Innovation and Entrepreneurship in Tourism and Hospitality

Introduction to The Business Model Canvas Application

There has been a disastrous impact of COVID-19 on the travel and tourism industry across the world and Australia is no exception (Kaine, 2020). Almost 3.1% of the GDP of Australia was derived from Tourism, the travel and tourism industry also comprise 8.2% of the export earnings of the nation (Farzanegan, Gholipour, Feizi, Nunkoo & Andargoli, 2020). The economic sector of Australia has been severely affected due to the grounding of planes, closing down of tourist venues, quarantining of cruise ships, and banning of all other non-essential international as well as domestic travel. Covid-19 is being called as the greatest crisis in the history of international travel (Farzanegan, Gholipour, Feizi, Nunkoo & Andargoli, 2020). It has set off an unmatched crisis in the tourism economy and has given a major shock to the tourism sector (Chinazzi et al, 2020). The impact of COVID-19 has been estimated by the revised OECD that due to COVID-19, there is a 60% decrease in international tourism in the year 2020, which could increase to 80% if the recovery is further delayed till December (Zheng, Goh & Wen, 2020). In OECD countries, Domestic tourism makes up around 75% of the economy of the tourism sector and is anticipated to show a quick recovery (Chinazzi et al, 2020). It provides major opportunities for steering recovery specifically in countries such as Australia, where the tourism sector is responsible for many jobs and businesses (Chowdhary & Prakash, 2010).

The government has been introducing some measures and stimulus packages to provide benefits to the workers and businesses in the travel and tourism sector (Folinas, & Metaxas, 2020). The industry and the government are initiating the following efforts:

  • Removing travel restrictions and extending liquidity support to the businesses, making use of new rules for safe travel, and help in the expansion of their markets (Folinas, & Metaxas, 2020).
  • Helping to restore confidence in the travelers and trying to increase the demand by using new safer and better labels for the sector, providing visitors with information apps, and promoting domestic tourism using campaigns (Folinas, & Metaxas, 2020).
  • Preparing detailed plans for tourism recovery, to rebuild tourist destinations, empower innovation and investment, and consider the tourism sector again (Haywood, 2020).

Such actions are required and much needed to reopen the tourism industry and successfully run the businesses and economy (Haywood, 2020). Much more efforts are essential for working in a more coordinated manner as the activities are very interdependent in the tourism sector (Chowdhary & Prakash, 2010). It requires both the government as well as the travel and tourism industry to continually reinforce and coordinate their efforts to support the businesses specifically the small ones and the workers who are dependent on their incomes for livelihood. The sensitive destinations must be given enough attention for their recovery (Wen, Wang, Kozak, Liu & Hou, 2020). The measure set up by the government today will help to shape the future of the tourism industry (Deale, 2016). The businesses and government must consider the long term results of the current crisis and stay ahead with the technologies, support the transition of low carbon and put efforts to build a more sustainable economy by promoting the required structural transformation (Niewiadomski, 2020). The crisis must be seen as an opportunity to rethink the future of the tourism industry (Deale, 2016).


Some countries are opening up or planning to open their border. However, there is less probability of the world coming back to the normal anytime soon (Haywood, 2020). Hence, the coronavirus pandemic has brought a very hard time for the companies that are into the tourism, hospitality, and travel sectors and whose incomes depend on the holidaymakers (Gao & Ren, 2020). Amidst this pandemic, the innovators are continually working towards finding solutions and have been bringing in more innovative and creative responses for their businesses (Folinas, & Metaxas, 2020). Some businesses are trying to restore the routine of how once traveling took place while others are trying to push the boundaries and bringing in some travel trends to deal with the current situation (Haywood, 2020).

The idea of my start-up is to help the people get an experience of dining out while maintaining social distancing from other diners. The hospitality industry has been severely affected by the coronavirus pandemic. The pandemic has caused the closing down of the hotels as well as restaurants for a long period (Gao & Ren, 2020). Both businesses are required to resume their work by following some safety measures and are using some unique ideas for maintaining social distancing.

The start-up is also built on the same idea of maintaining social distancing norms while providing the customers a great dining experience which they were missing out on due to the threat of spreading of coronavirus (Niewiadomski, 2020). The hotel rooms can be used as spaces for private dining which will help and allow the people to go out and eat while at the same time preventing them from physically contacting other diners (Gao & Ren, 2020). The concept behind this is to get a full room with a table instead of getting a table in a restaurant. The food and drinks can be ordered by the customers using the phone so that they can be served with the food in their rooms only and they don’t have to leave their room (Nepal, 2020).

