Attraction Case
Demand for a product refers to the quantities of goods a buyer is willing to and are able to buy. Demand for product has two sides to it; namely individual demand and market demand. The total demand of individuals makes up the market demand for a product. The following factors influence the amount of hotel rooms that consumers demand:
Price of the hotel room
The lower the room rate, other things remaining the same, the greater the customers demand is. The greater demand of the hotel room means that an individual who has the means to buy will be able to or would like to buy more of the product.
Number of tourists arrival
Prices of related products
Related products consist of substitutes and compliments. Substitutes are goods which can be used instead of another product. For example demand of guest house instead of hotel room. Complements are used in conjunction with other products. For example transport demanded to the hotel. The price of related goods will also influence the amount of a particular product one will buy. If the price of substitute of hotel rooms rises, the demand for hotel rooms increases. And if the price of a complement of hotel rooms falls, the demand for hotel rooms increases.
Expected change in future prices
For the leisure customers, if consumers expect the price of hotel room to increase in the near future then the demand could increase. While if they are expect it to drop in the near future, the demand might decrease as consumers wait to purchase the hotel room at a better price in the future.
Income of the consumer
Hotel room is considered to be the normal goods. For the increase in consumer income, the demand for the hotel room increase.
The taste of the consumer
The more someone likes a product the greater their