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

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  • Penn, Jerrod
  • Hu, Wuyang

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.

Suggested Citation

  • Penn, Jerrod & Hu, Wuyang, 2017. "A Choice Experiment of Traveler Willingness to Pay for Proactive Protection against Bed Bugs in Hotels," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252819, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea17:252819
    DOI: 10.22004/ag.econ.252819
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    References listed on IDEAS

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    1. James K. Hammitt & Kevin Haninger, 2007. "Willingness to Pay for Food Safety: Sensitivity to Duration and Severity of Illness," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1170-1175.
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