Paying a Premium for Green-Label Hotels: The Role of the Mismatched Hotel-OTA Involvement

Abstract

Understanding how green hotels can gain marketing advantages could motivate hoteliers to adopt green practices during construction and operation. This study investigates the mediation role of perceived psychological benefits on consumers’ environmental concerns and their willingness to pay a measurable premium for green-label hotels. Data gathered from 540 Chinese consumers revealed that a mismatch between the involvement of hotels and online travel agencies (OTAs) hampers the relationship between environmental concerns and perceived psychological benefits of booking green-label hotels on OTAs, further influencing consumers’ willingness to pay a premium. This research uncovers an overlooked but crucial factor that reduces consumer satisfaction with the hotel-choice process and why it makes consumers willing to pay a premium for green-label hotels. Drawing from the findings, recommendations are also proffered for hoteliers to conceive and execute green marketing tactics.