This way the people will be given the facility to enjoy leisure time with their family and friends safely and practicing precautions. The rooms will be allowed to accommodate 2-12 people and the dining will take place in shifts which will last for two and a half hours and the facility will also be given if the customers need to stay overnight by paying an extra fee.


Key partners

Two partners/businessmen (Decrease in risk/risk sharing, shared investment and inputs, more profits)

Local suppliers (to source the material)

Key Activities

Management of business

Daily operations

Food/beverage service

Sourcing material

Customer relationships

Advertising and word of mouth

Value Propositions

Providing different cuisine

Rich atmosphere

Set with an oceanic view

Professional staff

The soothing and comfortable dining experience

Customer Relationships

Friendly staff

Special authentic cuisine

Personal dining

Personal service

Comfortable experience



Non-segmented market

Family dining

Night-out facility and dining for all

Key Resources

Financial- local products (transportation and purchase costs),

Human- Owners, and staff (they need to develop a good relationship with customers) (Prideaux, Thompson & Pabel, 2020).


Word of mouth

Official websites

Trip advisor websites

Phone(for locals)

All are cost-effective methods

A website with an online menu

Cost Structure

Driven by value

Locally sourced produce (Polyzos, Samitas & Spyridou, 2020).

Maintenance of property- wages, rents, electricity, and water.

Revenue Streams



Tourists during peak season

The Business Model Canvas is an instinctive and anticipatory structure for new as well as existing businesses. It is a method or a tool to form strategies and forecast the activities to be pursued in the future to develop a blueprint for the business to follow. The existing business may use the business canvas to analyze their business and then make efforts to bring in the required changes and implement them in the future. It is an innovative method and a collaborative process that helps and empowers the business members to define the issues in the business and form solutions for solving those issues by discussing them (Frederick, Kuratko & O'Connor, 2015).

Alexander Osterwalder was the first person to propose the business model canvas and then gradually, many practitioners developed it all around the world (Polyzos, Samitas & Spyridou, 2020). The Business Model Canvas fragments the business into nine different building blocks.

Following are the nine building blocks of Business Model Canvas:

  • Key partners: It includes the most important people involved in the business.
  • Key Activities: It includes the activities which drive the most value for the business.
  • Key Resources: All the important resources required for creating the business value are included in this section.
  • Value Proposition: Different issues are resolved by the products or services or facilities offered by the business.
  • Customer relationships: Customer expectations from the products and services offered by the business.
  • Channels: This block tells about the ways how the value proposition is conveyed to the customers or channels used for it (Polyzos, Samitas & Spyridou, 2020).
  • Customer segments: This includes the customers for whom the business is creating value through its products and services.
  • Cost Structure: Costs associated with the business related to the products and services offered by the business.
  • Revenue streams: This comprises of the rewards provided by the customers for the business offerings and value received by them (Polyzos, Samitas & Spyridou, 2020).

Business Model Canvas for the start-up:

