Exploring impact of perceived risks and digital nudging on travel booking decisions: roles of co-creation, customer experience and brand trust

Purpose The study aims to explore the effect of both perceived risks and digital nudging as predictors of customer co-creation and the effect of the latter on travel services booking decision. It also examines the mediation effect of co-creation and the moderation effects of both customer experience and brand trust on the relationships between perceived risks and digital nudging and booking decision. Design/methodology/approach The quantitative method is used via a survey to collect 472 responses and partial least squares structural equation modeling is employed for data analysis. Findings Findings revealed that perceived risks are negatively associated with customer co-creation and booking decisions, while digital nudging provides a positive association. Customer experience reduces the passive effect of perceived risks while brand trust fosters the impact of digital nudging on travel booking decisions. Research limitations/implications The study offers theoretical and managerial implications for online platforms providing travel services. Online travel platforms should reduce perceived risks and use ethical digital nudges to reinforce customer engagement, trust and travel booking decisions. Practical implications The study offers theoretical and managerial implications for online platforms providing travel services. Originality/value The study integrates Prospect Theory and Nudge Theory into a joined framework for online travel booking. It introduces customer co-creation as a key mediator explaining how perceived risk reduces and digital nudging increases booking decisions, while customer experience and brand trust act as boundary conditions. This provides a more comprehensive understanding of traveler behavior under uncertainty.