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Discussion Question 6

Discussion Question 6

Q A number of factors affecting price sensitivity are discussed in this chapter. Please provide some real examples of the application of these factors implemented by hospitality companies (e.g., hotel, restaurant, cruise, etc.).

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The costs incurred by hospitality organizations for setting up and maintaining infrastructure and service-quality can be important factors for setting prices (Pricing – PPT). This is because return on investment must be tried to be obtained in positive figures as much as possible. Otherwise, the rate of investment made by hospitality organizations can lead to the development of high percentage of liabilities. The extremely high prices of Ritz-Carlton Luxury Hotels in different areas of operations in America have been based on expected high rate of affordability of customers (Ampountolas et al., 2020).