Hi,
I have some questions on question 3(a) answer.
Under the flexibility heading:
"hosts advertising with rent-a-room have flexibility to be able to offer wide range of service"
How to know they will have flexibility? Is that mentioned anywhere in case study?
"..., those benefits can automatically be included in the price to guest, which is often considerably less than a hotel room, due to significantly lower overhead inccured by the host provider"
Why the price less than hotel room and why it will be significantly lower overhead incurred?
Under personalisation heading:
"for rent-a-room hosts, personalisation of customer experience is easier, as they are only dealing with one customer at a time"
How do we they are only dealing with one customer at a time?
Thank you.
Ask the Tutor ACCA SBL
Dec 2018 SBL
6y ago#11
Rent a room = Airbnb. I could rent out a room in my house at any price and conditions I see fit.
2
No fire safety requirements, no reception, no staff wages, no VAT.
3
That's usually the way when letting a single room. Of course hotels can advertise there as well, but accommodation market has really been shaken up by this technology and big hotel chains don't like it.
Understood. Thank you so much.
Can I continue to post other questions here? Because I couldn't post it as it shows duplicate topic
For Sep 2018,
I have some question on answer for Q1(a) :
1) Under financial heading, 4th paragragh:
"the project will tie up considerable working capital over its lifetime"
Why it say so?
2) Under non-financial heading, 1st paragraph:
"the government believe that it will be possible to construct a road which is not significantly affected by pro blems with the terrain..."
But I couldn't find it in the case. Is this assumption that we make?
Thank you.
6y ago#31
The project lasts several years and the payment schedules show that lots of construction needs to be completed before payments are received. So, lots of working capital funding is needed.
2 Exhibit 2 para 5
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