Rationale of the study (contribution)

There has been a great amount of research (Boggia, 2018; Getz, 2009; Zifkos, 2015). on sustainable practices in mega events. However, little research has been done on consumer involvement as a concept with green initiatives and how event attendees’ green involvement in festivals can influence their value perception about this type of events. Some authors Raffay-Danyi & Formadi, (2022); Wehrli, (2017) have acknowledged that consumers are willing to pay more for sustainable and eco-friendly services and products. However, little research has been documented on how much more they are willing to pay and how this affects their behavior. Research is especially spare regarding event services. Hence, there is a lack of understanding of spending changes if green initiatives are embedded. Therefore, this research seeks to explore the effect of green festival involvement and its role in value perception of the attendees.

That means there is a gap in research on the value creation of the green practices especially in empirical research on this subject. To fill this gap, the author will analyze in this research the added values of green practices, to be able to create an experience which gives the opportunity to maximize the event revenue and at the same time add value for the attendees of an event in the future.

According to Henderson, (2011) both event organizers and attendees are embracing the idea of sustainable events as the way of the future. As stated by Getz and Page (2016), it is imperative to apply sustainable practices in the event business as the major players start to recognize that more revenue and more employment openings are frequently accompanied by adverse effects on the environment. Furthermore, a new important challenge is here, managing the current European energy situation. It can already be seen that this will affect attendance at events, and on the other hand, event organizers will face a significant increase in costs.

The study may contribute to a better understanding of the value of maintaining a balance between people, the environment, and income management. It may also shed light on the driving forces for the use of sustainable practices while organizing an event. Hence, this study investigates the diversity of festival participants' "green" involvement. Given the increased awareness in environmental issues, it investigates connections between eco-friendly services and festival visitors' perceptions, intentions, or choices. A special focus is placed on the comparative benefits that eco-friendly policies and practices can bring to events, as well as how much attendees will be expected to pay for these policies and practices during the event.

LITERATURE REVIEW

The Triple Bottom Line (TBL) evaluates the economic, environmental, and social impacts of a business or event (Savitz & Weber, 2014; Yuan, 2013). Originally referring to a company’s net profit, "bottom line" now encompasses broader performance measures, prompting companies to assess their social, environmental, and financial outcomes together (Freer, 1981). Often called the 3Ps-profit, people, and planet-the TBL framework emphasizes the interconnectedness of these areas for a comprehensive evaluation of sustainability (Slaper & Hall, 2011). This approach helps organizations determine whether they’ve achieved their sustainability goals and is a key tool in fostering responsible business practices (Savitz & Weber, 2014). A positive TBL indicates improved value across financial, social, and environmental aspects, ultimately benefiting shareholder value, profitability, and overall capital (Dickson & Arcodia, 2010; Goldblatt, 2012) (Table 1).

Goldblatt, (2012) highlighted several challenges when applying the Triple Bottom Line (TBL) approach. While profits are easily measured in currency, assessing social and environmental impacts is more complex. A unified metric for all three categories would be ideal, but assigning a price to environmental damage is often difficult and imprecise. Slaper &Hall, (2011) suggest using an index scale to measure TBL, which would standardize evaluation across businesses and events, making comparisons more practical. Pearson, (2009) proposed representing TBL as three concentric circles, with the environment as the largest and most foundational, followed by society and the economy. A profit-oriented model would invert this, placing the economy at the core, subjugating society and sustainability (Griffin, 2009; Savitz & Weber, 2014). Jones, (2010) emphasized that the TBL components are interconnected, manageable, and must ensure equitable access to resources, balancing economic and environmental needs. TBL is widely adopted by event planners seeking sustainable development (Hede, 2007) (Figure 1).

