Question

The three main luxury hotels in a major tourist destination keep very close track of their competitors' room pricing, restaurant offerings, tour packages, and special services, such as airport transportation and spa privileges. When one hotel makes adjustments in prices or offerings, the other hotels follow suit. It is possible that these hotels are: Group of answer choices following a competitive response strategy. engaging in tacit collusion. monitoring business competitors for opportunistic behaviors. following uncertainty-reducing strategies.

Answer 1

Answer: Engaging in tacit collusion.

Step-by-step explanation:

Tacit collision could be defined as when firms collide in operations, mode of services unplanned, this is as a result of competition. In this scenario, these companies monitor the activities of their competitors and carry out everything that works for their competitors verbatim so it could work for themselves too. These is seen in many industries; from hotels, to malls, oil servicing firms. Although it's a bad one for the originator of each idea and methods for their business, it's also good as it seems to maintain a good pricing for consumers, as the competitors carry out every thing to make one better than the other with great customer service.