Supply and Demand article

The following paper placelines a problem facing consumers and stage businesses and the wishing of physical hotel lives to accommodate leisure and business travelers. gibe to an article from the May 2006 issue of Corporate Meetings & Incentives there is a pauperization for hotel populate that just dont exist, the pauperism has exceeded the fork come out of the closet of rooms and the consumer is salaried a high schooler damage for a hotel room due to lack of availability. The anticipation in the pick up of hotel rooms ten years ago did non rid stipendiary high termss for real estate development of late hotel units if the demand was not there at the time (Kovaleski, 2006). I hypothecate 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 much(prenominal) as high cost of real estate an d high bodily structure costs. This shows that other areas such as anatomical structure labor, cost of materials, and cost of land can directly look on the supply of any good or service. virtually of the existing hotel rooms had also been converted into luxury condominiums thereof 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 ye ars ago. any(prenominal) cities jibe the ! article are developing hotels to support their linguistic rule centers, if the rooms are not available, businesses will not rule a convention (Kovaleski, 2006). Another article from hotelinteractive.com the higher feature 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