Vertical Integration in the European Package Tour Business

Abstract

Based on the double-entry mental accounting theory, we explore the effect of option framing on travelers' purchase decisions regarding customized travel packages through three experiments. The results confirm that subtractive framing leads to higher purchase intentions and willingness to pay than additive framing. However, in the distant future, additive framing leads to higher purchase intention. Pleasure attenuation mediates the option framing effect on travel package purchase decisions, especially for travelers who make travel plans for the near future and those with higher price sensitivity. Pain buffering only plays a mediator role in student samples. The findings provide implications for travel agencies to adopt subtractive framing for customized travel packages and improve the hedonic experiences embedded in packages.