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Bachelor Degree in Tourism and Hospitality Management

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Bachelor Degree in Tourism and Hospitality Management YEAR 2019-2020 BACHELOR DEGREE IN TOURISM AND HOSPITALITY MANAGEMENT Subject Degree thesis Lecturer Màrian Buil Fabregá Title of assignment Business plan – Alwa Eco Hotel Student name Michelle Silva Maria Jordana Student e-mail [email protected] Abstract The tourism sector has become a very important worldwide industry because it generates many job positions, impact on the economy as well as creating benefits for growth and increase of demands. It is a destination that advances towards the future without losing its essence, its history, traditions and customs. Until recently only a few knew this destination. Nowadays, Bolivia is one of the emerging destinations in Latin America. According to the Ministry of Cultures, in 2017 the World Travel Awards awarded Bolivia as the "Best Cultural Destination in South America" and in 2018, as "Best Green Destination in South America". In fact, the city where our business will be, La Paz was awarded as the best emerging tourist destination in 2019 by World Travel Awards. In addition to being nominated for four more categories: "Best Destination City of South America 2019", "Best Destination Cultural City of South America 2019", "Best Leading Destination in Events and Festivals of South America 2019", "Best Romantic Destination of South America 2019. Luckily the country is not threatened by massive tourism even though there are many people interested on going and discovering new places, cultures, gastronomy, among others. Regarding the current situation in Bolivia and according to statistics, 56% of entrepreneurs in Bolivia correspond to an age range between 18 to 33 years, that is, the youngest are committed to innovation and creativity that require technical advice when starting a business that has a social and environmental impact. According to the country's most renowned economist Luis Arce Catacora, what Bolivia needs to recover from the current political situation and the covid 19 is "boost to micro and small businesses, boost to the activity of internal tourism activity in coordination with the municipalities and governorates, plus community tourism, ecological tourism, implementation of a productive community social economic model and support for entrepreneurs to create quality jobs with a positive impact on Bolivian society and the environment”. Considering the recommendations of the economist. Our purpose is the creation of an Eco hotel applying sustainable practices in relation to its construction, work with the local community, preservation of the environment and culture, creation of jobs, training for our workers (empowering people) and helping promote community tourism by making national tourists come to visit our accommodation and destination. 2 Key words Ecological and Sustainable Accommodations, Corporate Social Responsibility, Work with the Local Community, Empower the local community, Responsible Social Tourism, Adventure Tourism, Bolivia development, hotel business plan, Sustainability in Hospitality Industry, Sustainable development goals of the Agenda 2030, SDGs. 3 Acknowledgements First, we would like to show our gratitude to our Degree Thesis supervisor, Marian Buil Fabregà; for encouraging us and believing in the business plan idea since the beginning. Her support and guidance together with the new knowledge we have acquired and the steps to follow when creating a business plan; have been very useful. Aside to that, the motivation, the resources and feedback provided has been very helpful as well. Then, we would also like to put into words the appreciation and thankfulness to the teachers from HTSI we have had throughout the four years. Their lessons and new knowledges for us to learn and understand have been very enriching. Thanks to the new topics learned, experiences on different aspects and the great focus on the hospitality industry; there has been a personal growth. Also, the experiences acquired on professional development. Aside to that, a very special gratitude to all our friends, colleagues, that have contributed on helping with the results obtained from surveys and interviews which are a significant tool for the research and understanding of preferences, needs, from people when travelling. Thank you! Authors, Michelle Silva and Maria Jordana. 4 Table of contents Abstract .................................................................................................................................... 2 Key words ................................................................................................................................. 3 Acknowledgements................................................................................................................... 4 1. Executive Summary ............................................................................................................ 11 2. Business Description........................................................................................................... 12 2.0. Literature review .............................................................................................................. 12 2.1. Business model concept ................................................................................................... 17 2.2. Mission and objectives ..................................................................................................... 20 2.3. The entrepreneurial team ................................................................................................ 20 3. Analysis of the Business Environment ................................................................................ 22 3.1. The market ....................................................................................................................... 22 3.1.1. Market characteristics and major trends ................................................................ 22 3.1.2. Purposes & Expectations of visitors ....................................................................... 24 3.1.3. Size and expected growth ...................................................................................... 25 3.1.4. Segments ............................................................................................................... 32 3.2. Competitive environment and sector ............................................................................... 37 3.2.1. Competition .......................................................................................................... 37 3.2.2 Threat of new entrants ........................................................................................... 41 4. Marketing Plan ................................................................................................................... 42 4.1. Target segments and key success factors per segment: Quantitative analysis ................... 42 4.1.1 Quantitative analysis .............................................................................................. 43 4.1.2 Qualitative analysis ................................................................................................. 43 4.1.3 Customer empathy map ......................................................................................... 44 4.2. Positioning strategy .......................................................................................................... 45 4.2.1 Current positioning ................................................................................................. 45 4.2.2 Desired positioning ................................................................................................. 45 4.2.3 Peste Analysis ......................................................................................................... 47 4.3. Marketing mix .................................................................................................................. 52 4.3.1. Product .................................................................................................................. 53 5 4.3.2. Product/service strategy ........................................................................................ 54 4.3.3. Pricing strategy ...................................................................................................... 62 4.3.4. Channel strategy .................................................................................................... 64 4.3.5. Communication strategy ........................................................................................ 66 4.4. Forecasting and sales outlook........................................................................................... 67 5. Operations Plan .................................................................................................................. 73 5.1. Process identification and map ......................................................................................... 73 5.1.1 Process of the guest operations before, during and after the stay ........................... 74 5.2. Location, physical infrastructure and layout ..................................................................... 76 5.2.1 Tree house sketch ................................................................................................... 78 5.2.2 Cabins sketch .......................................................................................................... 79 5.3. Resources: machinery and facilities .................................................................................. 81 5.4. Stocks management
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