Question 1:
Over the past years, the accommodation industry in general has had to move away from a captive market, diversify its range of products and services in order to be competitive in an almost saturated market. With at least two examples for each, explain the following terms:
(i) The accommodation industry
(ii) A captive market
(iii) Product diversifcation
(iv) Range of products and services
(v) Saturated market [6 marks each]
Question 2:
Discuss and explain why it may not be economically viable for the management of a hotel to use a pricing method that is totally dictated by the market forces of supply and demand.