Management of Perceived Risk in the Context of Destination Choice

Abstract

ABSTRACT The primary objective of this study was to examine how perceived risk could be managed in the destination choice context. Relationships among risk perceptions, uncertainty (information quality), and price premium were explored by using ordinal logistic regression. Eight types of perceived risk were investigated: health/life risk, financial risk, personal satisfaction risk, social risk, time risk, technical risk, political risk, and terrorism risk. Findings showed that perceived risks were decreased by information quality but various patterns were identified for different types of perceived risk. Results additionally suggested that travelers were willing to pay extra for products and services if more safety and security are provided. Managerial implications for how the findings can be incorporated into risk management strategies are also presented in this paper.