Author Question: What determines whether room supply rises or falls? What will be an ideal response? (Read 93 times)

joe · **on:** Sep 11, 2019

Question 1

How is Priceline different from Expedia, Travelocity, and Orbitz?

What will be an ideal response?

Question 2

What determines whether room supply rises or falls?

What will be an ideal response?

zacnyjessica · **Reply #1 on:** Sep 11, 2019

Answer 1

Priceline differs from Expedia, Travelocity, and Orbitz because Priceline offers hotel rooms and airline seats to the public at a price suggested by the consumer (which may be rejected). The others sell hotel rooms and airline seats in the traditional manner, namely at a price set by them in advance.

Answer 2

According to forecasters of such activity, the most important determining factor is the average daily room rate. The logic is that rising ADR means that demand is rising faster than supply thus encouraging supply to catch up.