Academy of Marketing Studies Journal (Print ISSN: 1095-6298; Online ISSN: 1528-2678)

Research Article: 2025 Vol: 29 Issue: 6

Guest Willingness to Pay and Behavioural Determinants of Sustainable Practice Adoption in North Indian Luxury Hotels: A Quantitative Framework

0Pranav Aggarwal, GNA University, Phagwara, Punjab, India

Namita Kalra, GNA University, Phagwara, Punjab, India

Citation Information: Aggarwal, P., & Kalra, N. (2025). Guest willingness to pay and behavioural determinants of sustainable practice adoption in north indian luxury hotels: a quantitative framework. Academy of Marketing Studies Journal, 29(6), 1-21.

Abstract

This study examines guest willingness to pay for sustainable practices and creates a behavioural framework for understanding sustainable practice adoption in North Indian luxury hotels. We surveyed 405 guests at nine premium properties in Delhi NCR and used statistical analysis to identify demographic, communication, and behavioural factors affecting green premium acceptance and sustainable practice adoption in luxury hospitality. Our analysis used hierarchical regression, cluster analysis, and correlation analysis to find key predictors and build a quantitative framework for predicting guest behaviour. Results show that demographics, awareness, and communication effectiveness explain 45% of willingness to pay variance. Income is the strongest predictor (β = .28, p < .001), then age (β = .21, p < .001) and awareness (β = .26, p < .001). Four behavioural segments emerged: Eco-Conscious Advocates (28%) with the highest willingness to pay, Price-Sensitive Supporters (35%) - the largest segment with conditional premium acceptance, Convenience-Focused Guests (23%) prioritising service over environment, and Sustainability Sceptics (14%) showing minimal environmental engagement. Multi-channel communication combining staff explanations with digital dashboards was 18% more effective than single-channel approaches.

Keywords

Sustainable Hospitality, Willingness to Pay, Behavioural Adoption, Quantitative Framework, Communication Effectiveness, Luxury Hotels.

Introduction

The hospitality industry in India constitutes one of the most rapidly expanding economic sectors, significantly contributing to the nation's Gross Domestic Product (GDP) while concurrently grappling with increasing pressures to address environmental sustainability concerns (Siddiqui, 2021). North Indian luxury hotels, particularly those situated in the Delhi NCR region, occupy a distinctive position where they must reconcile expectations for premium service with urgent responsibilities related to environmental sustainability. These establishments encounter the complex challenge of justifying considerable investments in sustainable technologies through demonstrable guest acceptance and revenue generation, all while operating within a market characterized by heightened environmental consciousness among educated urban populations, rising income levels, and escalating regulatory pressures (Manaktola & Jauhari, 2007).

The Delhi NCR region, which includes New Delhi, Gurgaon, Noida, and adjacent areas, represents one of India’s most dynamic hospitality markets. This region is home to a multitude of luxury properties that serve as experimental grounds for innovative sustainability initiatives, rendering it an ideal context for examining guest behavior in response to environmental practices within premium hospitality settings. The concentration of educated and affluent guests with international exposure contributes to a unique demographic profile that may exhibit a greater receptiveness to sustainable practices as compared to other Indian markets.

Recent empirical evidence underscores a significant discrepancy between expressed environmental preferences and actual behavioral adoption within hospitality contexts. While 73% of international travelers articulate environmental concern, only 41% actively seek eco-friendly accommodations, and an even smaller fraction demonstrate a willingness to incur additional costs or alter consumption behaviors to support sustainable practices (Kang & Nicholls, 2021). This attitude-behavior gap becomes particularly pronounced in luxury hospitality settings, where expectations for service quality may conflict with environmental considerations.

The intricacies of guest behavior towards sustainable practices transcend simplistic demographic categorizations. Research indicates that the willingness to pay for environmental initiatives involves complex interactions among personal values, perceived efficacy of environmental programs, social influences, and situational factors unique to hospitality contexts (Han et al., 2010). A comprehensive understanding of these relationships necessitates analytical frameworks capable of capturing multiple behavioral dimensions concurrently.

Traditional methodologies for understanding environmental behavior in hospitality typically rely on qualitative insights or basic demographic classifications, which may limit their utility in developing comprehensive behavioral frameworks that inform strategic decision-making (Tölkes, 2018; Villarino & Font, 2015). Additionally, existing research predominantly focuses on Western contexts, with insufficient attention to emerging markets such as India, where cultural values, economic conditions, and patterns of environmental awareness may differ significantly from those in developed economies.

This study seeks to address these limitations through comprehensive statistical modeling aimed at quantifying the relationships among demographics, awareness, communication exposure, and both willingness to pay and behavioral adoption patterns. By developing and validating a quantitative framework, this research equips hotel managers with practical tools to predict guest responses to sustainability initiatives and to optimize resource allocation across various intervention strategies.

Literature Review

Adoption of Sustainable Practices in Hospitality Contexts

The adoption of sustainable practices within the hospitality sector comprises a wide array of behaviors that transcend mere acceptance of environmental initiatives. This includes active behavioral transformation, meaningful engagement with sustainability programs, and the integration of environmental considerations into consumption choices during hotel stays. Unlike the concept of willingness to pay, which represents a singular economic decision point, the adoption of sustainable practices encompasses ongoing behavioral patterns. These patterns may include participation in linen reuse initiatives, involvement in energy conservation programs, making sustainable dining selections, and adjusting consumption behaviors to align with environmental objectives (Chan et al., 2014).

The theoretical framework for understanding the adoption of sustainable practices is grounded in several behavioral change theories, including the Theory of Planned Behavior, Social Cognitive Theory, and the Transtheoretical Model of behavior change. These frameworks highlight the critical roles of attitudes, social norms, perceived behavioral control, and self-efficacy in determining the successful adoption of new behavioral patterns by individuals. In the context of hospitality, these theoretical aspects become complex due to the expectations surrounding service quality, convenience considerations, and value perceptions, which create intricate decision-making environments where environmental concerns often compete with expectations for comfort and luxury (Han et al., 2010).

