LUXURY TOURISM GOES GREEN: BALANCING PRESTIGE AND SUSTAINABILITY
DOI:
https://doi.org/10.35631/JTHEM.1145054Keywords:
Customer Satisfaction, Environmental Sustainability, Luxury Tourism, Perceived Value, Prestige, Sustainable PracticesAbstract
This study examines the integration of sustainability within luxury tourism and its impact on customer satisfaction while maintaining exclusivity and prestige. As demand for high-end travel continues to grow, luxury tourism providers face increasing pressure to adopt environmentally and socially responsible practices without compromising service quality. A quantitative approach was employed using a survey of luxury travelers, and the data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that environmental sustainability, social responsibility, and sustainable branding significantly influence customer satisfaction, both directly and indirectly through perceived value. Among these factors, perceived value emerged as the strongest predictor of satisfaction, highlighting the importance of delivering meaningful benefits to customers. Additionally, exclusivity was found to moderate the relationship between sustainability practices and customer satisfaction, indicating that sustainability initiatives are more effective when positioned as premium and personalized experiences. The study concludes that sustainability and luxury are complementary rather than conflicting concepts. By integrating green practices with high-quality services and exclusive experiences, tourism operators can enhance customer satisfaction and strengthen competitive advantage. These findings contribute to the growing body of knowledge on sustainable luxury tourism and provide practical guidance for industry stakeholders seeking to balance prestige with environmental and social responsibility.
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