Traditional Culture Encyclopedia - Travel guide - How to understand the regulatory role of the tourism market?

How to understand the regulatory role of the tourism market?

The regulatory role of the tourism market refers to the interaction between supply and demand in the tourism market to achieve a balanced and stable state of the tourism market.

When there is insufficient tourism supply or excessive demand, the market price will rise. On the contrary, if there is excess tourism supply or insufficient demand, the market price will fall. This market regulation effect will bring tourism supply and demand to a balanced state, thereby achieving stable development of the tourism market.