Predicting guest satisfaction and willingness to pay premium prices for green hotels

The study addresses how to increase guests’ satisfaction and willingness to pay premium prices for green hotels amid climate change pressures and the hotel sector’s notable share of tourism-related emissions. While demand for environmentally friendly lodging is rising, an attitude-behavior gap persists: guests may endorse environmental values yet resist paying price premiums. Green transformation entails significant costs for hotels—especially SMEs in emerging economies like China—often necessitating premium pricing. Prior research shows mixed evidence on willingness to pay for green initiatives and suggests demographic influences, but comprehensive models integrating service quality perceptions, psychological factors, and moderating influences are limited. Focusing on China, a collectivist, developing context with strong policy support for green hotels and price-sensitive consumers, the study extends the service quality-satisfaction-behavioral intention paradigm to examine how green image, green practice performance, word-of-mouth, green emotional attachment, and attitudes toward green hotels affect satisfaction and, in turn, willingness to pay premiums. It also tests whether functional value and green experiential loyalty moderate the satisfaction–willingness to pay link and explores heterogeneity by sex, age, education, and income via multi-group analysis.

The literature grounds the model in the service quality-satisfaction-behavioral intention paradigm, where service quality drives satisfaction, which then shapes behavioral intentions. Classic limitations of the model include insufficient attention to psychological variables, intangible service quality dimensions, and individual differences. To address these, the study integrates multiple theories: Theory of Planned Behavior (attitudes driving intentions), Social Identity Theory (green image reinforcing identity, loyalty, WOM), Expectancy-Value Theory (functional value influencing satisfaction and loyalty), Service-Dominant Logic (co-created value from green practices), Cognitive Dissonance (consistency of beliefs and practices affecting satisfaction), Social Exchange Theory (positive experiences generating reciprocal WOM), and experiential marketing (memorable green experiences fostering attachment and loyalty). Prior hotel research links green practices and image to satisfaction and intentions, but findings are mixed regarding willingness to pay premiums and the role of demographic factors. The study formulates hypotheses that (H1–H5) green emotional attachment, attitude toward green hotels, green image, green practice performance, and WOM positively affect guest satisfaction; (H6) satisfaction positively affects willingness to pay premiums; (H7–H8) functional value and green experiential loyalty positively moderate the satisfaction–willingness to pay relationship. It also tests mediation via satisfaction for the effects of antecedents on willingness to pay and explores demographic moderation via multi-group analysis.

Design: Quantitative, cross-sectional survey of individuals with prior green hotel stay experience in China. Data collection occurred October–November 2023 via SoJump using purposive (non-probability) sampling with screening filters (experience criterion, minimum completion time, one response per user). G*Power indicated a minimum sample size of 109; 573 valid responses were retained across regions in China. Instrument: Structured questionnaire (cover letter with study purpose, confidentiality, and eligibility criteria). Section A captured demographics (sex, age, education, occupation, income, recency and frequency of green hotel stays). Section B included nine latent constructs—green emotional attachment, attitude toward green hotels, green image, green practice performance, WOM, guest satisfaction, functional value, green experiential loyalty, and willingness to pay premium—each measured by five items on 7-point Likert scales, adapted from prior validated sources. Translation employed forward–back translation; six bilingual experts pre-tested wording; a pilot test (n≈40) showed Cronbach’s alpha >0.70 for all variables. Common method bias controls: anonymity, clear definitions, sample pictures of green hotels, pre-test and pilot test. Harman’s single-factor test yielded 47.207% (<50% threshold). Full collinearity VIFs were mostly <3.3 and all <5 (AGH 3.327). Multivariate normality: Mardia skewness/kurtosis p-values <0.05 indicated non-normality. Analysis: Partial least squares structural equation modeling (PLS-SEM) assessed measurement and structural models; bootstrapping evaluated path significance. Reliability and validity were supported (all Cronbach’s alpha and composite reliability >0.7; AVE 0.657–0.736; discriminant validity via Fornell-Larcker, cross-loadings, HTMT<0.9). Collinearity VIFs 2.060–2.885 were acceptable. Moderation and mediation were tested in PLS. Partial least squares multi-group analysis (PLS-MGA) examined differences by sex, age, education, and income after confirming measurement invariance (MICOM).

