IDEAS home Printed from https://ideas.repec.org/a/spr/svcbiz/v16y2022i3d10.1007_s11628-022-00479-8.html
   My bibliography  Save this article

Willingness to pay for travel insurance as a risk reduction behavior: health-related risk perception after the outbreak of COVID-19

Author

Listed:
  • Yeongbae Choe

    (Gachon University)

  • Hyesun Kim

    (Woosong University)

  • Youngjoon Choi

    (Ewha Womans University)

Abstract

This study aims to identify the effects of health-related risk perception and sociodemographic characteristics on the willingness to pay (WTP) for travel insurance as a risk reduction behavior following the outbreak of COVID-19. Through the application of a double-bounded dichotomous choice contingent valuation method, this study found several determinants for travel insurance price (i.e., risk perception toward traveling, perception about the influence of COVID-19, past travel insurance purchase experience, age, and education). The mean WTP was estimated to be approximately KRW 11,700 (USD 10.23). Several theoretical and managerial implications regarding risk perception and travel insurance are discussed.

Suggested Citation

  • Yeongbae Choe & Hyesun Kim & Youngjoon Choi, 2022. "Willingness to pay for travel insurance as a risk reduction behavior: health-related risk perception after the outbreak of COVID-19," Service Business, Springer;Pan-Pacific Business Association, vol. 16(3), pages 445-467, September.
    • Handle: RePEc:spr:svcbiz:v:16:y:2022:i:3:d:10.1007_s11628-022-00479-8
    DOI: 10.1007/s11628-022-00479-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11628-022-00479-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11628-022-00479-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Boyle, Kevin J. & Welsh, Michael P. & Bishop, Richard C., 1988. "Validation of empirical measures of welfare change: comment," MPRA Paper 31237, University Library of Munich, Germany.
    2. Tan, David & Caponecchia, Carlo, 2021. "COVID-19 and the public perception of travel insurance," Annals of Tourism Research, Elsevier, vol. 90(C).
    3. Chew, Elaine Yin Teng & Jahari, Siti Aqilah, 2014. "Destination image as a mediator between perceived risks and revisit intention: A case of post-disaster Japan," Tourism Management, Elsevier, vol. 40(C), pages 382-393.
    4. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
    5. Sigala, Marianna, 2020. "Tourism and COVID-19: Impacts and implications for advancing and resetting industry and research," Journal of Business Research, Elsevier, vol. 117(C), pages 312-321.
    6. Michael Hanemann & John Loomis & Barbara Kanninen, 1991. "Statistical Efficiency of Double-Bounded Dichotomous Choice Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1255-1263.
    7. Myungsook An & Chongho Lee & Yonghwi Noh, 2010. "Risk factors at the travel destination: their impact on air travel satisfaction and repurchase intention," Service Business, Springer;Pan-Pacific Business Association, vol. 4(2), pages 155-166, June.
    8. Lee, Choong-Ki & Song, Hak-Jun & Bendle, Lawrence J. & Kim, Myung-Ja & Han, Heesup, 2012. "The impact of non-pharmaceutical interventions for 2009 H1N1 influenza on travel intentions: A model of goal-directed behavior," Tourism Management, Elsevier, vol. 33(1), pages 89-99.
    9. Krinsky, Itzhak & Robb, A Leslie, 1990. "On Approximating the Statistical Properties of Elasticities: A Correction," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 189-190, February.
    10. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
    11. Williams, Allan M. & Baláž, Vladimír, 2013. "Tourism, risk tolerance and competences: Travel organization and tourism hazards," Tourism Management, Elsevier, vol. 35(C), pages 209-221.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dong-Han Kim & Jun-Jae Lee & Hyo-Yeun Park, 2021. "Assessing Economic Value of Local Festivals for Sustainable Development: A Case of Yeongju Korean Seonbi Culture Festival," Sustainability, MDPI, vol. 13(23), pages 1-13, December.
