HOSP2003 Hospitality Small Business Enterprises Assignment Sample

• Subject Code : HOSP2003
• University : The University of Queensland My Assignment Services is not sponsored or endorsed by this college or university.
• Subject Name : Hospitality Managment

Executive Summary

The report addressed the feasibility analysis of Moreton Rafting. It highlighted the industry outlook for opportunities, revenue, and growth. The report assessed Moreton rafting‘s key strengths and suggested improvement for expansion by leveraging partnership and online reach The project contributes to Queensland’s experience framework and provide regional growth strategies. The report has proposed that the client should move ahead with the Moreton rafting project due to its economic viability. The report highlighted partnership through the economic model by a private venture capitalist that would strengthen operations of vessels and infrastructure and increase operational efficiency other than GTI fund. Formation of adventure collection as a one-stop hub through parent company to reach the Australian market is addressed. It suggested trial run for operational near Moreton Bay Park to assess the safety and runway for commercial permit and extension of scheduled services frequency to 8 weeks in the initial 6 months of operation to reduce variable cost. The report provided suggestion for reduction of the boast fleet reduce operational cost in the unfortunate scenario of natural disaster

Table of Contents

Executive Summary.

Introduction.

Market analysis.

External environmental forces.

Opportunities and threats.

Business model canvas.

Recommendation.

Conclusion.

Reference list

I. Introduction

The Moreton Rafting the project offers adventure tourism offering fun activities over different maritime sites. It aims to provide guest experience and heritage values at Moreton Bay and strengthens tourism infrastructure for connecting domestic travelers in Brisbane and Moreton Bay. Adventure tourism is a fast-growing sector with valued practice and strong local network

Adventure tourism has grown exponentially with new destinations providing a unique experience. Companies attract visitors by highlighting the cultural and natural features of a destination (Global Data, 2018). Adventure promotes sustainability, ecotourism, geo-tourism benefit local government, private sector.250 million domestic trips add volume to the tourism sector creating revenue of $100billion (Deloitte, 2018). Companies have evolved providing adventure travel offering for cultural and natural highlights of the location in creating value for travelers

II. Market analysis

Moreton bay has tapped the economic agenda of the Queensland government of building business in the region for the promotion of jobs and visitors. It has used the experience pillar of Queensland -adventure and discovery (Austrade, 2020). Queensland's natural habitat as tourism is a boost for the economy. Moreton rafting aims to reach out to state visitors and a growing tourism economy. Promoting natural aesthetics of the region by promoting its brand with on-shore plan Moreton rafting is innovating with ecological services with profitability. Change in consumer preference, technological advance parallel creates an ecosystem for the demand of the tourism market in the demographics. It aims to bridge the gap for quality experience and accommodation by tour boating experience. The behavioral aspect shows destination and tourism promotional activities will attract customers to the business.

Customer Segment

Country of origin and travel demographic constituent the segment for creating and delivering value in the region. The customer segment is primary for eco-tourism and input in creating leverage against competitor. The outbound tourism and local traveler together constituent a significant portion in the consumer segment

The segmentation of the customer is below –

1. In Brisbane a visitor coming to the beach for a short break. Engagement in food trails and adventure tourism will be higher.

2. Eco-tours for international markets looking for indigenous tours.

3. Backpackers on ferry excursions for visiting trails and beaches. They constitute major revenue constituent with participating in land-based activities.

4. Students coming from Queensland for ecotourism and excursions. International students looking for a weekend cultural and marine tours.

The socio-cultural shift in the millennials particularly with increase spend on disposable income for experiential and cost-based travel has seen a surge. Programmatic advertising by Moreton will appeal to the cultural heritage setup. The vessel design suitability at Moreton will be inclusive of women and persons with disabilities will promote diversity. The design of vessels at Moreton rafting will combine the intent of travel and value driver. The marketing team can be focused on developing a consistent message for effective communication channels for the segment in the Australian region through the web portal.

