Price and Marketing Strategy in Tourism Contexts: A preliminary study to mitigating seasonality

César Lapa Barros, Bruno Miguel Sousa

Abstract


Tourism, as an area of study, has expanded its scope, reflecting an increasing recognition in the academic community paralleled by the application of interdisciplinary concepts and methods. In this context, seasonality has long been viewed as one of the most unique and worrisome facets of the tourism industry. It can be defined as a cyclical pattern that more or less repeats itself each year. In this context, the element of marketing-mix that has been most impervious to sharing power with consumers is precisely the price. Participative pricing mechanisms have been used by for-profit entities for quite some time, and some of the most innovative participative pricing strategies have been applied in different industries throughout the past decades. The studies show the importance of investigating more about the price and phenomenon of seasonality in tourism contexts. Such is the case of Name Your Own Price and Pay What You Want. This preliminary research intends to provide evidence that identity and self-image concerns are potentially very important (in specific tourism contexts). Three field experiments will involve PWYW pricing demonstrate that companies can sustain profitability with payments that rely entirely on social preferences in Portuguese hospitality and tourism (i.e. Theme Park Experiment (Radical Tourism); Tour Boat Experiment (Douro River) and Religious Tourism (Fátima)). This study is an exploratory research based on a quantitative approach with the increasing competition among tourist and specific tourism contexts. At the end of the study, some limitations will be presented and lines of research will be outlined for the future.


Keywords


Competitiveness, Price Strategy, Seasonality, Tourism Marketing

Full Text:

PDF PDF

References


Adhikari, A. (2016). Fairness in Participative Pricing: A New Way of Pricing in Hospitality Sector.

Antunes, C. R. (2018, April). Improving Top Hospitality Management: From bundling strategies to price sensitivity.

Backman, S. & Crompton, J. (1991). The usefulness of selected variables for predicting activity loyalty. Leisure Science, 13, 205-220.

Baron, R. R. V. (1975). Seasonality in tourism: A guide to the analysis of seasonality and trends for policy making. Economist Intelligence Unit.

Barros, C. L. (2017). A adequação da estratégia de pricing Pay What You Want à distribuição de conteúdo digital online. Porto.

Becken, S. & Simmons, D. (2002). Understanding energy consumption patterns of tourist attractions and activities in New Zealand. Tourism Management, 23, 343–354.

Breidert, C., Hahsler, M., & Reutterer, T. (2006). A review of methods for measuring willingness-to-pay. Innovative Marketing, 1-23.

Brown, T. J. (2005). Spreading the word: Investigating antecedents of consumers’ positive word-of-mouth intentions and behaviors in a retailing context. Journal of the Academy of Marketing Science, 33(2), 123–138.

Butler, R. W. (2001). Seasonality in tourism: Issues and implications. Seasonality in tourism, 5-21.

Chao, Y., Fernandez, J., & Nahata, B. (2015). Pay What You Want Pricing: Can it be profitable? Journal of Behavioural and Experimental Economics, 176-185.

Chung, J. Y., Kyle, G. T., Petrick, J. F., & Absher, J. D. (2011). Fairness of prices, user fee policy and willingsness to pay among visitors to a national forest. Tourism Management(32), 1038-1046.

De Bruyn, A., Lilien, G.L. (2008). A multi- stage model of word of mouth influence through viral marketing. Journal of Research in Marketing, 25, 151–163.

Dekhili, S., & Connan-Ghesquiere, C. (2013). La politique de prix "Pay What You Want": partage du pouvoir ou action de communication? Gestion 2000, 15-30.

Dinis, G.; Costa, C & Pacheco, O. (2017) Aplicação da análise da Web no Turismo: o caso do Turismo do Alentejo. International Journal of Marketing, Communication and New Media. Special Number 2 – Marketing and Digital Business, 68-87, Available at http://u3isjournal.isvouga.pt/index.php/ijmcnm.

Echtner, C. & Jamal, T. (1997). The disciplinary dilemma of tourism studies. Annals of Tourism Research, 24(4), 868-883.

Embacher, J. & Buttle, F. (1989). A repertory grid analysis of Austria’s image as a summer vacation destination. Journal of Travel Research, 27(3), 3-7.

