Question
Price setting for tour operators requires a strong mix of marketing strategy and financial analysis. The people, accommodation and components that make up the experience/holiday
Price setting for tour operators requires a strong mix of marketing strategy and financial analysis. The people, accommodation and components that make up the experience/holiday the operator provides can be incredibly diverse and pricing strategies often evolve as a tour operator develops its brand and market share. Haji Salleh, a hardworking entrepreneur, setup a travel agency company call Salju Travel Sdn. Bhd. in 2019, focusing on Johor (a state in Malaysia) as their initial market. The company was facing serious big challenge because of wrong timing of entrance into the market as it faced sales issues in 2020 and 2021 due to the Covid-19 pandemic and thus temporary closed the agency.. They reopen in 2022 and started to offer travel packages in the market. The company is facing strong competition from other travel operators which have been long in the market. Among the packages they offer are domestic leisure packages, outbound leisure packages focusing on a few countries such as Turkey, Balkan, Eastern Europe, Middle East, and Australasia, and Umrah & Haji packages. The literature highlighted eight pricing strategies that most tour operators utilized in setting the price of their offerings, namely mark-up pricing, mark-down pricing, packages pricing, rack rate, seasonal pricing, discounting, last-minute pricing, and common pricing type. Propose five alternative pricing strategies that are suitable for Salju Travel Sdn. Bhd. so that the company could develop its brand and acquire a larger market share in the Malaysian market and elaborate on five (5) relevant pricing strategies with good examples to assist Haji Salleh in setting the right prices for the services. Relate the discussion of your answers to the Salju Travel Sdn. Bhd. scenarios. Answer in three (3) pages report.
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