The travel agencies recommend customers to purchase travel package rather than a single component of travel. Also, customers choose their preferred travel package, and this makes it more easier to save the travel budget and search time. Bundling strat...
The travel agencies recommend customers to purchase travel package rather than a single component of travel. Also, customers choose their preferred travel package, and this makes it more easier to save the travel budget and search time. Bundling strategy, which offers two or more separate products or services together in a package at one single price from the sum of the different components` prices, is one of the most prevalent marketing practice in travel industry. This paper tested a mixed bundling strategy of travel package based on the theory of bundling. Results show that mixed bundling taken by travel agency include number of travel product items and price discount size to put in travel package. Also, explaining functional compatibility between travel products in travel package. We find that customers expected a large discount size and large number of travel product items. However, they expect low functional compatibility between travel product items.