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It is not uncommon to see prices that end with a 9 or 99, be it in a restaurant, grocery store, or clothes store. Yet, this convention in pricing is typically found in the US, and evidence of it in the Asian marketplace remains limited. Given this, the present study pioneers an empirical investigation on price ending strategies in Asian marketplaces, particularly in the hospitality industry. Using automated data extraction, a total of 63,075 room rates were sampled from 21 hotels operating in Macau that were advertised online. The digit 8 is the most frequently used price ending, especially by five-star hotels and upper-scale rooms. Conversely, 4 was not the least frequently used price ending. These findings provide guidance to hospitality pricing managers who are not aware of the local culture and the price-ending dynamics of the Asian marketplace.

Magic Number 8: Hospitality Price Ending Strategies