Spirit Airlines Spirit is a low cost provider that provides a basic service. It charges fees for many services provided at no charge by other airlines. It also features seats that are close toegther to fit more people in the plane. You can use this video to discuss the price advantage provided by Spirit, the importance of creating the expectation that the fees where low and passengers would have their choice of extras, but at a cost. You can also discuss that this airline’s target is the price sensitive customer. It will not do well with business travlers who want some extra space for comfort and to work.

Restaurant pricing

Overview of restaurant pricing by Paul Bulles-Beaven of Union Square Hospitality Group. Union Square is Danny Meyer’s company which runs some of the most popular restaurants in New York City.


An overview of Marriott’s pricing techniques.

Professor Enz Pricing Study

Studies on lowering price may create higher occupancy but not RevPAR.

Class Exercise

Ask students to explain how price affects their choice of a restaurant and purchases they make once they are in the restaurant.

Current Material

Sarah Schlicter, “Hidden Hotel Fees,” Independent Traveler, May 6, 2015.


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