The external pricing decision Essays

The external pricing decision Essays The external pricing decision Paper The external pricing decision Paper The uses of Hubbart formula can have certain advantages and disadvantages. The Hubbart formula can establish the price over a period of time or a wide range of establishments. However, it requisite rate of return on owners capital employed, and works back to the total revenue that needs to be generated from accommodation. In addition to the required data, it also calls for the full cost, that is all the variable costs plus some share of fixed cost, and hence it is in fact a cost based pricing through the external pricing decision. Definitely, the company would like to attain what they are yearning for, nonetheless, this kind of approaches may appear to be too subjective and arbitrary, and it is acting as a method of allocating the fixed costs as well. Apparently, tourism is a seasonal industry and always influences by the global changes; therefore the occupancy of the hotel may vary according to different seasons and different incidents. Such as, a few months ago, there was a terrorism in Bali, after the Bali Blast, the travelers are not willing to travel to Bali since Bali seems to be a considerable dangerous place for them to travel. As a result, the occupancy of the hotels in Bali decreases significantly. Furthermore, we have to concern about the location of the hotel too, if it situates in Britain Brighton (the southern part of England where it is along the coastal area where it is a seaside resort), then the summer time will be the peak period of tourism, as a result, the seasonal prices should incline as well. As long as the hotel does not concern about this factor, then they will suffer from a great loss since there will be less visitors during the winter, and hence the occupancy within that period will be relatively lower. It appears that the occupancy that we use in the Hubbart formula is the average rate, yet it will amend noticeably in different months, so it is necessary to anticipate the monthly occupancy. It is certain that the demand for the tourism industry (e. g. hotels bedrooms) is always elastic, so it is unlikely that the tourism operating sectors (e.g. accommodation sector hotel) to set the prices according to the cost of the goods and services produced. As a result, it is essentially important for the company to realize the significance of charging the price that the market will bear, instead of charging the price according to their wishes. Thus, the full cost techniques can then applied to see if this obtainable price covers the full cost of the product or services, and how much profit can be made at this price. Last but not least, it is often said that pricing decisions are extremely complex. In addition to the incorporation of the basic cost and financial data, the Star Hotel should also add in other internal and external considerations, including macro-economic, environmental, political and social factors and also it should take the other factors non-financial and non-quantifiable nature (such as behavioral factors) into their concerns and considerations. To put it briefly, if the above disadvantages can be avoided, it may escape from the inefficiencies that automatically built into the costing system and the uncompetiveness and ongoing to the track of success. Pricing is closely related to the decision that managers in both profit-making and non profit-making sectors. Providing that the total revenues are not in excess of total expenses the firm must subsequently go into liquidation. Overwhelmingly, there are defined rules of pricing. In my point of view, the Star Hotel can either use the Hubbart Formula or Market-based Pricing, which is one way of the external pricing methods as well. It implicates that the price will be charged for goods and services offered to the travelers outside an organization on market prices. It is because the goods and services produced by the Star Hotel are in reality sold in a highly competitive market since there are other suppliers offering identical or near-identical products. Consequently, the suppliers will be competing fiercely in respect of price, quality, reliability, and services. Undoubtedly, the Star hotel is one of the participants in the tourism industry, and we can identify it as a tourism-operating sector. Moreover, the demand for the tourism products is actually elastic, meaning that the lower price is offered, the more units will be sold. By using this method, Star Hotel should firstly categorize its target market and evaluate its position in the market. Afterwards, the price can be set. Overwhelmingly, different markets will have its own price since dissimilar demands occur and also hotels have different abilities, such as some are better in services and some are famous for its quality products. Then an interpretation of the sales according to the source of reservations and category of client is necessary for a further review since it will disclose the standard achievable room rate. As a result, it is indispensable for the Star hotel to base its price per room on what is being charged in the market. Or else, if it charges more than the market price, their sales will be reduced. On condition that it charges less than the market, its sales will increase in short term but the market will quickly adjust to a lower level of selling prices. Furthermore, the market conditions largely determine a suppliers selling prices; it is particularly significant to ensure that tight control is exercised over costs. Otherwise, the gap between total sales and total costs (i. e. the profit) will be insufficient to guarantee an adequate return on capital employed. In case, external price determination is concerned, including both market oriented and cost oriented methods, we can generalize by arguing that prices tend to be governed by the market. And so it is important to ensure that unyielding management is exercised over costs, as there will normally be little opportunity to raise the selling price.

