From willingness to pay to willingness to believe: the role of storytelling in driving true pricing in hospitality and tourism

Abstract

Research indicates that consumers are willing to pay for socially responsible and green attributes. Yet studies on the relationship between environment, society and governance (ESG) and financial performance report mixed findings regarding the impact of sustainability initiatives on risk and return. In this short viewpoint, we draw attention to true pricing, a broader framework for embedding sustainability principles into revenue and pricing management, which has not received much research attention in hospitality and tourism to date. We argue that the current approach to corporate social responsibility (CSR) implementation is insufficient to overcome the attitude-behaviour gap between willingness to pay and actual purchase behaviour. Emphasising the need to cultivate consumer belief in the responsibility to pay for environmental, social and economic externalities, we call for a broader discussion on the role of information networks and storytelling in pricing sustainability.