Importance of economy, society, and environment in sustainable mega events

Fairley, (2011) examine the challenges faced by event organizers and governments when planning mega-sport events, like Formula One, emphasizing the need for the Triple Bottom Line (TBL) approach to assess economic, social, and environmental factors. For events like the Australian Grand Prix, the economic impact is often evaluated based on tourism, with visitors contributing to the local economy through spending. However, while tourism brings benefits, the expected economic gains for Victoria have not always materialized, despite the event’s success in attracting tourists (Fairley, 2011). The event creates jobs, especially in construction, but it also prioritizes public sports projects over private sector investments (Owen, 2005; Wang, 2017). Merchandise sales, such as at the 2016 Rio Olympics, illustrate the profit potential during such events (Shou, 2019). Socially, mega-events often improve community pride and quality of life, although negative impacts like crowding or congestion may occur (Fredline, 2005). For example, the Balaton Sound festival in Hungary saw a surge in tourism, causing some locals to flee the area during the event (Daily News Hungary, 2019). Despite these issues, events can foster local community engagement, such as through small concerts or street parades (Georgoula, 2021). Crompton, (2004) notes that even residents who avoid the event may still derive satisfaction from knowing others are enjoying it. Environmental impacts are a significant concern, with events like the Australian Grand Prix causing pollution and environmental damage (Gimenez, 2012, Goldblatt, 2012). Sponsors are increasingly wary of supporting events with negative environmental consequences, prompting organizers to adopt sustainable practices. The NFL Super Bowl exemplifies such efforts, incorporating recycling, food donations, and tree planting, demonstrating that high-impact events can be environmentally responsible (Babiak & Wolfe, 2006; Kim & Walker, 2012). This approach sets a standard for other events aiming to balance the 3Ps-people, planet, and profit-while educating attendees on sustainability.

Value-based pricing

Event pricing is evolving as organizers and revenue managers leverage new tools to monitor demand and adjust rates. Garon, (2017) identifies three main pricing strategies in the events industry: cost-based, competition-based, and value-based. While cost and competition-based methods remain dominant, value-based pricing is growing in importance, especially with the rise of sustainable events (Li et al, 2022; Yeoman, 2003). Value-based pricing involves setting prices based on the perceived value a customer places on a product or service, rather than its production cost. This approach enables event planners to charge higher prices, boosting profitability, as long as the perceived value is high (Christopher & Gattorna, 2005). Hinterhuber, (2004) highlights three key benefits of value-based pricing for mega-events: improved brand value, higher profit margins, and increased customer loyalty. Getz, (2009) adds that implementing green initiatives can enhance the perceived value of an event, fostering emotional investment from attendees, which in turn strengthens loyalty (Alkahfi, 2022; Herrero, 2012).

However, value-based pricing is effective only under certain conditions, such as niche markets, increased competition, and higher production costs (Leenders, 2005; Aşan, 2020). While high-end products can yield high profits, festival attendees-particularly Millennials and Gen Z-are more price-sensitive and expect value for their money (Kinnunen, 2019). The competition in niche markets may also limit the customer base (Cole & Chancellor, 2009). Therefore, ensuring the highest quality is essential when using value-based pricing (Garon, 2017; Győri, 2019). Focusing solely on green initiatives won't maximize revenue, according to Dodds, (2019). Instead, value drivers, sources, and fulfillment must all be considered to create a multiplier effect, maximizing event sales (Liu, 2019). Westgate, (2019) suggests strategies like new ticket products and packages as value drivers. Yeoman, (2003) stress the importance of value fulfillment, which can be enhanced through green initiatives. When combined with effective marketing and financial strategies, these elements can create a multiplier effect, benefiting social, economic, and environmental outcomes (Alonso-Vazquez, 2019; Wang, 2019).

