How hotel eco-labels can be powerful nudges: An evaluability perspective

Abstract

Eco-labeling has emerged as a popular method for nudging tourists toward sustainable choices. Drawing on the distinctions between categorical and incremental hotel eco-labels, this study explores the nudging dynamics of hotel eco-labels on tourists' perceptual and behavioral preferences through the lens of evaluability. By operationalizing eco-accessibility and eco-diagnosticity as novel differentiators, possible label nudging mechanisms are identified: emotional (accessibility–emotionality), logical (accessibility–diagnosticity), and self-justifiable (direct diagnosticity) channels. The findings imply that incremental labels generally outperform categorical labels in enhancing tourists’ sensitivity to hotel environmental value by improving their understanding of the sustainable performance distribution across the entire market. However, their diagnostic advantage becomes a liability when choice frames display highly differentiated hotel features, exposing context-dependent limitations. With the threefold evaluability, this study underscores the synergistic benefits of a highly diagnostic labeling system and a homogenous evaluation environment for effective hotel label nudging.