FACULTAD DE ADMINISTRACIÓN HOTELERA, TURISMO Y GASTRONOMÍA

Carrera de Administración Hotelera

HUARAZ GLAMPING DOMES

Trabajo de Investigación para optar el Grado Académico de Bachiller en Administración Hotelera

ACEVEDO GOMEZ, MARGYORI MARLYENE ARISTONDO CALDAS, CARLA VALER CARRASCO, ISABELLA LUCIA

Lima – Perú 2020

INDEX 1. Abstract ...... 5 2. Applied Project Research Problem...... 6 2.1. Empathy Map ...... 6 2.2. Customer Journey Map ...... 7 2.3. Business Canvas...... 8 3. Tourism Geographical Overview ...... 9 3.1. Tourism Definition ...... 9 3.2. Tourism Motivators ...... 9 3.3. Tourism Trends ...... 10 3.3.1. World ...... 10 3.3.2. Continent ...... 10 3.3.3. Country ...... 11 3.3.4. City ...... 11 4. Project and company description ...... 12 4.1. Mission ...... 12 4.2. Vision ...... 12 4.3. Values...... 12 5. External Analysis – PESTE Analysis ...... 13 5.1. Political – Legal Analysis ...... 13 5.1.1. Tourism Policy and Hospitality Law ...... 13 5.1.2. and Social Security Policy ...... 14 5.2. Economic Analysis ...... 15 5.2.1. GDP and GDP per capita ...... 15 5.2.2. Gross National Disposable Income per Capita (PPP) ...... 16 5.2.3. Balance of Payments (BOP) ...... 17 5.2.4. Inflation ...... 18 5.2.5. Exchange Rate ...... 18 5.2.6. Interest Rate ...... 19 5.2.7. Unemployment ...... 20 5.3. Social and Demographic Analysis ...... 20 5.3.1. Evolution of the population ...... 20 5.3.2. Distribution of Population ...... 21 5.3.3. Household Final Consumption Expenditure ...... 22 5.3.4. Lifestyles Evolution – Motivation for traveling ...... 22

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5.4. Technological Analysis ...... 23 5.5. Environmental Analysis ...... 24 6. Competition Analysis ...... 25 7. Porter’s Five Forces Analysis ...... 25 7.1. Bargaining Power of the Buyers ...... 25 7.2. Bargaining Power of the Suppliers ...... 26 7.3. Rivalry among Existing Firms...... 26 7.4. Threat of New Competition ...... 26 7.5. Threat of Substitutes ...... 26 8. SWOT analysis ...... 27 9. STP – Segmentation, Target, and Positioning ...... 27 9.1. Segmentation ...... 27 9.2 Target ...... 28 9.3 Positioning ...... 29 10. Marketing Mix ...... 30 10.1 Product ...... 30 10.2 People ...... 30 10.3 Packaging ...... 31 10.4 Programming ...... 32 10.5 Place ...... 32 10.6 Partnership ...... 32 10.7 Pricing ...... 33 10.8 Promotion ...... 33 11. Technical and Technological Aspects ...... 34 11.1 Building and Sizing Unit ...... 34 11.2 Equipment ...... 36 11.3 Technology ...... 39 12. Organization ...... 40 13. Project Planning and Implementation (GANT) ...... 42 14. Financial Analysis of the Investment ...... 45 14.1 Investment ...... 45 14.1.1 Investment Summary Map ...... 45 14.1.2 Investment in Working Capital ...... 45 14.2 Hotel Exploitation ...... 46 14.2.1 Sales Forecast ...... 46

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14.2.2 Operational Costs ...... 48 14.3 Cash Flow Map ...... 49 14.4 Balance Sheet ...... 50 CONCLUSIONS ...... 52 REFERENCES: ...... 53 APPENDIX 1: ...... 56

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1. Abstract

Currently, great importance is being given to the ecological approach, and therefore to responsible tourism. The idea of a Glamping is to offer the best services that a hotel offers, not losing the basic idea of the camping concept. In recent years, experiential tourism is one of the tourist trends. This has happened because the companies realized that the tourist no longer seeks to consume a product, but experiences, resulting in lasting and satisfactory memories of what was lived. The project proposes a structure design for Glamping, taking advantage of the hospitality and accommodation opportunities offered by nature tourism due to the great variety of ecosystems in the country. In addition, it wants to contribute to the diversification of structures offered by various glamping companies, offering a new design of innovative, attractive, and modern alternatives for tourists, who over time are more demanding and seek new experiences. This research project seeks to offer a structure design for glamping in the tourist market, where it wants to provide unforgettable experiences, with a high level of differentiation in the segment dedicated to the manufacture of such structures, expanding the offer and thus seeking the market positioning.

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2. Applied Project Research Problem

2.1. Empathy Map

Think and feel? - Disappearance of indigenous communities and their culture - The state of conservation of the area and the inputs to be consumed. - Safety and comfort - If they care about the customer. (Personalized attention)

Hear? See? - There are ecological hotels that contribute to - Local theme the preservation of the ecosystem and natural - Accommodation comfort. resources - Customer service - Suggestions of the service offered. - The location of the infrastructure. - The treatment of the staff towards the client. - No care of the environment - That the place is comfortable and has - Indigenous communities and their culture are accessibility to reach it not respected

Say and do? - The satisfaction / dissatisfaction of the service. - Communication between the service provider and the client (language) - Recommends the hotel for the good services provided and activities carried out in it. It can cause not to advise the hotel, for some failed service.

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2.2. Customer Journey Map

Traveler Finding the Web pages and Good Great Friendly/fast Goals right place to information experience in satisfaction of feedback through create online the web and hotel the different experiences in available, good direct booking accommodation, channels the an ecofriendly reviews about without delays services, and hotel manages way the hotel, blogs, facilities. videos

Touchpoints Access to Social media, Hotel web Easy check in Monitoring, hotel and local web pages, page (simple and check out, optimization, and information OTA’s, design), walk good service, mediation of regarding the reviews, in booking infrastructure, customer main YouTube, travel (efficient facilities, and satisfaction characteristics blogs check in) amenities. through an offered (value efficient channel proposal)

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2.3. Business Canvas

Customer Key Partners Key Activities Value Proposition Customer Segments Relationships

- Indigenous - Branding We are an eco-friendly - Loyalty program - Foreign tourists communities - Luxury lodging service luxury accommodation in (points) - Couples, families, - OTA’s (Online - Active advertising on a natural environment - Personalized service and friends which are Travel Agency) social networks away from the city of by hiring tourist guides looking for a different - Investors - Maintenance Huaraz, offering the in the area to teach experience that - Strategic alliance - Cooking classes using opportunity to interact about their culture connects them with the with travel agency local food with the community of the - Constant nature and the and tourist - Harvest activities area, learn from them by communication with communities of the companies - Trekking doing cooking, weaving, them to be able to zone. - Knitting classes harvesting, among others. inform them about - People interested in "what's new" through learning about caring emails, telephone, and for the environment web chat and its resources. - Promotional campaigns for loyal customers.

