There is shortcoming in studying tourist destination loyalty without considering the types of tourists and heritage destinations simultaneously. Hence the present study intends to understand the type of positioning to be employed across hedonic vs utilitarian destinations so that overall destination loyalty can be enhanced. To attain the above objective data was collected from 836 tourists across two UNESCO world heritage sites. Survey data was collected and was analyzed using quantitative technique like SEM and CFA. The findings suggest that, (i) heritage destination perceived as hedonic (or utilitarian) still has the potential to offer utilitarian (or hedonic) benefits. Perception of destination image in case of familiar destination can change through positioning. However, utilitarian positioning of any destination type fails to leverage the overall image, emotional bonding and loyalty. The present study is one of its kind to explore how positioning can change brand image and improve destination loyalty. Practical implications are provided for Heritage destination marketer and managements for managing and positioning of the heritage sites.