The tourist experience will create a revisit and increase brand equity for travelers. Adventure tourism creates risk taking and the behavioral aspect while picking the location. The mobility of the location is central to its success. Tourism creates a vibrant and individual driven command for creating a share of 65% growth since the early 90s for the Australian market. The travel experience is consummate at various levels for the establishment of activities like snorkeling, rafting. The tourism creates current and future impact in industry strengthening for Australia. The visitors per count is significantly in coastal and region in Queensland. Moreton is highlighting the experience for expansion.

Table 1- Tourism ecosystem

The behavioral change in travel has led to spending of $108 billion in Australia in 2018(IBIS, 2018). The average spending has increased by 5 % over the year. New assisted channels from China, and the USA with aviation capacity support will increase visitors to the tourist experience. Adventure tourism has gained popularity with the relative purchase for single entry is around $250 as the average purchase price (Global data, 2018). Key exploration of the area and cultural background is rewarding and enriching for international travelers. The travel pool includes backpackers, family, and friends looking for the long haul. Booking and information search is mainly through the online agent portal and government websites. Inbound tourist operator provides accommodation and itinerary by handling destination management. Managing tourism through customer needs will help in creating niche value for the product. Demographic segmentation incudes segmentation for attracting travelers to Australia tourists from Australia.

Traveler’s major needs and requirement are-

1. Quality experience and reliability in the reservation and planned schedule for activities

2. Understanding their cultural needs and fast and efficient response system

3. Enhanced pay per experience with value proportion and related cost for an airline ticket or road travel cost. The pay per cost is deferential to consumer spending on vacation

4. Individual-level search through travel clubs and groups for getting occupancy and safety at the tour. Marketing through social channel creates preferential value for opting for the destination. Family and friends opting for a combination of trips create set up value

The demographic structure shows regional visits are concentrated in the coastal area with average stay as 3.8 days (Deloitte, 2019). Leisure day trip pattern is in sync with the Moreton rafting model with economic benefit to all stakeholders. Among the travelers, holiday travel has the highest proportion (30%) (Redland city council, 2018). The targeted segment population outdoor activity is ticking off the bucket list and spending time on a recreational activity that covers major are outlined by the Moreton rafting project. Shopping and dining experience along with unique flora and fauna tour is preferential for people. The majority of people traveling in groups is 28% higher than solo traveler (Destination NSW, 2019). Regional adventure activities increase to stay at the location in major coastal destinations based on accommodation and service. Moreton rafting lines destination in the focal point for spending time around the Bay area within the given level

Accessibility and Distribution of Service

Tourism supply chain use product and distribution for serving by value point in the age group selected by the focus on backpackers. The price point and primary market use transportation and accommodation as essential supply chain services (IBIS, 2018). Transfer companies have set up inbound operators. They market the customer with local destinations to retain base through travel groups and local associations. Online booking and personal recommendations are the reason or selection of service. The online booking platform creates an option for ease in traveling and securing available accommodation for a hassle-free experience. The new age traveler creates a trip plan and engagement through the digital channel. Operator and facilities assist in providing vital experience ad snapshot for the accommodation. Use of AR and VR is increasing in accessibility for host across the world Moreton can focus on allied marketing through the web portal and social media campaigns for promotions. The segmentation through specializing in particular group and services create destination tourism a global market by eco-tourism destination by appeal as a family destination. The tourist experiencing vacation by experiencing inbound logistics in exploring the area will create brand value in the mind of the people.

Figure-1- Distribution of services (Global Data, 2018)

III. External Environmental Forces

PEST Environmental Analysis

PEST environment will help for assessment of the operational environment on its operation and will support Moreton rafting s strategic planning. The comic landscape creates opportunities for evaluation business in the long term. The external factors of help to determine the firm’s business and strategic operation with respect to the macro environment

1. Political factors- The government body has setup its process by Queensland is favorable for business set up as it will boost indigenous employment in the Brisbane area. Tourism policy by the government for attracting tourists is by developing infrastructure. Tourism 2020 established for industry support and business (Austrade, 2020). Estimation by Australian tourism states customer expenditure spending will move to 140 billion (Austrade, 2020). The government program for Regional development will boost Moreton rafting in infrastructure fund set up. The biodiversity and nature conservation are prime factors in guidelines laid by the state. Business set up in sate is governed by the operation of proposed activities by state and federal laws. Regulations are imposed for breach in Marine Park and Moreton bay for a commercial access permit for operations is done to create a formal contract between network operators and passengers (Pacific maritime, n.d).