Key Resources Channels

- Technology Direct: - Trained personnel for - Website process control - App - Equipment and - Social media technical support - Ad & Partner - Infrastructure Channels - Capital / Utilities - Location

Cost Structure Revenue Streams

- Administrative expenses - Credit and Debit cards - Publicity and promotion - Lodging - Trained staff - Tour Package - Legal permits for installation - Activities with the community - Loan

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3. Tourism Geographical Overview

3.1. Tourism Definition Seconds Mincetur, the word tourism includes the activities carried out by people during their trips and stays in places other than their usual environment, for a consecutive period of time of less than a year, whether for business or leisure purposes, but never related with the exercise of a remunerative activity in the visited place.

3.2. Tourism Motivators According to Mincetur data, in 2014, 53% of travelers did it for leisure reasons, while 14% traveled for business and 27% for other reasons such as Family or friends’ visits, religious motivations, health treatments, among others. Today there are new motivations that move people to do tourism, such as: ● The personalized and above all unique tourist offer, where you can take advantage of time and money. In this way, new ways of satisfying the customer are created, and not only sell , but also take advantage of gastronomy for the decision-making of the traveler. ● Exclusive destinations, today's travelers seek to know exotic places where they can live good experiences. From here the opportunity to sell places not so visited by people, with high quality services, is obtained. ● Inclusive destinations, that is, tourism for everyone, such as disabled people, people traveling with a pet, single women, or people from different cultures. ● Responsible tourism, where travelers seek sustainable destinations and opt for places committed to social and natural development. ● Millennials have a travel motivation to interact with local residents who visit and live as one of them, increasing their knowledge and learning new cultures, in this way they obtain good memories of each trip they make.

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3.3. Tourism Trends

3.3.1. World The concept “glamping” is the outcome of merging glamor and sustainable tourism. Glamping, as a “glamorous camping”, has become a trend, attracting more and more people who otherwise would never have been interested in enjoying their holidays in this type of accommodation. They are four- or five-star tents, installed in places where traditional accommodation does not reach and offer an alternative to people who want to experience contact with nature with all the comforts of a resort. This experience not only provides luxury accommodation but also allows you to live a unique moment due to the unexpected location they propose. This new concept of accommodation, in each destination, provides itineraries and activities of the place in which they are located. They can also enjoy the sunset or even take classes from a chef using local ingredients outdoors. They also focus on sustainability as customers provide with great importance on social and ecological awareness. For this reason, energy efficiency, resource savings and eco-friendly design are crucial when tourists book glamping.

3.3.2. Continent When we talk about Glamping, we can identify some important trends that are focused on the American continent, specifically in the Latin America sector. Axon Marketing & Communications, a business consulting company, performed a study where they could see that the most best-selling destinations in Latin America were Argentina, , and Mexico; Peru having the 16% of the tourist demands. In Latin America 74% of the tourism is focused on the recreational sector, which creates a huge market for our proposition of hospitality. Most of the travelers that come to this continent, are looking for experiences that includes a contact with nature, activities where they can explore and be adventurous, have a close encounter with the historical and cultural places and enjoy the gastronomy and events the destination offers. Glamping is an alternative that promotes all the previously mentioned activities that can offer a different experience for travelers that want a different and unique experience where they can feel more connected to the community and have an eco- friendly alternative combining the glamour with the camping experience.

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3.3.3. Country In Peru, these accommodations can be found in various ecosystems such as forests, jungles, deserts, mountainous areas, and even national parks. It should be noted that one of the main characteristics is the originality of the accommodation. Glamping is the favorite style for travelers more committed to the environment because it is a concept associated with ecology and life in nature. In Peru you can find these types of glamping: Tree houses, this type of accommodation is made of wood on the branches of a tree and to reach them you must climb stairs. Tree houses can be found in Iquitos. Eco-camp, which is adapted to all types of areas, even the most exposed such as mountains, jungles, or savanna. Domes, they are popular thanks to their advantages related to sustainability, earthquake resistant structure, less energy use and temperature conservation. It can be found in . Luxury Tents that is a luxury camp with all the comforts such as double beds, a kitchen area, with excellent views of the surroundings. It can be found in Huacachina, Ica. It is important to know the classification, since in Peru there are different kinds of tourism activities such as Conventional (sun and beach, adventure, thermal, sun and snow), Adventure and ecological (mountain, sports), Cultural (historical) and and traditions (religious, gastronomic)

3.3.4. City Huaraz is located at the foot of the White Mountains in Peru. This city is known for their huge number of outdoors activities like trekking, cycling, rafting, rock climbing, and others that allows adventurous travelers to have an unforgettable time as well as enjoy walks in the villas and shopping in the street markets. Travelers can go hiking to different locations like Laguna 69 or do a trekking tour at the White Mountains or one of the more than 25 trekking routes that the city offers. Having all these outdoor activities in mind we have found that travelers are also looking for a different hosting experience. There are many low budget hostels in the city but we have seen that people are opting to stay in bungalows, like YakuRumi Tipis & Camping, Villa

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Valencia or Eco Departments Huaraz, that gives them a totally different experience, where they have more contact with the city and nature. People want to stay near the city or close to the trekking routes to have an easier access to the activities they want to enjoy.

Images: YakuRumi Tipis & Camping (Caraz, Huaraz)

4. Project and company description

4.1. Mission

We work hard to explore and enhance the potential of the community in Huaraz by connecting people from different parts of the country with locals while providing them a glamorous stay where they can take joy in exploring the community, learning from the culture and do adventure activities.

4.2. Vision

We are looking to become one of the pioneers hotel chains in Peru to advertise different and unknown places in Peru for international tourist realizing the full potential of these places while providing a first class experience were international tourist can learn from the diverse culture and help the growth of that community and the same time receive a high level service throughout the time of their stay.

4.3. Values

To create a company, we decided to have certain values that were going to be the ground in which we were going to build our hotel.

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• Integrity: We advocate the best integrity standards in every decision and action taken being honest with all the parts involved • Community focus: We work alongside with the community to help them grow while buying products produced by them and sharing the culture with our guest • Customer Engagement: We forge bonds with our customers to get to know them and offer a personalized service depending on their needs. • Quality: We provide an excellent service combined with the use of products of the highest quality • Environmental mind: Every action taken by our company is focused on helping the planet and the preservation of our environment to respect and bolster the community. • Teamwork: We work as one mind to deliver the best experience to our guests and help the development of the company showing value and encouraging our people. • Innovation: We work hand in hand to innovate and brainstorm new ideas to create WOW moments and improve the company as well as study new trends to satisfy our customers’ expectations.

