Providers cannot maintain inventories of their services, leading them to vary prices according to demand. For example, most hotels charge more for lodging during holiday seasons than at other times of the year. This distinguishing characteristic of services is known as:

Question

Business

Bella Williamson

9 April, 08:31

Providers cannot maintain inventories of their services, leading them to vary prices according to demand. For example, most hotels charge more for lodging during holiday seasons than at other times of the year. This distinguishing characteristic of services is known as:

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Answers (1)

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Arturo Potts · Answer 1

Perishability

Explanation:

Perishability describes how business services cannot be stored. As we all know, we've defined services as offering of an intangible commodity for sale. This intangible commodity can neither be stored, saved, returned or resold after they've been used. Thus, perishability in terms of services refers to how businesses cannot be stored for sales in the future. In this case, hotels tend to charge less during other times of the year as they cannot store their services to be rendered only in the holiday times of the year.