Question

One of the most popular tourist destinations in the US is Las Vegas. Unlike many other destinations in the US, price discrimination is common in Las Vegas, with many businesses regularly offering discounts to local residents for food and drink, entertainment and even hotel rooms. Why do you suppose these local’s discounts are common in Las Vegas but not other US cities? How is this pricing policy similar to the one described for the Buddhist temple in Laos?

Answer 1

Local discounts are for primary benefit of the local residents or regular visitors or customers of the business holder. This strategy employed by the business is to primarily hold the local people of the town. The business strategy is mainly oriented towards holding the primary customers and then focussing on potential new customers. Therefore setting of target audience take place in the city. Since Las Vegas is mostly visited by the local residents of the area as compared to other cities it becomes a necessity to provide discounts to them. Other cities too have many visitors but they are mostly from different countries. They hotel owners are obliged to provide local discounts to them.

Similarly with buddhist temple in Laos special discounts and packages are also provided to the buddhist people as they are more frequently visiting the shrine as compared to other religious people.