Empirical research pertaining to the adoption of sustainable practices in the hospitality domain indicates that guest behavior is influenced by a myriad of interconnected factors operating at individual, interpersonal, and organizational levels. Individual factors consist of environmental knowledge, personal environmental values, past experiences with sustainable practices, and demographic characteristics. Interpersonal factors involve peer influence, social norms within travel groups, and interactions with hotel personnel. Organizational factors comprise the visibility and convenience of sustainable options, the communication strategies utilized by hotels, and the integration of environmental practices within service delivery systems.

The unique characteristics of the hospitality industry present specific challenges for the adoption of sustainable practices. The transient nature of hotel stays may diminish guests' motivation to adopt new behaviors, especially if such behaviors necessitate the alteration of established routines or the acceptance of perceived inconveniences. Furthermore, the service-oriented nature of hospitality engenders expectations that hotels should minimize any efforts required from guests, potentially conflicting with environmental practices that necessitate guest participation.

Current research underscores the significance of behavioral spillover effects, whereby the sustainable practices adopted in hospitality settings may influence guests' environmental behaviors in other contexts. This potential for spillover adds a strategic dimension to hospitality-based environmental programs, as they may contribute to broader societal environmental objectives beyond their immediate operational advantages (Han et al., 2010).

Demographic Predictors of Environmental Behaviour

Demographic variables serve as fundamental predictors of behavioural adoption patterns across diverse consumer contexts, with hospitality research consistently confirming their relevance for sustainable accommodation choices, environmental program participation, and behavioural change outcomes (Wiernik et al., 2013; Tölkes, 2018). Age demonstrates complex, multifaceted relationships with behavioural adoption, characterised by generational differences in environmental values and behavioural flexibility, life-cycle effects related to lifestyle constraints and behavioural opportunities, and cohort effects reflecting exposure to different environmental movements and behavioural norms (Campbell et al., 2023; Chia-Jung & Pei-Chun, 2014).

Younger demographics typically demonstrate higher behavioural flexibility and greater willingness to adopt new environmental practices, reflecting their formative exposure to environmental education, technological comfort that facilitates behaviour monitoring and modification, and social networks that reinforce pro-environmental behavioural norms (Harrison & Scott, 2024; Foster & Liu, 2024). However, behavioural adoption among younger guests may be constrained by limited financial resources, transient lifestyle patterns, and competing priorities that reduce commitment to sustained behavioural change.

Income effects on behavioural adoption reflect both direct capacity for behaviour change and indirect lifestyle factors that facilitate or constrain environmental practices (Thompson & White, 2024; Martinez & Kim, 2023). Higher-income individuals possess greater resources for adopting potentially costly environmental behaviours, access to environmental alternatives that may require premium payments, and lifestyle patterns that provide opportunities for meaningful environmental behaviour modification. Additionally, higher socioeconomic status often correlates with environmental values, social networks that support behavioural change, and travel experiences that provide exposure to different environmental practices and behavioural expectations.

Educational attainment emerges as a particularly strong predictor of behavioural adoption, providing knowledge foundations necessary for understanding environmental practices, appreciation for complex behavioural interventions, and cognitive skills for evaluating behaviour change options and outcomes (Rodriguez & Johnson, 2024; Hu et al., 2010). Higher education levels correlate with systems thinking approaches that recognise connections between individual behaviours and collective environmental outcomes, scientific literacy that supports understanding of environmental technologies and practices, and critical thinking skills that enable evaluation of environmental claims and behavioural alternatives.

Communication Strategies and Behavioural Change

Communication theory applications in behavioural change emphasise the critical importance of message design, channel selection, timing optimisation, and audience segmentation in achieving desired behavioural outcomes, including awareness building, attitude change, intention formation, and sustained behaviour modification. Effective communication for behavioural change requires careful consideration of how information is processed, interpreted, and translated into action by diverse audience segments with varying motivations, capabilities, and constraints.

The dual-processing model provides a comprehensive framework for understanding how communication influences behavioural adoption through two primary pathways: systematic processing pathways that involve careful evaluation of alternatives and detailed consideration of costs and benefits, and heuristic pathways that rely on simple decision rules, trust-based shortcuts, and emotional responses. Understanding these processing pathways enables communication strategists to design messages that effectively engage both rational and emotional decision-making processes.

Effective behavioural change communication requires integration of multiple theoretical perspectives including social cognitive theory, which emphasizes self-efficacy beliefs and outcome expectations as key determinants of behaviour change; social learning theory, which highlights the importance of modelling and observational learning in behaviour adoption; and diffusion of innovations theory, which addresses adoption processes and the role of social influence mechanisms in spreading new behaviours through populations (Tölkes, 2018).

Digital communication technologies offer particular advantages for behavioural change, including capabilities for real-time feedback on behavioural outcomes, personalised messaging based on individual behaviour patterns and preferences, social comparison features that leverage peer influence and social norms, and gamification elements that enhance engagement and motivation through competition and achievement recognition. However, digital communication effectiveness varies significantly across demographic segments, requiring integrated approaches that combine digital technologies with traditional interpersonal communication methods to maximise reach and impact.

In hospitality contexts, communication effectiveness is influenced by the temporary nature of guest relationships, the service-oriented environment that may affect receptivity to behavioural requests, and the diversity of guest backgrounds and preferences that necessitate flexible communication approaches. Research indicates that multi-channel communication strategies that combine interpersonal interactions with digital technologies achieve superior behavioural outcomes compared to single-channel approaches (Topcuoglu et al., 2022).

Willingness to Pay and Behavioural Adoption Relationships

Willingness to pay for sustainable practices represents one important component of broader behavioural adoption patterns, serving as an indicator of value attribution, behavioural commitment strength, and the extent to which environmental considerations are integrated into consumption decisions. However, willingness to pay alone provides an incomplete picture of behavioural adoption, as guests may demonstrate substantial environmental behaviours without corresponding premium payment willingness, or express payment willingness without following through with actual behaviour change.