2. Economic factors- The business from new tours by Moreton rafting will enlarge economically benefit for Brisbane. Tourism is one of the growing industries in Australia with 2.7% growth in the economy (Destination NSW, 2019). The economic stability of the industry fosters an environment favorable for the development of business tourism and economic development. It focuses on public-private partnerships and stimulates the arrival of foreign companies in partnership with local companies or state institutions jointly invest in a variety of industries, primarily oil and gas, construction and trade, education, tourism, etc. The economic impact to allied industries create a boom for the adventure tourism vertical with indigenous employment and visitor increase in the region.

3. Social factors- Moreton will strengthen the heritage of Brisbane and will improve the quality of life. Market research shows heritage, educational tourism, and ecotourism drive-in Australia opening avenues for adventure and tourism. The cultural setup at Australia will strengthen through the experiential stay. The support in building community by encouraging local suppliers will benefit through service progression. Australia s legal landscape promotes welfare which protects private information and governs the employment and business handling of all entities (Destination NSW, 2019). Moreton will work on providing data security for its members. Customer retention is very low as in low margin and short assignment clients are difficult to retain as contractual obligations are minimal and flexible. Lack of structured model affects business revenue as fixed-term rentals are not uniform.

4. Technological- One of the biggest Technological factors influencing the tourism industry is the development of transport. Not only do travelers have more transportation options than ever before especially with the advent of airplanes but they are cheaper than ever before. Buses, trains, and planes are also more comfortable than previously and feature new amenities such as Wi-Fi connectivity or charging ports (Regional, 2018). Technology s impact on the rafting has empowered tourists to seek experience through Virtual technology for beach allied activities. Internet penetration in the country has increased buying air travel and review and affordability of experience. The use of AR and VR has augmented the use of adventure tourism with reach on global customers. The technological up gradation in the deck and vessel is creating a single day experience or traveler

I. Opportunities and Threats

1. Change due to economic and social disasters such as fire, flood, war, and economic instability causes damage to large investment and a decline in demand for Moreton rafting. The projected stability and timely completion are determined by these factors. Government funding is vital for project survival and commercial escalation. Australia is subject to climate change and extreme environment. Marine accidents are unfortunate and are subjected to financial loss for the owner. The creation of an emergency fund for loss of operations and the no-travel season will help in sustaining business. Vessel creation is critical in protection from threat and climate change that may lead to foreclosure of the operations.

2. Visa policy and permit changes will determine the inflow of visitors. A hostile relationship with other countries may lead to suspension of travel and restrictions. Indigenous tourism should be promoted equally for educational excursions for client retention and demand (Global report, 2018).

3. Reliance on government funding for operations and commercial permit after infrastructural completion will create liquidity. Government revenue is scheduled for 10% of the industry interest in the tourism sector for promotion of new ventures (Destination NSW, 2019). This shows the lack of personal finance for financial feasibility.

   Fostering a private partnership with other rafting units on a revenue-sharing model will create autonomy. This will disrupt plan individuality by Moreton on expansion and changes in operational aspect. Funding and sustainability is a performance matrix for the successful running of the business. Dissolution of the partner network for the new market avenue. Building a sustainable river network will keep marine bay and Brisbane coast for effective use will help in the prevention of commercial exploration may lead to a change in boat route operation

4. Vessel maintenance and built of boast can cause external injury and accidents which will additionally increase. Market intelligence will help in estimating the leak and wear and tear to build the scheduling of vessels. The Australian economy is growing at a stable rate .The low cost set-up is a boost for establishing an office in Australia. The occupancy and openness to travel will assist for thriving in the suburbs of the Australian region

IV. Business Model Canvas

Business model canvas (BMC) is a tool for evaluating business through building business through customer and value proportion for finance (Campbell, 2017). The business canvas helps to eliminate non-essential activities. BMC helps in business pivot towards its revenue stream. BMC creates a block for evaluating and addressing plans for propositions in creating revenue and expenditure tracking for overall business to create segments and viability for creating personable experience and improvement. It is a visual chart for customer value proportion, customer acquisition, and finance. Business Model Canvas is a strategic management and lean startup template for developing new or documenting existing business models. BMC assess the positioning for Moreton business model and developing connections for process-oriented growth for its upkeep in the tourism connection setup in tourism sector

Figure-2- Business model canvas

Above is the business model canvas for Moreton rafting 

Key partners

Key partners are the suppliers and external networks that financially support the business. They help in cultivating strategic alliances to focus on business activities.

