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Perceptions and Trends of Booking Online Payments in Tourism


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Online booking services for accommodation have gained increasing importance in the tourist services provided by tour operators. This study intends to identify the main dimensions that characterize each of the payment methods and, for each of them, seeks to characterize the tourists' perception of the main advantages and limitations associated with them. This study adopts a quantitative analysis methodology through the use of an online survey. A final sample of 238 responses was considered. The data were explored using Stata software and adopting statistical inference methods based on the analysis of variance. The findings allow us to conclude that cash payment is the payment method that simultaneously presents better availability and easiness. However, it is also the most insecure of the considered payment methods. For its part, the debit card is considered the safest method. This study didn’t intend to analyze the evolution of these payment methods over time. Furthermore, other emerging payment methods such as NFC, QR codes, mobile wallets have gained recent relevance and may be interesting their inclusion in future studies. The results are mainly relevant for tourism agencies and demonstrate that tourists’ perception is conditioned mainly by their age and the number of performed trips.
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Perceptions and Trends of Booking Online Payments in Tourism
Fernando Almeida
Faculty of Engineering of Oporto University, INESC TEC, Porto, Portugal
João Almeida
Higher Polytechnic Institute of Gaya, ISPGaya, V.N.Gaia, Portugal
Miguel Mota
Higher Polytechnic Institute of Gaya, ISPGaya, V.N.Gaia, Portugal
Received: 21 April 2018. Revision received: 11 April 2019. Accepted: 9 May 2019
Online booking services for accommodation have gained increasing importance in the tourist
services provided by tour operators. However, one of the major difficulties associated with this
process is the choice of payment method that may be appropriate to the needs and desires of
tourists. In this sense, this study intends to identify the main dimensions that characterize each of
the payment methods and, for each of them, seeks to characterize the tourists' perception of the
main advantages and limitations associated with them. This study adopts a quantitative analysis
methodology through the use of an online survey. A final sample of 238 responses was considered.
The data were explored using Stata software and adopting statistical inference methods based on
the analysis of variance. The findings allow us to conclude that cash payment is the payment
method that simultaneously presents better availability and easiness. However, it is also the most
insecure of the considered payment methods. For its part, the debit card is considered the safest
method. This study didn’t intend to analyze the evolution of these payment methods over time.
Furthermore, other emerging payment methods such as NFC, QR codes, mobile wallets have
gained recent relevance and may be interesting their inclusion in future studies. The results are
mainly relevant for tourism agencies and demonstrate that tourists’ perception is conditioned
mainly by their age and the number of performed trips.
Key words: Online reservation, tourism services, payment methods, security, choice behavior
JEL Classification: Z30, Z32
1. Introduction
Nowadays, the importance of the online booking process is high due to the evolution of
related technologies and applications. Increasingly, tourism consumers use the internet as a mean
to plan their travels and make their accommodation reservations. Information technologies enable
to attract new tourists and facilitate the booking process, which is available 24 hours daily from
The hotel industry assumes a relevant role in the development of a tourist region and in the
competitiveness of tourism, being its effect particularly visible in most competitive tourism
destinations (Attila, 2016). The online booking process is also essential for hotels because it allows
them to easily know how many rooms are reserved for a certain date and how much they charged
at the end of a certain period and through the website they can get the opinion and feedback of
customers about their accommodation. Through it, hotels have also more publicity and people
become aware of its existence. According to Filieri & McLeay (2013), online reviews have a
significant influence on the buying behavior of tourists.
Online travel sales show significant growth rates. In 2016, global online travel sales
represented 565 billion US dollars, and it is projected to grow to 756 billion US dollars in 2019
(Statista, 2017). The hotel booking process has experienced significant changes in recent years.
The Internet plays a key role in the booking process and hotels increasingly need to have integrated
systems with travel e-commerce companies. Deshmukh (2017) states that the main trends in the
evolution of tourism in the coming years include the analysis of a large volume of data,
reformulation of the business model, payments and data security, and mobile data integration.
One of the conditions inherent to the success of the online booking process is the existence
of a payment method that is suitable to the needs and desires of the users. In this sense, this study
seeks to assess the users' precepts about the payment methods most used currently in the online
booking process considering several dimensions (e.g., availability, easiness, and security) and also
various demographic, social and financial characteristics (e.g., gender, age, number of trips
performed by year, and amount spent in accommodations). The paper is organized as follows: we
initially perform a literature review on payments methods adopted in e-commerce and touristic
services. Next, we present the adopted methodology and the five research questions established
for this study. After that, we present and discuss the main results. Finally, the main conclusions
are drawn.
2. Literature Review
2.1 Payments in e-commerce
Most of the research done on online payment methods focus on e-commerce. In this sense,
a literature review was carried out in this area, since e-commerce payment methods are common
to those used in tourism.
The payment process has become more complex and dynamic. Innovation in the provision
of a larger diversified set of payments is important for both consumers and operators, but this raises
potential issues in data protection and security (Anderson, 2012). Teoh et al. (2013) used a multiple
linear regression model to reveal that factors such as self-efficacy and ease to use influence the
consumers’ perception toward the benefits offered by e-payments. Bogdan-Alexandru (2015)
advocates that e-payments systems should offer reliable and secure methods to authenticate their
customers. He also states that the level of authentication used should be associated with the risks
inherent to them. Therefore, in a first instance, the level of risk associated with each payment
method should be analyzed. Solat (2017) explored the vulnerabilities of electronic payment
systems. The study presented a comprehensive survey where several scenarios are used to
demonstrate that electronic payments methods can be corrupted. The findings allow us to conclude
that all kinds of electronic payments systems (e.g., card-present, card-not-present, contactless,
decentralized) have security breaches in security, user privacy, performance, and anonymity.
