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This report is attempted to analyze the economic characteristic and any important(p) and supply shock of hotels in Vietnam. 1. Hotels characteristics As tourism is at once one of the starring(p) economic sectors in Vietnam, we cannot refuse the fertility of hotels. However, the hotels footing wont be stable all told the time, but it fluctuates at different period. 1.1 How harm compromising is demand for the hotels? roll the determinants of outlay grab of supply For the demand, hotel rooms value is rattling elastic Demand attach by seasons The hotels very much increase its price sharply when on that point argon holidays that are January, June, July, August and December. As in those months, there are the season breaks in Vietnam, so a great hail of customers travel and stay at hotels. The demand is high leading to the significant rise of hotel rooms price. Customers budget People are willing to spend money when they are in holidays. Therefore, if the hotels increase their price reasonably, it is totally acceptable. 1.2 How price elastic is supply for the hotels? Consider the determinants of price elasticity of supply The hotel rooms price is a little elastic when its supply increases One of the determinants of price elasticity of supply is the hotels high wampum border.

According to the Investopedia, return margin is a ratio of utilityability calculated as authorise income separate by revenues, or net loot divided by sales. It measures how much out of every long gymnastic horse of sales a company actually keeps in cultivated cabbage (Profit Ma rgin, 2009). As the hotels want to make as m! uch profit as they can, those hotels hardly change their price when they meet the rest in their demand and supply chart. We will look at the tourism statistic from 2006 to 2010, when the Vietnam tourism strongly developed as there is a lot of new hotels such as Movenpick capital of Vietnam and Sofitel Metropole Hanoi were built and many projects were in progress of maturation at that time. This following chart indicates...If you want to get a full essay, order it on our website: BestEssayCheap.com

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