourists
a This category includes international transport, transfer, accommodation ,
commissions and other expenditures.
* Statistically significant coefficient for ?=5%.
Number 2
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56.86
231.78
Services
Products
151.02
Local Transport
517.12
175.91
a
1,070.90
(in €)
Mean
German
20.40%
4.39%
12.78%
14.14%
48.29%
100.00%
Distribution
(per cent)
(N = 834)
Catering
Package
Total
(Mean)
Expenditure
216.55
59.31
108.51
204.79
422.74
931.26
Mean
(€)
21.48%
4.86%
8.89%
19.38%
45.39%
10.00%
Distribution
(%)
Single
203.65
52.10
146.94
148.80
488.59
984.88
Mean (€)
19.43%
4.38%
13.73%
12.85%
49.61%
100.00%
Distribution
(%)
Couple
Party Size
310.94
67.30
181.03
226.31
645.64
1,373.29
(€)
Mean
21.74%
4.22%
12.59%
14.43%
47.01%
100.00%
Distribution
(%)
Family
F(2,783)=11.94; p<0.000
F(2,686)=3.50; p<0.031
F(2,753)=9.90; p<0.000
F(2,753)=9.90; p<0.000
F(2,715)=8.73; p<0.000
F(2,831)=38.96; p<0.000
All effects results
Anatolia: An International Journal of Tourism and Hospitality Research
Couple - Family (p=0.000)*
Single – Family (p=0.000)*
Single – Couple (p=0.636)
Couple - Family (p=0.048)*
Single – Family (p=0.274)
Single – Couple (p=0.323)
Couple - Family (p=0.019)*
Single – Family (p=0.000)*
Single – Couple (p=0.008)*
Couple - Family (p=0,019)*
Single – Family (p=0.000)*
Single – Couple (p=0.008)*
Couple - Family (p=0.002)*
Single – Family (p=0.369)
Single – Couple (p=0.019)*
Couple - Family (p=0.000)*
Single – Family (p=0.000)*
Single – Couple (p=0.345)
Duncan’s test
1 – way ANOVA Analysis
Expenditure Patterns by Travel Party Size: British and German Tourists on Crete, Greece
Table 4b. Distribution of mean expenditure per trip – German tourists
a This category includes international transport, transfer, accommodation,
commissions and other expenditures.
* Statistically significant coefficient for ?=5%.
a
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n
Products
Services
Local Transport
Catering
Package
Total
(Mean)
Expenditure
Mean
301.63
58.34
122.83
192.35
428.42
1,037.71
(in €)
British
28.11%
4.47%
9.99%
16.12%
41.29%
100.00%
Distribution
(per cent)
(N = 1,335)
276.38
57.70
71.83
218.72
318.36
863.68
Mean
(€)
30.93%
4.21%
5.87%
22.13%
36.86%
100.00%
Distribution
(%)
Single
277.67
54.23
109.00
176.08
393.41
950.90
Mean (€)
28.14%
4.59%
9.63%
16.26%
41.37%
100.00%
Distribution
(%)
Couple
Party Size
349.43
65.43
156.38
214.11
518.52
1,234.66
Mean (€)
27.54%
4.36%
11.24%
14.81%
42.00%
100.00%
Distribution
(%)
Family
F(2,1288)=8.87; p<0.000
F(2,1059)=2.68; p<0.069
F(2,1124)=30.14; p<0.000
F(2,1158)=4.31; p<0.014
F(2,1332)=38.00; p<0.000
F(2,1332)=39.79; p<0.000
All effects results
Number 2
Couple - Family (p=0.006)*
Single – Family (p=0.008)*
Single – Couple (p=0.961)
Couple - Family (p=0.186)
Single – Family (p=0.332)
Single – Couple (p=0.663)
Couple - Family (p=0.000)*
Single – Family (p=0.000)*
Single – Couple (p=0.002)*
Couple - Family (p=0,075)
Single – Family (p=0.829)
Single – Couple (p=0.059)
Couple - Family (p=0.000)*
Single – Family (p=0.000)*
Single – Couple (p=0.003)*
Couple - Family (p=0.000)*
Single – Family (p=0.000)*
Single – Couple (p=0.091)
Duncan’s test
1 – way ANOVA Analysis
Marios D. Soteriades - Stavros E. Arvanitis
Table 4c. Distribution of mean expenditure per trip – British tourists
a This category includes international transport, transfer, accommodation ,
commissions and other expenditures.
