Supply

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Two parts in the market

In any commercial market we recognize

  • the supply side and
  • the demand side.

We do have some more information on the rooms: for the other sources of income like banqueting and food and beverages we do not have this kind of information. But using some logic's you can try to do some estimates on the market situation there: like the demand in the market for banqueting and demand in the market for food and beverages.

Supply

In the starting situation in the city there is 10 hotels offering each 100 rooms during 364 days (the rounded up number of days) in a year. So the total supply in the total number of possible nights to book offered in the market is 10 hotel x 100 rooms x 364 days in a year = 364,000 available room nights per year.
The supply side will not change during the game: we presume all hotels will keep on offering their 100 rooms during 364 days. The numbers of weekdays and weekend days, obviously, will not change either.

Demand

The total demand is the total number of rooms nights asked for in the market. The occupancy rate of all ten identical hotels on taking over the Emerald Forest is 50%. So the total of the market asks for 50% of 364,00 available nights so 182,000 in total.

Due to the fact that there is an oversupply in the market, there is an overcapacity. All the hotels active in your city together offer more room capacity then there is demand in a year.

Changes on the demand site

The demand side will shift mildly over the years, so is the expectation. Market research companies, like Top Research, off you (paid) reports and predictions on this. The total demand will differentiate due to activities of the teams.



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