Economics & Hospitality

Main topics of study:

The Approach to Economics:

  • The Definition & Meaning of Economics
  • Scarcity & Choice
  • The Importance of Marginal Analysis
  • Capital & Income
  • The Business Firm
  • The Financial Features of Businesses
  • Business Perspectives

The Market:

  • The Market System
  • Market Stability
  • Government Controls
  • Change in the Market
  • Changes in Demand
  • Changes in Supply
  • Market Changes in Practice
  • Short-term & Long-term Effects of Change in Demand
  • Short-term & Long-term Effects of Change in Supply
  • Elasticity & Its Application
  • Applying Supply & Demand
  • Implications for Management

Economic Trends Affecting the Hospitality Industry:

  • Defining the Economy
  • Measuring the Economy
  • Measuring Changes in Output
  • Trends in the Economy
  • Economic Growth
  • Reasons for Economic Growth
  • Structural Change in the Economy
  • Economic Trends & the Hospitality Industry
  • Time, Cost & Economic Change
  • Economic Growth & Household Changes
  • Economic Growth & the Hospitality Industry

Structural Change in the Accommodation, Food and Drink Sectors:

  • A Note on Spending & Income
  • The Accommodation Sector
  • The Eating Out Sector
  • The Drinks Sector
  • Contract Services

Macroeconomic Fluctuations & the Hospitality Industry:

  • Boom Follows Slump Follows Boom: Stages of the Macroeconomic Cycle
  • Aggregate Demand & Supply
  • Why Fluctuations in Output Occur
  • Government Macroeconomic Policy
  • Views on Macroeconomic Policy
  • The Impact of the Macroeconomy on the Hospitality Industry
  • Predicting Macroeconomic Changes
  • Implications for Management

The Hospitality Industry & the Local Economy:

  • Tourism Life Cycle & Local Development
  • Multiplier Analysis of the Local Impact of Tourism
  • The Multiplier Process
  • Multiplier Studies

Costs & Market Structure:

  • Market Structure
  • Economies of Scale & Scope & Experience
  • Sources of Economies of Scale & Scope
  • Economies of Scale & Scope in the Hospitality Industry

Market Structure & Market Control:

  • Pricing for Profit
  • Comparing Monopoly & Competition
  • Dominant Firms & Oligopolies
  • Market Structure & Social Efficiency
  • Government Control of Monopolies

Strategic Product Development & Delivery:

  • Goods & Services
  • Costs of Production
  • Planning the Production of Hospitality Services
  • Production Planning in a Changing Environment
  • Service Quality

Business Operations:

  • Efficient Production
  • Use of Labour
  • Investment Decisions
  • Organising Production: The Economic Role of Firms

Business Development:

  • Risks & Financial Requirements of a Business During Development
  • Vertical Integration
  • Mergers
  • Franchising: Solution for a Dispersion Market
  • Internationalization

Pricing & Product Development:

  • Strategic Development & Pricing
  • Pricing Methods for Hospitality Services
  • Differential Pricing for Demand Management
  • Price Discrimination
  • Load Pricing
  • Application of Differential Pricing
  • Hotel Occupancy & Capacity Utilisation
  • Pricing in Special Situations

Maintaining & Developing Your Economic Skills:

  • An Analytical Framework
  • Planning Reading
  • Reading the Industry Literature