1. River life group and tangatours as group partners will provide resources and expertise. They have an extensive networks in cruise ship network which will help in building leisure and outdoor experience for tourists. The existing market will give a differentiated opinion for developing new river network around Moreton bay

2. National Australia bank as a principle financer will bring liquidity in the project

3. GTI funds contribution in expenses for construction cost and related expenses are prime contributors in the business drive. GTI grant will cover 34% of the total cost (Pacific maritime, n.d).

Key activities

Key activities are the purpose of the business which the business wants to provide. This includes activities which help the business move to customer. It includes activities in building business value in the market by unlocking island access to tourists by closing the gap between the city and marine bay area

Key resources

Key resources are the asset that the company requires to build and support business, these resources can be physical and intellectual.

1. Employee chartered force to develop the business to functionality maritime regulator and project manager will assist in delivering the overall project within timelines

2. Vessel QA transport establishment for boat design and operations at Moreton rafting

3. Procurement and engagement through data network for market intelligence

Value proportion

These are the product and service deliverable that offers the expectation of the customer .Value proportion are the key attractive takeaway of the service offered to the client (Morrison, 2018). This can be provided through performance, status, and optimization.

1. The single day experience at Moreton bay Marine Park for heritage value. The tropical experience of coastal life and contemporary tourist destination is different

2. Environmental sustainable tourism for an educational excursion and river life through North Island. Linking attractions across Brisbane will be technologically mobile and offers single booking gateway for reservations

Customer relationship

The survival of business requires identification and delivery to the customer segment. Customer relationships deliver business through purchase and service provided to the customer to retain and engage them.

1. The use of AR and VR creates enhanced experience for connecting customers through bridging vessel routes for customer’s attraction (Huddart, 2019). The rapid internet access and strong encryption and technological research make Australia more adaptable for travel setup.

2. Inbound travel guide through operator system for round the clock availability

Cost structure

It includes the monetary cost of business. The cost structuring helps in minimizing cost. Cost structure includes the fixed and variable cost. The setup of business requires boast vessel, design, and purchase of motor. The cost breakup is in operational and variable structure for project approval as per partner. These updation are central to startup cost for operations in the region and personal finance.

1. The hiring of business personnel and operational budget for passenger cost in maintenances high cost. The cost of personnel involved at Moreton rafting will cover 25% of the fixed cost for the project manager and acrylic boast cost (Pacific maritime, n.d)

2. The overall budget set aside also take care of annual servicing for acrylic and boat maintenance for routine servicing periodical subject operation in the week.

Revenue stream

The revenue stream is through various segment which business is operating. Cost through advertisement and usage by product and service in the customer segment.

1. Accommodation and allied activities in the region create a partnership in revenue sharing for Moreton Advertisement as pay per click will monetize business in the tourism sector.

2. Price per head as $159 for adult and $139 for the child will help in monetize for business to breakeven (Pacific maritime, n.d)

3. Government portal on public-private partnership for establishing business indigenous revenue by GTI fund for economic and social benefit

Customer segment

Business model identification for the right customer segment. Attributing to the need of the customer or selected groups.

1. The customer segment creates value proportion for adventure tourism. Destination specializing through Moreton rafting will create a niche market. The target market is Age 18-45. This segment includes backpackers and family tours for adventure tourism as an experiential tour at Moreton rafting.

2. A domestic and industrial traveler through eco-tourism as a possibility will be beneficial for Moreton. The single -day experience market for travel is been untapped which will improve product and service costs that will benefit tourist experience (Pacific maritime, n.d).

Channel

1. The effective channel delivers the company s value proportion through the distribution cycle. Fast and efficient channel increases outreach. The website helps in promoting business value through the Australian government s tourism plan. The social media portal creates experience attraction for destination and delivering inputs for reaching customers at the mass level.

