Policy Consequentiality in Tourism Discrete Choice Experiments

Stated preference methods are widely applied in tourism research, yet their validity depends on respondents perceiving surveys as policy consequential. This paper examines how such perceptions shape willingness-to-pay (WTP) estimates for redesigned tourism supply. Using a discrete choice experiment with 927 French residents, we estimate a latent class hybrid choice model that incorporates policy consequentiality as a latent construct. Results show that stronger beliefs in consequentiality increase engagement with choice tasks and reduce opt-out behavior, but also heighten cost sensitivity, yielding lower WTP estimates. These findings reveal that perceived consequentiality acts as a boundary condition for truthful preference revelation in private-good tourism settings, where product redesign requires coordinated stakeholder decisions. Ignoring consequentiality perceptions may lead practitioners to overestimate tourists’ WTP and make suboptimal pricing, product development, and investment decisions. Destination managers should therefore clearly communicate respondents how their survey responses will inform future tourism planning.