Tourists Satisfaction with All-Inclusive Packages: The Moderating Impact of Income and Family Size

Abstract

All-inclusive hotels have been evolved as an attractive holiday choice for several travelers due to their ability to provide a relaxed holiday with predetermined costs and full amenities. Previous studies on that specific feature of hospitality firms have examined the motivations of travelers behind that choice, yet there is scarce evidence regarding the satisfaction of all-inclusive visitors and whether income and family size are significant determinants of their satisfaction. The study utilizes a large survey of “all-inclusive” visitors summing up to 1600 questionnaires for the exploration of the factors determining tourists’ satisfaction. This research adjoins the existent bibliography by exploring some additional determinants not examined by previous studies such as the size of the family and the income level of the travelers. Empirical evidence indicated that the factors of convenience and economy of resources were impacting customer satisfaction positively along with previous positive experience of visitors. Nevertheless, empirical evidence seem to differentiate when the impact of income and family size is taken into consideration. Specifically, the previous all-inclusive experience, convenience and economy of resources seem to be highly significant only for families with children while the same factors were insignificant for families without children. Finally, the same factors were highly and positively significant for low income visitors and start to become insignificant when examining the medium and high income groups. These evidence provide useful policy implications for hotel managers which offer all-inclusive packages, in order to improve their services and target adjust their tactic strategically based on customer characteristics.