5. External Analysis – PESTE Analysis

5.1. Political – Legal Analysis

5.1.1. Tourism Policy and Hospitality Law

Law 27790, Law on Organization and Functions of the Ministry of Foreign Trade and Tourism, published in 2002, mentions MINCETUR as the entity in charge of directing and executing tourism policy in the country, in accordance with the general policy of the State and in coordination with the sectors and institutions related to their field. The main decentralized public bodies (OPD) of MINCETUR for the tourism sector are the following: (MINCETUR, 2002)

● Peru Promotion Commission for Export and Tourism (PromPerú): Formulates and implements internal and inbound tourism promotion plans, to promote and disseminate the image and the Peru Brand

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● National COPESCO Plan: Design and carry out investment projects of national tourist interest. It also provides technical support for the execution of tourism projects to regional and local governments, and to other public entities that require it. ● Tourism Training Center (CENFOTUR): It is a unit in charge of planning and executing the institutional educational policy of professional training, as well as the training and updating of personnel who are in service and who require the tourist activity.

General Tourism Law No. 29408, issued in 2009, considers tourism a priority national interest sector for the development of the country, which must be included in the plans, budgets, programs, projects and actions of the ministries, regional governments, local governments and those public entities linked to the needs of infrastructures and services for the sustainable development of this activity. The Ministry of Foreign Trade and Tourism - Mincetur is the governing body of all tourist activity and has the power to "approve and update the National Strategic Tourism Plan - PENTUR, as well as coordinate and guide regional and local governments in the matter , promoting the development of social tourism and the implementation of strategies for tourism facilitation, investment and promotion of internal and inbound tourism, among others. (PENTUR, 2016)

5.1.2. Tax and Social Security Policy

The Ministry of Economy and Finance (MEF) reported that in 2019, the fiscal deficit of the Non-Financial Public Sector (SPNF) was equivalent to 1.6% of GDP, and was below the established limit rule, set at 2.9% of GDP. In 2019, Peru managed to preserve its credit outlook due to the solid history of macroeconomic policies, and credibility, this being a factor that strengthens the confidence of the rating agencies in the fundamentals of the country. According to the Macrofiscal Rules Monitoring Report published by the MEF, the deficit reduction is due to the 4.6% increase in tax revenues obtained in 2019, reaching an amount of S / 153 billion, as a consequence , mainly, of the measures adopted to combat and avoidance, which has helped to gradually consolidate the fiscal accounts.(Ministerio de Economía y Finanzas, 2020)

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5.2. Economic Analysis

5.2.1. GDP and GDP per capita

Gross Domestic Product (GDP) is the value of final goods and services produced over a period of time in a territory. It only refers to final goods and services because their prices incorporate the value of intermediate goods. According to data obtained from INEI, the percentage variation of Peru's gross domestic product at the end of 2019 compared to the previous one is 2.2% It represents the total value of all goods and services produced over a specific time, often referred to as the size of the economy. GDP is usually expressed as a comparison to the previous quarter or year (Investopedia).

2018/2017 2019/2018 OFERTA Y DEMANDA GLOBAL I II III IV I II III IV AÑO AÑO TRIM. TRIM. TRIM. TRIM TRIM. TRIM. TRIM. TRIM

PBI 3,1 5,4 2,5 4,8 4,0 2,4 1,2 3,2 1,8 2,2

EXTRACTIVAS 2,1 3,9 -0,3 1,8 1,9 0,6 -2,0 0,7 2,0 0,2

TRANSFORMACIÓN 1,4 9,4 1,2 9,8 5,6 0,0 -2,8 3,8 -3,1 -0,7

SERVICIOS 3,9 4,4 4,1 4,1 4,1 3,8 3,8 3,8 3,9 3,8

GDP per capita is a metric of a country's economic output that accounts for its number of people. It divides the country's gross domestic product by the total population. It is a measurement of a country’s standard of living

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According to data of the World Bank the GDP per capita of the most recent/updated year (2018) is 6 941.236 USD.

5.2.2. Gross National Disposable Income per Capita (PPP)

“Purchasing power parity (PPP) is a tool used in the economy to know the real value of a currency in another country; that is, it equals the purchasing power of a currency in two different countries based on the relationship between the price level of the countries and the exchange rate of their currencies” (Garvan, 2019). According the Global Economy, for this indicator, The World Bank provides data for Peru from 1990 to 2018. The average value for Peru during that period was 8280.25 USD with a minimum of 5133.1 USD in 1992 and a maximum of 12793.5 USD in 2018.

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5.2.3. Balance of Payments (BOP)

The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period. The BOP is divided into two main categories: the current account, and the financial account. During the first semester of this year we have had a surplus in our balance of payments, which has allowed the BCRP to increase its international reserves by 5.689 million dollars, reaching a historical record so far this year. Currently, the RIN are equivalent to 30% of GDP (Gestión, 2019).

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5.2.4. Inflation

Inflation, in economic terms, is the generalized and sustained rise in the prices of services and goods that exist in the market in a period of time of around a year. According to the BCR during 2019, Peru closed with an annualized inflation of 1.90%, below the average of the official target range, in the face of a rise in prices in the areas of recreation, home rental, fuel and food. According to Reuters, the annual inflation rate is less than 2.19% in 2018, although it is higher than 1.36% in 2017 when the cost of living increase was the lowest in eight years. The Central Bank's annualized inflation target range is between 1% and 3%.

5.2.5. Exchange Rate

The exchange rate is one of the most influential determinants of a country's relative level of economic well-being. For this purpose, exchange rates are amongst the usual inspected, investigated, and manipulated economic measures by the government. Exchange rates perform an essential function in a country's level of commerce, which is fundamental to most of the world's free-market economies. But exchange rates are also necessary on a smaller scale because they affect the certain performance of an investor's portfolio. In Peru, a considerable portion of the credits of individuals and companies are in dollars, approximately 43%. If the US currency increases a lot, people and companies that possess dollar debts and produce income in soles will be affected.

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5.2.6. Interest Rate

An interest rate is a rate carried by a lender of money or credit to a borrower. When a loan/credit is delivered the lender loses ‘liquidity’, and the interest rate can be regarded as the compensation for parting with liquidity and losing the ability to allocate funds to consumption. In a scenario in which interest rates fall, the growth of the economy is strengthened, since credits are cheaper and people, therefore, consume more. However, investors get their money elsewhere because the rates of return on these investment instruments decrease. In a scenario where the interest rate is higher, people will think twice before consuming, but at the same time, investment remains attractive, given the rise of interest rates.