Research examining relationships between willingness to pay and behavioural adoption reveals complex patterns that depend on individual characteristics, situational factors, and the specific design of environmental interventions (Namkung & Jang, 2017; Kang & Nicholls, 2021). Some guests demonstrate high behavioural adoption coupled with strong willingness to pay, indicating integrated environmental commitment that encompasses both behavioural and economic dimensions. Others show behavioural adoption without corresponding payment willingness, suggesting that convenience, social norms, or other non-economic factors drive behaviour change independent of financial considerations.

The relationship between economic preferences and behavioural engagement may be mediated by perceived value, where guests who perceive environmental benefits as valuable are more likely to demonstrate both payment willingness and behavioural adoption. Additionally, temporal factors may influence these relationships, with payment willingness potentially serving as a leading indicator that predicts future behavioural adoption, or behavioural adoption creating positive experiences that increase subsequent payment willingness.

Understanding willingness to pay in hospitality contexts requires consideration of how environmental benefits are positioned relative to other hotel amenities and services. Research suggests that environmental initiatives perceived as enhancing overall service quality or providing tangible benefits may generate higher payment willingness compared to initiatives perceived as imposing constraints or reducing convenience (Agag et al., 2024).

Cross-cultural research indicates that willingness to pay patterns vary significantly across different markets, with factors such as economic development levels, cultural values regarding environmental responsibility, and regulatory environments influencing both the magnitude and determinants of payment willingness. These variations highlight the importance of market-specific research for understanding local behavioural patterns and optimising intervention strategies.

Research Gaps and Theoretical Contributions

Despite substantial literature examining sustainable hospitality practices and environmental behaviour in tourism contexts, several critical gaps limit the development of effective behavioural frameworks for understanding and predicting guest responses to sustainability initiatives.

First, most existing research treats willingness to pay and behavioural adoption as separate phenomena, failing to capture the complex relationships between economic preferences and behavioural change patterns that operate simultaneously in real-world contexts. This separation limits understanding of how economic incentives and behavioural interventions might work synergistically to maximise both environmental impact and financial sustainability of green programs.

Second, while substantial research examines individual predictors of environmental behaviour, limited work has focused on developing comprehensive quantitative frameworks that integrate multiple predictor categories and provide practical guidance for behavioural intervention design. The absence of such frameworks hinders hotel managers' ability to make evidence-based decisions about resource allocation across different sustainability initiatives.

Third, insufficient research exists examining how different communication strategies influence actual behavioural adoption patterns and sustained environmental practice implementation in hospitality contexts. Most communication research focuses on awareness or intention outcomes rather than behavioural change, limiting understanding of optimal communication investment strategies for maximising actual environmental benefits.

Fourth, the majority of behavioural segmentation research in hospitality contexts focuses on developed markets with different cultural values, economic conditions, and environmental awareness patterns compared to emerging markets like North India. This geographic bias limits the applicability of existing frameworks to rapidly growing hospitality markets in developing economies.

Fifth, limited research has examined the temporal stability of behavioural segments and the factors that influence movement between segments over time. Understanding segment stability and transition patterns is crucial for developing long-term behavioural change strategies that can adapt to evolving guest preferences and market conditions.

Research Objectives

This study aims to develop and validate a comprehensive quantitative framework for understanding and predicting guest behavioural adoption patterns and willingness to pay for sustainable practices in North Indian luxury hotels.

Specific Research Objectives Include

1. Study guest willingness to pay for sustainable practices in North Indian luxury hotels across different premium levels.

2. Analyse how demographics and communication strategies impact guest sustainable practice adoption behaviour.

3. Develop a quantitative framework for predicting guest behaviour based on behavioural clustering and communication effectiveness.

Research Methodology

Research Design and Philosophical Approach

This study employed a quantitative, positivist research design with comprehensive survey-based data collection and advanced statistical analysis to examine relationships between demographic characteristics, communication effectiveness, behavioural adoption patterns, and willingness to pay for sustainable practices in luxury hotels. The positivist approach was selected to enable systematic hypothesis testing, statistical generalisation, and the development of predictive models that can guide practical decision-making in hospitality management.

The research design incorporated cross-sectional data collection with retrospective behavioural reporting to capture both current attitudes and past behavioural experiences. This approach provided comprehensive coverage of the research variables while maintaining feasibility for large-scale data collection across multiple hotel properties.

Research Setting and Context

Data collection was conducted across nine carefully selected luxury hotels in the Delhi NCR region, including properties located in New Delhi, Gurgaon, and Noida. This geographic scope was chosen to represent diverse luxury market segments while maintaining cultural and economic coherence that enables meaningful comparative analysis. The Delhi NCR region represents India's most mature luxury hospitality market, with high concentrations of both domestic and international guests who possess the financial resources and educational backgrounds associated with environmental consciousness.

Hotel selection followed rigorous criteria designed to ensure comparability while capturing variation in sustainability program maturity and implementation approaches. Inclusion criteria required properties to maintain four-star, five-star, or deluxe classifications with established sustainability programs operating for at least two years, LEED certification or equivalent environmental certifications, documented environmental investments exceeding ₹10 crores, and demonstrated management commitment to research participation including staff cooperation and guest access.

The selected properties represented different ownership structures, including international chains, domestic luxury brands, and independent operators, ensuring that findings reflect diverse operational approaches and organisational cultures. Property sizes ranged from 150 to 800 rooms, providing variation in scale that enables assessment of how organisational size influences sustainability program implementation and guest responses.

Sampling Strategy and Power Analysis

The study employed a sophisticated multi-stage sampling strategy designed to achieve representative coverage of luxury hotel guests while maintaining sufficient statistical power for advanced analytical techniques, including hierarchical regression, cluster analysis, and structural equation modelling.

First-stage purposive sampling identified luxury hotels meeting the established inclusion criteria through systematic evaluation of property characteristics, certification status, and management willingness to participate. This purposive approach ensured that all participating properties possessed the environmental programs necessary for meaningful research while representing diversity in implementation approaches and guest demographics.

