- 31 Mar, 2021
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Hotel/Motel
This is what I need please : Identify total industry revenues and profits (profitability as a % of revenue) and decide if the industry receives normal or economic profits.
This is feedback from the professor…I hope this helps ..thank you for your services…
Team 5:
the following feedback is based on your first interim report:
Hotels/Motels
Products are either elastic or inelastic…can not be both. If you segment the industry’s products by customer segment, some segments may be elastic (resort hotels) while other segments may be inelastic (highway motels).
Income elasticity — normal or inferior good, not everyday good and some segments may be one and other segments may be the other.
No data on substitutes/complements for hotel/motel products. “When people visit hotels to dine, they also seek accommodation services.” — unclear, do you mean customers eat in the associated restaurant when they stay, or they stay because they ate in the restaurant and are they both hotel products?
Pricing… do is price of all products the same, or do they differ by segment? Do all customers pay the same? do all firms in the industry charge the same price?
Salaries/payroll are not considered a fixed cost.; facilities and equipment are fixed costs.
Score: 20/30
If you have questions about my comments or need additional help, please let me know.