  1. Key Partners: There are two key business partners in this start-up. This partnership is very helpful as it will reduce the risk and will help in sharing the risk of the business. In addition to this, the investments will be done from both the partners which will increase the amount of money invested and hence help in generating more profits (Polyzos, Samitas & Spyridou, 2020). Apart from this, there will be local suppliers who will help in sourcing the material.
  2. Key Activities: The Key activities of the start-up include the management of the business, looking after the day to day operations, services of food and beverages, sourcing of the produce from the local suppliers, developing and maintaining good customer relationships, and working for the spread of positive word of mouth.
  3. Key Resources: The key resources of the business are financial and human. The financial resources include all the costs related to the transportation and purchase of material. The human resources include owners as well as the staff of the restaurant who should develop harmonious relationships with the customers (Prideaux, Thompson & Pabel, 2020).
  4. Value Propositions: It includes providing different varieties of cuisine, a soothing and rich atmosphere for dining, with a relaxing oceanic view, professional and polite staff working towards providing a comfortable experience to the customers.
  5. Customer Relationships: The staff of the restaurant must be friendly and polite while serving the customers with special authentic cuisines, personal dining, and personal services to ensure a comfortable and quality dining experience. Customer relationships prove to be very useful for the business as it encourages positive word of mouth which will help the start-up in gaining more customers and retaining the existing customers (Polyzos, Samitas & Spyridou, 2020).
  6. Channels: Advertising and reaching the target customers through word of mouth marketing, official website with an online menu of the restaurant, displaying ads on trip advisor sites, reaching through the phone, and using all the cost-effective methods for promotions so that the money can be invested in providing the quality food and services to the guests instead of the promotions. The safety measures and precautions are taken by the start-up will also be conveyed to the customers to make them feel safe and secure while they plan to go out and eat.
  7. Customer Segments: The restaurant offers to dine and stay facilities for everyone including families, friends, or couples who want to spend some leisure time with the facility of staying overnight by charging some extra fees. Everyone is welcome at the restaurant/hotel for relaxing and spending quality time with their family, friends, and relatives.
  8. Cost Structure: The restaurant will run through the local produce from the local suppliers, it will provide value to its customers by providing them quality services and products and an amazing experience and time out of their busy schedule (Qiu, Park, Li & Song, 2020). The cost structure includes all the charges such as for maintenance of the property, wages to the workers, rents, electricity, and water bills.
  9. Revenue Streams: The revenue will be generated by the start-up through the customers who come for dining or spending leisure time with their family and friends. They include the local people as well as the tourists who come for staying overnight or for a few days during the peak travel season. The start-up aims to provide the best food and drinks facilities, a beautiful scenic view as well as takes care of the safety measure for restricting the spread of coronavirus to ensure that the tourists and guests have a safe and happy stay at the place (Prideaux, Thompson & Pabel, 2020).

References for The Business Model Canvas Application

Chinazzi, M., Davis, J. T., Ajelli, M., Gioannini, C., Litvinova, M., Merler, S., & Viboud, C. (2020). The effect of travel restrictions on the spread of the 2019 novel coronavirus (COVID-19) outbreak. Science, 368(6489), 395-400.

Chowdhary, N., & Prakash, M. (2010). Should I, should I not?. Journal of Teaching in Travel & Tourism, 10(2), 192-207.

Deale, C. S. (2016). Entrepreneurship education in hospitality and tourism: Insights from entrepreneurs. Journal of Teaching in Travel & Tourism, 16(1), 20-39.

Farzanegan, M. R., Gholipour, H. F., Feizi, M., Nunkoo, R., & Andargoli, A. E. (2020). International tourism and outbreak of Coronavirus (COVID-19): A Cross-country analysis. Journal of Travel Research, 0047287520931593.

Folinas, S., & Metaxas, T. (2020). Tourism: The Great Patient of Coronavirus COVID-2019.Retreived from

Frederick, H. H., Kuratko, D. F., & O'Connor, A. (2015). Entrepreneurship: Theory/Process/Practice with Student Resource Access for 12 Months. Cengage AU.

Gao, H., & Ren, M. (2020). Overreliance on China and dynamic balancing in the shift of global value chains in response to global pandemic COVID-19: An Australian and New Zealand perspective. Asian Business & Management, 1-5.

Haywood, K. M. (2020). A post-COVID future: tourism community re-imagined and enabled. Tourism Geographies, 1-11.

Kaine, S. (2020). Australian industrial relations and COVID-19. Journal of Australian Political Economy, The, (85), 130.

Nepal, S. K. (2020). Travel and tourism after COVID-19–business as usual or opportunity to reset?. Tourism Geographies, 1-5.

Niewiadomski, P. (2020). COVID-19: from temporary de-globalisation to a re-discovery of tourism?. Tourism Geographies, 1-6.

Polyzos, S., Samitas, A., & Spyridou, A. E. (2020). Tourism demand and the COVID-19 pandemic: an LSTM approach. Tourism Recreation Research, 1-13.

Prideaux, B., Thompson, M., & Pabel, A. (2020). Lessons from COVID-19 can prepare global tourism for the economic transformation needed to combat climate change. Tourism Geographies, 1-12.

Qiu, R. T., Park, J., Li, S., & Song, H. (2020). Social costs of tourism during the COVID-19 pandemic. Annals of Tourism Research, 84, 102994.

Wen, J., Wang, W., Kozak, M., Liu, X., & Hou, H. (2020). Many brains are better than one: The importance of interdisciplinary studies on COVID-19 in and beyond tourism. Tourism Recreation Research, 1-4.

Zheng, Y., Goh, E., & Wen, J. (2020). The effects of misleading media reports about COVID-19 on Chinese tourists’ mental health: a perspective article. Anatolia, 31(2), 337-340.

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