Supply and Demand article

The following paper breaklines a problem facing consumers and businesses and the press of physical hotel lives to accommodate leisure and business travelers. gibe to an member from the May 2006 issue of Corporate Meetings & Incentives there is a pauperization for hotel populate that just dont exist, the ingest has exceeded the fork show up of rooms and the consumer is salaried a graduate(prenominal)er damage for a hotel room due to lack of availability. The anticipation in the bring of hotel rooms ten years ago did non rid remunerative high impairments for real estate development of late hotel units if the demand was not there at the time (Kovaleski, 2006). I chew over this article shows that as supply decreases but demand increases the price will follow with an increase as well. The article cites or so 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 s tructure costs. This shows that other areas such as gimmick labor, cost of materials, and cost of land can directly tactual sensation on the supply of any good or service. or so of the existing hotel rooms had also been converted into luxury condominiums wherefore 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. few cities jibe the article are developing hotels to support their assembly cent ers, if the rooms are not available, busines! ses will not hold in a convention (Kovaleski, 2006). Another article from hotelinteractive.com the higher botch prices have not had an affect on... If you want to get a full essay, value it on our website: OrderEssay.net

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