Biography of Chief Massasoit, Native American Hero

Biography of Chief Massasoit, Native American Hero Chief Massasoit (1580–1661), as he was known to the Mayflower Pilgrims, was the leader of the Wampanoag tribe. Also known as The Grand Sachem as well as Ousemequin (sometimes spelled Woosamequen), Massasoit played a major role in the success of the Pilgrims. Conventional narratives of Massasoit paint the picture of a friendly Native American who came to the aid of the starving Pilgrims- even joining them in what is considered the first Thanksgiving feast- for the purpose of maintaining peaceful relationships and harmonious co-existence. Fast Facts: Known For: Leader of the Wampanoag tribe, who helped the Mayflower PilgrimsAlso Known As: The Grand Sachem, Ousemequin (sometimes spelled Woosamequen)Born: 1580 or 1581 in  Montaup, Bristol, Rhode IslandDied: 1661Children: Metacomet,  WamsuttaNotable Quote: What is this you call property? It cannot be the earth, for the land is our mother, nourishing all her children, beasts, birds, fish and all men. The woods, the streams, everything on it belongs to everybody and is for the use of all. How can one man say it belongs only to him? Early Life Not much is known about Massasoits life before his encounters with the European immigrants other than he was born in Montaup (now Bristol, Rhode Island) around 1580 or 1581. Montaup was a village of the Pokanoket people, who later became known as the Wampanoag. By the time of the Mayflower Pilgrims interactions with him, Massasoit had been a great leader whose authority extended throughout the southern New England region, including the territories of the Nipmuck, Quaboag, and Nashaway Algonquin tribes. Colonists Arrival When the Pilgrims landed in Plymouth in 1620, the Wampanoag had suffered devastating population losses due to a plague brought by Europeans in 1616; estimates are that upwards of 45,000, or two-thirds of the entire Wampanoag nation, had perished. Many other tribes had also suffered extensive losses throughout the 15th century due to European diseases. The arrival of the English with their encroachments on Indian territories combined with the depopulation and the Indian slave trade, which had been underway for a century, led to increasing instability in tribal relationships. The Wampanoag were under threat from the powerful Narragansett. By 1621, the Mayflower Pilgrims had lost half of their original population of 102 people as well; it was in this vulnerable state that Massasoit as the Wampanoag leader sought alliances with the equally-as-vulnerable pilgrims. The Pilgrims were impressed with Massasoit. According to MayflowerHIstory.com, Plymouth colonist Edward Winslow described the chief as follows: In his person he is a very lusty man, in his best years, an able body, grave of countenance, and spare of speech. In his attire little or nothing differing from the rest of his followers, only in a great chain of white bone beads about his neck, and at it behind his neck hangs a little bag of tobacco, which he drank and gave us to drink; his face was painted with a sad red like murry, and oiled both head and face, that he looked greasily. Peace, War, and Protection When Massasoit entered into a treaty of mutual peace and protection with the pilgrims in 1621, there was more at stake than a simple desire to make friends with the newcomers. Other tribes in the region were entering into agreements with the English colonies as well. For example, the Shawomet Purchase (todays Warwick, Rhode Island), in which sachems Pumhom and Sucononoco claimed they had been forced to sell under duress a large tract of land to a rogue Puritan group under the leadership of Samuel Gorton in 1643, led to tribes placing themselves under the protection of the Massachusetts colony in 1644. By 1632, the Wampanoags were engaged in a full-scale war with the Narragansett. Thats when Massasoit changed his name to Wassamagoin, which means Yellow Feather. Between 1649 and 1657, under pressure from the English, he sold several large tracts of land in Plymouth Colony. After abdicating his leadership to his eldest son Wamsutta (aka Alexander), Massasoit is said to have gone to live the rest of his days with the Quaboag who maintained the highest respect for the sachem. Later Years and Death Massasoit is often held up in American history as a hero because of his alliance and assumed love for the English, and some of the documentation hints at an overestimation of his esteem for them. For example, in one story when Massasoit contracted an illness in March 1623, Plymouth colonist Winslow is reported to have come to the side of the dying sachem, feeding him comfortable conserves and sassafras tea. Upon his recovery five days later, Winslow wrote that Massasoit said that the English are my friends and love me and that whilst I live I will never forget this kindness they have showed me. However, a critical examination of the relationships and realities casts some doubt over Winslows ability to heal Massasoit, considering the Indians superior knowledge of medicine and likelihood that the sachem was being attended to by the tribes most skilled medicine people. Still, Massasoit lived for many years after this illness, and he remained a friend and ally of the Mayflower Pilgrims until his death in 1661. Legacy Peace between the Wampanoag Nation and the Pilgrims lasted for four decades after the 1621 treaty, and centuries after his death, Massasoit has not been forgotten. For more than 300 years, Massasoit, and many artifacts related to his time as chief were buried in Burr’s Hill Park, which overlooks Narragansett Bay in the present-day town of Warren, Rhode Island. A confederation of Wampanoags, who still live in the area, worked for two decades to secure funding and dig up Massasoits remains and the remains and artifacts of many other Wampanoag tribe members who were buried in Burrs Hill. On May 13, 2017, the confederation re-interred the remains and items in the park in a concrete vault marked with a simple boulder during a solemn ceremony. They hope the burial site will eventually be added to the National Register of Historic Places. Ramona Peters, the repatriation coordinator of the Wampanoag Confederation who led the project, explained shortly before the re-interment: I would hope Americans would be interested too. Massasoit made it possible for the colonization of this continent. Sources Daley, Jason. â€Å"Massasoit, Chief Who Signed Treaty With the Pilgrims, To Be Reburied.†Ã‚  Smithsonian.com, Smithsonian Institution, 21 Apr. 2017.Hayes, Ted. â€Å"Burrs Hill Re-Burial to Be Solemn, Private Affair.†Ã‚  RhodyBeat, 12 May 2017.â€Å"Massasoit.†Ã‚  MayflowerHistory.com.â€Å"Massasoit Quotes. AZ Quotes.