Construction of a hotel from first principles. From value perception to execution

Abstract

[eng] In this paper I will try to build a hotel that yields the maximum returns on investment based on the NPV formula through the understanding of the “first principles” of an offer. I’ll dissect the NPV formula, and understand that the crucial principles we have the most control over are quantity sold and price of each quantity. The main variables that influences the these two principles is the willingness to pay based on the value perception. That’s why this paper will focus on understanding how value is perceived by customers and it will try to construct a realistic offer around that understanding, using the cultural tourism target market as example.