Friday, November 4, 2011

Hotel Revenues on the Rise

"The point: recession or no recession people are still eager to travel."

For consumers finding a time to get away and relax isn't something they're willing to trade off. Dynamic pricing helps hoteliers as a tool to find equilibrium price. Consumers are spending a little extra cash to find exactly what they want. This exemplifies the role of a consumers self interest and elasticity. Differently priced rooms are available to all consumers to meet a variety of incomes. This is a wise way to prevent compromising margin.

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