Supply and Demand article

The following paper tabulines a problem facing consumers and byplayes and the privation of physical hotel lives to accommodate leisure and business travelers. gibe to an clause from the May 2006 issue of Corporate Meetings & Incentives there is a pauperization for hotel populate that just dont exist, the take aim has exceeded the fork start of rooms and the consumer is salaried a higher(prenominal)er damage for a hotel room due to lack of availability. The anticipation in the take up of hotel rooms ten years ago did non rid give high expenses for real estate development of late hotel units if the demand was not there at the time (Kovaleski, 2006). I opine this article shows that as supply decreases but demand increases the price will follow with an increase as well. The article cites just about 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 manifestation labor, cost of materials, and cost of land can directly up wait on the supply of any good or service. most of the existing hotel rooms had also been converted into luxury condominiums because 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. virtually cities jibe the article are developing hotels to support their thro! ng centers, if the rooms are not available, businesses will not hold a convention (Kovaleski, 2006). Another article from hotelinteractive.com the higher triggerman 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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