Opaque pricing is designed to target specific market niches of price-sensitive customers, while leaving other niches alone. Thus, pricing deals are hidden from those customers who are not price sensitive. A good example is the business class seats on an airplane, for which prices are never discounted.16 Aug 2020
What is opaque package?
Opaque packaging means there's minimal material to throw away. Overall, opaque packaging films are an innovative and promising development for companies in e-commerce.22 Feb 2019
What does opaque mean in hospitality?
An opaque inventory is the market of selling unsold travel inventory at a discounted price. The inventory is called "opaque" because the specific suppliers (i.e. hotel, airline, etc.) remain hidden until after the purchase has been completed.
What is opaque selling?
Opaque selling is a pricing strategy that has been employed in various industries. The implementation of this strategy is essentially to offer the customers a lottery of getting one of the differentiated products at a uniform price.
What does Opaque mean in business?
Key Takeaways. Opaque pricing allows companies to sell products or services at hidden, lower prices. This type of pricing is targeted at price-conscious customers, as opposed to reputation or amenities, and is often used in the travel industry.
What is opaque distribution?
In opaque distribution channels, posted price (PP) is a popular selling mechanism that has now been adopted by Hotwire. In the opaque distribution channel, the intermediary hides some of the service attributes from the customer, only revealing them after the customer has paid for their booking.
What is opaque in hospitality?
Opaque Sites are booking channels and OTA websites where the supplier (in this case the hotel) remains hidden until after the purchase is complete. The sites are called 'opaque' because the supplier remains hidden during the booking process. This segment is popular in the travel industry.3 Aug 2020
What is the opaque pricing why the opaque pricing is beneficial to sellers and buyers?
Opaque pricing allows the supplier to (1) protect their stated pricing position, (2) generate guaranteed revenue, and (3) target price-conscious consumers. Goods/services in an opaque pricing structure are generally heavily discounted to compensate for the lack of information asymmetry between the buyer and seller.Opaque pricing allows the supplier to (1) protect their stated pricing position, (2) generate guaranteed revenue, and (3) target price-conscious consumers. Goods/servicesGoods/servicesInformation goods are commodities that provide value to consumers as a result of the information it contains and refers to any good or service that can be digitalized. Examples of information goods includes books, journals, computer software, music and videos.https://en.wikipedia.org › wiki › Information_goodInformation good - Wikipedia in an opaque pricing structure are generally heavily discounted to compensate for the lack of information asymmetry between the buyer and seller.
What is opaque hotel booking?
Opaque Sites are booking channels and OTA websites where the supplier (in this case the hotel) remains hidden until after the purchase is complete. The customer sees only the product category (destination, star rating of the hotel) and the price but not the brand.3 Aug 2020