APPLICATION OF 4Ps: PRICE

PRICE

        The pricing set by Oxalis Homestay is considered reasonable. This is because the homestay provides several facilities for the convenience for their guests. The service that includes in their price is they provide the TV include Netflix, Wi-Fi, all the bedrooms have air-conditioner, and all the basic necessary like washing machine, kitchen and refrigerator. For example, Homestay of 'kakak' and 'adik', the price is RM190 but the price for homestay 'Abang' is RM200. The price is slightly higher due to the direct paddy field view available from Abang's Homestay  compared to other two homestay. They also have several activities that guest can do such as ride a bicycle and fishing. If guest want to do an extreme activity, they also have collaboration with ATV parties. Based on our group opinion as student, we think the price is a pricy and the service provide is just a basic thing, nothing special. 

            Pricing plays a crucial role in the business. Customer will see the advantages and disadvantages of the services based on the price that the owner of the price set.  For business especially homestay, pricing is not only determines revenue but also influence how guest perceive the quality of the service. In case of Oxalis Homestay in Kangar, understanding how pricing affects consumer perceptions and demand is crucial in attracting customers and maintaining steady occupancy throughout the year. Homestay often appeal to families, group and budget travellers, who compare multiple listing before making a booking. Therefore, if Oxalis Homestay offers competitive pricing compared to similar accommodations in Kangar, it can attract more guest especially during peak season like school holiday or public holiday. However, the pricing must be flexible due to some seasons but the owner of Oxalis Homestay said that the price is same either weekday, weekend or public holiday. 

          Unlike other businesses, Oxalis Homestay keeps prices unchanged and does not promote different rates often. Area homestay owners update each other about prices by using WhatsApp group, and they arrange a yearly event to keep in touch. The recommendation for pricing adjustments is Oxalis Homestay should introduce seasonal rates like give increase 10-15% during peak season like public holiday or school holidays. Another recommendation is maybe the owner can create something difference than other homestay. For example, maybe the owner can include the breakfast with the prices of the homestay. By implementing these pricing strategies, Oxalis Homestay can better align its pricing with customer expectations and market demand, ensuring consistent bookings and sustained growth.