Quote:
Originally Posted by Cleveland Steam Whistle
Is it that linear though? Theoretically - someone builds a bunch more $800 a night hotel options, that are nicer than the current $800 a night options.
If there is no more demand in Calgary for $800 a night rooms than our current options provide, the cost of the other $800 a night rooms will drop, and that domino will continue down the chain to the lowest cost hotel room providers, thus making more lower cost hotel options in Calgary?
If that doesn't happen, then one would assume the $800 a night market wasn't actually maxed out?
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I dunno, what's the price elasticity of hotel room prices?
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