I just read this news. It is about the hotels in Australia reduced prices of rooms, they expect the travelers to stay longer but it does not work. It shows the problems in hotel and tourism industry, which is relate to my term paper.
In general, when the price is low, the demand for goods will increase, and vice versa. However, this theory does not hold true for the demand for hotel room for the Melbourne Cup 2010. The news report shows that the demand for hotel staying in Melbourne during the Melbourne Cup 2010 has not increased even though the price has been lowered from last year. The decrease in hotel room rate does not attract travelers to stay longer either.
Melbourne Cup 2010 in Australia has just started. The hotels in Melbourne have decreased prices from $194 in 2009 to $185 for Melbourne Cup 2010. The decrease in price makes the hotels become more affordable for the travelers in general. On the other hand, decreased prices did not mean the travelers will extend their staying, they still staying 5 nights as in 2009 also. Although, the prices have decreased but this price is expensive than the price in normal time when there is no special event as well.
I think this topic might be the arguments of many hotels in Melbourne. For those who plan to visit the city for the Melbourne Cup, they might not want to stay longer than the time of the race. So why they expect the travelers to stay more than 5 nights, it is quite wondering. In my opinion, all hotels in Melbourne should plan a better strategy for next year to achieve their goal for making the travelers stay in hotels for a long time.
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