Tiered pricing

Tiered pricing refers to a structured pricing strategy where the cost of a product or service varies to reflect differences in value, service quality, timing, quantity, or availability. 

It allows travel providers, such as airlines, hotels, cruise lines, or tour operators, to offer multiple price points for essentially the same core product, depending on factors like booking class, travel date, customer segment, cancellation policies, or included amenities. 

This concept enables businesses to capture different levels of customer willingness to pay while maximizing revenue and managing inventory more effectively.

Tiered pricing strategy also supports brand positioning, as different tiers can appeal simultaneously to budget-conscious travelers and higher-paying customers.