Demand

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Two parts of the market

In any commercial market, we recognize:

• The supply side and
• The demand side
  

We do have some more information on revenue from the rooms; for the other sources of income like banqueting and food and beverage we do not have this kind of information. But, using some logics, we can try to do some estimates on the market situation there; like the demand in the market for banqueting and demand in the market for food and beverage.

Supply

At the starting situation in the city, there are approximately 10 hotels offering each 100 rooms during 364 days (the rounded up number of days) in a year.
So, the total supply in the total number of possible nights to book offered in the market which is 10 hotel x 100 rooms x 364 days in a year = 364,000 available room nights per year in the city. This is the total inventory or capacity in each 'market', each city.
The supply side is not likely to change dramatically over the years to come; the hotels will keep on offering their 100 rooms during the 364 days. T

Demand

The total demand is the total number of rooms nights asked for in the market. The occupancy rate of all ten hotels on taking over the Emerald Forest, is around 50%. So the total of the market 'demand' is 50% of 364,000 available room nights; so 182,000 in total.

Due to the fact that there is an oversupply in the market, there is an overcapacity. All the hotels active in the city together, offer more room capacity than there is demand in a year. Though, there is the effect of seasonality; these numbers are averages over the whole of a year.

Changes on the demand site

Market research companies, like Top Research, do research on developments in the hospitality market. An extended report, which is accurate, can be bought each year. The total demand in any market will also differentiate due to activities of all the hotels in that specific market.
More information available at many sources, sometimes for fee, like:

• Performance of US hotel industry
• Trivago, one of the aggregators, predictions
• Research center Cornell

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