Shaping perceptions in sustainable luxury hospitality - Investment or Collaboration

Published: 29 October 2024| Version 1 | DOI: 10.17632/hj7zvx5679.1
Contributor:
Shabana C

Description

Research Hypothesis The study investigates how different communication strategies, specifically investment-oriented versus collaboration-oriented, affect luxury perception (LP), consumer value (CV), and willingness to pay (WTP) in sustainable luxury hotels. Additionally, the research explores how these effects are moderated by guests’ levels of environmental concern (EC). Data Collection and Sample The data was gathered through a survey experiment involving 242 participants who were randomly assigned to either an investment-oriented or collaboration-oriented communication condition. Participants rated the hotel on scales measuring EC, LP, CV and WTP. Notable Findings Investment-oriented strategy leads to higher WTP: Participants in the investment-oriented condition showed a higher WTP compared to those in the collaboration-oriented condition, supporting the idea that visible investments in sustainability are perceived as more credible. Higher LP in investment-oriented strategy: The investment-oriented strategy led to higher luxury perceptions compared to collaboration-oriented approaches, especially for participants with low environmental concern. EC moderates the effect: For consumers with low EC, investment-oriented strategies significantly boosted LP and CV, enhancing WTP. For consumers with high EC, collaboration-oriented approaches also had a positive, though less pronounced, effect. LP and CV influence WTP: Higher LP increases CV, which subsequently enhances WTP. This mediation effect highlights that consumers’ WTP more is driven by the perceived value and luxury of the offering. Data Interpretation and Implications The findings suggest that investment-oriented sustainability efforts—those that do not require guest participation—are more likely to enhance LP, particularly among guests with lower EC. This highlights a consumer preference for sustainable luxury that does not compromise their indulgent experience. For guests with high EC, collaboration-oriented approaches align with their values, potentially allowing hotels to tailor messages based on the guest's environmental mindset. Practical Applications For luxury hotels, these findings recommend prioritizing investment-driven sustainability (e.g., advanced green technology) for a wider appeal and premium pricing, especially among less environmentally concerned guests. Tailored messaging, emphasizing either internal investments or guest involvement based on customer profiles, can enhance LP and drive WTP. This research provides actionable insights for luxury hospitality managers seeking to balance sustainability with consumer expectations for luxury without sacrificing perceived value or profitability.

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Hospitality, Sustainability, Willingness-to-Pay

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