What is opaque pricing in tourism?

Opaque pricing refers to a pricing strategy in the tourism industry where a package deal is composed of multiple components—like flights, accommodations, and activities—offered at a single price without revealing the specifics of those components to the consumer beforehand. This approach is advantageous for both sellers and buyers; sellers can fill their inventory more efficiently, while consumers can potentially find better deals compared to purchasing each component separately.

In this model, consumers typically do not know the exact details of what they are buying until after the purchase is made. This can create a perception of saving, as the package is often priced lower than the total of each component purchased separately. This pricing model is widely used in offering vacation packages and promotional deals, allowing for greater flexibility and inventory management.

Other options describe different pricing structures or methods that do not encompass the essence of opaque pricing. For instance, luxury pricing focuses on a specific market segment, while paying for individual components separately contradicts the core concept of opaque pricing. A transparent pricing method would not qualify as opaque because it involves clear visibility of costs, which is directly opposed to the fundamental idea of opaque pricing.