A behavioral economics approach to hospitality and tourism research

Abstract

Purpose: This study aims to critically evaluate hospitality and tourism demand research and introduce a behavioral economics approach to solve the problems faced by researchers. Design/methodology/approach: Current issues in hospitality and tourism demand analysis are identified through critical reflection, and a behavioral economics approach is adopted to develop a new conceptual framework. Findings: Four issues in hospitality and tourism studies are identified from the microeconomic theory and econometric modeling perspectives. The study’s demand framework provides both a theoretical underpinning and quantitative models to resolve the identified issues. With a focus on consumers’ cost–benefit assessments in light of individual differences and environmental factors, the authors’ conceptual framework represents a new effort to quantify hospitality and tourism demand at the disaggregate level with interactive multiple demand curve estimations. Research limitations/implications: The study’s analytical framework for hospitality and tourism demand analysis is unique, and it fills the research gap. However, this research is still in the conceptual stage, and the authors leave it to future studies to empirically test the framework. Practical implications: The proposed demand framework at the disaggregate level will benefit both private and public sectors involved in hospitality and tourism businesses in terms of pricing, marketing and policymaking. Originality/value: The authors offer a new conceptual model that bridges the gap between aggregate and disaggregate hospitality and tourism demand analyses. Specifically, the authors identify research directions for future hospitality and tourism demand research involving individual tourists/consumers at the disaggregate level.