2. Rinzy app will cater to online bookings and itineraries. Influential marketing crates base for tourist penetration for rafting experience by the affiliated network by the parent company listings in the bay (Ecotourism, 2020).Community building for backpackers will create a market for a single day experiencing in the area will promote allied activities at the Moreton rafting

V. Recommendation

The project provides employment opportunities and economic benefit for accommodation, online travelers, and boosts the Australian economy. The external support through GTI funds will create funding requirements for the pre-operation run (Pacific maritime, n.d). The business model is simple and deliverable through outline by break up in pre-operation and scheduling and maintenance costs. Careful examination of financial and economic factors the client should move ahead with this project. The key recommendation for the project to roll out in the market are as follows:

1. Partnership through the economic model by private venture capitalist will strengthen operations of vessels and infrastructure and increase operational efficiency other than GTI fund.

2. The reduction of the boast fleet will reduce the coast boat cost operationally. Force Majeure in case of accident and disaster will cover goods cost. Amendment in the clause to include rental fee will reduce operational cost in the unfortunate scenario.

3. Formation of adventure collection as a one-stop hub through parent company to reach the Australian market. The economic impact of the same will boost revenue for Australia

4. Trial run for operational near Moreton Bay Park to assess the safety and runway for commercial permit and extension of scheduled services frequency to 8 weeks in the initial 6 months of operation to reduce variable cost

5. The overhead cost is not increasing significantly in the future which makes the project commercially viable.

VI. Conclusion

Moreton rafting s innovative experience for single-day experience is proportioned well. Moreton rafting cost of operational and vessel setup. Adventure tourism is a fast-growing sector with valued practice and strong local network. Adventure tourism has grown exponentially with new destinations providing a unique experience. The project will provide employment opportunities that will drive business opportunities for overall regions. The key partnership with Woody marine fabrications and naval and support of parent entity River life group and tangatours will help in vessel construction, expanding operations. BMC will help in business pivot towards its revenue stream by creating a block for evaluating and addressing plans for propositions in creating revenue and expenditure tracking for overall business to create segments and viability for creating personable experience and improvement.

Moreton rafting has assessed project timeline and resource allocation for operations in Moreton bay. The business model is simple and deliverable through outline by break up in pre-operation and scheduling and maintenance costs. Moreton s river access network unlock multi-tour experience across the bay. Regional adventure activities increase to stay at the location in major coastal destinations based on accommodation and service. Moreton rafting lines destination in the focal point for spending time around the Bay area within the given level for effective channel delivery in the company for value proportion through the distribution cycle. The social media portal creates experience attraction for destination and delivering inputs for reaching customers at the mass level.

The partner collaboration has extensive networks in the cruise ship network which will help in building leisure and outdoor experience for tourists. Accommodation and allied activities in the region create a partnership in revenue sharing for Moreton Advertisement as pay per click will monetize business in the tourism sector. Adventure tourism creates a robust infrastructure in the Queensland area. The payback period shows that it will be able to recover the initial investment in the long overhaul. The report assesses the operational viability of the project and recommends its operation to begin as per the timeline.

VII. Reference list

Austrade. (2020).Tourism and business. 

Campbell, A., Gutierrez, M., & Lancelott, M. (2017).Operating model canvas. Van Haren publishing

Deloitte. (2018).Understanding visitor regional dispersal in Australia. 

Destination NSW. (2019).Tourism research and forecast 2019.

Eco tourism. (2020).Tourism in Western Australia. 

Global Data. (2018).Global adventure tourism: Insight into key adventure tourism trends and the demands of adventure tourists. 

Huddart, D., & Stott, T. (2019). Adventure tourism: Environmental impacts and management. Springer nature

IBIS. (2018). IBIS world research Australia s growing tourism industry.

Morrison, M.A. (2018).Marketing and managing tourism destinations. Routledge

Pacific maritime. (n.d).Moreton rafting .

Redland city council. (2015).Tourism strategy and action plan 2015-2020.

Regional tourism. (2018). Best practice in destination tourism .

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