Marketing Of The Hospitality And Tourism Industry

989 Words Mar 14th, 2016 4 Pages
This essay will examine the role and importance of various pricing strategies in regards to marketing in the hospitality and tourism industry.
External Factors of Pricing
There are a number of factors to be taken into consideration when setting a price for a product or service. Some of these factors are internal, meaning that they are influenced by the company’s objectives and their organizational structures. Other factors are external, meaning they are shaped by the company’s competitors, the condition of the market, and consumer demand. While it is important to address all of the factors that weigh on pricing decisions, it is wise to pay special attention to the external factors. The reason for this being, that external factors are usually precarious in nature. Often, external factors are only managed by adjusting to the circumstances precipitated by these factors. This could mean either increasing or decreasing your pricing. The pricing modification can either be a permanent change, or one existing for an established period of time.
An example of how competitors may influence pricing would be researching the competitors’ pricing information as a means of gauging how you to price your own product or service. Your competitors may also impact your pricing in a situation where they are offering a product or service similar to one offered by your company at a price significantly lower than what yours is priced at. This discrepancy may prompt you to look into…
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