In the first few months upon opening a new hotel, a hotel company wanting to achieve market share leadership is most likely to:
A) Try to influence supply
B) Try to influence demand by offering buy three nights, get fourth free, packages
C) Use low opening rates to influence demand
D) Charge a high price

Question

Quizplus · Accepted Answer

During the first few months of opening a new hotel, the hotel company may use low opening rates to attract customers and influence demand. This strategy may help the hotel to gain market share by attracting customers who may not have considered staying at the hotel at a higher price point. Once the hotel has established a presence in the market, it may adjust its pricing strategy accordingly.

In the First Few Months Upon Opening a New Hotel