The competitive pricing in marina business: exploring relative price position and price fluctuation

Abstract

Competitive pricing is considered to be a very important part of revenue management, a management instrument that enables selling right products and services to the customers at the prices that will produce highest revenues. Marina business is supposed to be a business whose products or services are perishable (similar to hotels, airlines, campsites, hostels etc.) and tracking prices of competitors is very important part of managing its business. The purpose of this paper is to address the problem of relative price position and relative price fluctuation performance in marina business and seeks to complement existing research in the domain of strategic price positioning. The research results reveal that marinas who set their prices higher than their competition achieve lower level of berth occupancy and at the same time succeed higher RevPAB. Marinas with lower prices than their competitors achieve higher level of berth occupancy and lower RevPAB.