Framework of greener events

The framework of greener events, developed by Goldblatt, (2012) is also known as the green business model of Corporate Social Responsibility (CSR). According to Fennell, (2015). not every event that uses sustainability techniques can be recognized as being greener, but every time an event is organized, it becomes greener than the one before it. Figure 2 illustrates how numerous inputs are considered to define the fundamentals of greener events. Three main categories can be made up of the outputs: innovation, conservation, and education. To increase the sustainability of a festival, event planners analyze and implement emerging strategies and green technologies (Jones, 2010; Stettler, 2011). Additionally, the planners thoroughly assess and conserve the resources that are accessible to reduce their utilization (Yildiz, 2019). The conservation program provides the most effective methods for reducing waste, making the most of the resources already in the area to reduce carbon emissions, while simultaneously safeguarding the environment and the host population. After educating participants and stakeholders about sustainability, there will be plenty of marketing opportunities to support and promote ethical behavior toward sustainability by staging an unforgettable event (Positive Impact Events, 2020).

METHODOLOGY

Survey instrument

Based on previous literature about green practices and their effects on pricing strategies in mega events, the researchers developed a qualitative interview protocol including questions related to green practices and pricing strategies at Sziget Festival. With this approach, it is possible to investigate the different green practices and strategies festival organizers employ to add to the attendees’ value perception. It is concluded to use the case study approach in this research because case studies have the characteristic of being prepared using theoretical models and practical activities based on the case, whereby formulating the conclusions, may return to the generalizable theoretical moments.

The interview protocol contained ten questions centered on the Sziget Festival's green practices from the perspective of pricing, festival ideals, and the attendees' expectations. Prior to data collection, the initial interview protocol was reviewed by two academic faculty for content validity.

Sampling and data collection

The sample of the study consisted of 10 attendees. Due to the complexity of the study topic, a small sample size is adequate to gather the data needed to draw insightful conclusions. The researchers also considered saturation and took this into account if additional participants were needed past the original 10 participants. Participants were recruited through personal networks and were not compensated for completing the interview. This data collection method was chosen due to convenience sampling. Additionally, snowball sampling occurred while collecting data; participants were asked if they knew of others who wanted to partake in an interview. Researchers allowed 14 days for data collection. The interviews were conducted in English to prevent inaccurate data gathering and the opportunity for miscommunication. The interviews lasted approximately 60 minutes each. As part of the survey, the interview protocol included a cover letter to fully explain the study, before completing the interview. The requirements for study participants included having attended Sziget Festival in the past, and participants were required to be at least 18 years or older since adults are generally the decision-makers and purchasers of event and festival tickets. No other conditions were required.

Data analysis

Qualitative data collected in this study were analyzed by the researchers using thematic coding to increase the validity of the data. Additionally, this will enable the researchers to recognize, investigate, and arrange the gathered data depending on trends and clusters that emerge during the coding process (Marshall & Rossman, 2011). To ensure that no crucial information is neglected, the researchers analyzed each interview after it had been transcribed.

RESULTS

Perceptions

Theme one represented the perception of value. Although the respondents revealed the same ambiguity in the attendees’ perception of value as noted in the literature review, respondents revealed they do not pay attention to environmental measures when selecting programs. The respondents expressed their perception by statements such as, “When buying tickets, sustainability is not the first thing for me, but it gives me a positive feeling,” and “My most important aspects: atmosphere, performers, location. Sustainable measures do not affect my ticket purchase, but it inspires me when I experience them.”

Most of the respondents emphasized concern for the environment. Respondents discussed green measures having a positive impact on their personal beliefs of sustainability. One respondent said, “There should be more programmes and bigger festivals for a higher ticket price, sustainability is also an important added value.”

Value creation

Theme two represented value creation. Respondents discussed ticket sales at festivals being significantly impacted by green initiatives. One respondent said, “The most important criteria for me: the programs, the reputation of the festival. Sustainability is now a binding basic expectation.”

Opposingly, some respondents indicated that environmentally friendly practices are not their priority when selecting a festival. When talking about the optimal balance between green measures and visitor needs, one respondent mentioned: The festival cannot be sustainable, it can only strive to minimize the environmental damage is causes. I had a bad experience at a concert with the lack of a rubber mat, which caused a lot of dust and was harmful to health. That is why health is the main concern, and after that comes the protection of the environment.

