BU362 Study Guide - Final Guide: Purchasing Power Parity, Binomial Distribution
Document Summary
3. 1 exhibit 1: american vs. mexican hotel expenditure 5. 3. 2 exhibit 2: mexicali income distribution 5. 8. 3 exhibit 3: mexicali market size wealthy & marrying market 6. La hacienda del sol is a quality hotel for tourists visiting san felipe. While in the summer months it is filled to capacity with americans, hacienda is having a difficult time achieving occupancy rates above 25% the rest of the year. Thus juanita garcia, a hotel vp, wants to market the hotel to local mexicali residents in the winter months. With this option, there are two main challenges: a) providing a compelling reason for locals to vacation at a primarily american- facing hotel, and b) overcoming the income barrier. To address both concerns, hacienda should target a situation where mexicalis are willing to spend money, and in which an american influence will not be seen as negative. By targeting wedding situations, hacienda can use their american-ness as an advantage.