Jiemiao (2011) identifies five security requirements for an online payment system: (i)
information confidentiality; (ii) data integrity; (iii) authentication of participants; (iv) non-
repudiation; and (v) end-user implementation requirements (e.g., usability, flexibility, reliability,
availability, interoperability, etc.). Niranjanamurthy & Chahar (2013) consider that e-commerce
security contains six security dimensions: (i) integrity; (ii) non-repudiation; (iii) authentication;
(iv) confidentiality; (v) privacy; and (vi) availability. Hal (2014) proposes several dimensions of
analyzing retail payment systems, respectively: (i) finality and reversibility; (ii) universality; (iii)
recordkeeping; (iv) liquidity; (v) security and safety; (vi) financial inclusion and access; and (vii)
fungibility and ease of use. Hal (2014) considers that debit and credit cards are the most desirable
payment system for achieving the benefits of the seven above identified dimensions, which is being
confirmed by the increasing number of operators that have adopted card payments. Goczek &
Witkowski (2015) used econometric models to analyze the determinants of the development of the
card payment system. The study used survey data in Poland to conclude that demographic, social
and economic variables have a significant influence on the number of card payment transactions.
One of the most complete and up to date report on payment methods in e-commerce was
developed by Lupu, Mual, & Stiphout (2016). In this report, they analyzed innovation drives in e-
commerce payments and contextualize the online payment methods adopted in e-commerce
solutions. Four trends driving innovation were found: (i) consumer behavior and expectations is
more demanding; (ii) emergence of social platforms of e-commerce; (iii) technology-driven
innovation with the growth of mobile apps, cloud technology, artificial intelligence and internet of
things; and (iv) regulatory reforms and frameworks in e-commerce and online payment ecosystem.
Six payment instruments were identified by Lupu, Mual & Stiphout (2016): (i) card payments; (ii)
bank transfer payments; (iii) direct debit payments; (iv) cash payments; (v) crypto-currency
payments; and (vi) direct carrier payments. These payments instruments can be used in different
contexts, such as pay in advance, payment on delivery, or after delivery payment.
Another study of great importance for its comprehensiveness was developed by KPMG in
2017, in which it becomes possible to analyze the adoption of e-commerce according to multiple
perspectives, such as the profile of consumers, products and services most acquired, purchasing
channels, payment methods, etc. Payment methods emerge as the world's fourth most important
attribute in consumer choice, and in some European countries, in India and Latin America, this
attribute is even more important than their options for delivery or returns. KPMG (2017) also
describes the distribution of payment methods for each region. It is possible to reach the following
conclusions: (i) the six most widely used methods of payment are: credit card, PayPal, debit card,
bank transfer, cash on delivery (COD), and gift card; (ii) the distribution percentage of each
payment method is relatively heterogeneous for each region, with a smaller percentage of
payments per bank credit card in Europe; COD is an important payment alternative in Eastern
Europe & Russia, and the use of gift cards is mainly adopted in North America.
In addition, we also analyzed in the literature the performance of several payment methods
in traditional commerce. Polasik et al. (2010) compared different point-of-sales payments under
the criterion of time efficiency. Cash payments proved to be the fastest method followed by RFID
stickers and mobile payments. On the other side, traditional standard cards have shown lower
performance and, sometimes, this payment type is not available in all point-of-sales. Schuh &
Stavins (2011) used data from a US representative survey to conclude that four payments methods
emerge as important in determining consumer payment adoption and behavior, respectively: (i)
setup complexity; (ii) record keeping; (iii) security; and (iv) cost. This study also indicates that the
increase of costs of debit cards may lead to a reduction of this payment type.
Finally, it is meaningful to highlight the emerging role of the sharing economy and its
impact on e-commerce. Conceptually the sharing economy is a sustainable economic ecosystem
built around the sharing of services, products and human resources (Franken & Schor, 2017). It
includes creating, producing, distributing, sharing and consuming goods and services by people
and businesses, focused on people. Sharing economy has influenced the tourism sector particularly
the housing and hotel markets (Ključnikov et al., 2018). The methods of payment in sharing
economy become more complex, because the received money needs to be divided correctly among
the various actors, using several currencies and dates (Snoek, 2016). Another factor to be taken
into consideration is that the available payment methods should consider the regional knowledge,
because one type of method popular in one country may not be in another (Snoek, 2016).
2.2 Payments in tourism
The study of payment methods in tourism and the determinants in their choice have been
little explored. Most of the existing information on the subject is based on technical reports from
international consulting firms and regulators. At this level, we highlight the report offered by the
World Travel & Tourism Council that looks at the global economic impact and issues of travel
and tourism. Historically, three types of payments stand out in tourism: (i) payments with cash;
(ii) traveler's check; and (iii) payments with cards. Also, in recent years, significant technological
evolution has been introduced in the sector, mainly due to the massive use of smartphones. This
has led to the emergence of innovative technologies and services, such as Fintech (WTTC, 2017).
There have also been news articles about paradigm shifts in payments’ methods. Peng,
Xiong, & Yang (2012) used the technology acceptance model (TAM) to demonstrate that
perceived security and compatibility are key determinants in the acceptance of tourism mobile
payments. Additionally, the increasing access to booking websites using mobile devices has led to
changes in payment methods, with the emergence of so-called Alternative Payment Methods
(APMs). In the APMs stand out in some markets the PayPal and the mobile app WeChat in China
(Oliosi, 2017). Contactless cards have also increased consumer popularity, which means that
traditional debit cards can conquer new markets in the tourism industry (Burke-Kennedy, 2017).
