How Do You Spell HOTELLING?

Pronunciation: [hə͡ʊtˈɛlɪŋ] (IPA)

The word "hotelling" is commonly used in the business world to refer to a strategy of allocating resources or space (such as an office) to multiple users. But how is it spelled and pronounced? The IPA phonetic transcription for "hotelling" is /hɔ.tɛ.liŋ/. The word is spelled with two "l's" at the end to indicate that it is a gerund form of the verb "hotel" (which means to provide lodging or accommodation). So, next time you're discussing hoteling as a strategy, you'll know how to spell and pronounce it correctly!

HOTELLING Meaning and Definition

1. Hotelling refers to a pricing strategy where businesses set their prices based on the proximity of their competitors. The term originated from Harold Hotelling, an economist who studied spatial competition in the 1920s. It is commonly used in the context of location-based industries such as hotels, restaurants, and retail stores, but can also be applied to other sectors.

   In a hotelling strategy, businesses acknowledge that consumers often choose a product or service based on convenience and proximity, rather than substantial differences in quality. This strategy assumes that consumers want to minimize their travel costs and time, leading businesses to charge similar prices to their competitors within the same vicinity.

   The key principle of hotelling is to create a balance between price and location. If one business significantly deviates from the prevailing market price, it risks losing customers who prioritize convenience. This forms a stable equilibrium where businesses recognize that competition is largely based on location and price, rather than other differentiating factors.

   Hotelling can provide benefits to consumers, as it promotes price transparency, making it easier for them to compare prices and make informed decisions. However, it can also lead to competitive uniformity, where businesses may be hesitant to offer differentiating factors to avoid raising costs and deviating from the equilibrium.

   Overall, hotelling is a pricing strategy that considers the impact of location and proximity on consumer behavior, aiming to strike a balance between price competition and convenience.

Common Misspellings for HOTELLING

• motelling
• hovellin
• Rouelling
• hosstelling
• hosilling
• throtelling
• Nozelling
• datelling

Etymology of HOTELLING

The term "hotelling" has its origins in the field of economics and was derived from the name of the economist Harold Hotelling. Harold Hotelling was an American statistician and economist who lived from 1895 to 1973. He made significant contributions to the field of industrial organization and spatial economics.

The term "hotelling" specifically refers to the concept of a competitive situation where two or more firms offer similar products or services but locate themselves near each other to maximize their market share. This phenomenon is often observed in industries such as restaurants, retail stores, or hotels, where competitors choose to establish their businesses in close proximity to benefit from shared customer traffic.

As this concept became more commonly studied and recognized in economics, it came to be known as "hotelling" named after Harold Hotelling, who was one of the first economists to formally analyze and describe this phenomenon.