How financial constraints influence the preferences for tourism destinations

Purpose This study aims to examine how financial constraints influence preferences for natural (vs cultural) destinations. It further investigates the mediating role of psychological distress and the moderating role of perceived economic mobility in this relationship. Design/methodology/approach A sequential multistudy design comprising eight studies (n = 1,874), including three main studies and five supplementary studies, was used to examine the effect of financial constraints on destination preferences and to test the underlying mechanism and boundary condition. Findings Financial constraints shape preferences for natural (vs cultural) destinations through psychological distress. Perceived economic mobility determines the direction of this self-regulatory response: financial constraints increase preferences for natural (vs cultural) destinations when perceived economic mobility is high but increase preferences for cultural (vs natural) destinations when perceived economic mobility is low. Originality/value This research advances the literature on financial conditions and destination decision-making by shifting attention from objective financial conditions to subjective financial perceptions. It identifies psychological distress as the mechanism linking financial constraints to destination preferences and perceived economic mobility as a boundary condition that determines the direction of this response. The findings also offer practical insights into destination segmentation and targeted marketing under financial constraints.