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Question
Generally, pricing theory suggests that a hospitality operation should price its rooms and its food and beverage menu items to control costs and maximize profit, while at the same time offering guests an appropriate value for their money. The reasoning behind the pricing theory is that owners should be provided with a satisfactory return on investment if the products being sold are properly priced.
(a) to identify any FIVE (5) pricing methods used in hospitality industry.
(b) Briefly explain the advantages and disadvantages on any FOUR (4) pricing methods mentioned in part (a) above.
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