The emergence of Airbnb, which is an online booking platform, also encouraged the emergence
of new payment methods (Zervas et al., 2017). Payment options may include credit cards, paypal,
alipay, postepay, hypercard, payU, Google Wallet or Apple Pay (Airbnb, 2018). Some of these
methods of payment only work in some markets, such as alipay in China, payU in India, or the
postepay in Italy. Other emergent payment methods have also appeared which use a payment app
to pay directly bills and perform transactions between friends. These payment apps (e.g., Venmo,
Apple Pay, WeChat Pay, etc.) have become popular among younger generations (Finley, 2018).
There are limited scientific studies in this area in the literature. Two exceptions can be
found, but they look to different perspectives of the payment’ types in tourism. Gul (2014) looks
at the effect of using credit cards on domestic and international Turkish tourism demand. He
advocates that the increasing use of credit cards, the rising of individual income and other industrial
developments play a decisive role in the growth of the tourism sector. Berezina (2010) analyzes
the main barriers and key issues that hotel industry professionals face during the implementation
of the Payment Card Industry Data Security Standards (PCI DSS). These standards are essential
to protect their payment systems from breaches and theft of cardholder data and, consequently, to
offer to customers a secure payment solution (PCI, 2017). The main issues identified by Berezina
(2010) for the implementation of PCI DSS include: (i) high costs of implementation and
maintenance; (ii) lack of qualified staff; (iii) inadequate staff training; (iv) high complexity of the
standard; and (v) lack of vendors’ support.
3. Methodology
This study aims to perceive how online payment methods are used in the process of booking
touristic accommodations. Five research questions (RQs) were defined:
o RQ1 What is the perception of tourists on the main benefits and disadvantages
associated with each method of payment?
o RQ2 Do the benefits and disadvantages of each method of payment is perceived
differently considering the tourists’ gender?
o RQ3 Do the benefits and disadvantages of each method of payment is perceived
differently by tourists with different age groups?
o RQ4 Do the benefits and disadvantages of each method of payment is perceived
differently by tourists with higher number of trips per year?
o RQ5 Do the benefits and disadvantages of each method of payment is perceived
differently by tourists with greater value spent on their accommodations?
The study adopts a quantitative approach based on a survey created using the Google Drive
platform. The survey was delivered to institutional partners of our university and it was available
in two professional LinkedIN groups in the tourism field (i.e., Tourism 2.0 and Online Travel and
Tourism). The questionnaire was available during two months (from 15th January 2018 to 15th
March 2018).
Surveys offer several important benefits. Mathiyazhagan & Nandan (2010) state that
surveys represent a relatively inexpensive data collection method and it can access to a wide range
of participants. Queirós et al. (2017) refer that when surveys have a significant response rate, then
this reduces the possibility of evaluator bias. However, it is imperative to mitigate the potential
issues of online surveys (Evans & Mathur, 2005). At this level, Nulty (2008) presents three
suggestions to improve the effectiveness of online surveys, respectively: (i) obtain a high response
rate; (ii) take into account possible issues when designing the survey; and (iii) use data derived
from multiples methods of gathering feedback. Lefever, Dal, & Matthíasdóttir (2007) emphasize
that it is important to understand the motivation and reasons for the results obtained, since the
isolated interpretation of survey data, without their proper contextualization, can lead to skewed
Table 1 Structure of the questionnaire
Control data
Information regarding the gender, age, number of trips, characteristics
of those trips and amount spent.
Availability dimension
Evaluation of the perception of each payment method according to the
“availability” dimension. Availability is defined as “the state of being
able to be obtained or used” (MacMillan Dictionary, 2018).
Easiness dimension
The perception of “easiness” dimension is also assessed. Easiness is
defined as “not difficult to know, understand, or believe” (MacMillan
Dictionary, 2018).
Security dimension
A similar approach was also performed for the “security” dimension.
Security is defined as “safety from attack, harm, or damage”
(MacMillan Dictionary, 2018).
Source: Authors
The questionnaire is composed of 26 questions divided into four sections (i.e., control data,
availability dimension, easiness dimension, and security dimension). The “control data” section,
together with the last three sections, allows us to respond to RQ2, RQ3, RQ4, and RQ5. To answer
RQ1 we only need the last three sections of the questionnaire. The purpose of each section is
detailed in Table 1.
Three classes of payments (i.e., payments with cash, traveler’s check and payments with
cards) were considered due to its high relevance in the tourism field. Within the card payment
segment, we distinguish between credit and debit card payments. Additionally, three additional
payment methods were also considered due to their wide adoption in the e-commerce field (i.e.,
bank transfer, paypal, and gift cards).
4. Analysis and Discussion of Results
A total of 251 answers were collected and analyzed. Thirteen invalid responses have been
removed from 251 due to having some missing answers and the same responses to all the questions.
The final accepted sample is 238, which is appropriate for this study. The collected data have the
following distribution:
Sex 129 men and 109 women. We have approximately 54.2% of respondents from
males sex;
Age 61 (18-29 years old); 88 (30-49 years old); 42 (50-64 years old) and 47 (65 years
and over). Most of our respondents (62.61%) are under 50 years old;
Number of trips per year 95 (1-2 trips); 86 (3-5 trips) and 57 (more than 5 trips). The
majority of our respondents don’t realize more than 2 trips per year;
Characteristics of the trips 116 (personal); 35 (professional) and 87 (equal). Only
14.71% of our respondents realize only professional trips;
Average of the amount spent in their accommodations 34 (less than 50€); 96 (50€-
100€); 96 (100€-250€) and 12 (more than 250€). Approximately 80.67% of our
respondents spend between 50€-250€ per trip.
4.1 RQ1 What is the perception of tourists on the main benefits and disadvantages
associated with each method of payment?
