Which factors affect the willingness of tourists to pay for renewable energy?

This study presents insights into the determinants of tourists’ intention to pay a premium for accommodation in a hotel with renewable energy sources. The empirical analysis is based on the estimation of binary logistic regression models. Four subsets of independent variables were used in this empirical analysis, namely: (i) demographic factors, (ii) economic variables, (iii) past experience with regard to renewable energy sources, and (iv) variables regarding environmental awareness and information dissemination. Empirical results suggest that middle-aged people are probably more willing to pay for their stay in a hotel using renewable energy. In general, men are more likely than women to pay extra money for accommodation in a “green” hotel. However, the results suggest that marital status and educational level are not statistically significant factors in the willingness to pay more. Rather, environmentally-conscious and adequately informed tourists are more willing to pay for renewable energy than others. Our analysis is focused on intention because we expect that those people willing to pay for staying in a green hotel are a potentially relevant market segment for developing sustainable tourism in Greece.

► We examined the determinants that affect tourists’ intention to pay more for their stay in a hotel using RES.
► We carried out an extensive survey of 400 foreign tourists.
► We estimated logistic regression models of tourists’ willingness to pay more to stay in a hotel with RES.
► We concluded that demographics, information dissemination and environmental awareness affect the willingness to pay for RES.