Glass Igloo Hotels: An Investigation of Consumers' Willingness to Pay

Abstract

Experiential tourism has surged before the COVID-19 pandemic, and all signs are pointing out to a rapid increase postpandemic. However, it is no longer a question of whether to provide an experience or not, but rather which experience to provide. Travellers are demanding, and the forced pause in travel is fueling the concept of revenge travel but with consumers seeking unique experiences with nature as the center stage. The concept of glass igloo hotel (GIH) taps into the unique experience within a natural setting, offering guests the opportunity to reconnect with panoramic views of the natural surroundings. This research investigates consumers' willingness to pay (WTP) for such experience at a GIH. Results collected from 127 participants present hypothetical WTP which appears to be lower than actual rates published at some existing GIHs. Specific attributes sought after by guests in regards to the GIH experience were also investigated. The closeness to nature, view from the igloo, and proximity of the bathroom are particularly important. And while the igloo hotel experience offers the possibility to disconnect form the modern world, the availability of Wi-Fi was deemed important nevertheless. The research was conducted prior to the COVID-19 pandemic which may yet further influence the WTP for such an experience.

Citation

Lohninger, E., Legrand, W. and Delgado-Krebs, R. (2021), "Glass Igloo Hotels: An Investigation of Consumers' Willingness to Pay", Chen, J.S. (Ed.) Advances in Hospitality and Leisure (Advances in Hospitality and Leisure, Vol. 17), Emerald Publishing Limited, Leeds, pp. 85-102. https://doi.org/10.1108/S1745-354220210000017005