HRT 374 Lecture Notes - Lecture 8: Income Statement
31 Aug 2016
School
Department
Course
Professor
Document Summary
Positioning (where do your brand want to stand? quality factor? brand perception) Applies to for profit and not- for profit. Measuring how sensitive demands is to changes in price. Elastic- demand is sensitive to price changes. If you raise the price, people will buy less. Inelastic- demand is less sensitive to price changes. If you raise the price, people still buy the same. Because a rise in price does not lead to an equal decrease in demand. (change in quantity/ base quantity) / ( change in price / base price) E. g per room, 70 % occ, price increase to $ 125, 65 % occ % (5 % / 70 % )/ ( / ) Compare with other similar companies, and set the competitive pricing, and changes in price. Based on what the manager feels the guest is willing to pay, usually rely on their experience regarding guests" reactions to prices.