Second-stage systematic random sampling selected individual guest participants from hotel databases using random number generators to ensure unbiased selection within each property. Guest databases were stratified by length of stay, travel purpose, and nationality to enable proportional representation across key demographic categories.

Third-stage stratified sampling procedures ensured adequate representation across critical demographic categories including age groups (25-34, 35-44, 45-54, 55+), income levels (below ₹8 lakhs, ₹8-15 lakhs, above ₹15 lakhs annually), nationality (domestic vs. international), length of stay (1-2 nights, 3-5 nights, 6+ nights), and travel purpose (business, leisure, mixed).

Target sample size determination employed G*Power software for comprehensive power analysis, assuming medium effect sizes (f² = 0.15) based on previous hospitality research, alpha level of 0.05, and desired statistical power of 0.80. Analysis requirements included hierarchical regression with up to 12 predictors, cluster analysis with 4-6 expected segments, and correlation analysis across multiple variable categories. These requirements indicated a minimum sample size of 384 participants, with a target of 400+ to account for potential data quality issues and provide adequate power for subgroup analyses.

Data Collection Procedures

Comprehensive guest surveys were administered through carefully designed data collection procedures that maximised response rates while ensuring data quality and minimizing bias. The survey instrument comprised six main sections designed to capture complete information on all research variables while maintaining a reasonable completion time and avoiding respondent fatigue.

Data collection was conducted through personal interaction with guests during the checkout process, a time selected to ensure guests had complete hotel experiences while avoiding disruption to their stays. Trained research assistants approached guests systematically based on sampling procedures, explained the research purpose and voluntary nature of participation, and administered surveys using tablet computers that facilitated immediate data quality checking and reduced transcription errors.

The personal interaction approach achieved exceptionally high response rates (78%) compared to self-administered or online surveys, while enabling clarification of questions and ensuring complete responses. Research assistants received comprehensive training in survey administration techniques, ethical considerations, and data quality procedures to ensure consistency across properties and data collection periods.

Survey completion required approximately 15-20 minutes, with sections organised to maintain engagement through varied question formats and logical progression from general attitudes to specific behavioural reports. Real-time data validation identified incomplete responses or logical inconsistencies, enabling immediate clarification and correction.

Measurement Instruments

The survey instrument incorporated validated scales from previous hospitality and environmental psychology research, adapted for the specific context of luxury hotel sustainability practices. Each construct was measured using multiple items to enhance reliability and enable a comprehensive assessment of complex behavioural dimensions.

Demographic characteristics were assessed through standard categories adapted for the Indian luxury hospitality context. Age was measured in decade-based categories to balance precision with privacy concerns. Income utilised Indian Rupee ranges based on luxury hotel guest profiles identified in preliminary research. Education categories reflected the Indian educational system classifications. Nationality distinguished between domestic and international guests with subcategories for major source markets.

Sustainable practice awareness was measured using 7-point Likert scales assessing familiarity with specific environmental initiatives common in luxury hotels. Items addressed energy management systems, water conservation programs, waste reduction initiatives, renewable energy utilisation, sustainable procurement practices, and carbon offset programs. Scale development incorporated practices identified through preliminary interviews with hotel sustainability managers.

Communication effectiveness assessment encompassed multiple channels relevant to luxury hospitality contexts. Items measured perceived credibility, information clarity, influence on behaviour, and preference for different communication approaches, including face-to-face staff interactions, digital in-room displays, mobile applications, websites, printed materials, and QR code-based information systems.

Behavioural adoption patterns were assessed through detailed reporting of actual participation in specific sustainable practices during hotel stays. Items addressed towel and linen reuse program participation, energy conservation behaviours, waste separation and recycling, sustainable dining choices, transportation decisions, and engagement with hotel environmental education programs.

Willingness to pay utilized contingent valuation methodology with multiple price points to assess elasticity patterns. Scenarios presented realistic premium levels (5%, 10%, 15%, 20%) for rooms with enhanced environmental features. Additional items assessed willingness to pay for specific services, including carbon offset programs, organic food options, and environmental certification fees.

Data Analysis Strategy

Comprehensive data analysis incorporated multiple advanced statistical techniques appropriate for the research objectives and data characteristics. Analysis proceeded through several stages designed to ensure data quality, address the research objectives, and develop practical predictive models.

Preliminary analysis addressed data quality issues, including missing data patterns, outlier identification, normality assessments, and assumption testing for planned analytical procedures. Descriptive statistics provided a comprehensive characterisation of sample demographics and key variables. Reliability analysis using Cronbach's alpha assessed internal consistency of multi-item scales.

Hierarchical multiple regression analysis tested incremental contributions of demographic factors, awareness variables, and communication effectiveness in predicting willingness to pay and behavioural adoption patterns. This approach enabled assessment of the relative importance of different predictor categories while controlling for potential confounding variables.

Cluster analysis using K-means algorithm identified distinct behavioural segments based on patterns across awareness, behavioural adoption, willingness to pay, and demographic characteristics. The optimal cluster number was determined through multiple criteria, including elbow method, silhouette analysis, and theoretical interpretability. Cluster validation employed split-sample procedures and stability assessment across different starting seeds.

Discriminant analysis validated cluster solutions by assessing classification accuracy and identifying variables that most strongly differentiate between segments. This analysis provided insights into the behavioural and demographic characteristics that define segment boundaries.

Framework development integrated findings from all analytical approaches to create comprehensive predictive models. Model validation employed cross-validation procedures with randomly divided samples to assess generalizability and predictive accuracy. External validation involved expert review by hotel sustainability managers and academic researchers specializing in environmental behaviour.

Results and Findings

Sample Characteristics and Representativeness

The final sample comprised 405 valid guest surveys representing diverse demographic profiles consistent with luxury hotel guest populations in the Delhi NCR region. Response rate analysis indicated high participation across all targeted demographic segments, with minimal non-response bias based on comparisons with hotel guest database characteristics.

Geographic and cultural diversity was substantial, with 38% international visitors representing 23 different countries, including major source markets such as the United States (8%), United Kingdom (6%), Germany (5%), Australia (4%), and Japan (3%). The remaining 62% comprised domestic travellers from across India, with particularly strong representation from major metropolitan areas including Mumbai (15%), Bangalore (12%), Chennai (8%), and Kolkata (6%).

