Scenario 1: STI Travel & Tours is aiming to increase the price of their Hongkong Disneyland tour

package this December. Customers who will book from June to November can have a
10% discount.

Which pricing factor can aid them to make it more cost-effective? How?

Variable costs, which fluctuate with an agency's level of production and sales, are the pricing
component that can help them make it more cost-effective. The agency plans to raise the cost of
the Hong Kong Disneyland tour package in December, like in the aforementioned case. Bookings
made between June and November are eligible for a 10% discount. The packages must include
everything the consumers need, such as lodging, transportation, and airfare, for an all-inclusive
fee, to be more cost-effective. To maximize their investment in those goods and services, agents
must determine which of these are the most cost-effective.

Scenario 2: ABC Travels is offering their Family 3 Days/2 Nights Palawan Tour for Php 3,000/pax.
Customers who will book for 8–10 pax will get 5% off the total cost.

Which among the pricing factors is more evident in the scenario? Why?

In this case, the operating expense is the pricing factor that stands out the most. It has already
calculated the breakeven points and stated the cost of the entire package, so it is clear what the
minimum price should be to achieve profit objectives.