chapter  8
6 Pages

Tied sales

If I search on the internet for tickets to the theatre in London’s West End, I will come across packages that offer theatre tickets, dinner for two at a good, but not excellent, restaurant, and perhaps a sight-seeing bus tour, where the total price of the package is significantly less than if I were to buy all of those items separately. But if the goal is to make an attractive offer to potential theatre-goers, why does the theatre company not simply lower the price of the theatre tickets alone? Why offer this package? Similarly, why will airline companies offer vacation packages that include airfare together with a hotel stay?