Article Abstract:
The effect of room taxes imposed on the lodging industry was evaluated. While the elasticity in the range of -.44 was lower than those of other studies, it still had a significant effect on the lodging industry. Industry sales were considerably affected by room taxes with all major segments suffering negatively in terms of number of rooms sold. The magnitude of positive benefits which may be gained from tax receipts is still to be determined although it is conceded that these could offset some of the adverse impacts.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
The price elasticity of demand and supply are used to measure the burden of room taxes on guests and the lodging industry. Elasticity of supply was 2.86 while demand elasticity had a value of -.44. This yields a tax incidence value amounting to 6.2. This means that six out of seven dollars in taxes is placed on guests while the remaining one dollar is indirectly shouldered by the lodging industry.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
The article discusses about two online sites, Trivop.com and Tvtrip.com that provide video clips of hotel's surroundings, rooms, lobbies, restaurants to help agents and travelers while selecting and booking the hotels in Europe.
User Contributions:
Comment about this article or add new information about this topic: