Bundle Pricing for Tourist Pass—the Case of Taipei City
Date Issued
2014
Date
2014
Author(s)
Pon, Shih-Yun
Abstract
Traveling is the rising around the globe, and many more people start to plan their own trip. Tourist pass has been popular in many countries and among frequent travelers. This kind of products has various designs and added function, but the main concept is to bundle multiple tourist attractions and sell at a discount price. This essay aims to provide suggestions for the product design and pricing in Taiwan market, for the company to gain the maximized profit.
In order to make the research product more concrete, the research scope is narrowed to Taipei city, and classified 21 attractions into 5 types. Then take advantage of the pretest and interview to check external validity and to add some elements to the questionnaire design. The main research method for this essay is online survey, through which the data of willingness to pay from the demand side is obtained. This essay simulates 15 scenarios based on different commission rates and assumptions on daily visiting spots. Together, the base of the optimal pricing model is built.
There are 207 effective samples, 147 from Taiwanese and 60 from foreigners. Based on these samples, two optimal pricing models are built. One is launching different period products at the same time and base purely on the samples. Assuming tourists make their buying decision solely base on consumer surplus, what pricing strategy the company should make to gain maximized profit. The other model is a sensitivity test on the whole market base extended from the foreigner samples. Discussing how high the portion of tourists having the tendency to buy short-period products, should the company launch short-period products instead of long-period product.
Based on the above assumptions and models, here are a few main findings in this essay: (1) No price discrimination between Taiwanese and foreigner needed, (2) launching the longest period product alone will gain the optimal profit for the company, (3) if there are at least more than 56% tourists have the tendency to buy short-period products, short-term product should be launched instead of long-term product.
This essay adopted previous researches on willingness to pay, pricing method, and bundle pricing, and derives practical findings in Taiwan market. It could be used as a good reference for tourist industry in Taiwan.
Subjects
組合式訂價
訂價
願付價格
旅遊票券
台灣旅遊
門票
Type
thesis
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