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Experience-based vs. time-based: How pricing frames shape tourist enjoyment

Author

Listed:
  • Hu, Jihao
  • Chen, Hanyu (Yuki)
  • Guo, Xiaoxuan

Abstract

Tourism businesses frequently employ two common pricing frames for experiences: tourists are charged either based on the duration of an experience (i.e., time-based pricing frame) or based on the experience itself (i.e., experience-based pricing frame). Building on prospect theory and cognitive evaluation theory, this research shows that, though of equivalent costs, experience-based (vs. time-based) pricing frames are more effective in eliciting enjoyment, mediated by a reduced calculative mindset. A theoretically grounded moderator is also identified, such that the proposed effect attenuates for extrinsically (vs. intrinsically) motivated travel. Three experiments, including one lab experiment that measures real behavior and two online experiments, were conducted to support our theorization. Theoretical and practical implications for pricing frames in tourism are also discussed.

Suggested Citation

  • Hu, Jihao & Chen, Hanyu (Yuki) & Guo, Xiaoxuan, 2025. "Experience-based vs. time-based: How pricing frames shape tourist enjoyment," Annals of Tourism Research, Elsevier, vol. 115(C).
    • Handle: RePEc:eee:anture:v:115:y:2025:i:c:s0160738325001574
    DOI: 10.1016/j.annals.2025.104051
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