Leveraging Pricing Strategies for Destination Management: The Impact of Algorithm-led Versus Human-led Price Discrimination on Tourist Attitudes Toward Destinations

Abstract

Tourists frequently experience two types of price discrimination: algorithm- and human-led. However, research on their influence on tourist attitudes toward destinations is limited. This study conducted four experiments to compare the impact of algorithm- and human-led (by local travel agency staff) price discrimination on tourists’ attitudes toward destinations, using attribution theory and a single-factor between-subjects design with manipulation checks. The results indicated that human-led price discrimination had a more negative effect on tourist attitudes and that the main effect was mediated by trust in the residents. The moderating role of current socioeconomic status was also examined, revealing that the negative influence of human-led price discrimination on trust in residents was stronger among tourists with high socioeconomic status. This study extends existing literature on price discrimination and attribution theory. Practically, it underscores how tourist attitudes toward a destination can be affected by leveraging price discrimination by type.

Keywords

algorithm-led price discrimination human-led price discrimination attribution theory attitudes toward destinations trust in residents socioeconomic status

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