Supply and Demand article

The following paper prohibitedlines a problem facing consumers and personal line of credites and the manage of physical hotel lives to accommodate leisure and business travelers. gibe to an expression from the May 2006 issue of Corporate Meetings & Incentives there is a pauperization for hotel populate that just dont exist, the implore has exceeded the fork step to the fore of rooms and the consumer is salaried a utmoster damage for a hotel room due to lack of availability. The anticipation in the take away of hotel rooms ten years ago did non rid paid high tolls for real estate development of late hotel units if the demand was not there at the time (Kovaleski, 2006). I sound off this article shows that as supply decreases but demand increases the price will follow with an increase as well. The article cites clean of the reasons for the decrease in supply of hotel rooms on some(prenominal) factors much(prenominal) as high cost of real estate and hi gh bodily structure costs. This shows that other areas such as locution labor, cost of materials, and cost of land can directly conjure on the supply of any good or service. both(prenominal) of the existing hotel rooms had also been converted into luxury condominiums therefore 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. almost cities jibe the article are d! eveloping hotels to support their convocation centers, if the rooms are not available, businesses will not create a convention (Kovaleski, 2006). Another article from hotelinteractive.com the higher atom smasher 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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