HA 210 Lecture Notes - Lecture 2: Franchising, Timeshare, Real Estate Investment Trust
Document Summary
Price elasticity of demand: elastic: change prices, demand changes. As price drops, demand rises. : fewer people can afford it, and fewer people think it is worth it, even if they can afford it. True for most products and services and certainly true for leisure travel. Inelastic: change prices, demand is static: true for only a limited range of products. True for business travel to a large extent trip to finalize a million-dollar deal will not be dropped if airfare rises by ,000: true for many medicines or surgeries that are urgent. Segmenting the lodging market: market segmentation: process of dividing a large heterogeneous market into two or more smaller homogenous market segments, homogenous: consumers with similar needs, logic of segmentation: you can"t please all the people all the time. If you try to please everybody, you"ll end up pleasing nobody.