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5.2.7. Unemployment

According to INEI in 2019, the unemployment rate of stood at 6.6%, some 346 thousand 200 people of working age actively look for employment. Women remain to be most of the population looking for a job in the capital (191,500) compared to the 154,700 men who look for a job opportunity. The unemployment rate (6.1%) remained the same in the last three months of last year compared to the same period in 2018. "It is essential to understand that employment and unemployment are concepts of a market economy. If there is no market where a person can offer his services, unemployment cannot exist. It is one of the variables that can influence market behavior the most if it falls far short of expectations. The very conception of the labor market goes hand in hand with the degree of development of a country" (Heath, 2012).

5.3. Social and Demographic Analysis

5.3.1. Evolution of the population Ancash is a department of the Republic of Peru created on June 12, 1835, in the western and central part of the country and its capital is Huaraz. It is the eighth most densely populated department, divided into 20 provinces.

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In Ancash are two types of landscapes: the arid coastal plain that dominates the entire western area of the department with an average maximum width of 15 km, and the mountainous areas, which occupy 72% of the departmental territory. Ancash has a rich historical heritage, with pre-Columbian archaeological sites such as Chavín de Huantar (World Heritage Site). Also, a very well preserved 50 km stretch of the Inca Trail (World Heritage Site). The department of Ancash is home to 1 083 519 habitants, which 534 101 are men and 549 418 women; according to the Definitive Results of the 2017 National Censuses, published by the Instituto Nacional de Estadística e Informática (INEI). In the urban area 686 728 people reside and in the rural area 396 791. In the last ten years, the urban population increased by 96 418 people, at an average annual growth rate of 1.5%; while the rural population decreased by 76,358 people, at an average rate of decrease of 1.7% per year. The 63.0% of the population is between 15 and 64 years old, 27.0% between 0 and 15 years old and 10.0% between 65 and over. Compared to previous censuses, it is observed that the population from 0 to 15 years of age is decreasing, while the population of 15 and over is increasing. The most populated province is Santa with 435 804 habitants, concentrating 40.2% of the departmental population; followed by Huaraz 140 041 habitants.

5.3.2. Distribution of Population

Huaraz is a city and capital of the department of Ancash. Its metropolitan area includes part of the Huaraz districts and is located south of Callejón de Huaylas, at an average altitude of 3050 meters above sea level. It has an approximate extension of 9 km², being the second most populous city in the department. According to INEI projections, in 2018, the Huaraz metropolitan area is home to 140,041 habitants. After the 1970 earthquake, where almost half of the Huaraz population died, a stage of population readjustment begins that generates large waves of migration from other provinces in the region and later at the end of the 1990s, with the start of operations of the Antamina and Pierina mines, families from other departments such as Huánuco and Lima they decide to settle permanently. The predominant language is Castilian in its variants of Andean Spanish and Peruvian Standard Spanish, and a minority speaks Ancashino Quechua, which still prevails in

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rural areas. The predominant religion in the city is Christian. The population of Huaraz professes the Catholic faith in 89.06% while 7% is evangelical or of another Protestant denomination. Huaraz's economic activity is based on mining, agriculture, commerce and tourism, the latter being the most important economic source in the city. It is remarkable that a large percentage of Huaraz's infrastructure is dedicated to tourist activities, making the city an important arrival point for adventure and high mountain sports practitioners in the snowy Cordillera Blanca and Cordillera Huayhuash, as well as for routes to the archaeological site of Chavín de Huántar and the entire Sierra Oriental de Ancash.

5.3.3. Household Final Consumption Expenditure

According to the source of el Instituto Nacional de Estadística e Informática (INEI), they carried out a Demographic and Family Health survey, where the table of Basic housing services is presented, according to the geographical area in 2014. At the departmental level, there are considerable differences in relation to the possession of toilet services. A table was made by departments (Appendix 1), indicating the percentages of electricity, water source for the public network and the sanitary service with drainage in the public network. In the Ancash department, the survey was carried out in 1,182 households. In this department 93.8% of the respondents have electricity, so 6.2% do not have electricity in their homes. In the public water source, 87.2% benefits as it is inside the home, while 1.8% has it outside their home and 0.8% has a pylon for public use. In the 1182 homes, the sanitary service with a drain in the public network. it has a total of 66.8%, of which 65.5% acquires it inside their home, 1.3% has it outside their home. In addition, 19.2% of the respondents have a latrine and 13.8% do not have a sanitary service with a drain.

5.3.4. Lifestyles Evolution – Motivation for traveling

According to MINCETUR, during 2018, according to the Internal Tourism Survey, it is estimated that more than 1.9 million trips were seen by internal tourism to the Ancash region, representing 4.3% of total trips nationwide.

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The most visited provinces were Huaraz (35.3%), Santa (27.3%) and Casma (5.1%), among others. The main reason for visiting the Ancash region was to visit family / friends (42.5%) followed by recreation (34.0%), and business / professional reasons (13.5%), among the main ones. The 31.3% of tourists will stay in paid accommodation (hotel, hostel, etc.), while 68.7% in unpaid accommodation (house of family and / or friends, own home, camps). The main modes of transportation used to reach Ancash were by bus (81.6%), followed by the private or own car (13.1%). The average stay is 6 nights, however, there are 42.4% of visitors who have a short stay (1 to 3 nights). The average expense of internal tourists that estimates the cost of S /. 345, with tourists from other regions spending the most (S /. 374), compared to those who found their own region (S /. 220). Considering the sociodemographic characteristics of the national tourist, 44% of the participation were male tourists, and 56% of female tourists and the average age being 38 years. 53% of them have a partner, and 53% of them have a higher education degree and socio-economic level A - B. 65% of these tourists have children and the place of residence of the tourists who visit Ancash is the city of Lima. In the aspects that tourists consider when choosing a place to travel, 58% choose landscapes / nature, 37% choose due to the variety of tourist attractions. In the activities carried out during their visit, 86% of the tourists made urban tourism, 71% of nature tourism, 43% of them make handicraft purchases and 37% of cultural tourism.

5.4. Technological Analysis

Technology is evolving faster than ever, most travelers around the world turn to it much more often than in the past to find out before deciding about their trip. In the same way, the progress made regarding connectivity has resulted in online reservations through mobile devices being a constantly increasing indicator, such that the market for Online Travel Agencies - OTAs has increased in recent times. The profile of the technological consumer is a person between 18 and 44 years old, but the most active are between 20 and 34 years old. The demand for technological articles at the national level comes 58% from Lima and 42% from the provinces. Of the total, 64% of users are male and 35% female. (La República, 2018)

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The Domes will be reserved, apart from our website and via telephone, using reservation search engines or various web platforms: Booking and Glamping Hub, which is not yet well known in Peru. Glamping Hub is a worldwide web page where you rent a lodging for days or weeks somewhere in the world. What differentiates it from any other accommodation system is that to enter and be the host in Glamping, your accommodation must be one of the following concepts: Cabin, Treehouse, Dome, etc. All of them implemented as a luxury hotel but in the middle of nature. It is basically camping luxuriously and is the latest trend in ecotourism or adventure tourism. International and national tourists have consultation mechanisms on lodging establishments and real-time reservations available.

