Have lead to a general decline in the food supply while the worlds’ population recently soared to over seven billion meaning that there is high demand of food supply, wich consequently leads to a sharp increase in prices. Acording to the studies by Cribb (2011), oher factors that have contributed to high food prices include global warming that has affected the climatic conditions of certain arable areas making them unfavourable for farming. Scondly, acording to Cohen (1979) increase in population has resulted in an increase in demand for therefore, aable lands in most countries are being converted into real estates, wich is more lucrative than farming.
Tirdly, crtain natural calamities such as drought, foods, ad wildfire that damage cash crop thereby creating a shortage of food supply in the market. Acording to Hayes and Miller (2010), te hotel industry primary deals in the business of providing customers with accommodations as well as food and beverage. Terefore, a increase in food prices definitely means an increase in the operating cost and hotels are forced to transfer this increased the customers who in turn pay high bills for accommodation, fod, ad beverage.
Hyes and Miller (2010) stated that it is not a wise business decision to reflect the increased food prices primarily on the food bills since the customer may opt to eat elsewhere and therefore, htels strategically transfer this increased cost across various services that it provides to the customers. Tis is to say that with increased food prices the hotel industry is forced to equally increase the prices of its products and services that it to customers.
Wttman et al. 2010) stated that because of the fact that the increased food prices also affect not only the hotels but also all the stakeholders that include suppliers, saffs, ad even the shareholders there will definitely be an increased demand for the hotels to increase the pay of these stakeholders. I will be necessary to pay higher returns to the stakeholders and higher salaries to the staffs in order to cushion them against the high food prices that are prevalent within the market, wich erodes value of initial low pay.
Eually, sppliers will have to factor in the impact of the high food prices on their business and they will be forced to sell their supplies even if they are non-food related at higher prices in order to also cushion themselves against the. ..
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