Welcome to the Market

Wikipedia defines a commodity as …anything for which there is demand, but which is supplied without qualitative differentiation across a market.  In other words, copper is copper.  Rice is rice.  Stereos, on the other hand, have many levels of quality.  And, the better a stereo is, the more it will cost.  The price of copper is universal, and fluctuates daily based on global supply and demand.  One of the characteristics of a commodity good is that its price is determined as a function of its market as a whole.

Today, vacation packages in Canada are priced as commodities.  Their prices fluctuate based on the amount of seats and hotel rooms and the demand for those seats and hotel rooms.  Some days they go up and some days they go down.  Long gone are the days when you know to book in advance or to wait until last minute.

If you see a price, and you are happy with it, book it.  Don’t look back.  Don’t complain if it goes down because you won’t complain if it has gone up.

Be happy because as Canadians, most of us enjoy the privilege of going on holiday at least once a year.

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