Why are limited service properties typically more profitable?
Why are limited service properties typically more profitable?
Homework Answers
Limited service property do not offer all kind of services and are customized for some unique purpose and hence are not generally available for general public. So in that case
- it is not difficult to maintain
- It doesn't require continuous improvement to the infrastructures
- Lesser effort in the management etc
So it comes at the less expense from the owner side but they charge high margin and cost for these services due to customization and serving some special purpose
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