Hotels have become the mainstay of international travel.
They are also the most popular place to stay in, with an average stay of about two weeks.
But what does the economic theory say about them?
Economist Christopher D. Shirey has been studying hotel economics for the past few years and published a book last year.
He thinks there is a lot to understand about how hotels make money.
Here he explains what economic theory tells us about how hotel prices work.
Guest: Chris, thanks for coming in.
Chris Shireys book Hotel Economics is the latest in a long line of books on hotel economics.
We’re in the midst of a global economic crisis, but hotels have always been the go-to spot for the international tourists.
Chris: So we’re seeing a lot of hotels in crisis, and the idea is that people are resorting to hotels for the short term, and then going elsewhere for the long term.
Guest : Exactly.
And we know that there are a lot more short term hotels in Europe, and we know, in fact, that the number of short term tourists in Europe is growing.
So hotels are the key drivers of growth, but we also know that in some of these places, like the US and in Europe as well, they have a lot less room for growth.
We know that they’re not able to provide as much of the services that the private sector is able to offer, like providing a great selection of amenities, and having people stay longer, and that sort of thing.
And there are other factors.
So it seems like there is more room for hotels to grow, and more room to shrink the hotels that they have.
And, also, they’re also not really profitable for the hotels.
They’re not profitable in the sense that they are making money.
They aren’t making money because they’re profitable, but they’re actually not profitable for their guests, either.
And that’s one of the reasons why the hotel industry is in crisis.
They don’t make a lot money for their own guests.
Chris : So, is that a theory?
Guest : No, that’s a theory that we can’t really explain, but it is one of those things that we’re interested in.
And one of my major themes in the book is that hotels are a key driver of the global economy.
And they’re really, really important to the world economy.
They serve the world’s commerce.
And so if we can understand how hotels work, we can get a better idea about how the world works.
Chris and I are both economists.
Chris is an economist at the World Bank, and Chris is also a professor at Harvard.
And Chris is a really brilliant economist, and he is a terrific guy to talk to.
And I think that we have to look at hotel economics and also hotel travel more generally, because the global economic system is very, very complicated.
And hotels are just one part of the system.
We have all these international airlines that we don’t have to pay for.
And when they fly from the US to the Philippines, they pay for their fuel and they pay their pilots and their security.
And then we have these other, like American airlines, which fly us all over the world.
And it is, by far, the largest economy in the world, but then we also have the rest of the world that has a lot smaller economies, like we do in the US, Canada, Australia, New Zealand, and so on.
And what we really need to understand is the economics of all these economies, and how they work together.
And how hotel economy really works is one way to understand that.
And as we’re going to talk about in a moment, we’re talking about hotel economy and how it works in a very general sense, and not necessarily in terms of what you see on the front page of The Economist, but actually how it actually works.
So we have a hotel in London that is not profitable, and it’s a bad hotel.
And its business model is that they rent out their rooms to the locals, to tourists.
And because they are so cheap to rent, tourists don’t come and stay at the hotel.
The tourists, however, are going to stay at this hotel because they want to pay a higher rate, or because they think it is a good place to spend money.
And the hotel pays this higher rate because the hotel is more profitable.
So if you rent a room to the tourists, it’s really profitable to do so.
And of course, there is some sort of competition between hotels.
And obviously the hotels are competing with each other to attract tourists.
So they are trying to attract as many tourists as possible.
And hotel prices have risen a lot in the last couple of years.
And therefore hotels are now competing with one another to attract the tourists.
That’s one way in which hotels compete.
And also, the price of hotel