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Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are sold at different prices by the same provider in different market segments. Price discrimination is distinguished from product differentiation by the more substantial difference in production cost for the differently priced products involved in the latter strategy. Price differentiation essentially relies on the variation in the customers' willingness to pay and in the elasticity of their demand. For price discrimination to succeed, a firm must have market power, such as a dominant market share, product uniqueness, sole pricing power, etc. All prices under price discrimination are higher than the equilibrium price in a perfectly competitive market. However, some prices under price discrimination may be lower than the price charged by a single-price monopolist. Price discrimination is utilized by the monopolist to recapture some deadweight loss. This Pricing strategy enables firms to capture additional consumer surplus and maximize their profits while benefiting some consumers at lower prices. Price discrimination can take many forms and is prevalent in many industries, from education and telecommunications to healthcare.
A hostel is a form of low-cost, short-term shared sociable lodging where guests can rent a bed, usually a bunk bed in a dormitory sleeping 4-20 people, with shared use of a lounge and usually a kitchen. Rooms can be mixed or single-sex and have private or shared bathrooms. Private rooms may also be available. Hostels are popular forms of lodging for backpackers, however very few impose age limits, so hostels are an option for travellers of all ages and styles. The benefits of hostels include lower costs and opportunities to meet people from different places, find travel partners, and share travel experiences. Some hostels, such as in India or Hostelling International, cater to a niche market of travelers. Different hostels can be known for offering different experiences. For example, one hostel might feature in-house social gatherings such as movie nights or communal dinners, another might feature local tours, one might be known for its parties, and another might have a quieter place to relax in serenity, or be located on the beach. Newer hostels focus on a more trendy design, some of which are on par with boutique hotels. Some may cater to older digital nomads, global nomads, and perpetual travelers who prefer slightly more upmarket private rooms or a quieter atmosphere. Hostels may also differentiate themselves by being environmentally friendly ecohostels. In countries where wages are lower, the cost of staying at a hostel may be similar to staying in a budget hotel.
Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and quality of product.
Snowflake was a low-cost airline that operated out of Stockholm, Sweden, and Copenhagen, Denmark between 30 March 2003 and 30 October 2004. Owned by the SAS Group, it was organized as a business unit within Scandinavian Airlines, operating as a virtual airline using their crew and aircraft. Snowflake served a total 28 destinations from its bases at Stockholm Arlanda Airport and Copenhagen Airport.
A no-frills or no frills service or product is one for which the non-essential features have been removed to keep the price low. The term "frills" originally refers to a style of fabric decoration. Something offered to customers for no additional charge may be designated as a "frill" – for example, free drinks on airline journeys, or a radio installed in a rental car. No-frills businesses operate on the principle that by removing luxurious additions, customers may be offered lower prices.
Yield management is a variable pricing strategy, based on understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, time-limited resource. As a specific, inventory-focused branch of revenue management, yield management involves strategic control of inventory to sell the right product to the right customer at the right time for the right price. This process can result in price discrimination, in which customers consuming identical goods or services are charged different prices. Yield management is a large revenue generator for several major industries; Robert Crandall, former Chairman and CEO of American Airlines, gave yield management its name and has called it "the single most important technical development in transportation management since we entered deregulation."
Priceline.com is an online travel agency for finding discount rates for travel-related purchases such as airline tickets and hotel stays. The company facilitates the provision of travel services from its suppliers to its clients. Priceline.com is headquartered in Norwalk, Connecticut, United States and is wholly owned by Booking Holdings, which also owns Kayak.com, Booking.com and other sites. The company was founded in 1997. It operates in more than 200 countries and territories around the world and has partnerships with over 400 airlines and 300,000 hotels. Users can search for travel deals and discounts on the website, and in the past also offered the "Name Your Own Price" feature to bid on hotel rooms and flights.
Dynamic packaging is a method used in package holiday bookings to enable consumers to build their own package of flights, accommodation, and car rental instead of purchasing a pre-defined package. Dynamic packages differ from traditional package tours in that the pricing is always based on current availability, escorted group tours are rarely included, and trip-specific add-ons such as airport parking and show tickets are often available. Dynamic packages are similar in that often the air, hotel, and car rates are available only as part of a package or only from a specific seller. The term "dynamic packaging" is often used incorrectly to describe the less sophisticated process of interchanging various travel components within a package, however, this practice is more accurately described as "dynamic bundling". True dynamic packaging demands the automated recombination of travel components based on the inclusion of rules that not only dictate the content of the package but also conditional pricing rules based on various conditions such as the trip characteristics, suppliers contributing components, the channel of distribution, and terms of sale. Dynamic packages are primarily sold online, but online travel agencies will also sell by phone owing to the strong margins and high sale price of the product.
A vacation rental is the renting out of a furnished apartment, house, or professionally managed resort-condominium complex on a temporary basis to tourists as an alternative to a hotel. The term vacation rental is mainly used in the US. Other terms used are self-catering rental, holiday home, holiday let, cottage holiday and gite.
