HANI HOTEL

Hani Hotel - Economic Concepts

Hani Hotel - Economic Concepts

Introduction

Hani hotel is the smallest hotel in UAE. It is just like the small café but it also has small rooms for rent purposes. This hotel was established a long year ago and still it was little bit famous because of the foods. The foods offer by the Hani hotel was less expensive and any consumer easily buys it. The food is full of taste and unique with the less prices then the competitor. The competitors of Hani hotels are 2 star hotels located in the same street.

This study is consist of the product sell by the Hani hotel, the opportunity and scarcity cost of the food, analysis of the organization demand and supply and price elasticity of demand.

Discussion

Main Products and General Characteristics of the Firm

Background information

It is the service organization work under the dedicated employees. This service firms work as a 2 star hotel and compete with the other hotels in the same region. It is the smallest hotel which offers the good variety and tasty foods with the less expensive prices.

Important products and services

Hani hotel offer the all variety of food whether it is Italian food, Chinese food, Spanish food, spicy food etc. The Hani hotel not only offers the foods in their services but also it offers the small rooms for newly married couples, for tourist or for any other purpose. As it is the 2 star hotels so therefore rooms are not very much decorated. The hotel offers the comfortable room with the fewer prices.

Opportunity cost

In the decision making process, various opportunity cost should be considered. The opportunity cost for the hotel industry are the different discount given to the customer, reduction of waste and the meals which is not offer by the hotel and competitor offer it to the customers in the less prices. In order to take the advantage of the opportunity cost, hotel should have to make the list of food which should include the offer food by the hotel as well as the not offer food list too. In this way, new policies should be made and new chef should be hire which make the different tasty and variety food (Payne et. al, 1996, 131-152).

Scarcity issue

Water is the main important issue because of the scarce resource. So an organization face the major problems related to water. In order to resolve the water issue, the hotel uses the Dubai water supply. This is the only way for resolving the water issue as every organization in the UAE face the same problem. UAE is located in the desert so organizations of the country face the serious problem which reduces the revenue of the organizations (Assimacopoulos, 2006, Pp. nd).

Analysis of the Firm's Supply and Demand

Consumer's income

Increase in income changes the demand of the food which means that if the price of the food increases than also customers buy the products. The income effect changes the demand of the ...