How does physical crowding shape preference for luxury travel?

The negative effects of physical crowding on consumers’ evaluations and behaviours have been well examined by previous research. This research, however, has explored the non-negative effect that physical crowding has on tourists’ luxury travel preferences based on the compensatory consumption theory. These effects were investigated in four studies. It was found that physical crowding increased the preference for luxury travel due to compensatory motivations and the physical crowding effect was mediated by the need for uniqueness. Additionally, it was discovered that perceived economic mobility was the moderator suggesting that the physical crowding effect is stronger in conditions of low (vs. high) perceived economic mobility. The results not only extend the literature on physical crowding, but also provide implications for management.