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Constrained Demand

Constrained demand refers to a situation in the hospitality industry where the number of bookings or reservations exceeds the available capacity or inventory of a hotel or accommodation. This scenario often occurs during peak seasons, special events, or when there is limited availability due to factors such as renovations or maintenance. As a result, hotels may implement strategies such as dynamic pricing or yield management to optimize revenue and maximize occupancy levels during periods of constrained demand.

What is constrained demand in the hospitality industry?

Constrained demand in the hospitality industry refers to a situation where the demand for accommodations exceeds the available capacity or inventory of a hotel or property.

How do hotels manage constrained demand?

Hotels manage constrained demand by implementing strategies such as dynamic pricing, yield management, and offering alternative options to accommodate guests during peak periods or when availability is limited.

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