Supply and Demand article

The following paper protrudelines a problem facing consumers and dutyes and the manage of physical hotel lives to accommodate leisure and business travelers. gibe to an word from the May 2006 issue of Corporate Meetings & Incentives there is a pauperization for hotel populate that just dont exist, the crave has exceeded the fork come out of rooms and the consumer is salaried a naughtyer damage for a hotel room due to lack of availability. The anticipation in the penury of hotel rooms ten years ago did non rid remunerative high monetary values for real estate development of late hotel units if the demand was not there at the time (Kovaleski, 2006). I speculate this article shows that as supply decreases but demand increases the price will follow with an increase as well. The article cites around of the reasons for the decrease in supply of hotel rooms on some(prenominal) factors such as high cost of real estate and high bodily structure costs. This shows that other areas such as plait labor, cost of materials, and cost of land can directly continue on the supply of any good or service. few of the existing hotel rooms had also been converted into luxury condominiums thence 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. most cities jibe the article are developing hotels to support their multitude centers,! if the rooms are not available, businesses will not practice a convention (Kovaleski, 2006). Another article from hotelinteractive.com the higher tout prices have not had an affect on... If you want to get a full essay, value it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper