A Choice Experiment of Traveler Willingness to Pay for Proactive Protection against Bed Bugs in Hotels

Jerrod Penn and Wuyang Hu

No 252819, 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama from Southern Agricultural Economics Association

Abstract: In recent years, the global rate of bed bug infestations has increased dramatically as well as the corresponding costs. One subtle cost that is important to the hospitality industry is travelers’ anxiety and risk of getting bed bugs. In this analysis, we use a Choice Experiment to investigate travelers’ WTP for proactive protection against bed bugs when booking a hotel. For travelers’ reaction to proactive protection against bed bugs, nearly 60% of travelers have a favorable opinion, while less than 10% rejected such efforts. Travelers have positive and significant Willingness to Pay for all four protective services considered, with the greatest value placed on the use of mattress encasements and the least value associated with weekly inspections from hotel staff. While hotels may be hesitant to openly advertise protective services, our results demonstrate that many travelers may be receptive.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 17
Date: 2017
New Economics Papers: this item is included in nep-dcm
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea17:252819

DOI: 10.22004/ag.econ.252819

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