A business can use a variety of pricing strategies when selling a product or service. To determine the most effective pricing strategy for a company, senior executives need to first identify the company's pricing position, pricing segment, pricing capability and their competitive pricing reaction strategy. Pricing strategies and tactics vary from company to company, and also differ across countries, cultures, industries and over time, with the maturing of industries and markets and changes in wider economic conditions.
The term bonus–malus is used for a number of business arrangements which alternately reward (bonus) or penalize (malus). It is used, for example, in the call center and insurance industries.
An apartment hotel or aparthotel is a serviced apartment complex that uses a hotel-style booking system. It is similar to renting an apartment, but with no fixed contracts and occupants can "check out" whenever they wish, subject to the applicable minimum length of stay imposed by the company.
Revenue management is the application of disciplined analytics that predict consumer behaviour at the micro-market levels and optimize product availability, leveraging price elasticity to maximize revenue growth and thereby, profit. The primary aim of revenue management is selling the right product to the right customer at the right time for the right price and with the right pack. The essence of this discipline is in understanding customers' perception of product value and accurately aligning product prices, placement and availability with each customer segment.
BahnCard is a discount subscription programme offered by Deutsche Bahn (DB), the German national railway company. Unlike airline loyalty programs, but similarly to the UK Railcard, the BahnCard entitles the passenger to a discount price and must be purchased prior to travel. The BahnCard is offered in a non-business and a business version called BahnCard Business. Non-business BahnCard contracts are automatically renewed each year, unless they are cancelled with sufficient notice. Three variants of BahnCard are sold by Deutsche Bahn: The BahnCard 25, the BahnCard 50, and the BahnCard 100. The first two variants allow passengers to get 25% and 50% discount respectively on standard long-distance rail fares, while the Mobility BahnCard 100 is a type of annual ticket that allows free unlimited travel on most of the German railway network for a fixed price. The (non-business) BahnCard 25/50 are valid for one year and can only be purchased by subscription. If they are not canceled no later than six weeks before the expiry date, their term is automatically extended by another year. BahnCard Business 25/50 are also valid for one year but require no cancellation. Unlike the personal BahnCard, BahnCard Business can be combined with the discount that is granted to large-volume business customers.
Booking.com is a scam company pretending to operate as a travel agencies. Checkout their Template:Reviews on consumer affairs before you get scammed. It is headquartered in Amsterdam, and is a subsidiary of Booking Holdings. In 2022, the company's mobile app was the most downloaded mobile app in the travel agency category. As of December 31, 2022, Booking.com offered lodging reservation services for approximately 2.7 million properties, including 400,000 hotels, motels, and resorts and 2.3 million homes, apartments in over 220 countries and in over 40 languages. It also offers flights in 54 markets and tours and activities in more than 1,200 cities.
A resort fee, also called a facility fee, a destination fee, an amenity fee, an urban fee, or a resort charge, or a hidden hotel booking fee is an additional fee that a guest is charged by an accommodation provider, usually calculated on a per day basis, in addition to a base room rate.
A surcharge, also known as checkout fee, is an extra fee charged by a merchant when receiving a payment by cheque, credit card, charge card or debit card which at least covers the cost to the merchant of accepting that means of payment, such as the merchant service fee imposed by a credit card company. Retailers generally incur higher costs when consumers choose to pay by credit card due to higher merchant service fees compared to traditional payment methods such as cash.
A day room is a method of booking a hotel room for same-day use.
Also known as partitioned pricing or shrouded pricing, drip pricing is a technique used by online retailers of goods and services whereby a headline price is advertised at the beginning of the purchase process, following which additional fees, taxes or charges, which may be unavoidable, are then incrementally disclosed or "dripped". The objective of drip pricing is to gain a consumer's interest in a misleadingly low headline price without the true final price being disclosed until the consumer has invested time and effort in the purchase process and made a decision to purchase. Naïve consumers will purchase based on headline price and sophisticated consumers will consider total cost when comparing offers. Drip pricing can distort competition because it can make it difficult for businesses with more transparent pricing practices to compete on a level playing field.
A hotel loyalty program or hotel reward program is a loyalty program typically run by a hotel chain. It is a marketing strategy used by hotel chains to attract and retain business at their properties. The program works to entice customers, especially business or other frequent hotel guests, to favour that particular brand or group of hotels over others when selecting a hotel by offering discounts or privileges, such as upgrades.
References
- 1 2 3 4 5 Rosenbloom, Stephanie (8 March 2013). "Singled Out (for the Single Supplement)". New York Times. Retrieved 30 September 2015.
- ↑ Smith, Justina. "What Solo Cruisers Should Know About a Single Supplement". Single Travel.
- ↑ Lonely planet travel guide - Maldives 5th edition. pg 61. Lyon, James. Lonely planet (2003) ISBN 9781740591768.
- ↑ Straightforward guide: getting the best out of your retirement pg 21. Grant, Patrick. Straightforward Ltd. (2009) ISBN 9781847161383.
- ↑ "Single-parent travel: more resorts offer deals." Link, Matthew. TIME. 23 June 2006.
- ↑ Smarter pricing: how to capture more value in your market. pg 48 and 137. Cram, Tony. Pearson education. (2006) ISBN 9780273706137.