Selection and application of pricing strategies in rural tourism: the case of Vojvodina’s farmsteads

N. Njegovan, В. Demirović, Ž. Vaškoc

Abstract


Tourism today is a mass phenomenon involving a large number of actors, both on the demand side and on the supply side. For more efficient and better organized performance, tourism companies need to ensure a high quality of service and apply effective pricing strategies. Therefore, the aim of this paper is to outline the key pricing strategies and analyze their advantages and drawbacks. For this purpose we have chosen the specific case of farmsteads in the Province of Vojvodina, Serbia. We focus on the complementary products or services provided by these farmsteads that have a seasonal element to them, that is, they are hard to sell out of season. As a result, we devised guidelines for entrepreneurs to enhance their business opportunities by applying effective pricing strategies such as the ‘marginal costs’ strategy.

Keywords


strategies; prices; marginal costs; rural tourism; farmstead; Vojvodina province (Serbia)

Full Text:

PDF

References


Komppula, R. (2014). The Role of Individual Entrepreneurs in the Development of Competitiveness for a Rural Tourism Destination – A case study. Tourism Management, 40, 361-371. DOI: https://doi.org/10.1016/j.tourman.2013.07.007

Romeiro, P. & Carlos, C. (2010). The Potential of Management Networks in the Innovation and Competitiveness of Rural Tourism: a Case Study on the Valle del Jerte (Spain). Current Issues in Tourism, 13(1), 75-91. DOI: https://doi.org/10.1080/13683500902730452

Demirović, D., Košić, K., Surd, V., Žunić, L. & Syromiatnikova, Y.A. (2017). Application of Tourism Destination Competitiveness Model on Rural Destinations. J. Geogr. Inst. Cvijic., 67(3), 279–295. DOI: https://doi.org/10.2298/IJGI1703279D

Eric, M., Olson, S., Slater, F., Tomas, G. & Hult, M. (2005). The Performance Implications of Fit Among Business Strategy, Marketing Organization Structure, and Strategic Behavior. Journal of Marketing, 69(3), 49-65.

Peng, M. W. (2017). Cultures, Institutions, and Strategic Choices: Toward an Institutional Perspective on Business Strategy. In M. J. Gannon & K. L. Newman (Eds.), The Blackwell Handbook of Cross-Cultural Management (1-13). Oxford, UK: Blackwell Publishing Ltd.

Pejanović, R., Maksimović, G., Radović, G. & Njegovan, Z. (2015). Ruralni razvoj i agrarno preduzetništvo – potencijali za porodnični biznis. Novi Sad: University of Novi Sad.

Robert M. Grant (1999). The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation. In Zack, M.H. (ed.) Knowledge and Strategy (3-23). London: Routledge.

Turvey, R. (2000). What are Marginal Costs and How to Estimate them? Technical paper 13. Bath: School of Management, University of Bath.

Zeger, D., Labro, E. & Roodhooft, F. (2000). An Evaluation of Vendor Selection Models from a Total Cost of Ownership Perspective. European Journal of Operational Research, 125(1), 34-58. DOI: https://doi.org/10.1016/S0377-2217(99)00199-X

Zachariah, D. (2009). Determinants of the Average Profit Rate and the Trajectory of Capitalist Economies. Bulletin of Political Economy, 3(1), 1-13.

Lozano, M.A., Carvalho, M. & Serra, L.M. (2009). Operational Strategy and Marginal Costs in Simple Trigeneration Systems. Energy Volume, 34(11), 2001-2008. DOI: https://doi.org/10.1016/j.energy.2009.08.015

Fushuan, W. & David, A.K. (2001). Optimal Bidding Strategies and Modeling of Imperfect Information among Competitive Generators. IEEE Transactions on Power Systems, 16( 1), 15 – 21. DOI: 10.1109/59.910776

Fernández, Z. & Nieto, M.J. (2005). Internationalization Strategy of Small and Medium-Sized Family Businesses: Some Influential Factors. Family Business Review, 18(1), 77–89.

Radović, G., Pejanović, R. & Njegovan, Z. (2012). Značaj i uloga integrisanog ruralnog turističkog proizvoda u Republici Srbiji. Ekonomski vidici, 4, 577-591.

Teodorescu, N., Pop, N.A. & Stăncioiu, A.F. (2001). Price Determination and Price Strategy in the Marketing View. Management & Marketing, 3(4), 21-36.




DOI: https://doi.org/10.15826/recon.2018.4.1.003

Copyright (c) 2018 N. Njegovan, В. Demirović, Ž. Vaškoc

Сertificate of registration media Эл № ФС77-80764 от 28.04.2021
Online ISSN 2412-0731