In a first phase, we analyze the perception of the respondents about the advantages and
limitations associated with each payment method considering "availability", "easiness" and
"security" dimensions. Table 2 presents a ranking of payment’s types per dimension and Figure 1
helps us to analyze and interpret the evaluation of each payment method according to the three
dimensions. The results demonstrate that:
Availability dimension cash payments and debit card have the highest average. On the
other side, the methods of payment with less availability are: (i) traveler’s check; (ii)
paypal; and (iii) gift cards. In fact, traveler’s checks have been replaced by the widespread
acceptance of credit cards and debit cards. Shafer (2017) stated that another factor that
contributed to decline in their use is the fees charged by the issuer and agent, especially
when compared to the majority of credit cards. Analyzing the standard deviation we found
that paypal is the payment method that registers the greatest dispersion of responses. This
situation may be related to a less aware of this mean of payment by respondents and,
therefore, they assume their unavailability;
Easiness dimension cash payment and debit card stand out as the easiest payment
methods to use. On the other side, the most difficult payment methods are the traveler’s
check and gift cards. Connolly (2014) emphasizes the difficulties in the use of gift cards,
especially in services of greater complexity and in which it becomes necessary a greater
personalization of the service to the expectations of the client. Looking to the standard
deviation two types of payments may be highlighted: (i) cash payment has a very low
standard deviation with almost all of respondents stating that it is very easy to use; and
(ii) paypal has a greater dispersion in responses;
Security dimension debit card and bank transfer are considered the safest payment
methods. Despite this, it is important to recognize that persist some security challenges
and vulnerabilities which are reported in several studies (Kovács & David, 2016; Korauš
et al., 2017). At this level, deserves special mention the cloning of cards, extortions to get
personal access codes and theft of data in online transactions. On the other hand, the cash
payment was considered the most insecure. In fact, cash payment registered just like
paypal a large dispersion of responses which makes predicting a different behavior on the
part of different profiles of tourists.
Table 2 Ranking of payment’s types per dimension
Type of payment
Ranking of dimensions
Cash payment
Credit card
Debit card
Bank transfer
Traveler’s check
Gift cards
Source: Authors
Figure 1 Evaluation of payment methods according to three dimensions
Source: Authors
0 1 2 3 4 5
Cash payment
Credit card
Debit card
Bank transfer
Traveler's check
Gift cards
4.2 RQ2 Do the benefits and disadvantages of each method of payment is perceived
differently considering the tourists’ gender?
We perform a two-tailed t-test in order to find evidence of a significant difference between
the answers given by respondents from masculine and feminine gender. Although most statistical
studies adopt an alpha level of 0.05, it was found that the existence of a reduced number of
responses in some payment categories could lead to the detection of false positives (called a Type
I error). Consequently, and to increase the reliability of the results, a significance level of 1% was
adopted = 0.01). The statistical tests were performed using Stata v.15 software. Looking at
Table 3 it is possible to conclude that only easiness and security dimensions present statistical
significance differences. Female gender individuals consider that payments with credit card and
debit card offer less easiness. On the same direction, female gender individuals also consider that
payments with credit card, paypal and traveler’s check offer less security. However, considering
the total number of tested variables in this study, we can realize that tourists' gender has a residual
impact on the choice of payment methods.
Table 3 Hypothesis test for tourists’ gender
Type of payment
Mean (gender
= ‘male’)
Mean (gender
= ‘female’)
Availability dimension
Cash payment
Credit card
Debit card
Bank transfer
Traveler’s check
Gift cards
Easiness dimension
Cash payment
Credit card
Debit card
Bank transfer
Traveler’s check
Gift cards
Security dimension
Cash payment
Credit card
Debit card
Bank transfer
Traveler’s check
Gift cards
Source: Authors
4.3 RQ3 Do the benefits and disadvantages of each method of payment is perceived
differently by tourists with different age groups?
The ANOVA statistical method was employed to verify if there is a difference between the
distributions of a measure among three or more groups, considering the different age groups. Table
4 allows us to conclude that there are distinct perceptions of the three dimensions considering the
tourist's age. Individuals with more than 65 years old consider that payments with credit cards,
paypal, traveler's check, and gift cards offer simultaneously less availability, easiness and security.
Younger individuals express an inverse perception of this situation, and they consider that
payments with paypal and gift cards are more secure. This trend also occurs in e-commerce
payments, in which millennials prefer using paypal on their smartphones for paying and receiving
money (Bizrate, 2016). Furthermore, debit cards are considered to have worse easiness and
security among individuals over 65 years old. However, the perception regarding the availability
dimension is uniform for all individuals. Finally, it is possible to conclude that the perception
regarding the availability, easiness, and security of bank transfer payments is similar for all
Table 4 Hypothesis test for tourists’ age
Type of payment
Mean (age =
18 to 29
Mean (age =
30 to 49)
Mean (age
= 50 to 64)
Mean (age
= 65 and
Availability dimension
Cash payment
Credit card
Debit card
Bank transfer
Traveler’s check
Gift cards
Easiness dimension
Cash payment
Credit card
Debit card
Bank transfer
Traveler’s check
Gift cards
Security dimension
Cash payment
Credit card
Debit card
Bank transfer
Traveler’s check
Gift cards
Source: Authors
4.4 RQ4 Do the benefits and disadvantages of each method of payment is perceived
differently by tourists with higher number of trips per year?
Table 5 presents the hypothesis test carried out to study whether the number of trips (nt) per
year influences the perception of availability, easiness, and security of the payment methods. Like
in the previous scenario, the ANOVA method was applied. The results of this process allow us to
conclude that there is significant evidence to conclude the existence of a distinct pattern of using
payment methods for individuals with few trips per year (nt equal to 1 or 2) and for individuals
with many trips made (nt more than 5). Thus, credit cards, paypal, traveler's check, and gift cards
are perceived by less traveled tourists as offering lower availability, easiness and security. On the
opposite side, there is an inverse perception regarding individuals who carry out a greater number
of trips.
