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

Authors: Katarina Poldrugovac; Sandra Janković; Milena Peršić

Addresses: Accounting Department, Faculty of Tourism and Hospitality Management, University of Rijeka, Primorska 42, p.p. 97, 51410 Opatija, Croatia ' Accounting Department, Faculty of Tourism and Hospitality Management, University of Rijeka, Primorska 42, p.p. 97, 51410 Opatija, Croatia ' Accounting Department, Faculty of Tourism and Hospitality Management, University of Rijeka, Primorska 42, p.p. 97, 51410 Opatija, Croatia

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.

Keywords: revenue management; competitive pricing; pricing strategy; camping business; revenue per available capacity; RevPAC; occupancy; benchmarking.

DOI: 10.1504/IJRM.2019.103033

International Journal of Revenue Management, 2019 Vol.11 No.1/2, pp.76 - 88

Received: 16 Oct 2018
Accepted: 03 Apr 2019

Published online: 11 Oct 2019 *

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