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Definition: Penetration pricing involves setting lower prices to gain market share quickly. Impact on Tourism Demand: It intends to attract a large number of tourists by lowering the cost barriers, encouraging trial and building a customer base.

Definition: Skimming pricing means setting high initial prices and then gradually lowering them over time. Impact on Tourism Demand: Aims to maximize profits from less price-sensitive tourists, then attracts more price-sensitive segments later on.

Definition: Premium Pricing refers to setting high prices so that perceived quality/value is also high. Impact on Tourism Demand: Attracts high-end tourists looking for luxury and exclusivity, potentially reducing mass-market demand.

Definition: Economy pricing involves setting a low price for products with minimal production costs. Impact on Tourism Demand: Appeals to a large market segment sensitive to price, possibly increasing volume but reducing profit per unit.

Definition: Value-Based Pricing is a strategy where prices are based on the perceived value to the customer rather than the cost. Impact on Tourism Demand: Can attract tourists willing to pay more for unique experiences, but may alienate those seeking basic services.

Definition: Dynamic Pricing involves fluctuating prices based on current market demand, competition, and other external factors. Impact on Tourism Demand: Encourages tourists to book early for better prices, potentially increasing early demand but may deter last-minute bookings at higher prices.

Definition: Discount Pricing means offering reductions on the standard price to stimulate demand or reward customer loyalty. Impact on Tourism Demand: Can generate an immediate boost in tourism numbers but may reduce overall profitability if used excessively.

Definition: Geographical Pricing varies prices according to geographical location or market segment. Impact on Tourism Demand: Can increase demand in price-sensitive markets, but may lead to dissatisfaction if consumers notice price discrimination.

Definition: Freemium Pricing provides basic services for free while charging for advanced or special features. Impact on Tourism Demand: Can attract a large user base initially; however, converting free users to paying customers can be challenging.