Week 1 Homework LodgingDemands
Lodging Demands
DeVry University
Foundations of Hotel Mgmt
HOSP-320-62422
ProfessorLionel Thomas Jr.
November 02, 2014
Lodging Demands
Chapter 1:
1. There are three factors that influence lodging demand. What are they and discuss in detail how they affect the demand?
Population growth (Population Demographics, per textbook): The growth of population is an important factor that affects the lodging demand directly, Survey data of business and pleasure travel suggest that people above 45 years of age tend to be the most intensive consumers of lodging (Stutts 2005). If the growth rate is higher, then it reflects a positive sign in the lodging demand.
Gross domestic product (GDP) (Oil Prices, per textbook): GDP is also a valuable factor. This is explained by the fact that if GDP is high, then the spending potentiality of people would also in increase that also increases the demand of lodging.
Cost of air travel (Airline Ticket Prices, per textbook): The cost of air travel is another important factor that influences lodging demand. This is because that the low cost of air travel attracts the huge customers to consume the services that influence the lodging demand positively, while the high cost of air travel facilitates the customers to avoid the consumption of lodging services (Stutts 2005). Hence, it influences the lodging demand negatively.
2. At what time in history did the modern hotel industry emerge? What were the three contributing factors and how did they impact the industry today?
The modern hotel industry was emerging at different times in developed countries and under developing countries because of their GDP. The emerging of model hotel industry was started in 1900. This is because that during the 1900, the industrialization was started and the growth of GDP was in a positive direction. On the other hand, to make business contact and sell the products in different parts of the country, the people were travelling from one place to the other that
DeVry University
Foundations of Hotel Mgmt
HOSP-320-62422
ProfessorLionel Thomas Jr.
November 02, 2014
Lodging Demands
Chapter 1:
1. There are three factors that influence lodging demand. What are they and discuss in detail how they affect the demand?
Population growth (Population Demographics, per textbook): The growth of population is an important factor that affects the lodging demand directly, Survey data of business and pleasure travel suggest that people above 45 years of age tend to be the most intensive consumers of lodging (Stutts 2005). If the growth rate is higher, then it reflects a positive sign in the lodging demand.
Gross domestic product (GDP) (Oil Prices, per textbook): GDP is also a valuable factor. This is explained by the fact that if GDP is high, then the spending potentiality of people would also in increase that also increases the demand of lodging.
Cost of air travel (Airline Ticket Prices, per textbook): The cost of air travel is another important factor that influences lodging demand. This is because that the low cost of air travel attracts the huge customers to consume the services that influence the lodging demand positively, while the high cost of air travel facilitates the customers to avoid the consumption of lodging services (Stutts 2005). Hence, it influences the lodging demand negatively.
2. At what time in history did the modern hotel industry emerge? What were the three contributing factors and how did they impact the industry today?
The modern hotel industry was emerging at different times in developed countries and under developing countries because of their GDP. The emerging of model hotel industry was started in 1900. This is because that during the 1900, the industrialization was started and the growth of GDP was in a positive direction. On the other hand, to make business contact and sell the products in different parts of the country, the people were travelling from one place to the other that