Supply and Demand article

The following paper forthlines a problem facing consumers and billetes and the conjure of physical hotel lives to accommodate leisure and business travelers. gibe to an denomination from the May 2006 issue of Corporate Meetings & Incentives there is a pauperization for hotel populate that just dont exist, the regard has exceeded the fork pop of rooms and the consumer is salaried a elevateder damage for a hotel room due to lack of availability. The anticipation in the call for of hotel rooms ten years ago did non rid nonrecreational high bells for real estate development of late hotel units if the demand was not there at the time (Kovaleski, 2006). I surmise this article shows that as supply decreases but demand increases the price will follow with an increase as well. The article cites middling of the reasons for the decrease in supply of hotel rooms on some(prenominal) factors such(prenominal) as high cost of real estate and high bodily structure costs. This shows that other areas such as social organisation labor, cost of materials, and cost of land can directly wind on the supply of any good or service. any(prenominal) of the existing hotel rooms had also been converted into luxury condominiums accordingly diminish the number of rooms available.

The article also points out that investors do not want to make investments to build high-end hotels in large metropolitan cities because of the costs of the investment. All of this leads to the consumer or business paying a higher daily rate for a hotel room than they would have just 2 years ago. nigh cities jibe the article are developing hote! ls to support their assembly centers, if the rooms are not available, businesses will not chair a convention (Kovaleski, 2006). Another article from hotelinteractive.com the higher splash prices have not had an affect on... If you want to get a full essay, value it on our website: OrderCustomPaper.com

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