5.5. Environmental Analysis

In Peru, sustainable tourism is established as the basis for the country's development, promoting the responsible use of cultural and natural resources, which improves the quality of life of local populations and strengthens their social, cultural, and environmental development. economic (Mincetur, 2008). Huaraz is one of the biggest tourist attractions in the Andean region for its impressive landscape, snow-capped mountains, its pleasant climate, its fertile lands, its historical and cultural wealth, which is why it is considered an adventure destination with a high potential for development and because it offers various opportunities and types of adventure tourism. The development of adventure tourism in conditions that do not affect the ecosystem of the area, will not only contribute to its improvement but will also be a distinctive element compared to other tourist destinations, an aspect valued by tourists. This type of Glamping, the Domes will be built and implemented based on a sustainable infrastructure. We know how important it is to be environmentally conscious so we will use solar energy through various solar panels. We will also have an orchard to cultivate and harvest products from the area and thus put the land to good use.

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6. Competition Analysis To perform a competition analysis, glamping with Domes structure was analyzed. Being this, a new category of accommodation in the market, there are many that offer the Glamping service, but not with the structure that is wanted to elaborate in this project. That is why, only 3 glamping that provide hospitality with the dome structure were searched and analyzed. Next, a comparative analysis of each of the 3 locations is presented.

GLAMPING DESCRIPTION LOCATION COST SERVICES

• Fine dining 8 domes powered by solar • Tours energy and hydraulic system. Peru Ecocamp One king or two single beds, Cusco $ 299 • Wi-Fi private bathroom, and wood • Bar stove. • Room service

They have beds for two or • Parking three people, bedding, Pariaca Camp Huarochiri S/.220 • Excursions wooden floors, and views of • Heated pool the mountains.

Contain all the facilities needed. In this way, they are ● Kitchen Salcantay Trek Sky Domes reducing the wearing down, Cusco $ 390 ● Bathroom destructors and pollution of the route.

7. Porter’s Five Forces Analysis

7.1. Bargaining Power of the Buyers

The power they exercise is not so high, since we can see that our segment is willing to pay a value that is in the middle of the market. Additionally, we can identify various strategies that will help differentiate our service from others and in turn, reduce the bargaining power of the buyers in order that these adapt to the strategies. BTL advertising, for example, is within the reach of companies that are just starting, and you cannot make large advertising investments since it is low cost.

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7.2. Bargaining Power of the Suppliers The level of Negotiation by the suppliers is high since we will have several that will help us by providing the service and taking into account that these are not a few, the effect on the price will not be direct and if some type of inconvenience or increase in the products they provide, a mutual agreement must be reached so that neither is affected and both can generate profits. This strategy will be taken as part of a continuity plan so that a pause in the operation is not reflected.

7.3. Rivalry among Existing Firms Since there are competitors in the region, we are clear that the way the business is advertised is of vital importance to lead in this type of business and generate a differentiation from the competition. Moreover, the price is an item with which we must move frequently with the possibility of reaching a point where the customer is satisfied.

7.4. Threat of New Competition

Considering that we are not the first business that presents an activity of glamping with various amenities. You must consider that you have to find the right place to implement the service. Based on our value proposition, we stand out for presenting a service that has a differentiation compared to our existing competences and that due to this we can surpass the incoming competition.

7.5. Threat of Substitutes Possibly we have some degree of threat regarding an unexpected drop in prices by substitute competition, but we have the advantage that these are not located in the region where we provide the service, therefore we will generate plans for the brand positioning in order not to have to worry about the price drop of said competition since the client will pay for something of quality that he will not obtain in other establishments.

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8. SWOT analysis

STRENGTHS WEAKNESSES

✓ Differentiated product ✓ Low environmental impact accommodation infrastructure with a ✓ Lack of specialized services equipment good location that offers a different ✓ Access with personal transport given to concept of accommodation based on an road maintenance experience of glamor, relaxation, and ✓ Risk of low acceptance of our service adventure in harmony with the nature and the community with access to natural inputs

OPPORTUNITIES THREATS

✓ Located in natural areas protected that provide beautiful landscapes during day ✓ There are temporary seasons due to and night weather ✓ You can have a contact with a culture ✓ Environment that could cause rapid where most of the residents are artisans damage to infrastructure and equipment ✓ Trend increasing with respect to as well as unexpected natural events. lodgings that demonstrate their ✓ Political, economic, and social stability of the country commitment environmental partner

9. STP – Segmentation, Target, and Positioning

9.1. Segmentation

• Geographically

Segmentation carried out for the type of traveler to which the hotel proposal is addressed and the collection of data from the profile of the foreign tourist for reasons of vacation, recreation, or leisure (adventures) that comes to Peru 2019. Approximately 65% of the total of tourists who come to Peru have as a reason for vacation, recreation, or leisure travel. And the percentage of the countries of greatest origin are:

• Chile (32%) • E.E.U.U (15%) • Ecuador (7%) • Argentina (5%) • Colombia (4%)

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• Brazil (4%) • Francia (4%) • Others (10%)

• Demographically: Age: • From 25 to 34: 35% • From 35 to 44: 17%

• From 45 to 54: 15% Sex: • 57% man

• 43% woman Average spending: $ 1,041 Type of accommodation:

• 4- or 5-stars hotel (18%) Average stay: 10 nights

Segmentation according to data of Mincetur of the profile of the national tourist who visits Ancash (Huaraz) 2018 that have as motivation relaxation and rest are (36 %) while for break the routine (4%) with a socioeconomic level A/B (55%).

9.2 Target

Traveler Profile Hotel guests are primarily recreational and leisure travelers, both men and women between the ages of 25 - 54, who have a college, graduate, or master's degree, with high and medium income, who generally live in urban areas or cities and who seek to escape from these places to seek tranquility and pleasure, as well as enthusiasts to live new experiences and interest in connecting with nature in a place that offers the desired tranquility and comfort for which they perceive that a hotel (domes) must have all the services for their stay. They are looking for hotels that are surrounded by unique landscapes and surrounded by nature, they want rooms that are comfortable and comforting for their stay, as well as having a view of the natural landscape.

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Customer Characteristics • Social class: Travelers have a high or medium level of purchasing power that can afford to pay for a unique experience. • Reference groups: Recreation travelers are highly guided by word of mouth or good advertising / marketing and the level of reliability that can be attributed to the hotel on different social networks. • Motivation: Recreation travelers are motivated by escaping to a quiet place that provides an exceptional experience. • Perception: Recreation travelers have the perception that the best hotels / establishments are those that have a 4 or 5-star rating, as this ensures service and quality. • Preferences: Travelers are aware that the correct 4- or 5-star hotel / establishment must have good service and adapt to their needs throughout the experience. • Attitudes and beliefs: Travelers infer that it is important that the establishment interacts with the nature that surrounds it in a sustainable and less harmful way possible, as well as being able to contribute to the locality.

