¶ … Agglomeration Effects and Performance: a Test of the Texas Lodging Industry," author William Chung (2001) explores how agglomeration is used by Texan lodging companies to benefit their bottom lines and increase their profits. In different industries, the location and proximity of competition has a lot to do with how profitable that company is. When there are more comparable options in a limited area for consumer's money, then the cost of the product or service is more competitive. People will likely utilize the service which provides the greatest value for their money. In an industry like lodging, when there are many places to stay in a limited area, the cost and quality of the individual businesses will impact the amount of customers who choose a given place of business. This will require those who have stakes in the area to both increase the quality of their service and to decrease the price so that the customers...
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