The economic theory of supply and demand dictates that an excess of supply (hotels) compared to demand (customers) leads to a lower price which consumers are willing to pay. This creates rigidity in hotel prices and puts substantial pressure on management to meet customers' pricing needs while providing an attractive and unique service. Hotel services are also intangible in nature, which places a greater burden on hotel owners to utilize all available rooms through discounts and offers. Supplier power in the hospitality industry is limited mainly due to the abundance of hospitality product suppliers. Hotel furnishings and services are available in a wide market, giving hotel owners the freedom to choose products that specifically meet their personal standards and requirements. This places the onus on suppliers to increase the attractiveness of the product to hoteliers. Hotels can often be very large and purchase in large quantities, making them very valuable customers for suppliers. Slide 4Threat of the new