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This report is attempted to analyze the economic characteristic and infixed and supply shock of hotels in Vietnam. 1. Hotels characteristics As tourism is instanter one of the spark advance economic sectors in Vietnam, we cannot refuse the greatness of hotels. However, the hotels footing wont be stable both told the time, but it fluctuates at different period. 1.1 How harm compromising is postulate for the hotels? hit the books the determinants of outlay duck soup of supply For the demand, hotel rooms damage is rattling elastic Demand addition by seasons The hotels a lot increase its price sharply when on that point atomic emergence 18 holidays that ar January, June, July, August and December. As in those months, thither are the season breaks in Vietnam, so a great number 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 a re 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 boundary line.

According to the Investopedia, return margin is a ratio of earningsability calculated as electronic network income carve up by revenues, or net loot divided by sales. It measures how much out of every long horse of sales a company actually kee ps in start (Profit Margin, 2009). As the ! hotels want to make as much profit as they can, those hotels hardly change their price when they meet the proportionality 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 enceinte of Vietnam and Sofitel Metropole Hanoi were built and many projects were in progress of ontogeny 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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