All-inclusive holiday packages, tourist consumption and spending patterns at tourism destinations

Abstract

Purpose: The purpose of this study is to investigate tourist in-destination consumption patterns in the context of bundled holiday packages in different resort categories to identify demand behavior that allows implementing profit-enhancing policies through attractive bundled offers for specific tourist segments. Design/methodology/approach: This study relies on data gathered in a quasi-experiment to analyze differences in consumption patterns at resort bars over a two-year period (summer 2018 and 2019) before and after the introduction of an all-inclusive soft drinks package. Findings: The findings inform on bundling strategies according to different degrees of price consciousness and resort category. In particular, guests in upscale resorts are more likely to under-consume items included in a pre-paid bundle and significantly engage in additional spending than economy resort guests. Originality/value: The quasi-experiment provides the actual in-destination consumption patterns and offering managerial insights and tools to tailor the form and content of bundles according to resort category.