Capsule hotels: Offering Experiential Value or perceived as risky by tourists? An optimum stimulation level model

Abstract

Capsule hotels are a novel Japanese approach to accommodation that arose in 1979. For most travelers outside Japan, however, the concept of capsule hotels is relatively new. They provide experiential value to the traveler; they also pose some risks. Travelers seeking familiarity view unfamiliar environments as riskier, and perceived risk has a negative influence on consumer behavior. This study aims to establish a behavioral model of capsule hotel visitors by incorporating optimum stimulation level (OSL), perceived risk, and experiential value into its analytical framework. A total of 276 respondents who stayed in a capsule hotel participated in the study. Findings suggest that the OSL has a positive effect on experiential value and perceived risk. Experiential value, in return, negatively affects perceived risk. Experiential value further plays a mediating role between perceived risk and OSL. We discuss theoretical implications and offer recommendations for capsule hotel operators.