Willingness to pay premium prices in accommodation establishments

Abstract

Although tourism research often involves the phenomenon of ‘willingness to pay premium prices’, it has under-researched the relevant propensity with respect to brand identification in the hospitality sector as a component of tourism activity overall. This study examines the perceptions of 328 holidaymakers leaving Athens, Greece. The findings unveiled relationships between multiple elements of brand identity, such as brand image, price and quality, need for belonging, need for uniqueness and the conformity to consumption trend. Moreover, they suggest that the stronger the brand identification, the less likely holiday makers are to pay premium prices. In addition to its theoretical and managerial contribution, the research presents relevant implications and provides suggestions for further study.