The obtained results are also relevant to conclude that individuals with fewer trips (nt equal
to 1 or 2) consider that cash payment offers better security conditions when compared against
individuals who perform more trip. On the contrary side, this last group of individuals considers
that payments with debit and credit cards are more secure. Finally, the perception about the
availability, easiness, and security of bank transfer payments is uniform for all groups of
individuals, regardless of the number of trips performed by them.
Table 5 Hypothesis test for number of trips
Type of payment
Mean (nt = 1
to 2)
Mean (nt = 3
to 5)
Mean (nt >
Availability dimension
Cash payment
Credit card
Debit card
Bank transfer
Traveler’s check
Gift cards
Easiness dimension
Cash payment
Credit card
Debit card
Bank transfer
Traveler’s check
Gift cards
Security dimension
Cash payment
Credit card
Debit card
Bank transfer
Traveler’s check
Gift cards
Source: Authors
4.5 RQ5 Do the benefits and disadvantages of each method of payment is perceived
differently by tourists with greater value spent on their accommodations?
The amount spent by tourists in accommodations per day has a residual impact on the
perception of each payment method (Table 6). The main exception to this situation occurs for high
values spent (vs) spent in accommodations (vs > 250 €). In this situation, there is a statistically
significant perception in the security component, in which tourists consider that the security
offered by credit cards, debit cards, paypal, traveler's check, and gift cards is superior. On the
contrary, this group of users considers that cash payments have worse security conditions. Lou,
Tian & Koh (2017) confirm this vision by stating that cards and mobile payments are progressively
overcoming the use of cash. They also present other issues for the adoption of cash payments, such
as lack of change, hygiene, and counterfeit currency.
It is also important to recognize that there is significant statistical evidence for users that
spend least on accommodation (vs. 50) when using traveler's check. This group of users feels
that the traveler's check has worse availability and security. However, the same conclusion cannot
be made on the same group of users in the easiness component.
Table 6 Hypothesis test for the value spent by tourists on their accommodations
Type of payment
Mean (vs <
Mean (vs =
50€ to 100€)
Mean (vs =
100€ to
Mean (vs >
Availability dimension
Cash payment
Credit card
Debit card
Bank transfer
Traveler’s check
Gift cards
Easiness dimension
Cash payment
Credit card
Debit card
Bank transfer
Traveler’s check
Gift cards
Security dimension
Cash payment
Credit card
Debit card
Bank transfer
Traveler’s check
Gift cards
Source: Authors
5. Conclusion
The advantages and disadvantages of different payment methods offered by booking online
platforms in tourism are perceived differently by users. Considering the seven payment methods
established in this study, we can conclude that: (i) cash payment presents the greatest availability
and easiness. However, it is also the one that presents the lowest security, being the perception of
the security offered by this method of payment quite heterogeneous considering the profile of the
users; (ii) credit card has a lower overall score in the security component, being higher in terms of
availability and easiness; (iii) debit card and bank transfer have very homogeneous results in the
three dimensions. However, bank transfer receives always a lower score for all dimensions when
compared to the debit card; and (iv) PayPal, traveler's check and gift card receive negative ratings
in the availability dimension, being the worst result obtained for travelers' check. In the easiness
component, within these three payments, PayPal is the only one that presents a positive result.
Finally, all these payment methods receive a positive evaluation in the security component.
The study also sought to assess whether users' perceptions were affected by some of their
demographic, social and financial dimensions. At this level, it was possible to conclude that: (i)
the tourists’ gender has a residual impact on the choice of payment methods; (ii) the tourists' age
is a determining factor in the choice of a payment method. This dimension is particularly relevant
in the group of people 65 years and over, who prefer the use of cash payments. On the other hand,
payments with credit cards, paypal, traveler's check, and gift cards are considered by this group of
users as offering less availability, easiness and security; (iii) the number of trips per year performed
by tourists is another factor that statistically influences the perception of payment methods, both
for tourists with smaller and larger number of trips per year. Tourists with fewer trips consider that
credit cards, paypal, traveler's check, and gift cards offer low levels of availability, easiness and
security. This perception is precisely the opposite for the tourists who perform more than 5 trips
per year; and (iv) the value spent by tourists on their accommodations is not a determining factor
in the choice of payment method, except for users who spend a high amount of money in
accommodations. This group considers that the security offered by credit cards, debit cards,
paypal, traveler's check, and gift cards is higher.
As future work, we intend to explore the impact of mobile payments in the tourism sector,
considering its adoption by both operators and tourists. At this level, we intend to assess the
potential offered by these mobile payment methods (e.g., NFC, QR codes, SMS payments, mobile
wallets, and WAP payments) for tourism services and we also intend to explore the main barriers
and difficulties that have conditioned their market penetration.
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Brief description of Author/Authors:
Fernando Almeida
He is a teacher and researcher at University of Porto and in the Center of Innovation, Technology
and Entrepreneurship of INESC TEC, Rua Dr. Roberto Frias, s/n 4200-465 Porto, Portugal,
His research interests include innovation policies, entrepreneurship, tourism policies, and
technology-enhanced learning.
João Almeida
He is attending a BSc. in the field of tourism management at the Higher Polytechnic Institute of
Gaya, Av. dos Descobrimentos, 333 4400-103 Vila Nova de Gaia, Portugal,
His research interests include tourism policies, and entrepreneurship and innovation in tourism.
Miguel Mota
He is attending a BSc. in the field of tourism management at the Higher Polytechnic Institute of
Gaya, Av. dos Descobrimentos, 333 4400-103 Vila Nova de Gaia, Portugal,
His research interests include tourism policies, events management, and tourist animation.
... When booking tourist accommodation, cash and debit cards are widely accepted and the easiest to use. Card payments are considered safe, especially by younger tourists, individuals who travel more and individuals who spend large amounts on accommodation (Almeida et al., 2019). ...