- Significant antecedents of guest satisfaction: attitude toward green hotels (β=0.308, p<0.001, f2≈0.072) and green practice performance (β=0.298, p<0.001, f2≈0.071). Non-significant: green emotional attachment (β=0.041, p=0.241), green image (β=0.112, p=0.059), and WOM (β=0.076, p=0.129). - Guest satisfaction significantly increased willingness to pay premium prices (β=0.260, p<0.001) with medium effect size (f2=0.260). - Direct effects on willingness to pay: functional value (β=0.473, p<0.001) and green experiential loyalty (β=0.183, p=0.002) were positive and significant. - Moderation: green experiential loyalty positively moderated the satisfaction→willingness to pay link (β=0.081, p=0.026); functional value’s moderation was not supported (β=−0.047, p=0.144). - Mediation via satisfaction: significant for attitude toward green hotels (β=0.080, p=0.003) and green practice performance (β=0.078, p=0.004); not significant for green emotional attachment, green image, or WOM. - Model fit/predictive power: R2=0.547 for satisfaction and R2=0.686 for willingness to pay (moderate predictive accuracy). - Multi-group analysis: Effects differed by demographics. Females showed stronger paths for attitude→satisfaction and satisfaction→willingness to pay than males. For age, attitude→satisfaction was stronger under 40; green practice performance→satisfaction was stronger over 40. By income, attitude→satisfaction was weaker ≤CNY 5000, WOM→satisfaction was stronger ≤CNY 5000, and the moderating effect of green experiential loyalty on satisfaction→willingness to pay was stronger ≤CNY 5000. No significant differences by education.

Findings extend the service quality-satisfaction-behavioral intention paradigm to green hotels by showing that pro-environmental attitudes and perceived green practice performance are key drivers of satisfaction, which in turn elevates willingness to pay premiums. Contrary to some prior studies, green emotional attachment, green image, and WOM did not significantly affect satisfaction—potentially reflecting limited repeat stays inhibiting attachment, developing market awareness of green images, and trust concerns about online reviews in the Chinese context. The positive moderation by green experiential loyalty indicates loyal guests maintain premium-paying willingness even when satisfaction varies, whereas functional value alone does not buffer dissatisfaction’s impact on premium willingness. Satisfaction partially mediates the effects of attitudes and practice performance on willingness to pay, underscoring satisfaction as a central mechanism. Demographic heterogeneity highlights that females and younger guests respond more to attitudes, while older guests weigh actual practice performance more; lower-income guests rely more on WOM and show stronger loyalty moderation. These insights refine understanding of psychological and service-quality determinants of premium-paying behavior in emerging, collectivist markets.

The study demonstrates that attitudes toward green hotels and green practice performance significantly enhance guest satisfaction, and higher satisfaction increases willingness to pay premium prices for green hotels. Functional value and green experiential loyalty directly increase willingness to pay, with green experiential loyalty also strengthening the satisfaction–willingness to pay relationship. Demographic differences (sex, age, income) shape these effects. By broadening the service quality-satisfaction-behavioral intention paradigm with psychological and green service-quality factors, the research provides theoretical and practical guidance for promoting premium acceptance and sustainable development of green hotels, especially in emerging economies like China.

The study’s cross-sectional design limits causal inference and observation of changes over time. It focuses on a subset of psychological factors; other relevant psychological constructs warrant examination. Green hotels were not differentiated by rating/price tier, which may influence satisfaction and willingness-to-pay dynamics. The non-probability purposive sampling approach and the finite sample may limit generalizability across China’s diverse population. Future work should employ longitudinal or mixed methods, consider hotel segmentation by rating/price, include additional psychological variables, expand and diversify samples, and utilize probability sampling.