Sustainable initiatives

Theme three represented sustainable initiatives. Participants in the interviews emphasized the various sustainability strategies. In 2002, The Sziget Festival began its transition to sustainability, however, at that time the focus was only on waste management. Attendees continue to focus on this topic today. Respondents said, “The most important environmental protection issues are waste management, selective waste collection, the state of the environment, the cleanliness of the site also due to health considerations,” and “I consider waste management to be the most important, as the Sziget Festival also provides camping opportunities.”

The respondents also mention several additional environmental protection aspects that must be considered when organizing festivals. These include noise pollution, nature conservation, and air pollution. Sziget Festival incorporates sustainable practices and initiatives in many ways throughout the event. Regarding environmental awareness, one respondent said, “For the organizers, I recommend increasing waste recycling, becoming plastic-free, and using environmentally friendly products.” Other respondents mentioned, “Eliminating food from distant countries, favoring local and seasonal products and local supplies is necessary,” and “I would eliminate the use of bottled water at the festival, preferring the use of tap water instead.”

Technology and infrastructure

Theme four represents technology and infrastructure. From the responses pointed out, many polluting products or services can be eliminated to reduce the environmental impact of festivals. Instead of single-use plastic cups, cutlery, and plates, it is recommended to use biodegradable or recyclable alternatives. It is advised to utilize eco-friendly substitutes, such as paper decorations or compostable materials, in place of single-use decorations. Restricting the consumption of tobacco products, because smoking is harmful to the environment, and the butts discarded by smokers can cause significant pollution. Advertising and promotional materials for the festival should be produced from environmentally friendly materials, such as recycled paper or organic materials. Instead of selling water bottles, it is recommended to use alternatives such as creating water filling stations where visitors can refill their bottles. These measures can all contribute to reducing the festival's environmental impact and allow visitors to enjoy the event without putting too much of a burden on the environment.

Cost sensitivity

Theme five represented cost sensitivity. Financial factors might be crucial for festival organizers when making environmental decisions because it frequently costs more to put on a sustainable festival than a conventional one. Long-term sustainability measures, however, can be advantageous since they allow festival organizers to lower operational expenses, enhance long-term sustainability capabilities, and raise the event's long-term commercial worth. Respondents claimed that sustainable practices can enhance the festival’s reputation. One respondent said, “An event representing green values is more valuable, as attention to the environment is now a basic requirement. Such an event conveys value and represents a good reputation.” Along with reputation, respondents noted that festival goers might be willing to pay more for festivals that are ecologically friendly and that they find value in this.

Pricing strategy

Theme six represented price strategy. Sustainable and environmentally friendly technologies, materials and processes are generally more expensive than traditional solutions. However, as the respondents also pointed out, sustainable solutions can significantly reduce the festival's environmental effects and costs in the long term, which can mean long-term savings for the organizers. Furthermore, the transition to a sustainable festival can promote a positive marketing impact and increase the long- term success of the festival. Most respondents emphasized that they, as attendees, are willing to pay more for sustainable and environmentally friendly festivals that represent value to them. However, the exact amount largely depends on the nature of the green measures of the given festival, the financial possibilities, and individual preferences of the attendees. Festival organizers may want to conduct market research to better understand their visitors' preferences and willingness to pay higher ticket prices. Festival organizers must consider both financial and sustainability aspects and strive to take measures to make the festival more economical and sustainable, as well as more attractive to attendees.

Expectations

Theme seven represents visitor expectations. Respondents indicated several green expectations such as sustainable energy usage, waste management, sustainable transport, sustainable food and beverages, water and energy efficiency, and environmentally conscious information. The results indicate that these sustainability principles are the most significant, although respondents' priorities and the environmental values they represent may suggest that other principles are as significant. Respondents have expressed their admiration for the festival's sustainability focus. People are becoming more conscious of sustainability issues and are demanding more environmentally friendly events and solutions because of the ever-growing environmental challenges. Numerous respondents claimed that festivals were also responsible for the environment and that attendees would appreciate it if the organizers preferred environmentally friendly options.

