Monday, May 1, 2017

Cheap hotel rooms - economic theory demonstrated

I went to booking.com to book three nights of accommodation. I have a car so I can get out of the main street but I really do need some good facilities such as good Wi-Fi and a nice desk because I will be spending quite a bit of time at a desk and on a computer.

So by removing asymmetry in information these online comparison websites are really making the economic model work.

This particular hotel is out in a business and industrial estate that looks like a ghost town at the moment. And for 3 nights of accommodation I pay 200 Australian dollars.

2 comments:

  1. Excellent. I love Booking.com. That's what I used for all of our accommodation on the road in the UK.

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  2. Comparison websites have helped me greatly too for various searches. There was even an engine that generated a list of self storage facilities within your vicinity. This way, you can compare prices and select a convenient location.

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