In a mature tourist market such as Bellaria there are only two ways hotel owners can increase profits: by building more rooms or by improving what is already there. Rigid land-use laws in Bellaria rule out construction of new hotels or, indeed, any expansion of hotel capacity. It follows that hotel owners cannot increase their profits in Bellaria since Bellarian hotels______
Which one of the following logically completes the argument?
(A) are already operating at an occupancy rate approaching 100 percent year-round
(B) could not have been sited any more attractively than they are even in the absence of land-use laws
(C) have to contend with upward pressures on the cost of labor which stem from an incipient shortage of trained personnel
(D) already provide a level of luxury that is at the limits of what even wealthy patrons are prepared to pay for
(E) have shifted from serving mainly Bellarian tourists to serving foreign tourists traveling in organized tour groups
5-Day Free Trial
5-day free, full-access trial TTP
Available with Beat the GMAT members only code
MORE DETAILS
In a mature tourist market such as Bellaria there are
This topic has expert replies
-
BTGmoderatorDC
- Moderator
- Posts: 7187
- Joined: Thu Sep 07, 2017 4:43 pm
- Followed by:23 members
Timer
00:00
Your Answer
A
B
C
D
E
Global Stats
-
deloitte247
- Legendary Member
- Posts: 2214
- Joined: Fri Mar 02, 2018 2:22 pm
- Followed by:5 members
Timer
00:00
Your Answer
A
B
C
D
E
Global Stats
Let's begin to solve the question by taking a look at the options one after the other.
In Option A - CORRECT. We have a speculative response to the question having critically analysed the whole argument. The laws only said they can't expand the capacity which means they have reached the maximum occupancy rate required or designed by the authority. Consequently, it would be difficult to expand the profit margin.
In Option B - INCORRECT. We have a case of wrong interpretation. In the absence of the rigid land use laws, the hotelier could have built a more attractive and more expensive hotel thereby increasing on its turnover.
In Option C - INCORRECT. Firstly, it's speculative to assume that the personnel who are skilled enough aren't in abundance. In fact, the more the trained personnel the more the pressure on labor costs which would not bring about any increase in profit but burden it.
In Option D - INCORRECT. Here, the comment is at par with the supposed statement meaning by the writer since his duty is to provide a level of maximum satisfaction to his customers which they'd in turn pay for. It is noteworthy to state that it is not entirely correct to assume that they have provided the desired luxury consumers wants.
From the last solution in Option E - INCORRECT the response is inconsistent with the writer's opinion or stance because serving foreigners should bring more profits and not the other way round.
In Option A - CORRECT. We have a speculative response to the question having critically analysed the whole argument. The laws only said they can't expand the capacity which means they have reached the maximum occupancy rate required or designed by the authority. Consequently, it would be difficult to expand the profit margin.
In Option B - INCORRECT. We have a case of wrong interpretation. In the absence of the rigid land use laws, the hotelier could have built a more attractive and more expensive hotel thereby increasing on its turnover.
In Option C - INCORRECT. Firstly, it's speculative to assume that the personnel who are skilled enough aren't in abundance. In fact, the more the trained personnel the more the pressure on labor costs which would not bring about any increase in profit but burden it.
In Option D - INCORRECT. Here, the comment is at par with the supposed statement meaning by the writer since his duty is to provide a level of maximum satisfaction to his customers which they'd in turn pay for. It is noteworthy to state that it is not entirely correct to assume that they have provided the desired luxury consumers wants.
From the last solution in Option E - INCORRECT the response is inconsistent with the writer's opinion or stance because serving foreigners should bring more profits and not the other way round.
