Question

Which 2 of the following pricing strategies are the best for highly competitive environment in a tourism and hospitality business to optimise revenue for the long term survival ? and highlight their strengths and weaknesses with real life experiences in any tourism and hospitality business eg. Flights, hotels or even F&B ( journals or articles )

Pricing at a premium
Pricing for market penetration
Economy pricing
Price skimming
Psycology pricing
Bundle Pricing

Answer 1

Two factors definitely help in tourism industry is that

1) Economy Pricing

Strength : A) People tend to attracted since in case of tour and leisure travel people plan in adance and seek max value at cheaper price.

B) Tend to be more budget oriented for personal travel

Weakness : A) Economy price may potray idea of lower quality

B) Economy price wil not be sustainable if company doesn't have deep pocket for spending

2) Bundle Pricing

Strength A ) Solw sales ( like hotel room can clubbed with flight sales ) can be clubbed with high moving sales

Weakness : A) People may not want bundle services. Since bundle price offers attractive rates, people will be compelled to take both srvices, however they require either of one.