Epsilon Archive for Student Projects

Abstract

The year 2017 has been designated “the international year of sustainable tourism for development” by the United Nations 70th General Assembly [General Assembly 2016]. Hotels have the potential to decrease the environmental impacts of their guests in their facilities.

The purpose of this paper is, first, to find out if there exists a willingness to pay for staying at a “green” hotel in Stockholm and, second, to examine which hotel guests are willing to pay; which specific characteristics of a consumer seem to be the driver for both the actual decision and for the monetary amount people are willing to pay extra for environmental certificates at a hotel. The results were obtained by analysing responses from a survey using Cragg’s Tobit Model. The main findings show that there is a willingness to pay extra for ensuring that the guests are staying at an environmentally certified hotel. The driving characteristics for this willingness are age, the main purpose for the stay, and hotel guest occupation. Those travelling for business are willing to pay more than those travelling for leisure. Senior citizens are willing to pay a much lower premium compared to students and those employed part- and full-time. Hotel guest age group will have an impact on the total amount a consumer is willing to pay for this environmental service. The results obtained can be used as guidelines for cost distribution to policy makers and companies, when implementing more environmentally friendly initiatives into different businesses.