HTT 303 Lecture Notes - Lecture 5: Fixed Cost, Order Of Lakandula, Deferral
9 Oct 2015
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Document Summary
. integration is a brilliant idea but it doesn"t always happen because businesses is all about power. wholesalers cater to: target markets, destinations, activities, transportation. The economics of a wholesaler: the start up. blocking: (or blocked purchases) buying/reserving accommodations ahead of time and in bulk (ie: going to a resort and asking to book 300 rooms for 2017; assuming you book it this year: return on investments (roi, cash flow. prepaid expense for your guests (pay weeks/months before the date of your vacation) . incurred expense to the supplier because we (the packagers) do not pay until after. ^the better you are at negotiating, the longer you will have your money for and interest will go up therefore more money in the bank. leverage: getting something out of what you put in. benefits: if currency you get paid in goes up; if you sell your package for more than what you"ve paid for it (profit: fixed costs.