The sustainability principles and practices implemented at the Sziget Festival were inspiring and easy to apply, according to the respondents, who use them in their own lives. Some of these, examples include waste reduction, energy-efficient lifestyle, sustainable transportation, and conscious shopping. Lastly, respondents strongly highlighted that in this case, they are willing to pay more for tickets.

DISCUSSION

Past research has proven that not every event that uses sustainability techniques can be recognized as a green event (Fennell, 2015). The framework of greener events, developed by Goldblatt (2012), promotes three core values, which are innovation, conservation, and education due to ecotourism, sustainable development, fair trade, renewable energy, CSR, and green measures. However, little research has been done about the fact that combining the added values of green practices, to be able to create an experience that allows maximizing the event revenue and at the same time adds value for the attendees of an event in the future. Therefore, by carrying out this research, and conducting semi-structured interviews to gather primary data, the author was able to determine from the responses received about the enhancement of the experience, which can be achieved while implementing green initiatives and long-term sustainable practices.

Moreover, focusing only on green initiatives will not have a determined impact on maximizing the revenue. Dodds, (2019) argue that to gain the highest achievable profit from a festival, three core elements should be considered, namely: the value drivers, the value sources, and the value fulfillment. Furthermore, it has been demonstrated by Westgate, (2019) that there are numerous approaches to boost event and festival ticket sales. These new ticket offerings, ticket bundles, and ticket merchandising can all be considered value drivers. Yeoman, (2003) contend that without value fulfillment, there can be no extra value for the attendees and no significant price increase. A rise in attendees’ perspectives because of the addition of numerous new practices, particularly green efforts, will result in value creation.

Additionally, the findings determine the importance of the multiplier effect. As Wang, (2019) argue, to gain maximal sales, it is not only essential to focus on value drivers, such as marketing and financial strategies but also on value fulfillment, which is dependent on the customers' perception. Only by combining all these aspects with green initiatives a multiplier effect can be achieved. We know that attendees’ perceptions of the festival and their willingness to pay a higher ticket price are directly related and influenced by the perceived value. This can be further confirmed through the findings, where respondents have stated that the most common factors for adding value include innovative initiatives as well as long-term sustainable practices, which can be incorporated into daily life as well.

Henderson, (2011) asserts that both event planners and attendees are embracing the notion that sustainable events are the future. According to Getz and Page (2016), it is critical to use sustainable methods in the event industry as major players begin to realize that increased revenue and job opportunities are frequently accompanied by negative environmental repercussions. Some authors (Raffay-Danyi & Formadi, 2022; Wehrli, 2017). have acknowledged that consumers are willing to pay more for sustainable and eco-friendly services and products. Respondents highlighted that the organizers should be responsible for paying most of any additional expenses brought on by sustainable practices and measures. However, this might be a challenge in the short run, but it will benefit the festival in the long run. These elements can be further confirmed by the findings, as many of the participants determined that they could envision a little increase in ticket pricing, around 15%, as guests.

Research made by Fairley, (2011) gives insights into the challenges that event corporations and governments face when planning mega-events. Furthermore, various problems may occur, and the need to draw attention to the triple bottom line approach, to examine the economic, social, and environmental issues. One possible way to make people aware of the sustainable aspect of these events can be achieved by education. Respondents also pointed out that the main areas of emphasis for the festival's organizers when implementing green practices should be energy usage, waste management, water usage, environmental and economic sustainability, and emissions reduction. Moreover, the use of transportation, the supply of food and beverages, and the involvement of local communities are further crucial components. These factors can be used by organizers to increase ticket prices for attendees or decrease purchasing prices when buying goods and services.

