Selection and application of pricing strategies in rural tourism: the case of Vojvodina's farmsteads

Abstract

Tourism today is a mass phenomenon involving a large number of actors, both on the demand side and on the supply side. For more efficient and better organized performance, tourism companies need to ensure a high quality of service and apply effective pricing strategies. Therefore, the aim of this paper is to outline the key pricing strategies and analyze their advantages and drawbacks. For this purpose we have chosen the specific case of farmsteads in the Province of Vojvodina, Serbia. We focus on the complementary products or services provided by these farmsteads that have a seasonal element to them, that is, they are hard to sell out of season. As a result, we devised guidelines for entrepreneurs to enhance their business opportunities by applying effective pricing strategies such as the ‘marginal costs’ strategy.