Age distribution reflected typical luxury hotel demographics with concentration in economically active age groups: 34% aged 25-34 years, 31% aged 35-44 years, 22% aged 45-54 years, and 13% over 55 years. This distribution enabled robust statistical analysis across age categories while reflecting the demographic profile of guests who possess both financial resources and environmental awareness associated with luxury hotel sustainability programs.

Income distribution confirmed the affluent nature of the sample, with 43% reporting annual household income above ₹15 lakhs (approximately $18,000 USD), 35% between ₹8-15 lakhs, and 22% below ₹8 lakhs. International guests showed higher income levels, with 67% reporting income above ₹15 lakhs compared to 31% of domestic guests, reflecting expected patterns in international luxury travel.

Educational attainment was high, with 47% holding bachelor's degrees, 32% possessing postgraduate qualifications, 15% with professional degrees, and only 6% with secondary education or below. This educational profile supports the sample's capacity for understanding complex environmental issues and evaluating sustainability program benefits.

Travel characteristics showed balanced representation across trip purposes, with 45% business travel, 39% leisure travel, and 16% mixed-purpose trips. Length of stay varied from single nights (23%) to extended stays over one week (18%), with modal stays of 2-3 nights (42%). This variation enabled assessment of how trip characteristics influence environmental behaviour adoption.

Sustainable Practice Awareness and Knowledge Patterns

Guest awareness of sustainable practices varied significantly across different categories, revealing patterns related to practice visibility, guest interaction requirements, and communication effectiveness. These awareness patterns provide crucial insights for understanding the foundation upon which behavioural adoption and willingness to pay decisions are based.

High-awareness practices included waste reduction and recycling programs (mean awareness = 4.3 on a 7-point scale, SD = 0.8), with 87% of guests reporting high awareness and only 10% reporting low awareness. This high awareness reflects the visible nature of waste management initiatives and direct guest participation opportunities that make these practices apparent even without active communication efforts.

Plastic elimination initiatives achieved similarly high awareness (M = 4.2, SD = 0.9), with 84% high awareness and 10% low awareness. The prominence of plastic reduction in public environmental discourse and the tangible nature of plastic elimination in hotel operations contribute to this high awareness level.

Moderate-awareness practices encompassed energy management systems (M = 3.8, SD = 1.1) and water recycling programs (M = 3.6, SD = 1.2). Energy management achieved 68% high awareness but also 18% low awareness, suggesting that while many guests recognise energy conservation efforts, the less visible nature of these systems limits universal awareness. Water recycling showed greater variation, with only 42% high awareness and 28% low awareness, indicating a significant opportunity for improved communication about water conservation initiatives.

Low-awareness practices included renewable energy utilisation (M = 2.9, SD = 1.3) and smart building systems (M = 2.7, SD = 1.4). Renewable energy awareness was particularly problematic, with only 31% high awareness and 45% low awareness. Smart building systems showed the lowest awareness levels, with only 26% high awareness and 52% low awareness.

These awareness patterns reveal clear opportunities for targeted communication interventions, particularly for practices that provide substantial environmental benefits but operate invisibly from guest perspectives. The inverse relationship between practice visibility and awareness suggests that communication strategies should focus disproportionately on less visible but potentially high-impact environmental initiatives.

Communication Channel Effectiveness and Preferences

Analysis of communication channel effectiveness revealed significant differences in credibility perceptions, guest preferences, and statistical impact on both awareness and behavioural adoption outcomes. Understanding these differences enables optimisation of communication resource allocation across different channels and guest segments.

Staff explanations emerged as the most effective overall communication channel, achieving the highest marks for credibility (M = 4.5 on 5-point scale), highest preference rates (81% of guests preferred receiving environmental information through staff interactions), and strong statistical impact on awareness (β = .31, p < .001). The effectiveness of staff communication reflects the personal nature of luxury hotel service, the ability to customise information to individual guest interests, and the trust relationships that develop between guests and hotel personnel.

Digital dashboards demonstrated strong effectiveness, particularly for statistical impact on awareness (β = .34, p < .001), despite somewhat lower preference rates (65%) and credibility perceptions (M = 4.2). Digital dashboards provide comprehensive information presentation, real-time data on environmental performance, and visual elements that enhance understanding of complex environmental systems. The high statistical impact suggests that even guests who do not initially prefer digital communication respond positively when exposed to well-designed digital environmental information.

Mobile applications showed moderate effectiveness across all dimensions, with credibility ratings of 3.9, preference rates of 58%, and awareness impact of β = .28 (p < .01). Mobile apps provide convenience and personalization opportunities but may suffer from low adoption rates and competition with other mobile applications for guest attention.

Traditional communication channels demonstrated lower effectiveness, with QR codes (credibility M = 3.8, preference 52%, awareness impact β = .25, p < .01), website information (M = 3.7, 45%, β = .22, p < .05), and printed materials (M = 3.4, 39%, β = .18, p < .05) showing progressively declining performance across all metrics.

Multi-channel communication strategies consistently outperformed single-channel approaches, with integrated staff-digital combinations showing 18% higher effectiveness in behavioural adoption outcomes compared to any single communication method. This superior performance reflects the complementary strengths of different channels, with interpersonal communication providing credibility and customization while digital channels offer comprehensive information and visual appeal.

Willingness to Pay Patterns and Price Sensitivity

Guest willingness to pay for sustainable practices demonstrated predictable elasticity patterns with clear threshold effects that have important implications for pricing strategies in luxury hotel sustainability programs. Analysis revealed both overall patterns and significant variation across guest segments and practice categories.

Price sensitivity analysis showed strong acceptance at modest premium levels, with 92% of guests expressing willingness to pay 5% premiums for rooms with enhanced environmental features. At this level, differences between domestic (89%) and international (95%) guests were modest, suggesting broad market acceptance of small environmental premiums.

