Tourism and Prices

Description: This quiz covers various aspects of tourism and prices, including factors affecting tourism demand, pricing strategies, and the impact of tourism on local economies.
Number of Questions: 15
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Tags: tourism economics pricing demand supply
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Which of the following is NOT a factor that affects tourism demand?

  1. Transportation costs

  2. Accommodation costs

  3. Political stability

  4. Natural disasters


Correct Option: D
Explanation:

Natural disasters are not a factor that directly affects tourism demand. They may have an indirect impact by disrupting transportation and accommodation services, but they do not directly influence the desire of people to travel.

Which pricing strategy is commonly used by airlines to attract price-sensitive customers?

  1. Cost-plus pricing

  2. Value-based pricing

  3. Penetration pricing

  4. Premium pricing


Correct Option: C
Explanation:

Penetration pricing is a strategy where a product or service is initially priced low to attract customers and gain market share. Airlines often use this strategy to attract price-sensitive customers and stimulate demand.

How does tourism impact the local economy of a destination?

  1. It creates jobs and generates income.

  2. It increases the cost of living for locals.

  3. It leads to environmental degradation.

  4. All of the above


Correct Option: D
Explanation:

Tourism can have both positive and negative impacts on the local economy. It can create jobs and generate income, but it can also increase the cost of living for locals and lead to environmental degradation.

Which of the following is NOT a type of tourism that is becoming increasingly popular?

  1. Ecotourism

  2. Adventure tourism

  3. Cultural tourism

  4. Mass tourism


Correct Option: D
Explanation:

Mass tourism is a type of tourism that involves large numbers of people traveling to a destination for a short period of time. It is becoming less popular due to its negative impacts on the environment and local communities.

What is the term used to describe the phenomenon where tourists are willing to pay more for a product or service simply because it is associated with a particular destination?

  1. Destination premium

  2. Tourist tax

  3. Value-added tax

  4. Markup


Correct Option: A
Explanation:

Destination premium refers to the additional amount that tourists are willing to pay for a product or service simply because it is associated with a particular destination. This is often due to the unique or iconic nature of the destination.

Which of the following is NOT a factor that affects the price of accommodation in a tourist destination?

  1. Location

  2. Amenities

  3. Seasonality

  4. Government regulations


Correct Option: D
Explanation:

Government regulations do not directly affect the price of accommodation in a tourist destination. However, they may have an indirect impact by imposing taxes or fees on accommodation providers.

What is the term used to describe the practice of charging tourists higher prices for goods and services than locals?

  1. Price discrimination

  2. Tourist tax

  3. Value-added tax

  4. Markup


Correct Option: A
Explanation:

Price discrimination is the practice of charging different prices to different customers for the same product or service. In the context of tourism, it refers to the practice of charging tourists higher prices than locals.

Which of the following is NOT a benefit of tourism for a destination?

  1. Increased employment opportunities

  2. Improved infrastructure

  3. Increased tax revenue

  4. Environmental degradation


Correct Option: D
Explanation:

Environmental degradation is a negative impact of tourism. It can occur when tourism activities damage the natural environment, such as through pollution, deforestation, or overdevelopment.

What is the term used to describe the phenomenon where tourists are willing to pay more for a product or service simply because it is associated with a particular brand?

  1. Brand premium

  2. Tourist tax

  3. Value-added tax

  4. Markup


Correct Option: A
Explanation:

Brand premium refers to the additional amount that tourists are willing to pay for a product or service simply because it is associated with a particular brand. This is often due to the brand's reputation for quality or exclusivity.

Which of the following is NOT a factor that affects the demand for tourism?

  1. Economic conditions

  2. Political stability

  3. Natural disasters

  4. Cultural factors


Correct Option: D
Explanation:

Cultural factors do not directly affect the demand for tourism. However, they may have an indirect impact by influencing people's travel preferences and behaviors.

What is the term used to describe the practice of charging tourists lower prices for goods and services than locals?

  1. Price discrimination

  2. Tourist tax

  3. Value-added tax

  4. Markup


Correct Option: A
Explanation:

Price discrimination is the practice of charging different prices to different customers for the same product or service. In the context of tourism, it refers to the practice of charging tourists lower prices than locals.

Which of the following is NOT a type of tourism that is becoming increasingly popular?

  1. Ecotourism

  2. Adventure tourism

  3. Cultural tourism

  4. Mass tourism


Correct Option: D
Explanation:

Mass tourism is a type of tourism that involves large numbers of people traveling to a destination for a short period of time. It is becoming less popular due to its negative impacts on the environment and local communities.

What is the term used to describe the phenomenon where tourists are willing to pay more for a product or service simply because it is associated with a particular destination?

  1. Destination premium

  2. Tourist tax

  3. Value-added tax

  4. Markup


Correct Option: A
Explanation:

Destination premium refers to the additional amount that tourists are willing to pay for a product or service simply because it is associated with a particular destination. This is often due to the unique or iconic nature of the destination.

Which of the following is NOT a factor that affects the price of accommodation in a tourist destination?

  1. Location

  2. Amenities

  3. Seasonality

  4. Government regulations


Correct Option: D
Explanation:

Government regulations do not directly affect the price of accommodation in a tourist destination. However, they may have an indirect impact by imposing taxes or fees on accommodation providers.

What is the term used to describe the practice of charging tourists higher prices for goods and services than locals?

  1. Price discrimination

  2. Tourist tax

  3. Value-added tax

  4. Markup


Correct Option: A
Explanation:

Price discrimination is the practice of charging different prices to different customers for the same product or service. In the context of tourism, it refers to the practice of charging tourists higher prices than locals.

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