If I raise my price by 10 and wind up losing 15 of my customers, ...

[fox]

Question 1

Think about a destination that you have visited that you especially liked. Describe how it measures up on the four criteria that make a destination great and different.
 
  What will be an ideal response?

Question 2

If I raise my price by 10 and wind up losing 15 of my customers, is the price elasticity of demand for my hotel elastic or inelastic?
 
  What will be an ideal response?

[leahchrapun]

Answer 1

This question has the intention of encouraging students to recognize that destinations differ across a spectrum that may seem quite wide, but, in fact, can be described and characterized

in systematic ways on the basis of a limited number of dimensions. Understanding this fact should lead to the conclusion that certain characteristics of specific destinations will also attract certain types of travelers that can be described along demographic and psychographic dimensions.

Answer 2

If I increase rates by 10 and lose 15 of my customers, my customers are said to be price elastic or very sensitive to changes in rates.

[fox]

Wow, this really help

[carlsona147]

Thanks for the timely response, appreciate it