ABSTRACT
Pricing policy is a key component of an effective strategy for marketing tourism destinations, as has been stressed in Chp. 1. The relative cost of the holidays sold in different resorts has evident implications for the commercial viability of the resorts. At first sight it would appear that the price competitiveness of package holidays in different resorts could be determined simply by comparing the prices of the holidays advertised in brochures, but this is not the case. Most package holidays consist of different combinations of characteristics such as accommodation in hotels of different star ratings, with different facilities, at varying distances from key locations such as the beach or local shopping centre. Since it is rarely possible to compare identical packages the determination of the price competitiveness of package holidays in different resorts is not straightforward. For similar reasons, identification of the price competitiveness of the holidays supplied by different tour operators is difficult.
