Abstract
PWYW as a pricing mechanism has gained some momentum in the marketing literature with very few applications in tourism. This study examines visitors’ perceptions of PWYW based on self-assembled tourism packages for a destination and compares the profitability of using such an approach with that of a traditional pricing method. From a sample of 714 visitors to Längenfeld, Austria, the results indicated that visitors primarily assembled four packages out of 20 options offered. These packages had different minimum, maximum and fair prices that these visitors were willing to pay. Visitors who chose a ‘Healthy Lifestyle Package’ was willing to pay higher prices, for both minimum and maximum prices, compared to the other three packages. PWYW leads to higher profitability for suppliers compared to traditional list prices. Implications for collaborative destination marketing are offered.