Study tracks visitor spending patterns

High- and low-spending travelers vacationing in Montana are coming for the same activities but arrive here by different means and stay in different places, according to a report released Monday.

The University of Montana’s Institute for Tourism and Recreation Research released a study on Monday identifying the spending patterns for high-, mid- and low-spending groups of visitors to Montana.

Assistant Director of Economic Analysis Kara Grau said the study underscored mostly common sense-understanding of how nonresidents spent their money in Montana.

“Their activities were all very similar, other than the fact that people in the mid- and lower-spending categories were more likely to camp,” Grau said.

The average daily spending per group was $351, $117 and $45, respectively.

The study found that overall groups of travelers were mostly going to the same places and taking part in the same activities. The number of groups all averaged the same 2.2 to 2.8-person size and each stayed about the same amount of time: 6 to 6.7 nights.

According to the study, the differences were more clear in how travelers arrived in Montana, where they stayed and where purchased products were produced.

High-spending groups were more likely to fly into the state, while mid- and low-spenders drove. Not surprisingly, gas, fuel and food accounted for the biggest expense for mid- and low-spending travelers, who were also more likely to camp than stay in hotels or lodges.

Campgrounds and recreational-vehicle parks are the only area where low- and mid-spenders outspent their higher-spending counterparts. High spenders spent the most on restaurants and bars, guided trips, licenses and entrance fees.

It was the first time the institution compiled a report on how money was spent based on groups’ total spending in Montana.

Grau said it was a new way to examine the large pool of data collected each year on nonresident spending.

“It’s essentially a way that we haven’t looked at the data yet. This was just a new way to take a look at the information to see what we can find,” Grau said.

Grau said the study produced information that may help tourism business better target their market customers. High spenders, for example, spent their greatest share of money on products that were more likely to be locally owned or produced.

This has a bigger economic impact than low- and mid-spenders whose money went toward gasoline.

The study also found that high spenders are more likely to be family or extended groups than low- and mid-spenders, but couples were the most common group type overall.

The study also found that 56 percent of high spenders had household incomes of $100,000 or greater, compared to 32 percent of mid-spenders and just 29 percent of low-spenders.

“I think overall the common-sense aspect is what stuck out the most,” Grau said. “Montana has a lot of core activities that any spending category has access to. Fishing can be a really inexpensive activity for people, while where they choose to stay can be as cheap or expensive as they like.”

The entire study is available at www.itrr.umt.edu.

Reporter Seaborn Larson may be reached at 758-4441 or by email at slarson@dailyinterlake.com.