... Nights spent grew at an annual average of 4.7%, while the variables related to expenditure (BP -travel credit and Cards -value of purchases) grew at a faster pace, emphasizing the increased importance of tourism receipts for the Portuguese economy. This evidence is compatible with Almeida et al. (2019), who report that individuals who go on more trips and individuals who spend high amounts in accommodation, consider cards a safer method of payment. ...
Purpose A convenient payment system is increasingly recognized as an asset of tourism destinations. By using data on payments with cards issued in foreign countries, together with other monthly tourism flow variables, the authors assess the importance of card payments to identify seasonality in inbound tourism in Portugal. Design/methodology/approach The authors compute seasonality measures using Portuguese data on card payments from 2003 to 2019, together with data on nights spent and the Balance of Payments travel credit. The authors also assess seasonal behaviour in the timespan of the different tourism strategic plans in place during this period. Findings Card payments grew at a faster pace than the other inbound tourism variables and show a seasonal pattern similar to the other variables. Seasonality decreases when variables measured in quantities are considered (nights spent and number of card transactions). However, when the authors use value variables (Balance of Payments travel credit and value of card transactions), seasonality in 2019 is higher than in 2003. Research limitations/implications The widespread use of digital payments makes card payment information an even better proxy of tourism activity and since it is available in a short time-span it has informational potential for tourism stakeholders and for researchers in this field. Originality/value The authors study the seasonal behaviour of foreign card payments along with other international tourism flow variables. The authors’ results highlight the informational potential of card payment data and the importance of electronic payment infrastructure for tourist activity.
... This article focuses (e.g., [6]- [8]). Scholars have also investigated consumers' mo- 38 tivations/intentions to use Airbnb (e.g., [2], [9]-[11]), consumer 39 perceptions of hosts reliability and reputation [12]- [14], and the 40 determinants of continuance [4] as well as of discontinuance 41 intention [15]. ...
... [2] and [38]). [11], [12], trust toward the Airbnb platform [4], or the role of 131 interaction between hosts and guests in building trust and re-132 ducing the negative impact of service failure [32]. ...
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The business of hosts in peer-to-peer (P2P) accommodation sharing has become an important source of revenue for individuals in many economies. However, there is a dearth of studies on hosts, specifically on the factors that affect host performance (i.e., occupancy rates). Drawing on the signaling theory and the source credibility theory and using a dataset of 41 610 reviews of 7004 Airbnb listings, we investigated the impact of cancelation rate—that conspicuously signals how many times a host has canceled a pre-existing reservation—on the host occupancy rate. Furthermore, we investigate the role of source credibility signals in reducing the impact of host cancelations. The results show that host signals of reputation, responsiveness, and expertise minimize the negative effect of cancelations on the occupancy rate. Theoretically, we advance the academic literature on credibility signals in P2P platforms and their moderating role on host performance. Managerially, the study helps P2P hosts in understanding the role of signals on occupancy rate.
... Without a doubt, the preservation and existence of the tourism business in any location depend on the natural environment (Almeida et al., 2019). It is also clear that the hospitality or hotel industry contributes to environmental deterioration (Han et al., 2011). ...
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The present research focuses the perception of tourists including both locals and foreigners towards the day to day tourism practices and hospitality measures to facilitate the tours in Gilgit Baltistan (GB) region according to sustainable tourism criteria and green management in hospitality. The existing practices and measures within hospitality management are appraised through structured questionnaires. The variables in the questionnaire are structured in light of Global Sustainable Tourism Criteria (GSTC) and elements of green management for hospitality entities. Using Yamane's formula for selection of sample size among the tourists, 273 total sample is finalized to respond on the questionnaire. The acquisition of primary data from tourists in the study area is accomplished from five sample sites; Skardu, Hunza, Ghizer, Astore and Ganche districts. The quantitative analysis of the data reveals that the majority of the tourists are familiar with sustainable tourism development (STD) but not aware about green hospitality management (GHM). Tourists in the region believe that due to irresponsible behavior of tourists, degradation of nature and environment and spread of non-recyclable waste materials are frequent in the study area. The usage of non-renewable energy resources are also common within hospitality entities. As far as the satisfaction of tourists is concerned towards sustainable tourism and green hospitality management in Gilgit Baltistan, the tourists are not satisfy at all.
... Suggest that a model for assessing brand performance should be based on consumer behavior, brand awareness and perception [10,13]. Analyzing the factors influencing the recognition and perception of the brand by consumers, modern scientists emphasize the significant role of digital communication technologies [15][16][17][18]. ...
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In the tourism industry, millions of card transactions generate a massive volume of big data. The card transactions eventually reflect customers? consumption behaviors and patterns. Additionally, recommender systems that incorporate users? personal preferences and consumption is an important subject of smart tourism. However, challenges exist such as handling the absence of rating data and considering spatial factor that significantly affects recommendation performance. This paper applies well-known Doc2Vec techniques to the tourism recommendation. We use them on non-textual features, card transaction dataset, to recommend tourism business services to target user groups who visit a specific location while addressing the challenges above. For the experiments, a card transaction dataset among eight years from Shinhan, which is one of the major card companies in the Republic of Korea, is used. The results demonstrate that the use of vector space representations trained by the Doc2Vec techniques considering spatial information is promising for tourism recommendations.
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The provision of digital payments in tourism destinations has developed into a value-added service. This research seeks to uncover the phenomenon of the adoption of digital payment technology by tourists in tourist destinations associated with their attitudes regarding perceptions of service quality and return visit interest. PLS-SEM analyses TAM dimensions, service quality, and digital payment user satisfaction in return visits to tourism destinations. Using data from 212 respondents, the study found that perceived ease of use of digital payments significantly influenced the perception of service quality. These relations significantly affect satisfaction, an antecedent of consideration for return visits to tourism destinations. Practically, this research provides the fact that digital payments can be a factor that strengthens visits for tourists. Destination managers need to integrate their payment operations into the digital system thoroughly.
