Hospitality Questions

Strategic obligations should primarily influence pricing, whether an organization seeks to attract more market share by price reduction or earn more revenue by increasing prices. When making price adjustments, marketing objectives in the hospitality, travel and tourism industry should consider trade volume, seasons, new products, and customers’ ability to afford a product or service. However, price adjustments should consider the cost of preparing the item or service and the value it gives to the seller as a primary yardstick. However, marketing gives several considerations where the prices can be adjusted. Trade volumes are expected to vary during low and high seasons. Therefore, expenses should be modified upwards during the high season when trade and demand peak and lowered during the low season. For instance, price discrimination can be applied when charging premium customers. For example, tourists with a higher ability to pay or customers from higher social classes can pay more than ordinary customers. Besides, marketing can utilize price adjustments when introducing a new price. A commodity should be charged higher when customers are experiencing it for the first time. A marketer should exploit the curiosity of a new product or service and earn maximum benefits before stabilizing.

#05B

Distribution strategies in the travel industry should focus on platforms where a consumer is likely to seek travel services and relevant information. The travel business utilizes online and offline channels to service its market effectively. As a traveler, I should be able to choose from various channels to maximize the benefit of my travel. Online channels often include airline reservation systems like Galileo and Amadeus, which indicate the available travel spaces in global airlines. As a traveler, I can book a flight in advance online, enjoy various discounts, and choose from multiple airlines. Besides, offline channels can also influence my travel decisions. I can peruse numerous travel magazines and periodicals to know which airlines serve the routes I intend to fly and their prices.