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 the rooms: for the other sources of income like banqueting and food and beverages we do not have this kind of information. But using some logic's you 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 beverages.

Supply

At the starting situation in the city there are 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.
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. The numbers of weekdays and weekend days, presumably, will not change a lot either.

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 'demands' for 50% of 364,000 available 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.

Changes on the demand site

Market research companies, like Top Research, do research on developments in the hospitality market. The extended report, which often is accurate, can be bought. The total demand in any market will also differentiate due to activities of 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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