Meals Pricing Strategies in The Egyptian Hotels: An Analytical Study

Document Type : Original Article

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Faculty of Tourism and Hotels, Minia University

Abstract

Meal pricing is a very important operation in hotels. However, the great difference in prices between hotels is a critical issue. So, this research aims to measure the level of prices variation. This research used the cluster random sample which includes 530 fixed hotels (0.59) in Egypt. The data collection instrument is the Egyptian hotel guide (2015-2016). The average of meals prices is 96.56 (LE) for dinner, 76.88 for lunch, and 46.21 for breakfast. The variance coefficient is 0.66 for breakfast, 0.58 for lunch, and 0.59 for dinner. In addition, hotel location, hotel stars, and hotel operator type significantly effect on the prices of breakfast, lunch, and dinner. The binary regression revealed that Cairo hotels, hotels with a high number of rooms, five-star hotels, and companies-based hotel management are statistically significant predictors of the high level of meal prices in hotels. In addition, the hotel operator type indicates the high level of breakfast prices, while the male managers' factor indicates the high level of lunch and dinner prices. Moreover, there is a positive correlation among total meal prices with dinner price (r =0.986), lunch price (r =0.978), and breakfast price (r =0.933). Finally, the results are an essential step for managers to develop the strategies of hotel revenue maximization.

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