The massive migration to warmer cities during the months of march and april, during high school and college student’s spring break weeks is something that occurs every year. While locals may not enjoy the crowded cities and beaches, the local businesses enjoy the massive profits.
Places like Panama City have future expectations of the benefits of spring break, have funded a $400,000 advertising campaign to attract students from their frozen home towns. The suppliers will supply more and more spring break products like swim suits, sunscreen, and hotel rooms, and will be more willing to, since they are expecting the price to go up as these things are more in demand. However, because of competition within similar products produced by different suppliers, the prices of many goods and services have gone down as well.
On the consumer side of it, spring break has become an almost inelastic good. Despite the increasing prices of travel, millions of students do it every year. While some families and students would cancel their plans if it became too expensive, they thousands continue to spend money on it which is why instead of being an elastic good, it has become inelastic. For Panama city, spring breakers bring in one third of the yearly profits to the local businesses.
Kohn, David. "Spring Break Exposed." CBS News. CBS Interactive, 26 Apr. 2002. Web. 21 Mar. 2017. <http://www.cbsnews.com/news/spring-break-exposed/>.
Thompson, Derek. "2,000 Years of Partying: The Brief History and Economics of Spring Break." The Atlantic. Atlantic Media Company, 26 Mar. 2013. Web. 21 Mar. 2017. <https://www.theatlantic.com/business/archive/2013/03/2-000-years-of-partying-the-brief-history-and-economics-of-spring-break/274347/>.