9.3 Positioning

Our positioning focuses on offering an exceptional product / service to our objective and that has differential differentials to our competitors. The proposal is the unique experience of staying in domes in the city of Huaraz, in a location where you can activate the natural and physical resources of the locality, as well as integration with the natural environment and the inhabitants to contribute to the community and thus increase the sociocultural value, taking into account the high problems of quality and hygiene as well as the quality of the services under the burden of the employees of the company and also the management of operations in a sustainable and sustainable way. It is planned to establish competitive prices in the current market and use marketing and advertising strategies to disseminate the value proposition and the differential attributes.

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10. Marketing Mix

10.1 Product

This glamping hotel is a model of ecotourism accommodation that seeks to surprise tourists by generating experiences in a natural environment, but with high quality comfort outside the city. The glamping experience feels like a unique rural getaway that features fantastic nature settings. We also create a connection to the environment through various activities such as trekking / hiking, mountain biking, visiting animals. cooking workshops, among others that allow us to enjoy even more this new accommodation. Living this experience alone, with your partner or with your family is something different, although you can pay the same as a room in a 4 or 5-star hotel, but in comparison your ceiling will be the stars and the forest your walls. And they will not be the typical activities of going to museums or zoos; you leave conventionalism aside to enter an air of renewal.

10.2 People

Huaraz Glamping Domes is made up of an administrative work team, which includes a general manager, accommodation supervisor, food and beverage supervisor, logistics supervisor, human resources, publicist, and a sales manager. Each of them fulfills an indispensable and quality function. The main functions will be: • Receptionist: oversees confirming reservations and the availability we have. • Advertiser: in charge of promotions and social networks. • Housekeeping: Assignment and control of cleaning in the rooms and laundry. • F&B is in charge of the restaurant service, room service and bar. • Logistics: They are responsible for the security, maintenance, and transportation of guests. We will also complete our staff with the Carhuaz community to promote the internal work of the area and also, they will be able to create contact with our guests and show their culture and knowledge.

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10.3 Packaging

Huaraz Glamping Domes is a glamour lodge in which the rooms are domes that provide a different experience contacting nature and the community that is in the area. The logo it will have will be the following:

That will be the logo that identifies us and that can be seen on our social networks and in advertisements.

The packages offered by this accommodation will be three and will be enabled per season and demand. The first package will be aimed at those couples who are looking to get out of the city and be able to relax outdoors and enjoy the experience that we offer. It will be known as the marriage package or honeymoon that aims to unite couples as if it were their first wedding night. It will also be available for lovers. The season where it will have a special discount is in February.

The second package will be aimed at families seeking to reconnect with nature, to learn to live with it and as a family to be able to carry out various activities different from those that can be done in the city. This package will be available at a discount in the months of July and August.

And the last package is geared for all those looking to go on an adventure. Offering activities such as trekking, mountain hiking, rafting, among others that take the person to their maximum adrenaline and be able to enjoy nature. This package will be available in May and October, months when the good weather is just beginning and the end of the season, respectively.

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10.4 Programming

We detail the reservation process: 1. The client will have to enter the page. 2. Then will create an account in which they must enter their personal data 3. To see the availability of rooms, they must choose the date they are planning to travel and mention how many people they are. 4. The client will search the room and the rate according to our page shows in relation to the demand and season. 5. Then among the activities shown, they must choose which one is their preference (they can choose as many they want to do). This will not be included in your rate since arriving at the hotel, depending on availability and weather, can be done with a prior payment. 6. At the end of your search, they will select the room with the rate, and they will be able to make the payment, which can be made by credit cards from Visa, MasterCard and American Express. The client must choose the means of payment at their convenience. And you will receive the payment confirmation and reservation number with the dates indicated.

10.5 Place

The marketing channels for these lodgings are various. We have direct and indirect channels. The direct channel will be the same website where they can make reservations and contact us. Also, social networks are a direct channel since there are no intermediaries between the guest and the client. In addition, through social networks we will maintain direct contact with them. Indirect channels will be the OTAs (Online Travel Agencies) such as Booking and TripAdvisor, because as we are just entering to the market, these agencies will help us to contact our client. The platform “Y tú que planes?” will also be our indirect channel. They interfere since as tourists and nationals check destination options and everything that this has to offer, we can promote tourism in the area and the different hosting experience that we provide.

10.6 Partnership

For this glamorous accommodation to generate more income and to become recognized by guests and tourism agencies, strategic alliances must be formed. The first would be with the

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Municipality of the Carhuaz district since that is where it will be located. With their support we will be able to ensure that the people do not feel threatened and what we seek is to promote tourism in the area. Tourists and before traveling check the country's tourism pages to find options and recommendations. For this reason, the second alliance will be with PromPerú, since through its tourism platform Peru Travel, Y tú que planes? and IPerú we will be able to make ourselves known even more.

10.7 Pricing

Being a new hotel that we are just breaking through in the market, we will use two pricing strategies. Revenue Management is the area in charge of adjusting prices, so that they can be adapted to the commercial needs of the hotel and, at the same time, to the markets. The price of each hotel unit must be directly linked in real time to market conditions and availability. There will be a structure of rates based on demand (Demand Based Pricing) and a demand calendar will be made, estimating the levels of occupancy for the different dates of the year. The second pricing strategy will be the structure of fixed prices vs. price discrimination since we cannot assume that all our guests are the same. If we sell them at the same price, we will not generate an extra income for those customers who would be willing to pay more. With price discrimination based on the value proposition we can offer different rates depending on our segment.

10.8 Promotion

The promotion will be the way that the lodging will have to be able to grow its public and that there is greater demand. These strategies are what will help us to promote our accommodation: • Seasonal offers: In the different months of the year discounts will be made and packages will be launched in the months of greatest demand such as May, July, and October. • Recommendations: We will contact the traveling influencers who have more arrival with their public and channels that promote tourism that can generate content on their social networks. In addition, they will have a promotional code which they will be able to use on their first stay or activity. additional to make • Facebook: A fan page will be created with the name Huaraz Glamping Domes, where we will put information about the tourist places to do in the area, festivities that are

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held, tips that may apply when staying in domes, among other things. This social network offers us the option of segmentation to reach more clients of our target audience. • Instagram: An account will be created which will be used as an informative and interaction medium with clients through Instagram stories, hashtags and paid advertising showing who we are, the concept of our accommodation, the tourist attractions in the area and experiences of the guests. • Website: Through its page you can see who we are, our objective, the service provided and the different activities to be carried out. You can also make reservations and contact us if you have any questions.

