ABSTRACT
Pricing is an important and challenging aspect of hospitality decision-
making. The choice on restaurant menus highlight the number of meals that
have to be priced, and a price differential frequently exists between
lunchtime and dinner menus. With respect to accommodation, many hotels
offer a range of rooms with different configurations. These different rooms
have to be priced in busy as well as quiet seasons. These pricing decisions are
made more challenging by the fact that it is rare to find two restaurant meals
that represent exactly the same dining experience, and no two hotel stays
constitute exactly the same accommodation experience. As a result, a hotel
cannot conduct direct price comparisons to the same degree as companies
operating in the retail sector. Supermarkets, for example, have a large
volume of goods to price, however they can conduct direct price comparisons
with competing outlets that offer identical products.
