THE SPECIFICS OF PRICING IN THE HOSPITALITY INDUSTRY

2018 ◽  
Author(s):  
Valentyna Nepochatenko ◽  
Keyword(s):  
Hospitality Industry ◽  
Market Price ◽  
Hotel Industry ◽  
Policy Formation ◽  
Pricing Policy ◽  
Price Differentiation ◽  
Almost Everywhere ◽  
Characteristic Features ◽  
Main Regulator ◽  
The Cost

The stage of investigating the factors that influence price is the most time-consuming. The validity of strategic and tactical pricing decisions depends on how thorough the analysis is conducted. This article deals with the issues of price management in the hospitality industry, including the pricing concepts of small and medium-sized hotels. Effective pricing policy includes not only setting the initial market price, but also methods of payment, types of discounts, price differentiation on various grounds. The cost of a room depends on seasonality, class of the hotel, as well as city and country. Considered characteristic features affecting the process of pricing in today's hospitality industry deserve special attention and are key to the success of the business. The hotel seeks to set a price that would cover the costs of production, distribution, product promotion and an acceptable rate of return. There is great scope for price differentiation in hotel services, both by the type of service provided in terms of volume, standard, time, quantity and by consumer. The constraints of an active pricing policy in the hotel industry are successfully addressed by differentiating prices for services. In the hotel industry, price is an indicator of the quality of service, so the accommodation tariff should reflect the actual supply. If the advertised prices to consumers are high for a hotel in a given class, they will look for another hotel. At the same time, low prices for accommodation services will lead to lower revenues and profits for the hotel establishment. Demand for hotel services is the main regulator of price levels, so incentives and forecasts should be the most important condition when setting the most effective prices. The rule of thumb almost everywhere is that when demand increases, price increases. Pricing policy formation in the hotel is a component of a unified marketing policy and is constantly being shaped by competing companies.

scholarly journals ABOUT THE LIMITATION OF USE OF THE COST APPROACH FOR PRICE FORMING IN HOUSING MARKET

2018 ◽  
pp. 61-69
Author(s):  
I. I. Ivasiv ◽  
M. O. Danyliuk
Keyword(s):  
Real Estate ◽  
Price Policy ◽  
Real Estate Market ◽  
Policy Formation ◽  
Pricing Policy ◽  
Cost Approach ◽  
Advantages And Disadvantages ◽  
Real Estate Valuation ◽  
New Construction ◽  
The Cost

A number of technical and economic features affecting pricing in buildingproduction, determine the methods specifics for determining prices of construction products. Intoday's conditions of building market relations the most widespread is a cost approach to theprices formation in the residential real estate market, which, together with the significantadvantages, has a number of shortcomings, which indicate the limited use of it, namely: theunreliability of reflecting the projected income value; the problem of calculating the cost of oldbuildings reproduction; the complexity of determining the value of accumulated old buildingsdepreciation; a separate assessment of the land plot from the buildings; the discrepancy betweenthe cost of the acquisition of the estimated property object costs for the new construction ofexactly the same object.The article deals with the processes of price policy formation at the building industryenterprises with the purpose of improving their competitiveness. The peculiarities of costlymethods use of real estate valuation, their advantages and disadvantages are revealed. The mainfactors influencing formation of the pricing policy of building industry enterprises are analyzed.It is proved that a cost approach is appropriate to apply for new construction analysis, forthe identification of various options for land use, for assessment for tax purposes, insurance,consequences of natural disasters and, if necessary, assessment of special buildings andstructures.

scholarly journals FORMATION OF THE PRICING POLICY OF HOTEL ENTERPRISES

2021 ◽  
Author(s):  
Liudmyla Maliuga ◽  
Oksana Zagorodniuk ◽  
Nataliya Tereshchuk
Keyword(s):  
Market Price ◽  
Pricing Strategy ◽  
Successful Operation ◽  
Pricing Policy ◽  
Advantages And Disadvantages ◽  
Long Time ◽  
The One ◽  
High Level ◽  
The Cost ◽  
High Degree

