DECA Hospitality and Tourism Cluster Practice Exam

Hotels offering guests a weekend package that includes accommodations, meals, and a sightseeing trip is an example of?

1. Individual selling

2. Price positioning

3. Product bundling

4. Target advertising

The correct answer is: Product bundling

When hotels offer guests a weekend package that includes accommodations, meals, and a sightseeing trip, it exemplifies the concept of product bundling. This practice involves combining multiple products or services into one package deal, which provides added value and convenience to the customer. By bundling accommodations with meals and activities, the hotel enhances the overall guest experience and encourages bookings by presenting an all-inclusive option that may be perceived as more attractive than purchasing each component separately. Product bundling can lead to higher sales and increased customer satisfaction, as it simplifies the planning process for guests and often results in cost savings compared to buying each item independently. This strategy is particularly effective in the hospitality industry, where an integrated offering can appeal to travelers looking for convenience during their stay. Individual selling focuses more on the personal interactions and relationships between sales personnel and customers, while price positioning deals with how a product's price is set relative to competitors and perceived value. Target advertising refers to directing marketing efforts toward specific groups of consumers based on their demographics or behaviors. These concepts, while important, do not relate to the combination of services as seen in the weekend package offering.