Egbert, H., Greiff, M., & Xhangolli, K. (2015, January). Pay What You Want (PWYW) Pricing Ex Post Consumption: A Sales Strategy For Exeprience Goods. Journal of Innovation Economics & Management(16), 249-264. doi:10.3917/jie.016.0249

Ferreira, J., Sousa, B. M., & Gonçalves, F. (2018). Encouraging the subsistence artisan entrepreneurship in handicraft and creative contexts. Journal of Enterprising Communities: People and Places in the Global Economy. https://doi.org/10.1108/JEC-09-2018-0068

Getz, D. (1986). Models in Tourism Planning: Towards Integration of Theory and Practice. Tourism Management, 7, 21–32.

Gneezy, A., Gneezy, U., Riener, G., & Nelson, L. D. (2012). Pay-What-You-Want, identity, and self-signaling in markets. PNAS, 109(19), 7236-7240.

Goh, C., & Law, R. (2002). Modeling and forecasting tourism demand for arrivals with stochastic nonstationary seasonality and intervention. Tourism management, 23(5), 499-510.

Hartman, R. (1984). Tourism, seasonality and social change (pp. 101-111). Centre for Leisure Research, Dunfermline College of Physical Education.

Hinz, O., Hann, I.-H., & Spann, M. (2011, March). Price discrimination in e-commerce? An examination of dynamic pricing in Name-Your-Own Price markets. MIS Quarterly, 35(1), 81-98.

Hyllebert, S. (1992). Modelling seasonality. Oxford: Oxford University Press

Jang, S. S. (2004). Mitigating tourism seasonality: A quantitative approach. Annals of Tourism Research, 31(4), 819-836.

Kim, J.-Y., Natter, M., & Spann, M. (2009, january). Pay What You Want: A new participative pricing mechanism. Journal of Marketing, 73, 44-58.

Machado, A. F. & Sousa, B. (2018). “Luxo Sustentável em Contextos de Hotelaria e Turismo: Do diferencial competitivo à preocupação com a responsabilidade social”. International Journal of Marketing, Communication and New Media. Special Issue 4 – Luxury Marketing, 28 – 56. Available at http://u3isjournal.isvouga.pt/index.php/ijmcnm

McEniff, J. (1992). Seasonality of tourism demand in the European Community. Travel & Tourism Analyst, (3), 67-88.

Lim, C. (2001). Monthly seasonal variations: asian tourism to Australia. Annals of Tourism Research, 28, 68–82.

Oliveira, P., & Remondes, J. (2018). O comportamento do consumidor corporate e suas implicações na gestão de marketing digital e redes sociais online das agências de viagens. Revista Turismo & Desenvolvimento, 1(27/28), 1367-1378.

Silva, S. S.; Machado, J. C. & Cruz, M. (2017) The influence of WOM and Peer Interaction in the Decision-Making Process of Generation Z within the family. International Journal of Marketing, Communication and New Media. Special Number 2 – Marketing and Digital Business, 106-136, Available at http://u3isjournal.isvouga.pt/index.php/ijmcnm

Sousa, B., & Simões, C. (2010). Comportamento e perfil do consumidor de turismo de nichos. Tékhne-Revista de Estudos Politécnicos, (14), 137-146.

Thaler, R. H. (1983). Transaction Utility Theory . Retrieved from Association for Consumer Research: http://acrwebsite.org/volumes/6118/volumes/v10/NA-10

Webster, F. E. (1992). The changing role of marketing in the corporation. The journal of Marketing, 1-17.

Witt, S. F., & Moutinho, L. (1994). Tourism marketing and management handbook (2nd ed). New York: Prentice Hall.

Zhang, H., & Kulendran, N. (2017). The impact of climate variables on seasonal variation in Hong Kong inbound tourism demand. Journal of Travel Research, 56(1), 94-107.


Refbacks

  • There are currently no refbacks.


International Journal of Marketing, Communication and New Media

ISSN: 2182-9306

 

International Networks of Indexing:

Emerging Sources Citation Index (Clarivate Analytics) - QUALIS CAPESGOOGLE SCHOLAR - LATINDEX - REDIB - RCAAP - OAJI - DRJI - MIAR - LIVRE - ERIH PLUS.