Does eco certification sell tourism services? Evidence from a quasi-experimental observation study in Iceland

Eco labelling of tourism services has been studied extensively in the past. Yet, there is no agreement on two key points: (1) whether or not eco certification increases tourist demand for a product among the general tourist population, and (2) whether or not there is a specific market segment whose purchase decisions are influenced by eco labels. Lack of agreement is partially due to the wide variety of different research approaches used. Most studies have in common, however, that they rely solely on tourist self reports of either behavioural intentions or past behaviour. The present study re-investigates these two questions using a quasi-experimental design based on actual observed behaviour and objective knowledge testing. Results indicate that (1) eco labelling does not have a big impact on general tourist demand, but (2) a niche market exists which is influenced by eco labelling when choosing among alternative tourist providers. The research design used in the present study offers a useful alternative for investigations of tourist purchase decisions. It leads to more reliable results because it is based on the observation of actual displayed behaviour, thus avoiding a range of answer biases. Other eco-certified products now need research on similar lines.