旅游景点营销LectureWeek9_1[1]

Chapter FifteenThe Pricing Decision©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.2Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawPricing PracticesHotel room pricingEvolved from tactical to strategicMost practice some form of revenue managementMost fall between revenue per available room and value pricingRestaurant pricingEvolution from cost-based pricing of the 1970’s©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.3Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawExhibit 15-1; Hotel room pricing©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.4Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawWhat is Price?DefinitionDepends on viewpointWhat the customer is willing to give up in exchange for the product or service©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.5Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawWhat is Price?The firm has multiple ways to change price:By the quality of good or services By the acceptable form of paymentBy the time or place of transfer of ownershipBy the quantity of money or goods or services to be paid by the buyerBy the quantity of goods or services offered by the sellerBy the premium or discounts according to quantityBy the time or place of payment©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.6Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawWhat is price?Price is important to marketersIt is the only revenue producing part of the mixIt is used to match supply to demand so financial objectives can be achievedIt is a powerful force in attracting attention and increasing salesIt establishes the market positioning of the productThe pricing practice can have a major impact on customer loyalty©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.7Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw What is price?Price should be arrived at after a thorough decision making process Pricing is ultimately customer drivenUnique hospitality implicationsSet physical facilities may require marketing to a new target that will accept the price rather than setting the price to the target market©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.8Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawTypes of Costs:Variable costs Costs that vary directlywith a unit of item soldSemivariable costs Costs that are somewhatfixed but at times can vary to some degreeFixed costsCosts that exist regardless of the level of activity©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.9Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawExhibit 15-4; Drivers of profit©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.10Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawCost-Based PricingCost-plus pricingCost percentage (markup pricing) Break even pricingContribution margin pricing©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.11Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw Cost-Plus PricingEstablishing the total cost of a product including a portion of overhead and a predetermined profit marginDrawbacksIgnores the combined effort of profit generation of all products Misallocation of costs InflexibleIgnores demand©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.12Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawCost PercentageMarkup on variable ingredient cost, a percentage based on the ingredient cost percentage, or a combination of bothCommon in restaurant and beverage industryDrawbacksTotally cost orientedIgnores customer perception of valueTends to price high-cost items to a level customers are unwilling to pay©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.13Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw Break-Even PricingA formula used to determine at what sales volume and price the product cost will be equal to salesFairly efficient if price levels and sales volume can be predicted at different price levelsRequires knowledge of customer perception and demandBreak -even = Fixed costsPrice –variable cost ©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.14Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawContribution Margin PricingPricing is used to help cover fixed costsVery useful for hotels in soft periods of demandNo profit, but fixed costs for the room are covered©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.15Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawValue-Based PricingDetermining price after estimating market demand and customers perceived valueQuantified as what is received divided by what was paidCost is irrelevant©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.16Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawValue-Based PricingForces management to:Review objectives in marketing the productKeep in touch with customer wants and needs©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.17Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawComponents of ValueFinancial ValueTemporal ValueFunctional ValueExperiential Value Emotional Value Social Value©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.18Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawFinancial ValueRole of the firm is to make customers less price sensitive and thus pay more for a productBuyers are more price sensitive when the cost is large in relation to their household income or budget End-benefit effect Fairness effectPrice quality©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.19Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawTemporal ValueSaving time will be worth money to the customerResearch shows that business travelers feel their time is worth an average $150 per hour©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.20Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawFunctional ValueProduct or service does what it was designed to doMain components are RATERCustomer experiences should be managed©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.21Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw Other Components of ValueExperiential valueGuests are active participants rather than passive observers in the serviceEmotional valueCatering to the customers’need to feel specialSocial valueCelebration of special occasions with friends and family©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.22Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawValue-Based PricingTrust is a major antecedent to loyaltyIdentification with the organizationRelate so strongly to the organization that price is removed from consideration setTactics to increase customers’feeling of affiliation©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.23Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw Reference PriceThe price range anticipated by the consumer based on prior experience or knowledgeThe price for which consumers believe the product should sellBased onPrice last paidPrice of similar itemsPrice considering the brand nameReal or imagined cost to produce the itemPerceived cost of product failure©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.24Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawReservation PriceThe maximum price a customer is willing to pay for a productShould be built into the pricing decision©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.25Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawPsychological PricingPrices cause psychological reactions in the consumerPrices may imply qualityHigh price = high quality Low price = low qualityHigher priced items may sell better©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.26Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawPsychological PricingIncludes the visibility of the consumer and productBuyers and non-buyers may have different impressionsPrice lining clumps prices together so the perception of increased quality is createdMarketer must be aware of how the customer uses price to differentiate products©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.27Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawGeneric Pricing StrategiesBasic strategies used to compete in the marketCan be used in combination to achieve different goals©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.28Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawGeneric Pricing StrategiesSkim PricingPenetration Pricing Match PricingNeutral Pricing©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.29Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawSkim PricingCapture high price margins at the expense of high sales volumeMake the product appear special and new to command a higher price“Skimming ”the cream off the top©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.30Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawSkim PricingWorks best when:Customers are price insensitiveCustomers place a high value on the product’s differentiating attributesThere is value attached to prestige and exclusivityThe price is not important in relation to the benefits derivedThe firms has no real competition for the product offer©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.31Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawPenetration PricingGenerate sales volume even if it means lower margins relative to the competitionThe opposite of skim pricing©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.32Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawPenetration PricingWorks best when:A large share of the market is willing to change suppliers in response to the price differentialCustomers look only at price and not at other featuresPrice is not a trivial matter to customersCustomers are brand insensitive©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.33Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawPenetration PricingOnly works long term if the firm has lower costs than competitorsDoes not generate new demand, but takes market share from othersOften used when a new hotel opens©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.34Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawMatch PricingOne firms matches the price of firms that are in direct competitionWorks best when:Customer perceives no difference in the competitionCost structure allows pricing near the competitionAssumes competitors have made the correct pricing decisionMarket must be able to buy at this levelMarket must be totally concerned about price©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.35Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawMatch PricingDrawbacksProduct is rarely the exact same as the competitionFirms usually do not have the same goals©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.36Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawNeutral PricingUsing market variables other than price to gain market shareFirm believes that the customer wants a coherent pricing strategyFirm believes the customer wants choice or added value©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.37Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw Neutral PricingValue added servicesAdded on to the basic product to enhance the perception of value A part of loyalty marketingFails when firm adds services the customer does not want or needSolution is flexible service offerings tailored to the customer©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.38Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawNeutral PricingValue added servicesDetermine which services are of value to your customer and:Do not offer the serviceGive the service away at no chargeRaise the price equal to the cost of the service Raise the price less than the cost of the serviceRaise the price slightly higher than the cost of the service to camouflage a price increase on the standard product©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.39Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw Generic Pricing StrategiesMarket share and fair shareActual figures of occupancy or coversUsually compared to fair share, or the expected occupancy or covers if you received your proportional share of business in your competitive setFair market share = Firm’s capacityTotal capacity in marketclassGoal is for market share to exceed fair share©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.40Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawGeneric Pricing StrategiesREVPARCalculation of revenue per available room REVPAR =Room revenueNumber of rooms availablefor saleREVPAR=Average daily rate (ADR) x Occupancy percentageEssentially controls for pricing decisionsMost widely used method today©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.41Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawGeneric Pricing StrategiesMeasuring the impactYield index =Property REVPAR Market REVPARYield index =Share of revenueShare of supplyGreater than 1.0 indicates the hotel is outperforming the market©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.42Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawRevenue ManagementBegan in late 1980’s as yield managementPrices change under fluctuating demand and advance bookingsCreates an enormous competitive advantage©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.43Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw Revenue Management Is…A systematic approach to matching demand for services with an appropriate supply in order to maximize revenuesAppropriate in hotelsHotel room is a perishable productCapacity is fixed and cannot flex to meet demandDifferent market segments have different lead times to purchaseHotels have great flexibility in varying their prices at any given time©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.44Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawRevenue Management PracticesSet most effective pricing structureLimit the number of reservations accepted on any given night or room type based on profit potentialNegotiate volume discounts with groupsMatch market segments with room type and price needsBe consistent across channels and intermediaries©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.45Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & Shaw YieldThe ratio between actual sales and potential sales forecasted over a given period of timeHave to have realistic potential sales forecastingHotels must be able to forecast demand for each room category from each of its market segments, for any date in the futureCustomer purchase behavior must be well understood©2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.46Marketing Essentials in Hospitality and Tourism: Foundations and Practices by Shoemaker & ShawDiscussionDo you believe that every type of business (goods and services) can benefit from revenue management?。