true or false 1) Business travel demand for hotel rooms in an area is 80% and...

true or false

1) Business travel demand for hotel rooms in an area is 80% and vacation travel demand 20%. Annual compound business travel growth is 7% and vacation travel 10%. Total composite growth rate is 7.6%.

2) The business traveler component of demand for hotel rooms in an area is 80% and has been growing at 7% a year. Composite growth rate is 56%.

Solutions

Expert Solution

1. True for a growth of 7% in Travel business form 80% and 10% growth in Vocation business from 20% will provide a composite growth of 7.6 %

Description	Business Demand	Vacation Demand	Total Demand
Room Demand	80	20	100
Growth @ 7% & 10%	5.6	2	7.6
Total Increased Demand	85.6	22	107.6

Hence Composite Growth rate is 7.6%

2. False, Composite growth rate for growth of 7% in business demand is only 7% not 56%

Description	Business Demand
Room Demand	80
Growth @ 7%	5.6
Total Increased Demand	85.6
Growth rate	=5.6/80 = 7%

ekkarill92 answered 2 years ago

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