Do Blue Flag promotions influence tourists’ willingness to pay a price premium for coastal destinations?

Abstract

The Blue Flag is a popular eco-label in tourism. This study aims at examining the effectiveness of Blue Flag promotion on tourists' willingness to pay a price premium to coastal destinations via two online experiments. Study 1 shows (n = 152) that the Blue Flag stimulates higher willingness to pay a price premium for coastal destinations directly as well as indirectly through self-congruity and destination brand identification. Study 2 (n = 160) used a new sample to enhance external validity and generalizability of the Study 1 findings. Study 2 shows that destination brand quality and destination brand identification serially mediate the effect of Blue Flag promotions on the tourist's willingness to pay a price premium. The findings suggest that destination managers should deploy the Blue Flag Logo in destination promotions to enhance self-congruence, destination brand identification, perceived destination quality, and the tourist's willingness to pay a price premium.