Degree Type


Date of Award


Degree Name

Master of Science


Apparel, Events and Hospitality Management


Foodservice and Lodging Management


Safety for customers is a critical factor in the hospitality and tourism industry. Destination managers have been trying to increase security of their products and services to improve customer confidence; however, practitioners tend to concentrate nearly all their efforts on reducing actual risks. Even though consumers perceived risk truly influences their decisions, it has not been integrated into hospitality and tourism literature. As a result, there is often a gap between actual and perceived risk that negatively affects consumers' decisions toward offerings. The primary objective of this study was to examine how perceived risk can be managed in the destination choice context in order to influence travelers' selection. Only a few studies on perceived risk have focused on a travel context. Relationships among risk perceptions, uncertainty (information quality), psychological types of travelers, and price premium were explored. Eight types of perceived risk were investigated: health/life, financial, personal satisfaction, social, time, technical, political, and terrorism. A questionnaire was developed to examine respondents' psychological types, risk perceptions, and willingness to pay extra money for an offering if more safety and security were provided. A sample of 200 undergraduate Iowa State University students participated in the study and 200 valid questionnaires (100% response level) were obtained. SPSS 11.0 for Windows was used for data analysis. Ordinal logistic regression, univariate analysis of variance, and non-parametric tests were used to analyze data. Findings suggested that information quality was negatively associated with perceived risks. Uncertainty management was found to reduce perceived risk that, additionally, showed different patterns of sensitivity to uncertainty management suggesting that different approaches should be applied while treating various types of perceived risk. Results of the study also showed that travelers were willing to pay extra money for an offering if more safety and security were provided. Psychological types of respondents were not associated with respondents' risk perceptions, suggesting that respondents' personalities may not have substantial effect on perceived risk in the eight perceived risk categories. Managerial implications for how the findings can be incorporated into risk management strategies also were presented.


Copyright Owner

Elisaveta Slevitch



OCLC Number


File Format


File Size

105 pages