Customers Income: Exploring Customer Willingness to Pay Towards Green-Rated Hotels

Adiasih, Priskila and BUDIARSO, AGNES CHARITY and SULANGI, CHRISTINE NATALIA and VALERIN, ERLITA (2018) Customers Income: Exploring Customer Willingness to Pay Towards Green-Rated Hotels. In: The 3rd International Conference on Economic, Education, Business and Accounting, 27-10-2018 - 27-10-2018, Bali - Indonesia.

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Abstract

At present, environmental issues attract the attention of academics, business communities, and governments in Indonesia. It is considered to be one of requirements for sustainable development. The research studied the impact of customers belief, customers reasonable objective, customers income, and hotels obligation on the green rated hotels customer willingness to pay. The selected green hotel in Surabaya, Indonesia are J.W. Marriott, Sheraton, and Mercure. To test the proposed model empirically, personal surveys of hotel customers were conducted in Surabaya, Indonesia using a structured questionnaire. A structural equations model was developed to test the research hypothesis. The findings show that customers belief and hotels obligation has positive direct effects on willingness to pay. But income and reasonable & objective turns out to have a negative relationship to willingness to pay. At the same time, they reveal that customers income become a moderating variable of belief and hotels obligation to willingness to pay.

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