* L09 Quiz

H323 Lesson 9 Quiz

H323 Sem 2 2022

Multiple Choice

‘Book and pay for your package tour to Australia at NATAS Fair 2022 and receive 10% off!’ This price fence is based on:

• Product line

• Customer characteristics

• Transactional characteristics

• Physical attributes

Important to understand that promotion of 10% for the package tour to Australia can only be purchased at NATAS Fair 2022 therefore, what is important is “WHERE” it can be purchased, which is a distribution channel, part of the transactional characteristics of the booking.

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​Explanation

Multiple Choice

Which of the following is NOT a benefit of using tactical pricing

• Manipulates last-minute demand through price incentives

• Allows businesses to be proactive and provide guidelines

• Achieves cash flow and provides a tool for crisis management

• Promotes brand or product trial for the first-time customers

​Tactical pricing is more reactive...

...to the various demand conditions. Proactiveness is normally done at strategic pricing level. It involves LONG term planning and set the way how pricing should be done. For example, if a business has deployed demand-based pricing, they will need to stay up to date on the various demand drivers to ensure that their pricing reflect the demand of their product / services.

Pricing Tactics | Revenue Management

H323

Multiple Choice

Discounting is the most important and effective tactical pricing. It should be offered before considering any other tactics.

• TRUE

• FALSE

Discounting without any fences is a pricing tactic that should be considered as a last resort and often used by business who are expecting to close for good so as to minimise losses. Discounting lowers the value perception of the product or service. Perpetual discounting detorts natural booking pace as it trains your customers to purchase later and wait for the discount.

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​Why?

Multiple Choice

EU Holidays’ 8 Days 6 Night Best of Sydney & Beyond Tour package that includes airfare, choice accommodation and visit to Blue Mountains, Hunter Valley and various attractions in Sydney is an example of opaque pricing.

• TRUE

• FALSE

​Opaque Pricing

The concept of opaque pricing is designed to sell rooms at a much lower pricing, however, through channels that allow for the hotel name or rate not to be publicly displayed. As such, tour package is sold through third party intermediaries such as travel agent (online and offline). Itemised rate/ price is not displayed to the customer in this context as it is masked together with other tour components. A final price is given to the customer and the customer is not able to obtain individual pricing

Subject | Subject

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Multiple Choice

Dynamic pricing has many benefits for both the sellers and buyers of various hospitality product and services. Static pricing tactics have become obsolete.

• TRUE

• FALSE

​Static Pricing is still valid!

Static rates are guaranteed for a period of time and may change from time to time and by season. It is still valid and can be implemented for any market segment for consistency and ease of operation.

Subject | Subject

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