Willingness to pay remained strong at 10% premium levels, with 85% overall acceptance, though domestic-international differences became more pronounced (81% vs 89% respectively). This pattern suggests that international guests, with typically higher incomes and greater exposure to environmental initiatives in their home markets, demonstrate greater tolerance for environmental premiums.

Critical price threshold emerged at 15% premiums, where acceptance dropped substantially to 60% overall. At this level, guest segment differences became particularly pronounced, with substantial variation across demographic and behavioural categories. Only Eco-Conscious Advocates maintained high acceptance (78%) at 15% premiums, while other segments showed much lower acceptance rates.

Premium acceptance above 15% declined rapidly, with only 35% acceptance at 20% premiums and minimal acceptance above this level. These patterns indicate that while luxury hotel guests demonstrate environmental concern, price sensitivity remains significant for all but the most environmentally committed segments.

Relationship between willingness to pay and behavioural adoption showed moderate positive correlation (r = .43, p < .001), indicating that economic preferences and behavioural engagement represent related but distinct dimensions of environmental commitment. High behavioural adoption guests demonstrated 67% higher willingness to pay premiums compared to low-adoption guests, suggesting that actual experience with environmental practices enhances appreciation of their value.

Practice-specific willingness to pay varied considerably across different environmental initiatives. Energy efficiency improvements commanded highest premium acceptance (73% at 10% levels), followed by water conservation (68%), waste reduction (62%), and renewable energy (45%). These patterns reflect guest understanding and perceived personal benefit from different environmental practices.

Comprehensive Behavioural Segmentation Analysis

K-means cluster analysis identified four distinct guest segments that differ significantly across all key research variables including environmental awareness, behavioural adoption patterns, willingness to pay, demographic characteristics, and communication preferences. These segments provide actionable insights for developing targeted sustainability programs and communication strategies.

Segment 1: Eco-Conscious Advocates (28% of sample, n = 113) represents the most environmentally committed segment, demonstrating highest scores across all environmental dimensions. This segment achieves mean awareness scores of 4.4 (SD = 0.6) across sustainable practices, with particularly high awareness of complex initiatives like renewable energy and smart building systems that remain invisible to other segments.

Behavioural adoption rates among Eco-Conscious Advocates reached 89%, with active participation in all available environmental programs and frequent voluntary adoption of conservation behaviours beyond hotel program requirements. Willingness to pay premiums was exceptionally high, with 96% accepting 10% premiums and 78% accepting 15% premiums for environmentally enhanced accommodations.

Demographically, this segment skews toward higher income levels (67% above ₹15 lakhs annually), higher education (82% postgraduate or professional degrees), and international guests (58%). Age distribution shows concentration in 35-54 age range (64%), suggesting established career professionals with both financial resources and mature environmental values.

Communication preferences favor comprehensive information through multiple channels, with particular appreciation for detailed technical information about environmental systems and performance data. This segment responds positively to both staff explanations and digital dashboards, seeking thorough understanding of hotel environmental initiatives.

Segment 2: Price-Sensitive Supporters (35% of sample, n = 142) represents the largest segment, characterized by moderate environmental commitment combined with strong price sensitivity. This segment demonstrates awareness levels of 3.4 (SD = 0.8) and behavioural adoption rates of 67%, but shows much more conditional responses to premium pricing.

Willingness to pay among Price-Sensitive Supporters drops to 78% at 10% premiums and only 34% at 15% premiums, indicating that this segment requires compelling value propositions to justify environmental premiums. However, behavioural adoption reaches 67% when environmental initiatives are bundled with service benefits or positioned as cost-saving measures.

Demographic characteristics include more balanced income distribution (43% above ₹15 lakhs), moderate education levels (58% bachelor's degree or higher), and predominantly domestic guests (71%). Age distribution is relatively even across categories, suggesting broad representation across life stages.

Communication preferences emphasize practical benefits and value demonstration rather than environmental theory. This segment responds well to information highlighting cost savings, service improvements, and tangible benefits from environmental initiatives.

Segment 3: Convenience-Focused Guests (23% of sample, n = 93) prioritizes service excellence and convenience over environmental considerations, though showing modest environmental awareness (M = 2.8, SD = 1.0) and behavioural adoption (52%) when environmental options require minimal effort or lifestyle changes.

Willingness to pay premiums is limited, with 65% accepting 10% premiums but only 28% accepting 15% premiums. This segment evaluates environmental initiatives primarily based on their impact on service quality and convenience rather than environmental benefits per se.

Demographic profile shows high income concentration (71% above ₹15 lakhs), predominantly business travelers (78%), and balanced domestic-international distribution. Age skews toward younger professionals (43% aged 25-34) who prioritize efficiency and convenience in travel experiences.

Communication preferences favor brief, service-oriented messages that emphasize how environmental initiatives enhance rather than compromise their hotel experience. This segment responds positively when environmental benefits are framed as service improvements or luxury amenities.

Segment 4: Sustainability Skeptics (14% of sample, n = 57) demonstrates minimal environmental engagement across all dimensions, with lowest awareness scores (M = 2.1, SD = 1.2), limited behavioural adoption (31%), and strong resistance to environmental premiums.

Only 43% of Sustainability Skeptics accept 10% environmental premiums, with virtually no acceptance of higher premiums. This segment questions the effectiveness of environmental initiatives and prefers traditional luxury hotel amenities over environmental features.

Demographic characteristics include older age distribution (58% over 45 years), lower education levels (45% bachelor's degree or below), and predominantly domestic guests (83%). Income levels are moderate, with concentration in middle-income categories.

Communication approaches must address skepticism through credible evidence of environmental program effectiveness and emphasis on non-environmental benefits such as cost savings or service improvements.

Quantitative Framework Development and Validation

Hierarchical regression analysis enabled comprehensive quantitative framework development for predicting guest behaviour across multiple outcome variables. The framework integrates demographic, awareness, and communication variables to provide practical prediction capabilities for hotel managers evaluating potential sustainability program success.

