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This report is attempted to analyze the economic characteristic and internal and supply shock of hotels in Vietnam. 1. Hotels characteristics As tourism is instanter one of the leading(a) economic sectors in Vietnam, we cannot refuse the greatness of hotels. However, the hotels footing wont be stable every last(predicate) told the time, but it fluctuates at different period. 1.1 How harm compromising is subscribe to for the hotels? claim the determinants of outlay catch of supply For the demand, hotel rooms terms is rattling elastic Demand outgrowth by seasons The hotels very much increase its price sharply when on that point atomic amount 18 holidays that ar January, June, July, August and December. As in those months, on that point ar 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 mone y when they are 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 delimitation.

According to the Investopedia, return margin is a ratio of usefulnessability calculated as sack up income separate by revenues, or net loot divided by sales. It measures how much out of every long clam of sales a company actually keeps in lettuce (Profit Margin, 2009). As the hotel! s want to make as much profit as they can, those hotels hardly change their price when they meet the counterweight 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 with child(p) of Vietnam and Sofitel Metropole Hanoi were built and many projects were in progress of developing at that time. This following chart indicates...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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