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Factors influencing willingness of customers of environmentally friendly hotels to pay a price premium

M. Rosario González-Rodríguez (Faculty of Tourism and Finance, University of Seville, Seville, Spain)
M. Carmen Díaz-Fernández (Faculty of Tourism and Finance, University of Seville, Seville, Spain)
Xavier Font (School of Hospitality and Tourism Management, University of Surrey, Guildford, UK)

International Journal of Contemporary Hospitality Management

ISSN: 0959-6119

Article publication date: 18 October 2019

Issue publication date: 13 January 2020

Abstract

Purpose

The purpose of this paper is to investigate the influence of customers’ environmental concerns, customers’ perceptions of a hotel’s environmental practices and of the hotels’ environmentally friendly images, on customers’ willingness to pay a price premium to stay at environmentally friendly hotels.

Design/methodology/approach

The theoretical framework comprises both social identity theory and value-belief-norm theory. The data were collected through a survey of 454 customers staying at eco-friendly hotels in Spain. The research model is tested by using a structural equation modelling approach.

Findings

The findings illustrate that customers’ environmental concerns have a greater explanatory value on their willingness to pay a price premium than do their perceptions of the hotels’ environmental practices. Furthermore, these causal relationships are similar in magnitude when considering the mediating effects of the hotels’ eco-friendly image and the environmental practices.

Research limitations/implications

The empirical findings provide managers with a better understanding of how customers’ environmental concerns and their own sense of identification with environmentally friendly hotels influence customers’ behavioural intentions towards willingness to pay a premium.

Originality/value

The paper contributes to the literature by highlighting those cognitive processes that influence the customers’ willingness to pay a price premium to stay at environmentally friendly hotels. Hence, the study provides valuable information to hotel managers.

Keywords

Acknowledgements

This paper has been funded by the VI Research Programme’s Grant of the University of Seville (VI PPIT-US).

Citation

González-Rodríguez, M.R., Díaz-Fernández, M.C. and Font, X. (2020), "Factors influencing willingness of customers of environmentally friendly hotels to pay a price premium", International Journal of Contemporary Hospitality Management, Vol. 32 No. 1, pp. 60-80. https://doi.org/10.1108/IJCHM-02-2019-0147

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited