Ski – resort and regional development: profile of visitors ... - E-Journal
Ski – resort and regional development: profile of visitors ... - E-Journal
Ski – resort and regional development: profile of visitors ... - E-Journal
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104<br />
Stanislav Ivanov<br />
(11)<br />
The total variable costs will be:<br />
(12)<br />
The gross margin, then, is:<br />
(13)<br />
(14)<br />
Differentiating (14) to N <strong>and</strong> G leads us to the contribution <strong>of</strong> one room with a nonguaranteed<br />
/equation (15)/ or guaranteed booking /equation (16)/ to the gross margin <strong>of</strong> the hotel:<br />
(15)<br />
(16)<br />
Obviously , i.e. it is more pr<strong>of</strong>itable for the hotel to have guaranteed<br />
bookings rather than non-guaranteed ones.<br />
To determine the marginal rate <strong>of</strong> substitution between guaranteed <strong>and</strong> non-guaranteed bookings<br />
we express N as a function <strong>of</strong> G using (14):<br />
(17)<br />
The first expression in the brackets equals to (4). Therefore, when we include the monetary<br />
costs in the extended model, more rooms with nonguaranteed bookings will be needed in<br />
order to substitute one room with a guaranteed reservation.<br />
Tourism Today - Fall 2007 - Full Paper
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