The article defines that the correct method of pricing, reasonable pricing policy, consistent implementation of a sound pricing strategy - these are the necessary components of the successful operation of any enterprise operating in market conditions. The factors that determine the peculiarity of pricing in the hotel industry and influence the choice of pricing strategy of the enterprise are analyzed: seasonality of prices and tariffs; it is not possible to produce hotel services "in stock"; wide gradation of profitability of different types of services and enterprises; simultaneous sale of services in the domestic and international markets; the importance of the pricing mechanism for additional services; high degree of influence of the price level in competing hotels; pronounced market segmentation and a high level of focus on the psychological characteristics of the guest; geographical factor. It is determined that it is impossible to choose a certain pricing policy at once and implement it for a long time. It must be constantly checked and adapted to the situation in the market. We have considered the types of prices and general methods of pricing under the influence of objective and subjective factors, namely the cost of the room and the acceptability of the tariff for the final consumer. Thus, on the one hand, the hotel rate should cover the cost of maintaining the hotel and return the capital invested in it, and on the other - the cost of the room should not alienate a potential guest. There are two fundamentally different methodological approaches to setting tariffs for hotel accommodation. The main principle of the first approach is to first form a price that ensures the return on all costs and target profit and, then, its adjustment to take into account information about the level of prices prevailing in the market. The second approach is based on the reverse logic and involves determining the market price and only then adjusted depending on the level of fixed and variable costs of the enterprise to ensure the target profit. The advantages and disadvantages of direct and reverse approaches to the formation of prices for the main types of hotel services are outlined.

scholarly journals ABSENCE OF RATE PARITY AND ITS CONSEQUENCES IN HOTEL INDUSTRY

2015 ◽  
pp. 410-417
Keyword(s):  
Market Price ◽  
Hotel Industry ◽  
Price Policy ◽  
High Price ◽  
Special Topic ◽  
Price Strategy ◽  
Price Differentiation ◽  
Rate Parity ◽  
Important Position ◽  
Price Strategies

Rate parity is one of the most important questions of hotel industry in different countries. It is described as a strategy which offers same rate with same conditions for a certain room category in all sales channels at the same time. In this study, positive and negative characteristics of rate parity will be explored. Before this process, marketing instruments and general characteristics of marketing will be underlined. Especially, price policy has an important position in marketing mix. Price strategies such as high price strategy, low price strategy and market price strategies will be examined where price differentiation has a crucial role. Price policy targets are consisted of financial, volume and customer objectives and rate parity can be found within the rate stability under customer objectives. Shortly, rate stability consists of sum of rate unity, rate transparency and rate parity. Here, the absence of rate parity is questioned and described which is the main discussion topics of hotel industry with qualitative methods. As a result, pros and cons of rate parity will be put in order with the findings of this study and recommendations will be made for the hotel sector. Rate parity will be more understandable for young researchers in order to increase their interest about this special topic.

A comparison of the cost of research in South Africa's public research and higher education institutions

2008 ◽  
Vol 104 (11/12) ◽  
Author(s):  
D.R. Walwyn
Keyword(s):  
Higher Education ◽  
Higher Education Institutions ◽  
Public Research ◽  
Pricing Policy ◽  
The Public ◽  
Annual Salary ◽  
Research Sector ◽  
Salary Survey ◽  
The Cost ◽  
Comparative Information

Despite the importance of labour and overhead costs to both funders and performers of research in South Africa, there is little published information on the remuneration structures for researchers, technician and research support staff. Moreover, there are widely different pricing practices and perceptions within the public research and higher education institutions, which in some cases do not reflect the underlying costs to the institution or the inherent value of the research. In this article, data from the 2004/5 Research and Development Survey have been used to generate comparative information on the cost of research in various performance sectors. It is shown that this cost is lowest in the higher education institutions, and highest in the business sector, although the differences in direct labour and overheads are not as large as may have been expected. The calculated cost of research is then compared with the gazetted rates for engineers, scientists and auditors performing work on behalf of the public sector, which in all cases are higher than the research sector. This analysis emphasizes the need within the public research and higher education institutions for the development of a common pricing policy and for an annual salary survey, in order to dispel some of the myths around the relative costs of research, the relative levels of overhead ratios and the apparent disparity in remuneration levels.