Willingness to pay prediction model achieved significant explanatory power (R² = .45, p < .001), indicating that the framework explains 45% of variance in guest premium acceptance. Key predictors included income level as the strongest factor (β = .28, p < .001), reflecting financial capacity for premium payments, followed by age (β = .21, p < .001) and environmental awareness (β = .26, p < .001).

The income effect demonstrates expected patterns, with each income category increase associated with 28% higher odds of premium acceptance. Age effects reflect generational differences, with younger guests showing greater willingness to pay for environmental benefits. Awareness effects confirm that guests who understand environmental initiatives are more willing to support them financially.

Behavioural adoption prediction model achieved even stronger explanatory power (R² = .52, p < .001), explaining 52% of variance in sustainable practice participation. Environmental awareness emerged as the strongest predictor (β = .34, p < .001), followed by behavioural segment membership (β = .31, p < .001) and communication effectiveness (β = .24, p < .001).

The stronger predictive power for behavioural adoption compared to willingness to pay suggests that behavioural responses are more systematic and predictable than economic responses, possibly reflecting the lower barriers to behavioural change compared to premium payment decisions.

Communication response prediction model explained 38% of variance (R² = .38, p < .001) in guest responsiveness to environmental communication. Age emerged as the primary predictor (β = .29, p < .001), followed by education level (β = .23, p < .01) and communication channel characteristics (β = .19, p < .05).

Integrated behavioural prediction model combining all framework components achieved the highest explanatory power (R² = .61, p < .001), demonstrating that comprehensive approaches incorporating multiple behavioural dimensions provide superior prediction capabilities compared to single-dimension models.

Framework validation procedures confirmed model stability and practical applicability through multiple assessment approaches. Cross-validation using randomly divided samples demonstrated 76% overall prediction accuracy, with 78% accuracy for willingness to pay prediction and 73% accuracy for behavioural adoption prediction.

Temporal stability assessment over three-month period showed 82% consistency in prediction accuracy, indicating that the framework captures stable behavioural patterns rather than temporary attitude fluctuations. Expert validation involving hotel sustainability managers resulted in 89% agreement on practical applicability, with particularly strong endorsement for segment identification and communication strategy recommendations.

Implementation testing with three participating hotels provided real-world validation of framework utility. Hotels utilizing framework-based intervention strategies showed 23% improvement in sustainable practice adoption rates and 31% increase in green premium acceptance compared to control properties using standard communication approaches.

These validation results confirm that the quantitative framework provides practically useful tools for hotel managers seeking to optimize sustainability program implementation and resource allocation across different guest segments and communication strategies.

Discussion and Theoretical Implications

Theoretical Contributions to Hospitality Literature

This research makes significant theoretical contributions to sustainable hospitality literature by providing the first comprehensive quantitative model that integrates willingness to pay, behavioural adoption, and communication effectiveness into a unified predictive framework. Unlike previous research that examines these components separately, this framework demonstrates how economic preferences, behavioural patterns, and communication responses interact to create distinct guest profiles that require differentiated intervention strategies.

The framework's ability to explain 61% of variance in overall environmental engagement represents a substantial advancement over previous models that typically achieve 20-35% explanatory power. This improvement reflects the comprehensive approach that captures multiple dimensions of environmental behaviour simultaneously rather than focusing on single behavioural aspects.

The finding that behavioural adoption and willingness to pay represent related but distinct dimensions (r = .43) challenges common assumptions in hospitality research that economic preferences automatically translate into behavioural engagement or vice versa. This distinction has important theoretical implications, suggesting that hotels must design intervention strategies that address both economic and behavioural factors simultaneously rather than assuming that success in one dimension will automatically generate success in others.

The identification of four distinct behavioural segments advances hospitality segmentation theory by demonstrating that environmental behaviour involves more complex patterns than simple demographic or psychographic categories can capture. The segments reveal that environmental commitment involves different underlying motivations, constraints, and decision-making processes that require tailored approaches for maximum effectiveness.

Communication Theory Applications

The research provides empirical validation for multi-channel communication theory in hospitality contexts, demonstrating that integrated communication approaches achieve 18% higher effectiveness than single-channel strategies. This finding supports theoretical models emphasizing complementary channel strengths while providing specific quantitative evidence for resource allocation decisions.

The superior effectiveness of staff communication (credibility M = 4.5, preference 81%) validates social presence theory applications in hospitality contexts, where personal relationships and trust significantly influence information acceptance and behavioural change. The combination of high credibility and preference rates indicates that interpersonal communication remains crucial despite digital technology proliferation.

The strong statistical impact of digital dashboards (β = .34) despite lower preference rates (65%) suggests that exposure effects and information comprehensiveness can overcome initial channel preferences, supporting media richness theory applications that emphasize matching information complexity with channel capabilities.

Practical Implications for Hotel Management

The quantitative framework provides hotel managers with comprehensive guidance for designing behavioural interventions that maximize both adoption rates and willingness to pay across different guest segments. Rather than implementing uniform sustainability programs, hotels can now segment guests based on observable characteristics and tailor interventions to maximize effectiveness for each segment.

For eco-conscious advocates (28% of guests), hotels should provide sophisticated technical information about environmental systems, emphasize innovation and environmental leadership, and position environmental features as premium amenities worthy of premium pricing. This segment justifies investment in advanced environmental technologies and comprehensive communication programs.

For price-sensitive supporters (35% of guests), hotels must emphasize value propositions, demonstrate cost savings or service improvements from environmental initiatives, and avoid premium positioning that might reduce participation. Bundling environmental benefits with service improvements appears particularly effective for this largest segment.

For convenience-focused guests (23% of guests), environmental initiatives must enhance rather than compromise service quality, with communication emphasizing convenience benefits and seamless integration with luxury service expectations. Environmental features should be positioned as service innovations rather than conservation measures.

For sustainability skeptics (14% of guests), hotels should emphasize non-environmental benefits such as cost savings, service quality, or health benefits while providing credible evidence of program effectiveness. Direct environmental appeals appear ineffective for this segment.

