The significance of competitive pricing and revenue management in the camping industry

Abstract

Currently, the camping industry is responsive to the pricing performance of their competitors. When considering the pricing strategies of the campsite business, competitors should be taken into account as an important factor. The purpose of this research is to assess the possibilities of competitive pricing in the camping industry and examine the effect of competitor pricing levels on relative campsite revenue, to define whether raising or lowering prices relative to the competition contributes more to performance. The paper explores the relationship between pricing strategy and the average percentage difference in revenue per available capacity and occupancy for 32 campsites, relative to their competitive sets, over a period of three years. The result shows that lowering the prices will give campsites higher occupancy rates but consequently lower performance measured by revenue per available capacity.

Balancing short-term gains and long-term success in lodging: The role of customer satisfaction and price in hotel profitability model

“…Enz et al (2016), based on a 10-years sample of 4000 different hotels, also show that, regardless of macroeconomic conditions, hotels with higher ADR benefited from higher relative RevPAR 4 despite lower comparative occupancies. This relationship has also been confirmed in the camping industry (Poldrugovac et al, 2019). Therefore, we formulated the second alternative hypothesis as follows:…”

“…The current scientific debate, mainly in the revenue and pricing management literature, is represented by two opposing views on the profitability effects of room rate discounting as a tool for demand stimulation. The first view suggests that discounting does not work in the lodging industry (e.g., Enz et al, 2016; Poldrugovac et al, 2019; Singh et al, 2014), whereas the second advocates for short-term discounting make sense under certain conditions (Croes and Semrad, 2012; Demydyuk et al, 2015; O’Neill and Mattila, 2006).…”

Kompetitivno Formiranje Cijena – Mogućnosti Za Maksimizaciju Prihoda Hotela

“…Slična istraživanja provedena su i u kamping industriji (Peršić, Poldrugovac & Janković, 2019), u okviru kojih su rezultati pokazali vrlo slične tendencije, a to su da kampovi s višim ostvarenim prosječnim cijenama od svojih konkurenata ostvaruju i veći prihod po raspoloživoj mobilnoj kućici, odnosno kamp mjestu. Također, do sličnih rezultata došlo se i istraživanjem u marinama, gdje se pokazalo da one marine koje formiraju svoje cijene vezova više od svojih konkurenata postižu nižu razinu iskorištenosti vezova, ali u isto vrijeme viši prihod po raspoloživom vezu (RevPAB) (Vlašić, Poldrugovac & Janković, 2019).…”

Pricing and Public Policy Issues

“…Marketers practice price discrimination and dynamic adjustment of prices (Poldrugovac et al, 2019). Companies also try to adjust prices based on inventory levels, item velocity on how it sells, competitor's pricing, and promotions.…”