“The Role of the Room Rate” Please respond to the following:
- Analyze the hotel market in your state and determine if the room rates for the majority of hotels is elastic or inelastic. Explain your rationale and identify contributing factors (e.g., tax rates, competition, etc.).
- Imagine opening a small hotel in the town in which you attend class (or your hometown if taking classes online). Briefly describe the hotel and determine how you would determine the proper room rate. Please be as specific as possible.