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- W192173093 abstract "Discussion on overcapacity of lodging industry has persisted among academics and industry. Despite a general agreement on its negative effects, efforts to quantify overcapacity and investigate its cause have significantly lacked. Suspecting that these efforts are hindered by the present difficulty in evaluating the optimum capacity, this study provides a conceptual framework of a revenue-maximizing industry capacity under the theory of fundamental price. Moreover, as capacity decision is made before the demand is known, the effect of demand uncertainty on capacity decision is examined in conjunction. Results suggest that the US lodging industry has incentive to maintain excess capacity under demand uncertainty, while pronounced overcapacity cycles seem to be a result of demand shocks. Implications for the industry and suggestions for future research are discussed with the findings of the study." @default.
- W192173093 created "2016-06-24" @default.
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- W192173093 date "2011-01-01" @default.
- W192173093 modified "2023-09-27" @default.
- W192173093 title "Overcapacity of the US Lodging Industry: The Effect of Uncertainty and Incentive to Overbuild" @default.
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