    2. Tiwari, Veenus & Mishra, Abhishek, 2023. "The effect of a hotel's star-rating-based expectations of safety from the pandemic on during-stay experiences," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    3. Joon Woo Yoo & Junsung Park & Jong Ho Lee & Heejun Park, 2022. "Recovering from the COVID-19 shock: the role of risk perception and perceived effectiveness of protective measures on travel intention during the pandemic," Service Business, Springer;Pan-Pacific Business Association, vol. 16(3), pages 557-580, September.
    4. Monika Małgorzata Wojcieszak-Zbierska & Anna Jęczmyk & Jan Zawadka & Jarosław Uglis, 2020. "Agritourism in the Era of the Coronavirus (COVID-19): A Rapid Assessment from Poland," Agriculture, MDPI, vol. 10(9), pages 1-19, September.
    5. Nadya Rahmadianti,Abdul Wahib Muhaimin & Silvana Maulidah & Fitria Dina Riana & Rosihan Asmara, 2024. "Revisit Intention and Satisfaction: The Role of Electronic Word of Mouth and Perceived Risk," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(1), pages 1398-1405, January.
    6. NaHyun Lee & Bong-Seok Kim, 2023. "Differences of Host Country-Destination Image Assessment for International Students According to Risk Perception in COVID-19 Tourism," SAGE Open, , vol. 13(3), pages 21582440231, July.
    7. Railey, Ashley F. & Marsh, Thomas L., 2017. "Diagnostic Testing and Vaccine Matching: FMD in Tanzania," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258386, Agricultural and Applied Economics Association.
    8. Smith, V. Kerry & Mansfield, Carol, 1998. "Buying Time: Real and Hypothetical Offers," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 209-224, November.
    9. Ebers Broughel, Anna, 2019. "On the ground in sunny Mexico: A case study of consumer perceptions and willingness to pay for solar-powered devices," World Development Perspectives, Elsevier, vol. 15(C), pages 1-1.
    10. Rhee, Hae-Chun & Lee, Kyu-yong & Cho, Joonmo, 2005. "Liberalizing employment of foreign workers in Korea: Public perception and assessment," Journal of Policy Modeling, Elsevier, vol. 27(8), pages 971-987, November.
    11. Miroslav Rončák & Petr Scholz & Ivica Linderová, 2021. "Safety Concerns and Travel Behavior of Generation Z: Case Study from the Czech Republic," Sustainability, MDPI, vol. 13(23), pages 1-17, December.
    12. Nicholas Tyack & Milan Ščasný, 2018. "Social Valuation of Genebank Activities: Assessing Public Demand for Genetic Resource Conservation in the Czech Republic," Sustainability, MDPI, vol. 10(11), pages 1-19, November.
    13. Amirnejad, Hamid & Khalilian, Sadegh & Assareh, Mohammad H. & Ahmadian, Majid, 2006. "Estimating the existence value of north forests of Iran by using a contingent valuation method," Ecological Economics, Elsevier, vol. 58(4), pages 665-675, July.
    14. Powe, N. A. & Bateman, I. J., 2003. "Ordering effects in nested 'top-down' and 'bottom-up' contingent valuation designs," Ecological Economics, Elsevier, vol. 45(2), pages 255-270, June.
    15. Diane Dupont, 2003. "CVM Embedding Effects When There Are Active, Potentially Active and Passive Users of Environmental Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(3), pages 319-341, July.
    16. José F Baños-Pino & David Boto-García & Eduardo Del Valle & Inés Sustacha, 2023. "The impact of COVID-19 on tourists’ length of stay and daily expenditures," Tourism Economics, , vol. 29(2), pages 437-459, March.
    17. Araña, Jorge E. & León, Carmelo J., 2009. "Understanding the use of non-compensatory decision rules in discrete choice experiments: The role of emotions," Ecological Economics, Elsevier, vol. 68(8-9), pages 2316-2326, June.
    18. Hanemann, W. Michael & Kanninen, Barbara, 1996. "The Statistical Analysis Of Discrete-Response Cv Data," CUDARE Working Papers 25022, University of California, Berkeley, Department of Agricultural and Resource Economics.
    19. Ndebele, Tom & Forgie, Vicky, 2017. "Estimating the economic benefits of a wetland restoration programme in New Zealand: A contingent valuation approach," Economic Analysis and Policy, Elsevier, vol. 55(C), pages 75-89.
    20. Pour, Morteza Tahami & Kalashami, Mohammad Kavoosi, 2012. "Applying CVM for Economic Valuation of Drinking Water in Iran," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 2(3).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:svcbiz:v:16:y:2022:i:3:d:10.1007_s11628-022-00479-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.