New Venture Creation: Pricing Strategies for Tourism Business

The assignment explores the application of dynamic pricing within a new venture in the tourism industry, focusing on a hotel business that incorporates green services and caters to a high-end clientele. The report discusses the benefits of dynamic pricing, particularly in response to seasonal demand, and emphasizes the importance of innovative product offerings to justify premium pricing. It also addresses the competitive factors and threats, such as the potential for substitution and the significance of geographical location. The report details the strategies used for setting prices, including customer segmentation based on financial influence and lifestyle, targeting customers in developed countries, and positioning the business to attract the desired customer base. Additionally, the report highlights the role of green services and technological advancements in justifying higher prices and ensuring quality service delivery. The report concludes by explaining how these strategies would be used to implement dynamic pricing for the business.

Running head: NEW VENTURE CREATION
NEW VENTURE CREATION
Name of the Student
Name of the University
Author Note

1NEW VENTURE CREATION
Answer 1
If I own a business, it would be a business based on the tourism industry, to be
precise, a group of hotels associated with the tourism industry. Being aware of the dynamic
demand of the tourism industry on the global context, I would incorporate the information
and knowledge regarding product pricing in order to experience the dynamic pricing during
the peak season of the tourism industry. The pricing would be set according to the innovative
product, which I will carry forward in the business.
Green services are always in demand for luxurious consumers as they generally lead
a lifestyle that is inclined towards the use of organic materials and many other green services
provided with health concerning services. Following it, I would add green services with the
help of innovative technology and modify the product accordingly. This facilitation would
attract a certain category of customer base, especially, the customers who are influential and
lead a luxurious life. Following it, the function of the dynamic pricing would be applied
following the seasonal tourism demand strategy. This would further benefit the business
profitably.
Answer 2
While establishing the prices, the competitive factors and external threats might be a
troubling factor in the business. The product of green services infused in the hotel industry is
marked or approached by many other hotel industries in the world. Thereby, the threat of
substitution might arise and eventually, it might affect my business. However, the main
challenge is marked on the basis of geographical location. This is because the hotel industries
are associated with the tourism industries where customers would expect a lavish location
provided with many tourist spots in the region. In that case, my business location would be
set accordingly so that it exists within a decent range of distance from the major historical

2NEW VENTURE CREATION
places. Following it, the competitive factor would be checked with the help of strategic
models that would construct my business plans firm and potential. Thereby, the product
pricing can be set higher than the general rates.
Answer 3
The strategy that would facilitate the dynamic price fixing of my product is screening
the customer base through the process of Segmentation, Targeting and Positioning (STP).
The customer base would be segmented according to their financial aspect, that is, the
category that is financially influential and leads a luxurious lifestyle. This process would help
in setting the dynamic pricing. The targeting would be based on the customer base that
resides in developed countries like the United States of America, Singapore, Europe. The
positioning is then set accordingly in order to attract the favourable customer base. In
addition to the process of STP, product pricing is set on the basis of green services. The
organic resource gained from the natural environment does cost a lot. And the fact, that
technologies are incorporated to provide health concerning facilities, for example, shower
infused vitamin C. Thereby, these factors lead the pricing the product high which is justified
and fair. Through these strategic steps, the innovative approaches would be incorporated in
my business and this is how I would make the pricing dynamic provided with the fact that the
services are facilitated with quality.