The Impact of Tourist Perception of Fraud Risk on Tourism Planning

Abstract

Fraud risk impedes tourism planning and competitiveness, and prior studies have shown that tourists are increasingly concerned about fraud risk. However, tourists’ perceptions of fraud risk have been given little attention in the tourism and consumer behaviour literature. Understanding tourists’ perceptions of fraud risk improves tourism planning and informs new marketing and communication strategies to mitigate some psychological barriers to travel post-pandemic. The aim of this study is two-fold. First, it sheds light on the impact of fraud risk and tourists’ perception of fraud risk in the tourism, travel, and hospitality sectors. Second, it investigates tourists’ perception of fraud risk during the COVID-19 pandemic through a survey sent to two-hundred domestic and international tourists in the UK. The findings show that tourists perceive increased fraud risk during the pandemic. Specific types of fraud include insider, cyber, payment frauds, fraudulent holidays, refunds, and deals. We infer from these results that the perception of fraud risk is a new mediating factor behind the “word of mouth” effect and, as such, could inform communication and marketing strategies aimed at mitigating some psychological barriers to travel post-pandemic. Our findings have important implications for tourism, travel, and hospitality businesses in targeted investment, governance, and policy that we later discuss.