TALC: the role of TMM on loyalty intention and financial literacy as confounding variable in destination rejuvenation stage

Purpose This study aims to examine the role of the tourism marketing mix (TMM) and the perceived quality of tourism services on tourist satisfaction and loyalty intention in marine tourism in East Java, i.e. beaches. In addition, this study also examines the impact of financial literacy on loyalty intention. Design/methodology/approach The sample consists of 320 tourists who were visiting the beach. Data was collected using the accidental sampling technique. Moderated structural equation modelling (MSEM) was registered as the analytical tool used in this study. Findings The results of the study show that the innovation and renovation carried out on beach tourism during the rejuvenation stage had an impact on increasing tourist visits. The TMM and the perceived quality of tourism services provided significantly increased tourist satisfaction and loyalty intention. In addition, financial literacy is found to be an important factor in promoting tourists’ loyalty intention. Research limitations/implications As mentioned in the conclusion, there are just a dim number of prior research that are able to back up the argument of the role of financial literacy in instigating suboptimal financial behaviour and performance in the context of tourism behaviour, especially highlighting the loyalty intention. Not to mention that prior research is not specifically intended in the tourism field, which makes it hard to extend the argument while structuring the literature review and developing the hypothesis. Originality/value This study is mainly important due to its emphasis on financial literacy on its role in promoting tourists’ loyalty intentions, as it found that financial literacy holds a critical role while there is barely any existing literature that focuses on this topic.