Portugal and Spain have both cultural differences and similarities. The current study evaluates the hotel safety perception by Portuguese and Spanish tourists during the COVID-19 pandemic. It discusses the differentiated changes needed to be implemented by the hotel industry to address each country’s tourists’ safety concerns. A sample of 533 Portuguese and Spanish hotel guests was inquired using an online questionnaire to assess safety perception and service needs under the COVID-19 situation by exploring seven critical dimensions: financial risk, front-desk digitalization, entertainment, front-desk service, hygiene and sanitation, hotel characteristics, and space management, and food and beverage service.The results show that there are differences regarding safety perception and preferences between Spanish and Portuguese hotel guests. Findings indicated that the differences spread across all categories with special incidence in hygiene-related factors. The differences vary with gender, and Women seem to be more sensitive to safety as they present more differences than men. The level of education and having children also affects the perception of hotel safety and the requisites of guests. The need to prove hygiene care and have the hotel certificate for COVID-19 emerged as key factors in restoring the client’s trust.The research on the effects of pandemics on hotel guests’ safety perception is scarce. Therefore, the proposed framework for assessing hotel clients’ perceptions and the findings are particularly important for Iberian hotel managers to adopt an innovative approach and shape their offer to better address specific needs and preferences of Portuguese and Spanish clients in the face of the COVID-19 pandemic.
Rural tourism (both physical and emotional experiences) has been increasingly sought after for a multitude of reasons. The personalised encounter between places, people/culture and guests, characteristic of rural accommodation and the village context, can play a central role in the quality of the experience of tourism in these areas.If so, understanding the profile of the tourist in Portuguese rural areas becomes increasingly relevant from a research perspective. In this study, using an online questionnaire with a sample size of 133, we look at the case of the rural tourism in the “Quadrilátero do Minho” Region.Findings show that the profile of the tourist in rural areas in Portugal is mostly composed of higher educated (81.2%) women (72.2%), aged 35 through 44 years (32.3%), who are not self-employed (59.4%) and that live in the Northern region (45.1%). With respect to their accommodation profile, the most representative sample of respondents are those who stay with relatives (61.7%) in rural tourism units once a year (64.7%), from 1 to 3 days (68.4%) and spend anywhere from between 50€ and 100€ per day (64.7%). The tourist in rural areas in Portugal appreciates calmness and tranquillity in a low-density populated area and contact with nature, seeking out what is genuine and endogenous to the region. Rural tourism units with a swimming pool, cultural activities and the possibility of participating in experiences stand out as the favourite attributes among the respondents/tourists.KeywordsMultidimensional experienceProfile of the rural touristQuadrilátero do MinhoRural tourism
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The methodology of data collection and analysis used in this study was Grounded Theory (GT). Its methods allowed the generation of a theory that emerged from the action that took place in the substantive area of HHT. GT has the advantage of not being restricted to one unit of analysis, since the categories that emanate from the data are generalizable. In this way, GT allows for the development of theory grounded in the data collected. Our sample for this study consisted of 53 interviews with owners and/or hosts of HHT and five participant observations held in the substantive area of HHT.This chapter aims to explain the strategies used by the hosts or owners of manor houses to ensure the self-sustainability of the HHT. The research findings presented here should be regarded as an integrated set of conceptual hypotheses (i.e., probabilistic assertions) that intend to explain a substantial part of the behavioral patterns apprehended in the manor houses.KeywordsGrounded theoryHistoric housing tourismSustainability
Purpose This study aims to offer a comprehensive review of mobile payment (m-payment) research in hospitality and tourism. Design/methodology/approach This study systematically reviews 105 m-payment-themed publications retrieved from five research engines including EBSCOhost, Google Scholar, Web of Science, ScienceDirect and Scopus. Content analysis is used to draw insights from the articles. Findings Results show that research on m-payment in hospitality and tourism is generally categorized into consumer, supplier and policy dimensions. This study proposes a framework to summarize the demand–supply research standpoints and conditions that qualify research outcomes while providing contemporary policy-related discussions. Four research priorities for future studies are recommended. Practical implications Knowledge accumulation and policy-related discussions identified in this study equip practitioners with the opportunities and challenges brought by m-payment. This study provides recommendations according to the factors that drive adoption of m-payment. Originality/value This study addresses the academic gaps by critically analyzing m-payment research in hospitality and tourism and identifying four research priorities for future studies.
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The concept of the sharing economy in accommodation business, an explosively growing business model, influences housing and hotel markets worldwide. The aim of this paper is to investigate the size of the AirBnB sector in Prague, to identify a potential disruption of the accommodation market and the potential scale of tax evasion of the AirBnB users, to state the need for additional regulation in this field. The research data were collected using the method of webscrapping from AirBnb website, then validated using the AirDNA database (18 586 units, 1 048 585 records, April 2016 to March 2017). The tax evasion was measured through authors’ own model. The main results are as follows: through the offer of accommodation via AirBnB platform in Prague is extensive and compatible with the capacity of Prague hotels; the average occupancy rate in Prague is highly above the values of 14 largest European cities; 80% of the real estate units offered through the AirBnB platform do not represent the case of the usual sharing economy, but are a subject to taxes. The data on Prague substantially outstrips the European average, thus indicating to a potentially significant misuse of the AirBnB platform and a low-scale associated potential tax evasion. Czech legislation is well prepared for sharing economy. 7.4% of the AirBnB users control 39.56% of all accommodation options offered via this platform in Prague.
