STRATEGIC PRICING IN TOURISM

Pricing strategies comprise one of the ‘four Ps’ of the marketing mix (product, place, price and promotion), and should complement the other factors of the mix. Price triggers buyer perception as to the quality of the tourism product and its positioning within its market segment, either attracting or deterring potential buyers. Price is the most adjustable of the firms’ decision variables. Unlike product adjustment, distribution and promotion, which all take time to change, price can be altered quickly. Airline yield management with prices set on a daily or even hourly basis is a good example of this. Increasingly, tourism firms