Naphawan Jane Chantradoan.Mahidol University. International College. Travel Industry Management Division.2014-10-302018-10-262014-10-302018-10-262014-10-302006https://repository.li.mahidol.ac.th/handle/20.500.14594/32878This topic has arisen from the interest in pricing strategies in tourism sectors and the study of managing package tourism to satisfy demands of potential clients. The study of pricing in tourism business has started long before, however for the more intimate study on price bundling seems to be very little comparing to other service sectors. As the connection between pricing and profitability is fundamental, the understanding of price bundling is prominent. The main proposal of this paper is to investigate the pricing and bundling activities which in turn affect the total perceived quality of package tours. There is a mutual interest for the business sectors, tourism authorities and the local suppliers in Phuket, a very well-known beach destination in Thailand, to upgrade the destination and find out the possibility to repackage Phuket for the major group of customers - European markets. Therefore, there is a need to study deep down to discover whether or not the all-inclusive holiday packages would match the needs of European travelers. This study particularly analyzed the behaviors and the attitudes of the Swedish tourists who are now becoming the major customers of Phuket, and used bundling technique to create the optimum holiday packages according to their preferences. The discussions were mostly in the economics and marketing directions. A case study of a travel agency was introduced in this paper to illustrate how packaging principle and price bundling strategies can be applied. The outcomes of empirical findings verified that price is the most significant factor which influences purchasing decision of the Swedish travelers towards package tour to Phuket. The Swedes perceive that purchasing an All-inclusive package (consisting of all products in one package) is more valuable than paying for an individual component. However, it was also found that the Reservation Prices (RP) of the Swedes towards their preferred activities exceeded the reference market prices which indicated the possibility to charge at a high markup for some products. Derived from the interviews, surveys, literature and observations of Swedish tourists’ travel behavior, sightseeing, spa and diving are proved as preferable elements for package tours to Phuket. The study finally concluded that the tour operators should implement mixed-bundling as the optimal strategy in packaging holidays for the Swedish tourists. This can reduce heterogeneity through selling one bundle products (all-inclusive) with discounted price in order to capture more customers, while those individual products can also be purchased separately with higher prices to collect high markups.engMahidol UniversityPackage holidaysPrice bundlingWTP or RPCustomer demand satisfactionSwedish touristProceeding Book