The effect of price bundling on tourists' extra expenditure: a mental budget approach. Issue 20 (18th October 2021)

• Record Type: Journal Article
• Authors: Cozzio, Claudia; Tokarchuk, Oksana; Maurer, Oswin
• Is Part Of: Current issues in tourism. Volume 24:Issue 20(2021)
• Page Start: 2838
• Page End: 2842
• Publication Date: 2021-10-18
• Subjects: Price bundling -- mental budget -- tourist expenditure -- all-inclusive packages; Tourism -- Social aspects -- Periodicals; Tourism -- Environmental aspects -- Periodicals; Travel -- Periodicals; 338.479105
• DOI: 10.1080/13683500.2020.1849045
• Languages: English
• ISSNs: 1368-3500

Abstract

ABSTRACT: This is a preliminary study that investigates the effect of the expansion of a bundled holiday package on tourists' extra expenditure. From a theoretical perspective, tourists acquiring packaged holidays tend to incur extra expenditure while on vacation and, in turn, to set a mental budget to avoid overspending. Findings from a quasi-experiment show that tourists are setting the same mental budget for extra expenditure regardless of what is included in the bundle on offer. Resort managers should carefully design mixed-product bundled holiday packages, leaving aside some attractive but non-essential options.