Strategic Implications for Sustainability Investment

The framework enables hotels to estimate return on investment from different sustainability initiatives by predicting guest acceptance rates and premium willingness across different segments. Implementation testing demonstrated 23% improvement in adoption rates and 31% increase in premium acceptance, suggesting substantial financial benefits from framework-based approaches.

The identification of price sensitivity thresholds (15% premium as critical point) provides guidance for pricing environmental premiums to maximize revenue while maintaining broad market acceptance. The 85% acceptance rate at 10% premiums suggests that modest premiums can generate substantial revenue from environmental investments.

The strong relationship between awareness and behavioural adoption (β = .34) indicates that communication investments generate measurable returns through increased program participation and guest satisfaction. Hotels should view environmental communication as strategic investment rather than operational expense.

Limitations and Future Research Directions

Research Limitations

Several limitations should be considered when interpreting these findings. First, the research was conducted specifically in North Indian luxury hotel contexts, potentially limiting generalizability to other geographic regions, cultural contexts, or hotel segments. The cultural values, economic conditions, and environmental awareness patterns in North India may differ significantly from other markets, requiring validation studies in different contexts.

Second, the framework focuses on short-term behavioural adoption patterns during individual hotel stays without addressing long-term behavioural change or sustained environmental engagement beyond the hospitality context. The temporary nature of hotel stays may create different behavioural dynamics than permanent residential or workplace settings.

Third, while the framework achieves good predictive accuracy (76% overall), approximately 24-27% of variance in behavioural outcomes remains unexplained, suggesting opportunities for enhancement through additional variables such as personality factors, social influences, or situational constraints not captured in the current model.

Fourth, the cross-sectional research design limits ability to assess causal relationships or temporal dynamics in behavioural change processes. Longitudinal research designs could provide insights into how environmental attitudes and behaviours evolve over time and across repeated hotel experiences.

Future Research Opportunities

Geographic and cultural validation studies should test the framework's applicability across different cultural contexts, economic conditions, and regulatory environments. Particular attention should focus on how cultural values regarding environmental responsibility influence segment characteristics and intervention effectiveness.

Longitudinal research examining behavioural change over time could reveal how guest segments evolve with experience, education, and changing social norms. Understanding segment stability and transition patterns would enhance framework utility for long-term strategic planning.

Technology integration research should examine how emerging technologies such as artificial intelligence, Internet of Things systems, and virtual reality might enhance environmental communication effectiveness and behavioural adoption rates.

Economic impact assessment could quantify the financial returns from framework-based sustainability programs, including both revenue generation from premiums and cost savings from reduced resource consumption and operational efficiency improvements.

Spillover effect studies could examine how hospitality-based environmental experiences influence guests' environmental behaviours in other contexts, potentially demonstrating broader societal benefits from hotel sustainability programs.

Conclusion

This study successfully developed and validated a comprehensive quantitative framework for understanding and predicting guest behavioural adoption patterns and willingness to pay for sustainable practices in North Indian luxury hotels. The framework represents a significant advancement in sustainable hospitality research by integrating previously separate research streams into a unified predictive model that provides practical guidance for industry implementation.

Key Research Contributions

The research makes several important contributions to sustainable hospitality theory and practice. The validated quantitative framework that predicts both willingness to pay and behavioural adoption represents the first comprehensive model addressing economic and behavioural dimensions simultaneously. The framework's ability to explain 45% of willingness to pay variance and 52% of behavioural adoption variance demonstrates strong predictive utility that exceeds previous models in the literature.

The identification of four distinct behavioural segments (Eco-Conscious Advocates, Price-Sensitive Supporters, Convenience-Focused Guests, and Sustainability Skeptics) provides hotel managers with actionable guidance for developing targeted intervention strategies that optimize both environmental impact and financial returns. Each segment exhibits distinct characteristics requiring differentiated approaches to communication, program design, and pricing strategies.

The empirical demonstration that multi-channel communication achieves 18% higher effectiveness than single-channel approaches provides quantitative support for integrated communication strategies. The documentation of communication effectiveness as a key framework component provides evidence for viewing sustainability communication as strategic investment in behavioural change rather than merely informational activity.

Practical Value for Industry Implementation

The framework provides hotel managers with practical tools for optimizing sustainability programs through evidence-based behavioural interventions. Rather than implementing uniform programs, hotels can now segment guests based on observable characteristics and customize interventions to maximize effectiveness for each segment.

Implementation testing demonstrated concrete evidence of practical value, with framework-based interventions achieving 23% improvement in sustainable practice adoption and 31% increase in green premium acceptance compared to standard approaches. These improvements translate directly into enhanced environmental performance and financial returns from sustainability investments.

The framework's predictive capabilities enable hotels to evaluate potential sustainability initiatives before implementation, reducing resource waste while maximizing effectiveness across diverse guest populations. This predictive capability is particularly valuable given the substantial investments required for many environmental technologies and programs.

Strategic Implications for Sustainable Hospitality

The research demonstrates that sustainable practices in luxury hospitality can achieve both environmental and financial objectives when implemented through evidence-based behavioural frameworks. The identification of price sensitivity thresholds and segment-specific intervention strategies enables hotels to optimize the balance between environmental impact and financial sustainability.

The strong relationship between environmental awareness and behavioural adoption suggests that investment in guest education and communication generates measurable returns through increased program participation and guest satisfaction. Hotels should view environmental communication as strategic investment that generates both immediate behavioural benefits and long-term brand differentiation.

The framework's successful integration of demographic, behavioural, and communication factors demonstrates that comprehensive approaches to sustainability achieve superior outcomes compared to single-dimension strategies. This integration enables hotels to develop sophisticated sustainability programs that address the complex, multi-dimensional nature of guest environmental behaviour.

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Received: 28-Aug-2025, Manuscript No. AMSJ-25-16165; Editor assigned: 29-Aug-2025, PreQC No. AMSJ-25-16165(PQ); Reviewed: 16-Sep-2025, QC No. AMSJ-25-16165; Revised: 20-Sep-2025, Manuscript No. AMSJ-25-16165(R); Published: 30-Sep-2025

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