Quote:
Originally Posted by Strange Brew
Yeah I think he’s confusing dynamic pricing vs price elasticity. There is definitely dynamic pricing for hotel rooms in Calgary. As someone who moved away but still comes back regularly, I know first hand.
I actually don’t know if these hotels will add as many rooms as one might think. Those towers are more apartments than hotel rooms.
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I'm not confusing them, thanks.
The original question of price elasticity was maybe a bit misdirected in this instance though - with some hotels (in particular, 'destination' hotels) their existence
creates the demand. And I think that is the more pertinent point here. The BMO Center and the new arena, combined with desirable hotels, will create demand.
However, to the other point, dynamic pricing does contribute to price elasticity. Or, more accurately,
can. Seasonal changes in pricing definitely impact demand.