This 7 page paper looks at a case study supplied by the student in order to determined the Thistle Hotel pricing policy. The policy is traced and the different actions taken by the company, such as acquisitions and divestments can be seen as a manifestation of this policy. The bibliography cites 2 sources.
Name of Research Paper File: TS14_TEthistl.rtf
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is a manifestation of company policies, form the range of acquisitions and divestments thought to the pricing policies. In looking at the company and its background the pricing policy may
be seen as an important aspect of the strategy that is being followed. Thistle started out as a small company with seaside hotels, but soon changed when they bought the
Thistle Hotels from Scottish and Newcastle. This singled a move towards the upper end of the market. The policies seen n the case may all be argued as being geared
towards achieving a premium position and a price to match that position. The company have undertaken many moves to change their positioning and reflect a more profitable market. In looking
at this market there is the need to understand the way in which prices are determined for any product. The first issue is that of price elasticity. There is a
need for a company to understand what the result on any price increase or decrease will on both the sales and the total revenue in order to understand the pricing
options it will have. This is known as the price elasticity. In reality, there will be many different influences on the supply
and demand relationship, such as substitutes and competing products. However, to begin with we consider only the individual product and the influence that price alone will have. Price
elasticity of demand is based on the change that will be seen in the demand for a product when the price changes. In most cases an increase in price will
result in a decrease in demand. This calculation allows us to quantify the change. The calculation is relatively simple, the figures required can usually be gained form the historical sales
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