Sunk Costs and Travel Cancellation: Focusing on Temporal Cost

Keywords

sunk cost effect, temporal sunk cost, monetary sunk cost, tourist behavior, tourism products

Abstract

Tourism products differ from ordinary retail products in terms of the spatial and temporal separation between the purchase and experiencing the product. Despite its importance, temporal separation has not drawn much attention in tourism research. The main objective of this study is to understand the effects of temporal sunk costs on potential travelers' cancellation intentions, in addition to monetary sunk costs. The results of this study suggested the possibility that temporal costs can be converted into monetary costs, but the conversion relationship may not be linear. This study also indicated that travelers' intentions to cancel a travel product decreased as the temporal and monetary sunk costs increased. Further, prior experience moderated the relationship when temporal sunk costs were involved, suggesting that repeat visitors' intentions to cancel their reservations are more influenced by temporal sunk costs than first-time visitors. Further discussion and implications are provided in the main body of this paper.

Publication Date

4-28-2013

Original Citation

Park, J. Y., & Jang, S. C. S. (2014). Sunk Costs and Travel Cancellation: Focusing on Temporal Cost. Tourism Management, 40, 425–435.

Number of Pages

425-435

Document Type

Paper

Language

English

Source Title

Tourism Management

Volume

40

College

Rosen College of Hospitality Management

Location

Rosen College of Hospitality Management

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