How ESG Signals Shape Tourists’ Premium-Paying Behavior in Community-Based Homestays

This study examines how international tourists’ perceptions of environmental, social, and governance (ESG) practices influence their willingness to pay a premium for community-based homestays. Grounded in signaling theory, ESG perception is conceptualized as a credibility signal that reduces perceived uncertainty in community-based accommodation settings. Data were collected from 300 international tourists visiting Mae Kampong Village, Chiang Mai, Thailand, and analyzed using partial least squares structural equation modeling (PLS-SEM). To strengthen predictive assessment, the model was additionally evaluated using PLSpredict, Q2_predict, and the Cross-Validated Predictive Ability Test (CVPAT). The results indicate that ESG perception significantly enhances community sustainability image, trust, and booking intention. Trust partially mediates the relationships between ESG perception and both booking intention and willingness to pay a premium, while booking intention demonstrates the strongest effect on willingness to pay a premium. Community sustainability image does not directly influence booking intention but instead operates indirectly through trust. Environmental concern significantly influences willingness to pay a premium, although its moderating effect is not supported. The findings suggest that tourists in community-based homestay environments rely heavily on trust-based psychological assurance when making accommodation decisions. This study extends ESG tourism research into community-based accommodation contexts and highlights the importance of trust in high-uncertainty tourism environments. The findings also emphasize the importance of transparent ESG communication and trust-building strategies for strengthening sustainable tourism competitiveness.