Discuss which pricing approach(es) or method(s) have been used in pricing products
Hospitality management short discussion
Chapter 11 discusses different pricing approaches or methods. Having read the chapter, discuss which pricing approach(es) or method(s) have been used in pricing products in a hospitality business that you are familiar with. Do you think it is effective or not? You industry contact or connections may provide useful information that you need for this assignment. Please share your thoughts and also comment at least once on the postings by other classmates
this is classmate’s posting:
The chapter discusses a strategy I am familiar with in a couple of different ways, Product-Bundle Pricing/Dynamic Packaging. The book mostly focuses on travel examples such as bundle discounts for air, car, and hotels when booked together. I travel several times a year and most often use Priceline because of these discounts. I always compare prices with the providers own website as well, but usually the bundle is always a better deal. While I don’t often book entertainment, you can also add those on to your trips as well. I feel that I can travel more because I compare and am more conscious of my purchase options.
From a professional perspective, I find that product-bundle pricing is also seen a lot in restaurants. Big corporate restaurants often offer specials or limited time offers that include a 3-4 course meal special. For example, Applebee’s has a 3 for $22 option that gives 2 entrees and one appetizer. Or you see a lot of places have a ½ size combo option for lunch. They are trying to get people multiple food options for one low price. I feel it is successful and gives the guest a higher perception of value for their money when they are receiving multiple items.
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