Relationship Quality in the Hospitality Industry: Critical Review and Future Directions

2019 ◽  
Vol 118 (12) ◽  
pp. 83-91
Author(s):  
Harish B ◽  
Dr. Sam Thomas
Keyword(s):  
Organizational Performance ◽  
Relationship Quality ◽  
Critical Review ◽  
Hospitality Industry ◽  
Hotel Industry ◽  
Relationship Management ◽  
Direct Influence ◽  
Future Directions ◽  
Industry Relationship

In the highly competitive hotel industry, relationship management is of utmost importance. Not only effective relationship management helps loyalty and repurchase, but it is also found to have a direct influence on organizational performance. The effect of relationship management is dependent on the construct of relationship quality. The aim of the paper is to critically analyze the existing literature on the antecedents and outcomes of  Relationship Quality in the context of hospitality industry.

PP581 Catastrophic Costs Of Multidrug-Resistant Tuberculosis: Estimation Based On The Cost Of Treatment In China

2020 ◽  
Vol 36 (S1) ◽  
pp. 43-43
Author(s):  
Lijun Shen ◽  
Shangshang Gu ◽  
Fan Zhang ◽  
Zhao Liu ◽  
Yuehua Liu
Keyword(s):  
Market Price ◽  
Multidrug Resistant ◽  
Policy Support ◽  
World Health ◽  
Chinese Patients ◽  
Resistant Tuberculosis ◽  
Multidrug Resistant Tuberculosis ◽  
Mdr Tb ◽  
Drug Affordability ◽  
The Cost

IntroductionChina bears a considerably high burden of multidrug-resistant tuberculosis (MDR-TB). Second-line anti-TB drugs are urgently needed yet domestic MDR-TB drugs are expensive and lack policy support. Patients’ living conditions are closely related to the drug affordability. The national TB prevention programs should play a critical role. The purpose of this study is to measure the cost of treating MDR-TB patients under different treatment schemes and price sources. The results of this study are expected to inform the relevant drug protection policies and provide inputs for further cost-effectiveness analyses.MethodsBased on the treatment plan of China's Multidrug-Resistant Pulmonary Tuberculosis Clinical Path (2012 edition) and the World Health Organization (WHO) Drug-Resistant Tuberculosis Treatment Guide (2018 edition), the treatment costs of MDR-TB were measured under different scenarios. Catastrophic health expenditure was then calculated if the treatment cost exceeds 40 percent of the household's non-subsistence income. National, rural and disposable income per capita in 2018, were used to represent Chinese patients’ affordability.ResultsUnder varied treatment schemes and market price sources in China, the total costs for MDR-TB patients range from 19,401 to 126,703 CNY [2,853 to 18,633 USD] per person. Under current prices, all treatment schemes recommended by the WHO will incur catastrophic costs for Chinese MDR-TB patients. Significant differences were found between rural and urban areas as 52.8 percent of the treatment listed in the 2012 China Guideline would lead to catastrophic cost for rural patients but not urban ones.ConclusionsOur study concludes that the domestic drugs are more expensive than the international purchase price and the treatment of MDR-TB imposes substantial economic burden on patients, especially in the rural areas. The results of the study also indicate that it is urgent for the state to emphasize government responsibility and initiate centralized procurement for price negotiations to reduce the market price of MDR-TB drugs. The urban-rural gap should also be addressed in the design of future policies to ensure the drug affordability for all patients in need.

scholarly journals Backward-forward linear-quadratic mean-field Stackelberg games

2021 ◽  
Vol 2021 (1) ◽  
Author(s):  
Kehan Si ◽  
Zhen Wu
Keyword(s):  
Large Population ◽  
Consistency Condition ◽  
Market Price ◽  
Mean Field ◽  
Mapping Method ◽  
Open Loop ◽  
Stackelberg Games ◽  
Linear Quadratic ◽  
Population System ◽  
The Cost

AbstractThis paper studies a controlled backward-forward linear-quadratic-Gaussian (LQG) large population system in Stackelberg games. The leader agent is of backward state and follower agents are of forward state. The leader agent is dominating as its state enters those of follower agents. On the other hand, the state-average of all follower agents affects the cost functional of the leader agent. In reality, the leader and the followers may represent two typical types of participants involved in market price formation: the supplier and producers. This differs from standard MFG literature and is mainly due to the Stackelberg structure here. By variational analysis, the consistency condition system can be represented by some fully-coupled backward-forward stochastic differential equations (BFSDEs) with high dimensional block structure in an open-loop sense. Next, we discuss the well-posedness of such a BFSDE system by virtue of the contraction mapping method. Consequently, we obtain the decentralized strategies for the leader and follower agents which are proved to satisfy the ε-Nash equilibrium property.

