Consumers’ willingness to pay for green initiatives of the hotel industry |
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Authors: | Kyung Ho Kang Laura Stein |
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Affiliation: | a College of Hotel and Tourism Management, Kyung Hee University, 1 Hoegi-dong, Dongdaemun-gu, Seoul 130-701, South Korea b Aramark, 19 Greenview Dr., Chesterfield, NJ 08515, United States c School of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong d School of Tourism and Hospitality Management, Temple University, 1810N. 13th Street, Speakman Hall Suite 314, Philadelphia, PA 19122, United States |
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Abstract: | This paper examines hotel guests’ willingness to pay a premium for environmentally friendly and sustainable practices of the U.S. hotel industry. Specifically, the goal of this research is to investigate the relationship between the level of U.S. hotel guests’ environmental concern, measured by the New Ecological Paradigm Scale (NEP) and their willingness to pay (WTP) a premium for hotels’ “green practices.” This study found that U.S. hotel guests with higher degrees of environmental concerns declare a higher willingness to pay premiums for hotels’ green initiatives. This avowed willingness supports the social identity theory and the means-end theory. In addition, based on the affect-based complementarity proposition, this study also examined the effect of hotel type on WTP in the U.S. hotel industry, and found that luxury and mid-priced hotel guests are more willing to pay premiums for hotels’ green practices than economy hotel guests. |
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Keywords: | Willingness to pay Environmental concern New Ecological Paradigm Scale Hotel type Hotel Green practice |
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