* Statistically significant coefficient for ?=5%.
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Expenditure Patterns by Travel Party Size: British and German Tourists on Crete, Greece
visitors spent more on package (48.29%) and local transport (12.78%), while
British tourists spent more on catering (16.12%) and products (28.11%).
Table 4a also presents the results of statistical analysis (Duncan’s test) for each
spending category of the whole sample (British and Germans) with regard to
the party size factor (single, couple, family). These results indicate that statistically significant variations are identified in all spending categories, except
for ‘catering’ as regards single - family groups (p>.05); ‘product’ as regards
single- couple (p>.05); and the ‘services’ as regards single – couple (p>.05), single – family (p>.05), and couple – family (p>.05). The statistically significant
variations in the various spending categories show that: (a) on average, families spent more than singles and couples on package and local transport; couples have higher expenditure than singles in terms of average spending per
person; (b) the singles and families’ average spending on catering is higher
than that of couples; (c) the families’ average spending on products is higher
than that of singles and couples, always in terms of average expenditure per
person.
Considering the nationality factor, findings indicate that statistically significant variations between the groups with regard to both mean expenditure
and average spending on various categories are presented as follows:
• German tourists (Table 4b): The singles’ average spending on holidays does
not vary from that of couples (p>.05). Insignificant differences were also identified in the following cases: average spending on package between single
and family groups (p>.05); spending on services between single and couple
groups (p>.05) and single – family (p>.05); and spending on products between
single – couple groups (p>.05). On the other hand, in all other cases, findings
indicate that statistically significant variations existed; i.e. (a) the average
spending of families members on package, catering, local transport and products seems to be higher than that of singles and couples; (b) those tourists taking their holidays with their companion spent more on package than singles;
and persons visiting Crete with their family spent more than couples; (c) singles spent more on catering than those on vacation with their companion; (d)
average spending on transport of those visiting Crete with their companion is
higher than that of singles; (e) average spending on services seems to have a
statistically marginal variation between couple – family groups, meaning that
the members of families spent more in this category than couples.
• British visitors (Table 4c): findings indicate that the average expenditure of
singles on holidays is not statistically variable from that of couples (p>.05). The
same is valid in the following cases: average spending on catering between
single – couple groups (p>.05), single – family (p>.05), and couple – family
(p>.05); average spending on services between single – couple groups (p>.05),
single – family (p>.05), and couple – family (p>.05); and average spending on
products between single – couple groups (p>.05). However, in all other cases
statistically significant variations were identified: (a) The families’ average
spending on holidays, package, transport and products is higher than that
14
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Anatolia: An International Journal of Tourism and Hospitality Research
a
Products
Services
Local Transport
Catering
Package
Total
Mean Expenditure
F(2,2163)=61.45; p<0.000
Interaction 1 X 2:
F(2,1873)=1.30;
F(1,1877)=19.38; p<0.000
Interaction 1 X 2:
British – German (1):
F(2,1877)=0.54;
F(1,1745)=0.01;
Interaction 1 X 2:
British – German (1):
F(2,1745)=0.15;
F(1,2071)=13.27; p<0.000
Interaction 1 X 2:
British – German (1):
F(2,2071)=0.75;
Interaction 1 X 2:
p<0.474
F(2,2071)=19.53; p<0.000
Travel party (2):
p<0.858
F(2,1745)=5.72; p<0.003
Travel party (2):
p<0.920
p<0.585
F(2,1877)=33.44; p<0.000
Travel party (2):
p<0.272
F(2,1873)=12.96; p<0.000
Travel party (2):
p<0.461
F(1,1873)=0.54;
British – German (1):
p<0.560
F(1,2163)=46.41; p<0.000
F(2,2163)=0.58;
Travel party (2):
Interaction 1 X 2:
British – German (1):
F(2,2163)=75.75; p<0.000
F(2,2163)=39.79; p<0.202
