Transformation of tourism and hospitality customers’ perception of risk and customers’ needs for control

Abstract

Although tourism and hospitality have transformed to be much safer activities compared with the past with the developments in transportation and information technologies, they still involve many risks. This review paper explains and discusses the influence of the perception of risk on consumer behaviour in tourism and hospitality and strategies that can be used to reduce consumers’ risk perceptions. As eliminating or reducing consumers' risk perceptions help tourism and hospitality businesses attract more customers and maintain them, understanding concepts of risk and control may enable tourism and hospitality businesses to establish competitive advantage over their competitors. With this background in mind, the study introduces the concept of risk and the types of risks that may be associated with tourism and hospitality activities. The study also explains factors such as personality, personal characteristics which may influence customers' risk perceptions, and how these influences may take place in various contexts. Then, the study explains the theory of control and types of control which may be used to reduce consumers’ risk perceptions.