Price bundling is the concept

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Price bundling is the concept that you are purchasing a set group of items for less than then the cost of buying them individually. (The Pricing Framework and a Firm's Pricing Decisions, n.d.) An example of this we've all seen are value meals. Essentially, you are getting something like a sandwich, drink, and fries to gather and the drink is free.

An industry that rolls out constant deals like this is travel industry. Norwegian cruise lines are currenting having a sale for 35% off rates with a $200 ship shore voucher, all-inclusive food and drinks service for all their European ports. They know that once you are on the ship you will be using their services anyway, they only really need to sell you the room. They are not actually losing any money by offering these extras because you are more than likely to continue to percase more services from them once you are on the boat. So, the customer feels like they are getting an amazing deal and the cruise line can keep a steady flow of customer.

Reference no: EM133879708

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