Space and Money: How and Why Crowding Influences Tourists’ Sensitivity to Price Magnitude

Abstract

Crowding is a widely observed phenomenon in the tourism industry, especially for destinations experiencing overtourism. Despite the documented consequences of crowding on destinations and locals, studies have seldom examined its impact on tourists’ experiences. Through a correlational study and two experiments, the present research provides convergent evidence suggesting that tourists in the more (vs. less) crowded conditions are less sensitive to the magnitude of service prices. Specifically, tourists tend to perceive lower (vs. higher) difference between high and low service prices in a more (vs. less) crowded destination. Furthermore, the research sheds light on the underlying mechanism of this effect by revealing that tourists rely relatively more on their feelings (vs. cognitions) when making judgments under crowded conditions. Relevant theoretical contributions and practical implications are also discussed.