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> It then follows that that cost must be paid by the customers .. It absolutely does not follow at all. When costs are disconnected from pricing, the business
by writepub 7y ago
> It then follows that that cost must be paid by the customers ..
It absolutely does not follow at all. When costs are disconnected from pricing, the business undergoes a loss. For instance, many rural Texas cities have high property taxes, and low demand for hotel rooms. In many of these places hotels are unviable, because the market would never pay enough to eke out a profit.
In such places, Airbnb is surprisingly effective, as the renter typically sees AirBnB income as a bonus, and doesn't rely on it to make a living.