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Article: Bringing Hotel Market Studies Into The 21st Century.(Brief Article)
- Article from:
- Hotels
- Article date:
- September 1, 2000
- Author:
CopyrightCOPYRIGHT 2000 Reed Business Information, Inc. (US). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Unfortunately for the lodging industry, hotel market studies have not progressed far in sophistication. In fact, some consultants are performing incorrect calculations that tend to skew their final projection of occupancy. The result is an inaccurate conclusion that could negatively affect the financial success of a project. The problem lies with outdated software developed by some of the old hotel accounting firms that really did not understand the true dynamics of hotel supply, demand and competitiveness. Let me give you an example of how some hotel consulting firms still improperly project occupancy.
Assume we have a market with three existing hotels plus a new ...