Consumers' willingness to pay for green initiatives of the hotel industry

Kyung Ho Kang, Laura Stein, Cindy Yoonjoung Heo, Seoki Lee

Research output: Contribution to journalArticlepeer-review

297 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)564-572
Number of pages9
JournalInternational Journal of Hospitality Management
Volume31
Issue number2
DOIs
StatePublished - Jun 2012

All Science Journal Classification (ASJC) codes

  • Tourism, Leisure and Hospitality Management
  • Strategy and Management

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