Consumer Perception and Inclination to Spend on Sustainable Hotels in India: A SEM Analysis

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Published Sep 8, 2021


Travel and tourism market of India is huge and its contribution to India’s GDP is projected
to upsurge phenomenally from the existing levels in the next decade. During the earlier half of 2019,
the number of tourists arrived on e-Tourist Visa registered a growth of 21 per cent (India Brand Equity
Foundation, 2019). Such high influx of tourists is likely to be unsustainable in any country, including
India, without adequate sustainable practices in place at the hotels.
With the continuous degradation of the environment, sustainable development has become a
pertinent issue worldwide. Like all other leading economies, India is following a holistic approach to
meet the 2030 criteria of sustainable development. Being the economy wherein about 2.2% of the GDP
is contributed through the travel and tourism sector, the focus of the country has shifted towards
minimizing exploitation of environmental resources.
One of the eco-friendly methods which has emerged in the tourism sector is sustainable hotels.
Considering the role of sustainable hotels in the conservation of environment, this study is focused on
learning the perception of people about these hotels and identifying the factor which contributes in
influencing their intent to pay premium for these hotels over regular hotels.
To fulfil the purpose of the study and explore information about the consumer’s perception
regarding sustainable hotels in India, exploratory research design is followed. Primary study involving
the survey method is carried out wherein data is collected using a semi-structured questionnaire.
Customers of sustainable hotels from luxury to middle range category across Bengaluru city in India
are approached. Considering the 5% level of significance, the sample from the targeted population of
Bangalore is selected using simple random sampling method.
The sample size of customers, thus selected for the study is 375 from across 6 five star hotels
of Bangalore. Further, analysis is carried out on the collected dataset of 349 consumers who agreed to
participate in the study, wherein initially the demographic profile and perception of consumers about
sustainable hotels is analyzed through the frequency analysis method using SPSS Software. Finally, in
order to determine the factors which would influence the inclination of consumers to pay for sustainable
hotels, SEM analysis is performed using the AMOS software. The hypothesis that there is no significant
impact of the factor on the consumer inclination to pay for sustainable hotels is tested. The factors
identified by testing the above stated hypothesis will be free from bias, and thus the study will be ethical,
valid, and reliable.
The outcome of the study through the SEM analysis of the responses of 349 middle and luxury
class consumers of sustainable hotels will reveal if their environmental consciousness direct them
towards choosing these green hotels or whether the expensive services at these hotels will divert them
towards regular hotels.
In order to motivate the consumers towards choosing sustainable hotels, there is a need for the
government to create the possibility of reducing cost for these green hotels and promote awareness of
people about the relevance of these sustainable hotels in environment conservation.

How to Cite

DINAKARAN, D. U. (2021). Consumer Perception and Inclination to Spend on Sustainable Hotels in India: A SEM Analysis. SPAST Abstracts, 1(01). Retrieved from
Abstract 2 |

Article Details


eEnvironment conservation, environment degradation, consumer perception, SEM Analysis

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SMH1: Management