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Scientific research adopts qualitative and quantitative methodologies in the modeling and analysis of numerous phenomena. The qualitative methodology intends to understand a complex reality and the meaning of actions in a given context. On the other hand, the quantitative methodology seeks to obtain accurate and reliable measurements that allow a statistical analysis. Both methodologies offer a set of methods, potentialities and limitations that must be explored and known by researchers. This paper concisely maps a total of seven qualitative methods and five quantitative methods. A comparative analysis of the most relevant and adopted methods is done to understand the main strengths and limitations of them. Additionally, the work developed intends to be a fundamental reference for the accomplishment of a research study, in which the researcher intends to adopt a qualitative or quantitative methodology. Through the analysis of the advantages and disadvantages of each method, it becomes possible to formulate a more accurate, informed and complete choice.
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Innovative technologies have greatly changed people’s lives, including their travel experiences. This study investigates the antecedents and outcomes of the quick response (QR) code payment technology used in tourism to provide empirical evidence that mobile technologies can be used to enhance tourist satisfaction. An empirical analysis using 247 field survey responses reveals that relative advantage, compatibility, and observability innovation attributes significantly affect tourists’ attitudes positively toward QR code payment services, which results in their use of the technology while traveling. However, image—the subjective norm in innovation diffusion—has no effect on such use. Furthermore, the study confirms that the use of the QR code payment technology in tourism influences an individual’s transaction satisfaction and travel satisfaction, suggesting that this technology can be used to advance the tourism industry. Theoretical and practical implications of the findings and future research directions are also discussed.
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The development of the card payment system allows for lowering the costs of money emission and circulation and thereby leads to significant economic gains. Yet relatively small amount of research has been dedicated to the analysis of the determinants of these developments. Therefore, the aim of the article is to seek cross-country determinants of retail card payments. The focus of was put on two econometric models. One was constructed using survey data for Poland, the second model was based on panel data from the EU countries in the years 2000-2012. Based on the results from the second model forecasts for the number of cards and the value of card transactions per person were compiled.
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This paper focuses on a complex question from the perspective of the hotel industry. It tries to draw attention to the importance of hotels, enhancing it on the basis of the tourism destination competitiveness models and introducing the role and place of the hotel industry in the most important models. The hotel industry research evaluates the most important tourism destinations of Hungary on the micro-regional level that justifies the importance and contribution of the hotels and accommodations to competitiveness and success of tourism destinations with exact results. As a result of the research, the micro-regional destinations can be ranged within three groups in Hungary. In the first group of the most developed and most competitive tourism destinations, the hotel industry plays a very important role. In these regions, the hotel industry has a significant effect not only on competitiveness of tourism but also on general development of the regions. In the second group, which can be still called tourism destination, tourism and the hotel industry both play a significant role, but only the competitiveness of tourism can be considered good, the effects of the tourism on general development of the region can be proved only to a lesser extent. In the third group, the effects of tourism and the hotel industry can only be experienced to a lesser extent. The majority of these regions are not considered to be attractive tourism destinations for tourists any more.
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We develop a conceptual framework that allows us to define the sharing economy and its close cousins and we understand its sudden rise from an economic-historic perspective. We then assess the sharing economy platforms in terms of the economic, social and environmental impacts. We end with reflections on current regulations and future alternatives, and suggest a number of future research questions.
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This article presents a wide range of different payment methods used at Point-Of-Sales from traditional cash and standard cards to contactless cards, RFID stickers and mobile payments (NFC and remote). All payment instruments are compared under the criterion of time efficiency that means the duration of a payment transaction. The measurement of payment transactions was undertaken with the help of a novel research technique based on a digital chronography of video material recorded by cameras installed in the biggest chain of convenient stores in Poland. More than 4,000 transactions were gauged. It is empirically proven that cash is still the fastest means of executing transactions at the counter, although new innovative payment methods such as proximity cards and NFC mobile payments may be equally fast and sometimes even faster. There is a potential in accelerating the payment process of those latter. Standard cards together with a remote mobile payments method tested lag behind. Obtained results could be practically used by merchants who want to optimise its payment process at cash registers. Drawn conclusions may also have value for the developers of payment schemes in the world. © Michał Polasik, Jakub Górka, Gracjan Wilczewski, Janusz Kunkowski and Karolina Przenajkowska, 2010.
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Online reviews (ORs) are continuing to foster a renewed spread of word-of-mouth in the travel industry. Travelers are increasingly using ORs to inform them about accommodations and other tourism-related products. As such, it is important to improve our understanding of the behavioral consequences of e-word-of-mouth. In this article, we adopt the elaboration likelihood model to identify what influences travelers to adopt information from ORs in their decision making. We measure the influence of six dimensions of information quality that are part of the central route and two dimensions that are associated with the peripheral route of persuasion. The results of this study reveal that product ranking, information accuracy, information value-added, information relevance, and information timeliness are strong predictors of travelers' adoption of information from ORs on accommodations. These results imply that high-involvement travelers adopt both central (information quality) and peripheral (product ranking) routes when they process information from ORs.
Peer-to-peer markets, collectively known as the sharing economy, have emerged as alternative suppliers of goods and services traditionally provided by long-established industries. The authors explore the economic impact of the sharing economy on incumbent firms by studying the case of Airbnb, a prominent platform for short-term accommodations. They analyze Airbnb's entry into the state of Texas and quantify its impact on the Texas hotel industry over the subsequent decade. In Austin, where Airbnb supply is highest, the causal impact on hotel revenue is in the 8%-10% range; moreover, the impact is nonuniform, with lower-priced hotels and hotels that do not cater to business travelers being the most affected. The impact manifests itself primarily through less aggressive hotel room pricing, benefiting all consumers, not just participants in the sharing economy. The price response is especially pronounced during periods of peak demand, such as during the South by Southwest festival, and is due to a differentiating feature of peer-to-peer platforms-enabling instantaneous supply to scale to meet demand.