Quote:
Originally Posted by Shazam
I dunno, what's the price elasticity of hotel room prices?
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Well exactly - availability of substitutes and time frame are big influencers on elasticity. If this doesn't result in a drop of lower cost hotel rooms in the long run, I'd say that biggest driver on that response would be that there was a growing or unfulfilled high end hotel market for Calgary. If prices do drop at the lower end as we add high end hotel rooms, then that means this developments plan was to steal the existing high end market share from the current providers, and force them to take the lower priced customers.