HTM 302 Lecture Notes - Lecture 12: Aeroplan, Loyalty Program, Final Examination

• School: Ryerson University
• Department: Hospitality and Tourism Management
• Course: HTM 302
• Professor: Rachel Dodds

Document Summary

Htm week 12 dodds | december 4, 2015. If new to market, ability to charge more bc no competitors. Price cutting strategy: lowering ones price to get more market share (walmart, holiday inn, black friday) Costs: fixed (employees, seats, etc) vs variable (something extra to make the trip more memorable) Spirit airline a low cost carrier uses what type of pricing strategy: profit oriented, sales oriented (sell more, have more market share, status quo. One of the benefits of customer loyalty is: decreased price sensitivity b, lack of awareness. Black friday/boxing day getting rid of inventory. Perishable inventory (the closer it gets to the date, the cheaper it is or also depending on seller, the closer to the date, the more expensive it is; ie: air canada) Inelastic demand (price won"t change bc of demand) If one affects the other, then it is elastic. People buy brand names bc of the prestige it brought to them.