11. Technical and Technological Aspects

11.1 Building and Sizing Unit

Glamping is the favorite style for travelers who are more committed to the environment, since it is a concept associated with ecology and life in nature. In this type of Glamping it has rooms in Geodesic Dome structures, a geodesic dome is a structure formed by triangles that make a surface inscribed in a hemisphere. Triangles create a three-dimensional structure that directs forces and transmits loads optimally following patterns of nature. These domes are rigid, stable in structure, and can be extremely strong considering the relatively light weight. They are an attractive, economical modular proposal that is highly resistant to climatic inflexibility, since they can withstand storms and strong winds, they have been tested in extreme climatic conditions. Its modern design offers infinite benefits and they are assembled quickly. Each geodetic glamping construction is completely customized and comes in many sizes (5m - 10m). The dome is a perfect fit for the Huaraz landscape. Our structure comes with a panoramic window, bringing the exterior inside. It is designed for up to 6 people and optionally equipped with a cozy bed, private bathroom, furniture such as a table for four and chairs. It is the lightest but strongest structure that can withstand strong winds. The domes seek to minimize the negative impact on the environment, integrate with the landscape and facilitate a memorable guest experience.

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Domes sizes and specifications: 1. 5m / 16ft: a. Size and weight: i. Floor surface: 19 m2 ii. Diameter: 5m / 16ft iii. Height: 3m iv. Structure weight: 141 kg v. Coating Weight: 64kg b. Engineering i. Frame tube size: 20 x 1.5mm ii. Frequency: 3v iii. Maximum wind load: 120 km / h c. Capacity: 1-2 people

2. 7m / 24ft a. Size and weight: i. Floor surface: 38 m2 ii. Diameter: 7m / 24ft iii. Height: 3.5m iv. Structure weight: 220 kg v. Coating Weight: 105kg b. Engineering i. Frame tube size: 20 x 1.5mm ii. Frequency: 4v iii. Maximum wind load: 120 km / h c. Capacity: 2-3 people

3. 8m / 26ft a. Size and weight: i. Floor area: 50 m2 ii. Diameter: 8m / 26ft iii. Height: 4m iv. Structure weight: 321 kg

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v. Coating weight: 137 kg b. Engineering i. Frame tube size: 25 x 1.5mm ii. Frequency: 4v iii. Maximum wind load: 120 km / h c. Capacity: 3 people

4. 10m / 32ft a. Size and weight: i. Floor area: 79 m2 ii. Diameter: 10m / 32ft iii. Height: 5m iv. Structure weight: 498 kg v. Coating weight: 191 kg b. Engineering: i. Frame tube size: 25 x 1.5mm ii. Frequency: 5v iii. Maximum wind load: 120 km / h c. Capacity: 4 people

11.2 Equipment

The materials of the Geodesic Dome for Glamping are going to be made with high quality materials:

• Steel structure: The frames are made of galvanized steel. It is a strong, lightweight, inexpensive tube, and is designed for indoor and outdoor use, making it an ideal choice for geodesic dome frames. o They are selected according to the size of the structure and the additional load. It is stainless and can last more than 10 years for outdoor uses. o Steel frames make domes sustainable for weather and outdoor loads and extend life expectancy during multiple installations. o This structure allows you to attach additional equipment such as curtains and coverings, lighting, and other accessories to the dome.

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• Membranes: For these domes, PVC-polyester fabrics will be used as dome covers. This type of fabric is strong, durable, and designed to perform well when subjected to the proper tension. It has good long-term appearance for 10 to 15 years. It is also waterproof, UV blocking, waterproof and dirt resistant. o It is natural flame resistant to DIN 4102, B1 / M2 and NFPA 701. o The dome with PVC cover can be used in any type of environment and withstand temperatures from -40 ° C to 70 ° C. o PVC fabric is also available in various colors and weights. Using different colors is a good way to enhance the experience. o These PVC fabrics are certified and meet European quality standards. o A cover with a transparent front section will be installed, which allows an interior view from the outside and a perspective from the inside. This solution creates a bright interior, leaving more natural daylight inside the dome.

• Floor system: A floor system is offered for quick and easy installation, which is the wooden floor. o Floor sections can be moved and can fit any size of the dome. o They can easily hide and protect cables and wiring and are the perfect solution for uneven surfaces.

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o The floor can be equipped with carpet, artificial grass, laminated board, or modular PVC panels.

• Entrances / gates: Each of the geodetic structures comes with a circular entrance. The domes are installed with solid doors since it gives more privacy. It is the best option to stay safe and maintain external elements.

• Windows: They are made of transparent vinyl and are extremely waterproof and durable. Bay windows are used for these domes, where white PVC fabric with a transparent front allows a large amount of additional natural light into the dome. The sheer fabric is bonded using hot pressing which creates good tear resistance performance.

• Ventilation: The installation of a top ventilation hatch, combined with the optimal air circulation patterns of a dome, make the dome cozy and comfortable at a minimal cost. You can order to "roll up" the screen windows

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so fresh air can enter. The number of ventilation hatches depends on the size of the dome.

These geodesic domes have a comfort with a king size bed, a wooden deck, an equipped, functional bathroom among other furniture. With a beautiful view of the Huaraz landscape and a cozy atmosphere, guests can rest in places untouched by nature.

11.3 Technology

• Energy efficiency: This feature makes it possible to take advantage of the sun and light if the windows are well oriented. This allows the dome to be very energy efficient with the consequent saving of electrical energy and enjoy clean energy.

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• Thermal stability: Thermal stability is produced by being a hemisphere since the air flow is circular and as a result it is easy to heat. The section that points to the sun is smaller due to its curvature, not varying the temperature.

• Structural stability: Great structural stability as it is made up of triangles that are non-deformable elements, with excellent qualities for resistance to seismic movements, and temporary wind and rain.

12. Organization

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• Front Office and Housekeeping:

o Front desk Staff: In this area the personal greets the guest, register and assign them a dome depending on the number of guests, we show them the installations and their dome, as well as the activities they can do and services we offer. The reservation area is included in this department and will be managed by them. o Housekeeping: They are in charge of the cleaning inside the domes every day, do the turn down service, clean the bathrooms, refill the amenities and are in charge of cleaning and maintenance of the public areas. o Laundry: This department is going to focus on washing, drying, ironing, and repairing customer’s clothes and the staff’s uniforms.

• Food and Beverage:

o This department is in charge of the restaurant and the room service in our company. It consists of the back of the house (BOH) crew that are the chef and kitchen staff that will cook the dishes depending on the season using ingredients available in the community, alongside the stewards. The dining crew are the front of the house group that will provide the serve in the restaurant and take the food to the guest’s rooms if needed. This department is in charge of making the main dishes, dessert, side food, appetizers and drinks for the guests, as well as preparing the fixed price menu that will be offered for the guest to make sure they will taste different kinds of local food that could be adapted according their preferences and number of people on the table.