THE TECHNICAL CONDITION OF THE SURVEYED HYDRAULIC UNITS IN THE MOSCOW REGION AND THE CLASSIFICATION FEATURES OF THEIR RESERVOIRS

2021 ◽  
pp. 69-79
Author(s):  
V. V. GRITSAN ◽  
Keyword(s):  
Technical Condition ◽  
Moscow Region ◽  
Risk Level ◽  
Ecological Framework ◽  
Safety Level ◽  
Repair Work ◽  
Hydraulic Unit ◽  
Technical Parameters ◽  
Characteristic Features ◽  
The Cost

The article presents the results of surveys of 311 class IV hydraulic structures carried out in 2016-2020 in the Moscow region. All the reservoirs of the surveyed hydraulic units were classified according to their characteristic features, the technical condition of culverts and dams was assessed, there was established the safety level of both separate structures and hydraulic units as a whole. During the surveys, the technical parameters of the surveyed structures were established, the state of each structure and the hydraulic unit as a whole was assessed, a possibility of their accident and a risk level for the downstream areas were considered. At the same time, recommendations were developed for the elimination of serious damage and, with the help of an examination, the amount of the cost of the necessary repair work was determined. The paper also assesses the issues of the ecological state of the areas where the hydraulic units are located and the hydraulic units themselves as blocks of the ecological framework of the territories.

The Potential of The Hotel Industry In Pandemic Era Based On Finance Performance Point Of View, Case Study: Indonesia

2021 ◽  
Vol 1 (1) ◽  
pp. 111-123
Author(s):  
Anton Effendi ◽  
◽  
Bambang Hadi Prabowo
Keyword(s):  
Hospitality Industry ◽  
Stock Exchange ◽  
Hotel Industry ◽  
Secondary Data ◽  
Reliable Data ◽  
Point Of View ◽  
Threshold Autoregressive ◽  
Performance Point ◽  
Occupancy Rates

This article aims to investigate and analyze the potential of the hospitality industry by comparing the potential occupancy rates and hotel revenues of foreign and domestic tourists. This investigation uses an investigation of company data obtained from reports from hotel companies throughout Indonesia which are listed on the Indonesia Stock Exchange and secondary data obtained from world banks and other reliable data. This study uses behavioral data analysis using Threshold Autoregressive from 2000 to 2019. It was found that domestic tourists are a new hope that needs to be considered in surviving and restoring the hospitality industry after being exposed to the COVID-19 pandemic which has led hotel companies. temporarily closed operations and part of the hotel went bankrupt. Optimization of domestic tourists allowed the hotel industry to develop rapidly after the Covid-19 pandemic ended.

Workplace environment, employee satisfaction and intent to stay

2019 ◽  
Vol 31 (1) ◽  
pp. 268-284 ◽  
Author(s):  
Deepak Bangwal ◽  
Prakash Tiwari
Keyword(s):  
Job Satisfaction ◽  
Employee Satisfaction ◽  
Structural Equation ◽  
Hospitality Industry ◽  
Hotel Industry ◽  
Intent To Stay ◽  
Equation Modeling ◽  
Workplace Design ◽  
Design Features ◽  
Content Type

PurposeThe hotel industry suffers from retaining its employees, and to retain their employees is a big challenge to the hotel industry. So, the purpose of this study is to examine the causal relationship between workplace design features of hospitality industry with employee job satisfaction and their intent to stay through empirical validation.Design/methodology/approachAs per the objective of the study, three hypotheses were proposed based on a comprehensive literature review on workplace design features of the hospitality industry. The proposed relationships were examined by using structural equation modeling approach with AMOS 18 as prescribed by Hair et al. (1998).FindingsSignificant evidence was found in favor of proposed hypotheses. The result of hypothesis testing showed workplace design features of hospitality industry to positively influence employee’s intent to stay through job satisfaction.Originality/valueWhile the employee satisfaction and commitment has been a significant research topic for more than decades, barely any research has been conducted that focuses specifically on workplace design features of a hospitality industry. This study tries to make a link between workplace design with the employee intent to stay through employee satisfaction. These links are rare from an Indian perspective.

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