Pricing plays a pivotal role in managing demand, capacity, revenue, and profitability within tourism and hospitality organizations. From a supply-side perspective, contemporary pricing practices — such as dynamic, personalized and algorithmic pricing — are increasingly shaped by advancements in artificial intelligence, big data analytics, and machine learning. In parallel, pricing strategies significantly influence tourists’ decision-making processes. From a demand-side perspective, tourist behavior and responses to various pricing approaches can be examined through the lens of prospect theory, particularly in relation to concepts such as reference prices, framing, anchoring effects, perceived price fairness, perceived price transparency, customer confusion, customer alienation, and loss aversion. This study explores key pricing concepts at the intersection of business practice and tourist behavior, while addressing emerging challenges. Factors considered relate to technological capabilities and organizational readiness, profitability and capacity management, psychological drivers, regulatory frameworks, and ethical considerations form the broader context within which pricing decisions are made.

JEL Classification

L11, D40x