HomeAbstract of 7th-ictmhGuest Perceptions and Willingness to Pay for Sustainability in Luxury Hospitality: Evidence from Saudi Arabia

Guest Perceptions and Willingness to Pay for Sustainability in Luxury Hospitality: Evidence from Saudi Arabia

  • Jun 10, 2026
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Abstract Book of the 7th International Conference on Tourism Management and Hospitality

Year: 2026

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Guest Perceptions and Willingness to Pay for Sustainability in Luxury Hospitality: Evidence from Saudi Arabia

Maya Atassi

ABSTRACT:

The rapid expansion of tourism in Saudi Arabia under Vision 2030 has intensified the need to integrate sustainability into luxury hospitality. However, the success of such initiatives depends not only on environmental performance but also on guest acceptance and their willingness to pay (WTP) for sustainable offerings. This study investigates guest perceptions of sustainability and their willingness to pay a premium for environmentally responsible practices in the Saudi luxury hospitality sector.
A quantitative approach was employed using a structured survey of luxury hospitality guests (n≈290), supported by complementary qualitative insights from industry interviews (n=17). The analysis examines the relationship between sustainability awareness, perceived value, cultural background, and willingness to pay.
Findings indicate a generally positive attitude toward sustainability; however, willingness to pay remains conditional. Guests demonstrate a higher acceptance of sustainable practices when these do not compromise core luxury attributes, particularly comfort and service quality. While a segment of environmentally conscious and internationally exposed guests shows readiness to pay a premium, other segments remain price-sensitive and prioritize traditional luxury expectations.
The study contributes to the understanding of consumer behavior in emerging luxury tourism markets by highlighting the conditional nature of willingness to pay. It provides practical implications for hospitality operators, suggesting that sustainability strategies should be aligned with guest experience expectations to ensure both market acceptance and financial viability.

Keywords: Sustainable Luxury Hospitality; Willingness To Pay; Guest Perception; Saudi Arabia; Luxury Tourism; Consumer Behavior