What Non-Pricing Tactics Can Be Done in An Oversupplied Market?
Hotels compete with each other using both pricing and non-pricing tactics - depending on their circumstances. Pricing tactics adopted by the hotel industry include discounting, value-added packages, and use of opaque distribution channels while non-pricing tactics include quality improvement, leveraging loyalty program, finding additional revenue sources and developing new market segments. (Kimes, 2010; Kimmons, 2006). Kimes (2010) claims that discounting was not to be used to maintain the revenue but [...]
The Benefits of Upgrading
Wikipedia defines 'Prospect Theory' (developed by Princeton University Professor, Daniel Kahneman and Amos versky in 1979) as 'a behavioral economic theory that describes decisions between alternatives that involve risk, where the probabilities of outcomes are known'. The theory says that people make decisions based on the potential value of losses and gains rather than the final outcome, and that people evaluate these losses and gains using interesting heuristics. People who [...]
Hotel Spa: Its Non-monetary And Monetary Values
The island of Bali has been renowned as one of top spa destinations. Most (if not, all) luxury hotels on the island have a spa facility. According to Global Spa & Wellness Economy Monitor (n. d.), the spa industry has been enjoying an annual growth of 7.7% YoY. Depending on the objectives of the business owner, the spa facility can either be cost centre or profit centre. There have been [...]
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