Reflection on managing international market mix
The international laws affect people on an international scale and are established to provide a ground for decision making on such scales. However, when it comes to pricing in the tourism industry, there is no law that prohibits different charges for different countries and regions. Since different countries and regions use different currencies and of different values, the person charging is only bound by the laws of the destination country in coming up with the charges. The question arises on the ethics of doing so. In a business, one is out to offer services and make profits. Such would require one to consider all possible avenues to maximize profits. Therefore, in determining prices, the market forces determine the prices. In this case, depending on the number of tourist visiting Turkey, the prices are determined. It is thus ethical to charge differently as the market forces may dictate. It is a common practice all over the world for different people and regions to be charged differently in the hospitality industry. Such makes Erdogan decision on pricing a common practice.
If the dollar value continues to lower relative to the euro, Erdogan has to consider changing the pricing such that such changes are included. To be secure enough, Erdogan may use a common currency, the euro in the pricing. Such shall cushion his business from the dollar fluctuations. However, the strong euro may discourage USA tourist to visit or use his services since the euro is superior to the dollar making it expensive for the USA citizens.
Most of the time, the changes in currency value relative to other currencies is usually a seasonal thing. The markets tend to rectify themselves as the demand and supply of the currencies’ changes. However, one may want to do payments in tranches to ensure that he takes advantage of the fluctuating prices.
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