Unlocking Tourism’s Potential: Pricing Strategies for the Post-COVID Renaissance

Abstract

In response to the challenges faced by tourism managers in devising effective pricing strategies to overcome the impacts of the COVID-19 pandemic, this study aims to make a valuable contribution to the existing literature on tourism management and marketing. Specifically, we investigate the pricing strategies that tourists are most likely to prefer in the aftermath of the pandemic. To achieve this, we conducted semi-structured interviews with a sample size of experienced tourists in Egypt. Our findings reveal that tourists exhibit a strong inclination towards hedonic and bundling pricing strategies. This suggests that tourism managers should prioritize the incorporation of these strategies into their post-pandemic business plans. However, it is crucial for managers to carefully consider tourists’ behavioral responses to dynamic and pay-what-you-want pricing strategies, as these are influenced by various constraints that necessitate careful attention. Furthermore, our study highlights potential negative consequences associated with the implementation of the dual-pricing strategy following the pandemic. This strategy has the potential to compromise tourists’ intentions to utilize certain services, thereby leading to unfavorable behavioral outcomes for tourism destinations. The implications of this study are of practical significance for tourism managers seeking to design more effective pricing strategies to capitalize on the opportunities presented by the post-pandemic recovery period. By understanding tourists’ preferences and considering the potential drawbacks associated with certain pricing strategies, managers can make informed decisions that promote the sustainable and successful revival of the tourism industry. Moreover, our study employed the checkpoints method, which allowed us to identify respondents’ priorities for the pricing strategies during the crisis, further enhancing the validity and reliability of our findings. © 2023 by the authors.Deanship of Scientific Research, King Saud University; Kazan Federal University; King Faisal University, KFU: 3117, EGY-0026/20This study was conducted according to the guidelines of the Declaration of Helsinki and was approved by the Deanship of Scientific Research Ethical Committee (Grant No. 3117), King Faisal University.All authors thank the Deanship of Scientific Research, Vice Presidency for Graduate Studies and Scientific Research, King Faisal University, Saudi Arabia (Grant No. 3117), through its KFU Research Summer initiative. The researchers are supported by a full Ph.D. scholarship under the joint executive program between the Arab Republic of Egypt and Saint Petersburg State University for the second author (M.I.S), number EGY-0026/20 and Kazan Federal University for the third author (M.Y.H.), number Egy.6572/19