Proposal for Exec Hotels for Business Improvement Essay

Proposal for Exec Hotels for Business Improvement - Essay Example However, the costs associated with a new focus on tourism business are currently beyond the company’s capabilities. It has been determined that renewed local marketing is the best methodology to ensure revenue growth outside of the London centre of operations. 2. The business case Occupancy rates at hotels in Europe have seen stability in the last few years, with an average rate of 63 percent in London (Carlson Wagonlit, 2011). However, many European capitals are being hit hard currently with the economic global downturn, therefore the business should focus on its local business and presence (brand reputation) in the United Kingdom rather than expanding abroad. The company staff and executive leadership team are currently well-versed in local UK cultures, values and systems and by remaining in the UK for expansion, it will avoid the high costs of training and human resources restructuring for other European countries. The goal is to improve occupancy rates during the weekend where business is the most incapacitated, however the challenge to Exec Hotels is ensuring a method to fill weekend rooms without focusing on the new tourism market. This can be accomplished by staying true to the current values and operational know-how that currently exists in the UK marketplace. 3. The methodology for revenue improvements Competitive advantage for medium-sized hotels lays specifically in market innovation practices (Lin & Wu, 2008).

Pricing Essay Example | Topics and Well Written Essays - 1250 words

Pricing - Essay Example Center of discussion in this paper is pricing that can be approached at three distinct levels such as industry level, market level, and transaction level. Industry level pricing process considers overall economics of the industry including changes in customer needs and supplier prices. Zuponcic states that Market level pricing takes into account market trends and competitors’ strategies; whereas, transaction level pricing specifically focuses on the discounts management. Modern marketers practice a range of pricing strategies mainly including cost plus pricing, skimming pricing, market oriented pricing, penetration pricing, premium pricing, price leadership, target pricing, absorption pricing, and value based pricing. A set of economic factors is to be considered before recommending a pricing strategy for a particular product since pricing is the most effective profit lever. As Sloman points out, it is necessary to evaluate market demand and price elasticity of the product. Fo r instance, if there is high market demand for a product, the marketer can fix a relatively higher price whereas he will be forced to lower product prices when market demand declines. Some products including jewelleries and automobiles are very sensitive to price; and hence, even a small increase in price will lead to a noticeable decline in their market demand. As Clausen indicates, economic theories do not encourage the setting of higher prices for such price sensitive products. In addition, production costs and expected profit margin have to be analyzed while choosing a pricing strategy.... In addition, production costs and expected profit margin have to be analyzed while choosing a pricing strategy (ibid). When a product’s cost of production is high, firms generally charge higher prices in order to ensure adequate return on the huge investments. In the view of Senior (1852, p. 102), organizations need to consider huge profit margins if the cost production is high and fix a low profit margin if production costs incurred are near to the ground. Shaw (2001, pp.58-59) points out that market structure also plays a crucial role in ensuring successful pricing since market demand is the key driver behind product movement. To illustrate, a skimming pricing policy would probably fail to attract customers in a market where competition is intense, because a set of other product choices are available to customers. Therefore, it is better to adopt a cost plus pricing policy or penetration pricing policy while operating in a highly competitive market environment. Similarly, pr ice discrimination strategy would be advisable in a market which contains diverse population. This strategy seems to be potential for mobile phone industry, particularly to Aslan. According to George, Joll, and Lynk (1992, pp.181-185), in an oligopolistic market environment, a small number of sellers dominate the market; and hence economic theories advise firms to compete in such market segments with relatively low prices and high production. If a marketer increases his product prices in an oligopolistic market environment, customers will certainly switch their demand to other sellers who market their products more affordably. Marketers must give specific focus on the pricing of simple configurable products. Economic approaches direct that price