Strategy opted for hotel pricing is prestige pricing. Prestige pricing is a physiological pricing strategy that sets prices of luxury products to the expectations of a niche class of customers who associate higher prices with superior quality. An advantage is setting a high price to convey an image of high quality or uniqueness. Customers will demand and pay more for a service that they perceive as important to their needs. Customers associate price with quality. Markets with low levels of product knowledge are candidates for prestige pricing.