This waterfall graphic is a good way to visualize the holistic impact of revenue dilutions.

Pricing and merchandising strategies vary among industry business models and individual operators. In the simplest cases, one, non-discounted price is set for each unique product and applied to most transactions.

Other models such as the cruise industry use aggressive promotional tactics, layering on discounts and value-adds in various combinations for various market segments at various times. In some cases “published” price — if one exists at all — serves merely as a mere reference point to express the value of the promotional offer.

Distribution commissions are usually based on the price paid by guests, net of cash discounts but undiluted by the cost of value-add components included in the promotional price.