How sustainable practices influence guests' willingness to pay a price premium in Fiji

Abstract

Purpose

This study seeks to determine the effect of sustainable practices on willingness to pay a price premium (WTPP) in the hotels and resorts in the Fiji islands. It will also assess how implementing these sustainable practices influences guest re-visit intentions.

Design/methodology/approach

A qualitative research technique was used which included in-depth interview sessions with ten Fijian resort managers and 15 hotel guests. The website of Etic Hotels was also used to gather data about the green practices provided by resorts and hotels. A non-random purposive sampling method was used to select respondents.

Findings

Results indicate that implementing sustainability practices has significantly and positively affected guest intentions to return to Fijian Hotels and resorts. The results also demonstrated that customers are willing to pay a higher price for the use of environmentally friendly practices in Fiji's hotels and resorts.

Originality/value

Though a few studies have been conducted examining the linkages between sustainable practices and the Fijian hotel industry, this article is a novel exploration of the use of sustainable practices in hotels and resorts and how they influence guest re-visit intentions and WTPP in Fiji Islands.

Citation

Gupta, V., Sharma, S. and Sinha, S.K. (2023), "How sustainable practices influence guests' willingness to pay a price premium in Fiji", Worldwide Hospitality and Tourism Themes, Vol. 15 No. 3, pp. 269-278. https://doi.org/10.1108/WHATT-01-2023-0008