Research On Pricing And Bundling Strategies For Online Travel Platform

In recent years,the development of tourism has been diversified,and the online tourism has developed a strong momentum.As an effective marketing method for online travel platforms to expand market demand and increase platform profits,which bundling pricing decisions are affected by many factors.Factors such as the cannibalizing effect between bundling and single-selling,consumers’ discount on the valuation of bundled products,the timing and complementarity of products,and consumers’ cancellation behavior complicate the decision-making of online travel platforms.Therefore,based on the behavioral decisions of consumers,we consider factors such as bundled valuation discount,product complementarity,and consumer cancellation behavior to study the bundling pricing strategy of travel platform,and provide support for the platform’s pricing decisions and strategic choices.Firstly,considering consumer bundled valuation discount,we establish unbundling and mixed bundling models for online travel platform,and analyze the impact of bundled valuation discounts on travel platform’s pricing decision and profit.We found that it is always beneficial for platform to switch from unbundling strategy to mixed bundling strategy when the initial visibility of the product is low.When the bundle valuation discount is low,the platform should choose low-price mixed bundling strategy,and when the bundled valuation discount is higher than a certain threshold,the platform should choose high-price mixed bundling strategy.When the initial popularity of the product is high enough,the platform has incentive to choose mixed bundling strategy only when the bundled valuation discount is high or low.Otherwise,when the bundling valuation discount is low,the platform should choose low-price mixed bundling strategy,and when the bundling valuation discount is high,the platform should choose highprice mixed bundling strategy.Further,considering product complementarity,we establish models of unbundling and mixed bundling of online travel platform,and analyze the impact of bundled valuation discount and product complementarity on platform pricing decision and profit.We found that when the product popularity is high enough,the platform should choose unbundling strategy.The platform should choose low-price mixed bundling strategy when the bundled valuation discount is very low.And the weaker the product complementarity,the more favorable the low-price mixed bundling strategy.The platform should choose unbundling strategy when the bundling valuation discount and product complementarity are both within a certain low range.Otherwise,the platform should choose high-price mixed bundling strategy.And the stronger the product complementarity,and the higher the bundling valuation discount,the more favorable the highpriced mixed bundling strategy.Finally,considering consumers’ cancellation loss aversion and cancellation behavior,we establish profit models of unbundling and mixed bundling of online travel platform,and analyze the impact of cancellation rate on platform pricing decision and profit.We found that the cancellation rates of primary product and sub-product under different bundling strategies have different effects on profits.When the platform adopts unbundling strategy,the cancellation rate of the primary product has a greater impact on the profit.When the platform adopts high-price mixed bundling strategy,the cancellation rates of the two products have almost the same degree of impact on profits.When the platform adopts low-price mixed bundling strategy,the cancellation rate of sub-product has a greater impact on profits.When the platform switch from unbundling strategy to high-price mixed bundling strategy,the lower the product cancellation rate,the more favorable the high-price mixed bundling strategy.And the platform should actively take measures to reduce the cancellation rate of the primary product.When the platform switch from unbundling strategy to low-price bundling strategy,the higher the product cancellation rate,the more favorable the low-price mixed bundling strategy.And the platform should actively take measures to reduce the cancellation rate of sub-product.