How much does satisfaction affect tourism expenditure during and post recessions?

This study concentrates on the relationship between tourism spending and satisfaction during crisis time, investigating the effect of satisfaction on different quantiles of the tourism expenditure distribution for Italian tourists traveling abroad during the period 2007–2017. Our analysis enriches the understanding of what determines heterogeneity in tourist spending behaviour, information which is significant for policymakers and destination managers. To obtain consistent estimates for the effect of satisfaction, we use an instrumental quantile approach, controlling for the presence of endogeneity. Results highlight a non-linear and significant effect of satisfaction on tourists spending, evidencing relevant differences in the impact of satisfaction across different recession periods. Moreover, we extend the analysis considering different expenditure categories and satisfaction domains.