Title: An examination of popular pricing and price framing techniques in the hospitality industry and directions for future research

Authors: Anna S. Mattila; Yixing (Lisa) Gao

Addresses: School of Hospitality Management, The Pennsylvania State University, 224 Mateer Building, University Park, PA 16802, USA ' School of Hospitality Management, The Pennsylvania State University, 201 Mateer Building, University Park, PA 16802, USA

Abstract: Pricing in the hospitality industry is significantly different from pricing in the traditional consumer goods market. This paper focuses on price framing and customer reactions to different price presentation formats. Specifically, we highlight seven types of pricing strategies that are commonly used in the hospitality industry, namely price endings/odd pricing, discounts framing, best available rate (BAR), package/bundling, participative pricing strategy such as name-your-own-price (NYOP) and pay-what-you-want (PWYW), and flash deals/daily deals. We offer several propositions that might sparkle interest among hospitality researchers.

Keywords: popular pricing; price framing; hospitality industry; hotel industry; restaurant pricing; customer reactions.

DOI: 10.1504/IJRM.2016.077019

International Journal of Revenue Management, 2016 Vol.9 No.2/3, pp.175 - 185

Received: 25 Jan 2016
Accepted: 25 Jan 2016
Published online: 17 Jun 2016 *

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