Travel party (2):
p<0.011
F(1,2163)=6.45;
British – German (1):
(p=0.000)*
(p=0.000)*
British Family – German Family
(p=0.617)
British Family – German Family
(p=0.810)
(p=0.784)
British Family – German Family
British Couple – German Couple
British Couple – German Couple
British Family – German Family
(p=0.011)*
(p=0.159)
(p=0.028)*
(p=0.836)
British Single – German Single
British Single – German Single
(p=0.004)*
(p=0.058)
(p=0.005)*
British Couple – German Couple
British Family – German Family
British Single – German Single
British Couple – German Couple (p=0.230)
(p=0.568)
British Single – German Single
British Couple – German Couple (p=0.000)*
British Single – German Single
British Couple – German Couple (p=0.534)
British Family – German Family (p=0.011)*
(p=0.216)
Duncan’s test: Interaction 1 X 2
British Single – German Single
2 – way ANOVA Analysis with factors: Nationality (1) and Party Size (2)
All effects results
Marios D. Soteriades - Stavros E. Arvanitis
Table 5. Distribution of mean expenditure per trip – Two variables’ interaction effect
a This category includes international transport, transfer,
accommodation , commissions and other expenditures.
* Statistically significant coefficient for ?=5%.
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Expenditure Patterns by Travel Party Size: British and German Tourists on Crete, Greece
of single and couple groups; (b) persons visiting Crete with their companion
spent more than singles on package and transport.
Table 5 shows the results of 2-way ANOVA and Duncan’s test analysis,
which were aimed at identifying statistically significant variation. Mean expenditure per spending category is reported for the two variables under consideration. More specifically, the mean expenditure of German tourists taking
their holidays with their family was found to be statistically variable from
that of similarly sized British parties (p<.05). German tourists, regardless of
their party size, were found to spend more on their package than British ones
(p<.05). On the contrary, mean expenditure for catering was found to not be
significantly variable between the two nationalities and the various groups.
With regard to the average spending on transport, a statistically significant
variation was observed between British single – German single (p<.05) and
British couple – German couple (p<.05), on average, the la�er spent more than
the former. The mean expenditure for services was found to be insignificantly
variable between the two nationalities and the various groups. Finally, mean
expenditure for products was significantly variable between the two nationalities and the various groups; i.e. British single – German single (p<.05) and
British couple – German couple (p<.05), on average, the former spent more
than the la�er.
CONCLUSIONS AND IMPLICATIONS
This study has examined the influence of two crucial factors - nationality and
travel party size – on the expenditure pa�erns of pleasure visitors to the island of Crete. Analysis of variance was performed to test variations in mean
expenditure per trip and per person as well as in spending categories. Clear
differences were identified in the consumption behaviour of the two main
market segments (German and British), in the spending pa�erns of the party
size groups, as well as in their overall expenditure. The major findings of
the statistical analysis could be summarized as follows. Party size has a significant influence on spending pa�erns of the inbound pleasure tourists. The
three travel party groups – singles, couples and families – present specific
consumption characteristics regarding the visit period, age group, length of
stay, accommodation type, category and terms, degree of satisfaction and use
of local transport (mobility within the destination). All these factors affect the
expenditure level; the families’ members being the high spenders and the singles the low ones (in terms of mean expenditure per person). Clear differences
were also found in spending structure. Mean expenditure distribution in the
various spending categories was analyzed in relation to nationality (Germans
and British) and party size. It emerged that the expenditure pa�ern of the
two nationalities was variable in terms of expenditure level and composition.
These results are consistent with previous studies (Juaneda and Sastre 1999;
Díaz-Pérez, Bethencourt-Cejas and Álvarez-González 2005).
