Abstract
ABSTRACT The tourism sector embraced virtual tourism as an innovative revitalisation strategy during the COVID-19 pandemic. Building on existing literature exploring the long-term impacts of virtual tours post-COVID, this paper examines whether and how offering free virtual tours during the pandemic enhances tourism performance in the aftermath. The study addresses the dual challenges of virtual tour cannibalisation and visitors’ crowd aversion, particularly relevant given the resurgence of congestion in popular destinations post-pandemic. Through mathematical modelling and analytical analysis, the study explores optimal pricing strategies for tour providers, emphasising the importance of bolstering social influence and mitigating visitors’ crowd aversion to physical visits. It underscores the post-COVID benefits of providing free virtual tours during the pandemic for tourism performance, particularly when visitors exhibit heightened crowd aversion. This strategy remains relevant with an endogenised virtual tour design or the presence of the reference point effect, highlighting the pivotal role of leveraging visitors’ reference points in enhancing tourism performance.
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