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Business Economics - Economies of Scale in the Hotel Industry

Level:
A-Level, IB Diploma
Board:
AQA, Edexcel, Eduqas, IB, OCR, WJEC

Last updated 19 Mar 2023

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This short revision video considers some of the internal economies of scale that might be used by large-scale hotel chains such as Premier Inn and Travelodge. Economies of scale are important for these businesses who aim to use low average prices and dynamic pricing to keep hotel occupancy rates high and achieve supernormal profits.

Business Economics - Economies of Scale in the Hotel Industry
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