Oversupply
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What means oversupply?
Oversupply is a situation in the market in which the offered products or services are exceeding the products or services asked for by the demand site. So the productions of products or services is larger then the quantity that can be sold. This is the situation in the hotel sector and it is structural: this means it might shift but there will always be an overcapacity due to an oversupply even if the demand side grows. In most markets his means that there is a lot of choice for the customers, so there will be fierce competition and this means that sales prices will be under pressure all the time. All of this is true for the city your hotel is located in.
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