In: Accounting
A number of factors affecting price sensitivity are discussed in this chapter. Provide some examples of the application of these factors in the hospitality or travel businesses.
This is a good assignment or class discussion topic. Following is an example to help get students thinking about this question:
• End-Benefit Effect: People traveling to resort destinations these days are given an option of booking their airport pickup and drops at the time of booking as well along with a trip insurance (or weather insurance for resort destinations) for a marginal price. While the add-on transportation rate may be equal to or even above the market rates, people are still inclined to book the package together.