This study investigated how destination image of customer‐based brand equity for a tourist destination can be transferred to products associated with a destination brand. The effect of destination image on preference for products associated with a destination brand (PPADB) and the relationship between tourists’ destination preference and PPADB were investigated. Two hundred and ninety six individuals replied to a self‐administered questionnaire distributed to 318 students at a major US university. The results revealed that both cognitive and affective image of a destination are positively related to PPADB; preference for a destination is also positively related to PPADB. Suggestions are provided for a successful destination brand extension strategy. Copyright © 2012 John Wiley & Sons, Ltd.