A new study from Queen Mary University of London has shown that chronic and temporary crowding experiences lead to tourists being less sensitive to higher prices. The findings also show that marketing and promotional discounts are less effective in areas with more crowding.
The research suggests that service providers should set pricing strategies or tailor promotions carefully. It may not be beneficial for service providers to reveal discounts because tourists are less sensitive to these price differences in crowded environments.

The study also shows that where service providers can manipulate available space to alleviate crowding (e.g., allocating the space between tables at restaurants), they may be able to influence tourists’ price perceptions.

Crowding is a widely observed phenomenon in the tourism industry, especially for destinations experiencing over-tourism. Much of the previous research in this area has centred on how destinations can manage this effectively. This study is the first of its kind to explore people’s sensitivity to price magnitude in the tourism domain.