Determinants of willingness to pay to stay at a green lodging facility

Abstract

• Green initiatives are attracting increasing attention among tourism stakeholders. • This study focused on willingness to pay (WTP) a higher rate to stay at a green hotel. • A survey of 388 travellers in Michigan, USA, was conducted. • A positive relationship between environmental concern and WTP was found. • Marketing and management implications are considered. The adoption of green initiatives is attracting increasing attention among tourism providers and researchers. One important dimension of travellers’ environmental concern is their willingness to pay higher rates for green travel products. This study determines the association between pro-environmental attitudes and beliefs, and willingness to pay a higher room rate at a green lodging facility. A survey of 388 travellers in Michigan, USA, revealed a positive relationship between environmental concern (measured using the New Environmental Paradigm scale) and willingness to pay for a green hotel room. Income was the only one of a series of socioeconomic, demographic and travel pattern variables to reach statistical significance. Additional evidence regarding consumer attitudes towards and concomitant behaviours with respect to travel and the environment is vital to the broader consideration of the sustainability of the tourism and hospitality sectors. Understanding of willingness to pay for green practices has important marketing and management implications.