Anybody need a hotel room for this weekend?
- Thread starter MSUDawg25
- Start date
I've always considered the price gouging by hotels to be a much bigger issue than gas, yet they never get called out.
We definitely need more gubment intervention. Damn capitalism, free markets, and the invisible hand!!1***
The deal is... The market price is whatever someone is willing to pay for whatever it is being sold. If someone is willing to pay $240 a night, then dammit, I'll sell it at that. At least that's what capitalism is supposed to be...
Hampton can rent a room for whatever they damn well please if someone is willing to pay it. Gouging is unfairly raising prices because of some outside force... Like chainsaws after Katrina. This isn't gouging, this is the free markets at work.
The deal is... The market price is whatever someone is willing to pay for whatever it is being sold. If someone is willing to pay $240 a night, then dammit, I'll sell it at that. At least that's what capitalism is supposed to be...
Hampton can rent a room for whatever they damn well please if someone is willing to pay it. Gouging is unfairly raising prices because of some outside force... Like chainsaws after Katrina. This isn't gouging, this is the free markets at work.
It's not unhealthy. Apparently the hotel prices aren't too high because they are full for every weekend during football season. Even with additional hotels being added it might slightly lower hotel prices but because of high demand for rooms during peak times they will still be high. Sounds like you have the philosophy the world is out to screw you when they are actually just taking what the market will get them.
i guess since people are starving in the world I should give all my rice away for free and not what the market demand is.
i guess since people are starving in the world I should give all my rice away for free and not what the market demand is.
Ill rent yall a room in my house for $150 a night. Ill throw in my sister and breakfast for 3 fitty
Correct. It is not the same.
One company is going to have a full house and make slightly more money than normal because their prices are similar to normal rates. The other company is probably not going to have a full house with their higher than normal rates (meaning less work to do), make more money than normal, and have the potential to make a crapload more than normal if they do sell all the rooms. They aren't guaranteed it will work and are taking a risk. The risk can result in higher rewards. The company with cheap prices has very little risk and much less rewards. The philosophy of each company is different but neither is wrong.
This is actually a decent example of one of the foundations of business strategy as it relates to economic forces.
One company is going to have a full house and make slightly more money than normal because their prices are similar to normal rates. The other company is probably not going to have a full house with their higher than normal rates (meaning less work to do), make more money than normal, and have the potential to make a crapload more than normal if they do sell all the rooms. They aren't guaranteed it will work and are taking a risk. The risk can result in higher rewards. The company with cheap prices has very little risk and much less rewards. The philosophy of each company is different but neither is wrong.
This is actually a decent example of one of the foundations of business strategy as it relates to economic forces.
I strongly disagree. The hotel market in Starkville would be unhealthy IF the market was so oversaturated with supply that the businesses could not take advantage of demand surges. Because then, none would be profitable during the remainder of the year.
The market doesn't operate to save money for the consumer. It operates to benefit both business and consumer. It's working fine. Competitors entering the market will benefit the consumer. But if demand increases, there will be no price change.
/Thanks, Melissa Moore.
So, you think the demand for hotel rooms in Starkville, MS is the same as an AWAY baseball game weekend in May as it is in October? That pricing grid I showed is from April/May not September/October.
What is the demand the weekend of May 15, 16, and 17 to justify $240 a night at the Hampton Inn? There arent any baseball game that weekend.
What is the demand the weekend of May 15, 16, and 17 to justify $240 a night at the Hampton Inn? There arent any baseball game that weekend.
Her, Allison Pearson, and James McCormick were my absolute favorite professors at State. Dr. Collier was also a good one, too, even though I didn't do well in his class.