The interaction of the two variables - nationality and travel party size - significantly influenced the distribution of mean spending. Significant variations
16
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Anatolia: An International Journal of Tourism and Hospitality Research
Marios D. Soteriades - Stavros E. Arvanitis
(more than five per cent) were identified in the various spending categories
between the two nationalities and among the various groups. Findings indicated that nationality of pleasure tourists, party size and the interaction
of these two factors have a significant influence on the average expenditure
within a destination. Both factors significantly influenced both mean spending and its distribution, leading to specific expenditure pa�erns. These findings confirm the importance of nationality and travel party size as key factors
in tourist spending pa�erns (Pizam and Sussmann 1995; Hsieh, Lang and
O’Leary 1997; Becken and Gnoth 2004). That being said, there are certain limitations to the scope of the present study. The analysis has exclusively considered mean expenditure level and distribution in relation to certain factors. To
overcome this limitation, future research may correlate expenditure to other
factors such as visit period, accommodation type and category, terms of accommodation, and degree of satisfaction. Additionally, expenditure analysis
has only been performed on the two main markets to Crete, and should be
repeated for other key markets, such as Scandinavia. An additional issue deserving further research is expenditure per night spent at the destination. It is
also recommended that similar studies be performed in other Mediterranean
destinations presenting the same characteristics as Crete. Findings from such
studies could be compared and conclusions verified.
A number of policy and marketing implications for tourism planners and
destination marketers can be drawn from this study. Mature tourist destinations such as Crete are usually tightly controlled by tour operators (TOs). The
la�er have their own corporate strategies which are not always compatible
with those of destinations (Papatheodorou 2003). The main issue for destinations and local tourist businesses is not the absolute level of tourism expenditure, but what actually is consumed within the destination. The dependency on the German and British powerful TOs lead to about 50% of tourist
expenditure being spent on the package in the country of origin. Obviously,
a holiday package encompasses international transport, accommodation,
transfer, commissions, and other expenditures. Therefore, only a part of this
expenditure becomes tourism income for the host economy. From a destination’s perspective, the strategies of tourism policy should seek an increase in
per capita expenditure resulting in more benefits to the host economy (Perez
and Juaneda 2000). Within this framework, tourism policy should support regional tourism businesses in order to strengthen their bargaining power visà-vis large European TOs and enhance destination competitiveness (Bastakis,
Buhalis and Butler 2004).
In this regard, a number of initiatives on both the micro (enterprise) and
macro (island) level could be considered and implemented. The destination’s
competitiveness must be based on a reorientation towards be�er quality and
more varied holiday products, while the ‘sun and sand tourism’ model must
be adapted within the framework of sustainable development (Perez, Alegre
and Sard 2005) by implementing adequate policies and using adequate planning and marketing tools. Within this framework, the following plans and
Volume 17
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Expenditure Patterns by Travel Party Size: British and German Tourists on Crete, Greece
actions should be considered in the fields of tourism planning and marketing: Guidelines for a regional product innovation policy focussing on both
profitable market segments and guidelines for accommodation supply and
support should be developed and made available to local businesses. Investment is needed in accommodation renovation and tourism related services.
Furthermore, tourism product diversification and upgrading should aim at
rendering the area more a�ractive to market segments that are not exclusively
seeking to consume sun and sea at low cost; the number of available recreational activities should be increased. General and tourism-specific regional
infrastructure should be improved, while more profitable market segments
should be detected and captured. Communication strategy and plans should
target ‘quality tourists’ in terms of their spending power. Marketing strategies
to induce more spending from inbound tourists are needed. These should
provide more opportunities for visitors to spend, together with redesigned
services and facilities to be�er meet their needs and requirements. Finally, the
marketing efforts of local enterprises should be facilitated.
The ultimate goal of this study was to assist destination planners and marketers in be�er understanding market segments in terms of profitability so as
to cater more efficiently for their needs. In a mass leisure destination such as
Crete, the above outlined strategic suggestions could contribute to enhancing
the destination’s competitiveness and achieving a reasonable level of gradual
independency from TOs. As such, they are critical to the success of regional
tourism related facilities.
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Submi�ed : 02 January 2006
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Accepted : 07 July 2006
Refereed anonymously
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