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

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.