According to Hinterhuber, (2004) the framework of value-based pricing enables the maximization of sales and profits. This tactic entails determining a product or service's price based on the perceived value that the customer places on it. This demonstrates that the pricing is controlled by the customer's willingness to pay for the good or service rather than the cost of production. Although the product or service must have a very high perceived value in the eyes of the client for it to be effective, Christopher & Gattorna, (2005) claim that this pricing model enables event planners to set a noticeably higher price and increase the profitability of each transaction. Hence consumers frequently believe that expensive goods are of superior quality, and their brands are worth more. Furthermore, Getz, (2009) argues that by incorporating green initiatives in an event, the perceived value of the festival will exponentially increase by the attendees. Nevertheless, research undertaken by Raja, (2020) found that if the customers are truly willing to pay, value-based pricing can greatly enhance sales. People tend to develop an emotional bond with their large investments. This can further be confirmed through the findings, where respondents have stated that the number of attendees and revenue are two main measures of a festival's success. At the same time, the more guests and income, the less comfortable the guests feel and the greater the burden on their environment. Therefore, adopting a green strategy is vital for both the organizers and the attendees. So, in addition to income, one of the main objectives is to offer new, affordable sustainable products and services. Additionally, as participants have pointed out this enhances the festival's positive reputation and encourages the growth of goods and services that are environmentally friendly.

CONCLUSION

Event sustainability and green practices are among the trends in the event and festival industry that are growing the quickest. Event planners play a critical role in helping participants change their perspectives so that they may begin to have a significant effect and bring the memory and awareness of the event out into the world. The "Green Sziget Program 2020-2024," a long-term sustainability plan developed by the Sziget Festival in 2019, comprises five core sectors that each have a strategic sustainability practice (Waste Production and Management, Energy and Emissions, Transportation, Water, and Land Use) (Szigetfestival, 2019). This adds value to the festival and will encourage a steady improvement in becoming as environmentally friendly as possible with the hope of inspiring neighboring events. Cultural events and festivals have a greater ability to bring people together and are growing in popularity. Additionally, it is critical to encourage Millennials and Generation Z to pursue sustainability because they make up the majority of festival attendees and will ultimately determine how the planet develops (Ferdinand & Kitchin, 2022).

Based on the findings discussed, the Sziget Festival has been aiming to implement sustainable conscious regulations, to achieve positive environmental and social impacts. Hence, by incorporating green practices not only will the reputation of an event be better, but it also contributes to the future of the event surrounding as well as the local community, by creating less waste and carbon footprint but also in terms of direct and indirect job opportunities. The implementation and application of green measures are now a social demand, and visitors are willing to pay higher ticket prices. it is advised to shift from traditional suppliers to alternative ones, who are locally sourcing their products as this can contribute according to the multiplier effect to a greater positive impact economically and socially.

The study explored the impacts made by green practices and their effects on pricing strategies in the mega-events industry. Additionally, indicating the importance of value-based pricing, which can be associated with the effectiveness of sustainable practices that can enhance attendees’ value perception. Therefore, it is crucial to develop a sustainable event strategy that encourages visitors to explore the benefits of green practices and emphasizes the advantages of a well-established event strategy.

LIMITATIONS AND FUTURE RESEARCH

This study, like all qualitative studies, has limitations. Since the study design used a convenience sampling technique, it is suggested to apply random sampling techniques in the future, since the results are more likely to represent the views of the whole population. In addition, this study was conducted on the Sziget Festival only, therefore, further research should examine festivals in other countries to obtain more coherent knowledge about the economic and environmental benefits of sustainable practices in terms of value creation and the encouragement of attendees to explore the benefits of the green practices. The results cannot be applied to the entire Festival and Event sector.

Most of the interview respondents spoke fluent English, but their native language was Hungarian. As a result, some respondents may not have fully comprehended the questions, resulting in misinterpretation and restricted responses. Future research could execute interviews in multiple languages. Additionally, a quantitative survey that is translated may benefit from gathering additional data points.

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  Table 1