INTRODUCTION

TOURIST PERCEPTION ON OVERPRICED PRODUCTS AND SERVICES AMONG

LOCAL ENTERPRISES TO COPE UP WITH THE EFFECTS OF THE PANDEMIC

COVID-19 pandemic turned the world upside down. Every sectors/industry are facing a
lot of challenges, it causes a lot of changes in everyone lives; people are losing jobs and income,
with no way of knowing when normality will return. All has been affected. This pandemic has
huge economic impacts not just from the costs of managing the health of people, it has already
occurred worldwide as a result, the production decreased, there are loss of life,
company/business closures, trade disruption and the decimation of the tourism industry. the
tourism industry is among the sectors that have been greatly affected by the COVID-19
pandemic with impacts on both travel supply and demand. The global tourism and hospitality
industry are directly impacted by the guidance on social distancing and government isolation
because of the nature of the sector that is still connected to people travelling. History has shown
that epidemics and pandemics have an immediate effect on hotels and restaurants, airlines, travel
agencies, etc., due to international travel bans, media attention and government initiatives. Since
they are dealing with reduced demand, they also have excess capacity and increased price
sensitivity. The impact of the pandemic on airlines may translate to less travelers flying abroad,
and, as a result, will make other parts of international travel more expensive.
Traditional trade, accommodation and food services and manufacturing accounted for
more than half of the businesses reporting a rise in the cost of supplies. Half of the enterprises
facing a rise in the cost of materials were based in the NCR. The coronavirus pandemic has
upended many aspects of everyday life, including the cost of consumer goods and services.
While some grew cheaper amid the decreased demand caused by social distancing and stay-at-
home orders, there are also many examples of products and services that became more
expensive, such as foods, transportations, goods etc.
Overpricing may have negative consequences by alienating valued customers. Because
of pandemics, a lot of local enterprises choose to overpriced their products or services to cope up
with the effect of pandemic. Yet some of them take advantage of the pandemic to make a profit
for themselves.
 According to consumer behavior research by Stevens (1992: 44) "consumers perception
carry the greatest weight in the various decisions made by tourists - the choice of a destination,
the consumption of commodities while on vacation, and the decision to return. Perception are the
consumer's subjective reality .... Perception is important because contemporary consumers are
becoming more and more discriminating". They are more experienced travelers, older and more
value conscious. It is important in influencing travel behavior. Consumers (tourists) tend to rely
on prices when they make important decisions, particularly when they do not have self-
confidence during decision-making.
The purpose of this study is to analyze the impact of the Covid-19 pandemic on the
behavior of tourists, their perception regarding overpriced goods and services among local
businesses to cope with the effects of the pandemic. Will tourists permanently change their
spending patterns as a result of lockdown and social distancing, or will they return to their old
habits once the global crisis is over? Will there be new habits among consumers as a result of
new regulations on air travel, shopping at shopping malls and attending concerts and sporting
events? And what is the impact and the reasons why local businesses overprice their goods and
services.
Tourist and their attitudes/perceptions are of key interest in evaluating and managing the
economic, socio-cultural and environmental effects of tourism growth in a given area. tourist
perceptions are among the most influential. It’s important that we recognize the power of these
perceptions in fueling growth for the travel industry. Tourist perception is significant among
locals and international, because the world is experiencing the effects of pandemics with no
exceptions. Therefore, countries engage in numerous marketing and promotional activities to
attract more tourists and improve their satisfaction.