• Logistic:

o In this department we have three main areas: Security, Purchase and Maintenance. The security area is in charge of keeping all customers and employees safe, preventing emergencies through planning, and training all the staff to be prepared in case of an emergency. Purchase is focused on placing the order of the things that all the departments in the hotel will need, receiving the merchandise, signing contracts and

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works alongside the Accounting area. Finally, the maintenance area is in charge of ensuring that all the equipment and facilities are functioning as they should and are in good condition as well as doing regular maintenance to them to prevent any risks.

• Human Resources:

o One of the biggest values of our company is delivering high quality service in every area, for this reason we have a special recruitment and training team that is the one in charge of hiring people that are in sync with our mission and vision. People from the community will benefit from this because they will have the change to work with us sharing their experiences and recommendations with our guests. This department will work alongside all other departments and every member of the crew to ensure everybody’s satisfaction and so they know everyone is an essential piece of the company.

• Marketing and Sales:

o Accounting: This department is in charge of keeping the record of financial transactions, preparing financial statements, and dealing with the cost control of the glamping and the implements needed to run it. o Marketing and communication: The people that are in charge of this area will be the ones promoting this glamping experience and managing the web page and social media in order to make this glamping experience grow and keep in touch with the possible customers.

13. Project Planning and Implementation (GANT)

At this point we will detail the planning that we consider important and necessary for the creation of the project. In addition, by means of the sketch design, we will be able to provide a clearer image of what we hope to achieve with this undertaking, as the domes will look like, the equipment that we will provide to the guest, among others.

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Duration Activity Description Start Date Final Date (days)

Feasibility study and design of the project model 63 03/08/20 05/10/20

Presentation of project to the Municipality 18 05/10/20 23/10/20

Survey of project observations 17 23/10/20 09/11/20 Presentation of the budget to the bank to obtain financing 14 23/10/20 06/11/20 Obtaining and legalizing project permits 42 23/11/20 04/01/21

Purchase of land 16 04/01/21 20/01/21

Construction work execution 58 20/01/21 19/03/21

Purchase of construction finishes and interior decoration 7 19/03/21 26/03/21

Infrastructure and services testing week 6 26/03/21 01/04/21

Hotel Advertising and Marketing 3 19/03/21 22/03/21

Civil Defense 15 04/04/21 19/04/21

Obtaining work compliance / Operating License 60 19/04/21 18/06/21 MINCETUR - Application for a Tourism Operators License 15 18/06/21 03/07/21

Call and Recruitment of Staff 15 03/07/21 18/07/21

Staff Training 15 18/07/21 02/08/21

Vacuum commissioning (Service test) 28 18/07/21 15/08/21

Opening and Operation of the Domes 0 09/09/21

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Agosto Septiembre Octubre Noviembre Diciembre Enero Febrero Marzo Abril Mayo Junio Julio Agosto Septiembre

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

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14. Financial Analysis of the Investment

14.1 Investment

14.1.1 Investment Summary Map

ECOCAMP HUARAZ INVESTMENT SUMMARY

Investment Opportunity: We will invest in a glamping with 8 domes. According to the market analysis, the investment is expected to recover in 8 years.

Property Information: Glamping will have 8 domes, 2 cottages for the restaurant that will serve 26 people and the front desk. Also, we will have occasional event service. Huaraz Glamping Domes will be located in the city of Carhuaz that is located in Huaraz, Ancash

Financing Needs: The total capital investment needed is $236.580,00

14.1.2 Investment in Working Capital

Direct Cost Indirect Cost Land $ 120,000.00 Engineering & Supervision $ 10,500.00 Building $ - Construction $ 30,000.00 Equipment $ 7,500.00 Contrator Fee $ 3,000.00 Piping $ 8,000.00 Contingency $ 8,000.00 Electrical installation $ 16,200.00 Other Cost $ 2,100.00 Furniture $ 14,720.00 Total Indirect Cost $ 53,600.00 Total Direct Cost $ 166,420.00

Working Capital needed to start operation: $ 16,560.00

Total Investment $ 236,580.00

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14.2 Hotel Exploitation 14.2.1 Sales Forecast HUARAZ GLAMPING DOMES 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 TOTAL

REVPAR 110.00 122.58 145.08 166.29 186.00 210.60 237.51 255.43 273.91 293.88 OCCUPANCY 50.0% 54.0% 62.0% 69.0% 75.0% 81.0% 87.0% 89.0% 91.0% 93.0%

AVERAGE RATE 220.00 227.00 234.00 241.00 248.00 260.00 273.00 287.00 301.00 316.00

REVENUE ROOMS 970,200 1,081,156 1,279,606 1,466,678 1,640,520 1,857,492 2,094,838 2,252,893 2,415,886 2,592,022 17,651,290 Restaurants 291,060 324,347 383,882 440,003 492,156 557,248 628,451 675,868 724,766 777,606 5,295,387

Banquets 97,020 108,116 127,961 146,668 164,052 185,749 209,484 225,289 241,589 259,202 1,765,129 F&B 388,080 432,462 511,842 586,671 656,208 742,997 837,935 901,157 966,354 1,036,809 7,060,516

TELEPHONE 1,800 2,200 2,600 3,000 3,400 3,800 3,800 4,000 4,600 4,850 34,050

OTHER 3,050 3,400 3,800 4,150 4,800 5,000 5,200 5,500 6,100 6,700 47,700 ç TOTAL SALES 1,363,130 1,519,218 1,797,848 2,060,499 2,304,928 2,609,289 2,941,773 3,163,550 3,392,941 3,640,380 24,793,555

ROOMS PROFIT 776,160 810,867 959,704 1,100,008 1,230,390 1,393,119 1,571,129 1,689,669 1,811,915 1,944,016 13,286,,977 % of Sales 80% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% F & B PROFIT 135,828 151,362 179,145 205,335 229,673 260,049 293,277 315,405 338,224 362,883 2,471,181 % of Sales 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% 35%

TELEPHONE PROFIT 720 880 1,040 1,200 1,360 1,520 1,520 1,600 1,840 1,940 13,620

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% of Sales 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40%

OTHER PROFIT 2,135 2,380 2,660 2,905 3,360 3,500 3,640 3,850 4,270 4,690 33,390 % of Sales 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70%

DEPARTMENT PROFIT 914,843 965,488 1,142,549 1,309,448 1,464,783 1,658,188 1,869,566 2,010,524 2,156,249 2,313,529 15,805,168 % of Sales 67% 64% 64% 64% 64% 64% 64% 64% 64% 64% 64%

ADMINISTRATION 69,000 70,380 71,788 73,223 74,688 76,182 77,705 79,259 80,844 82,461 755,531

SALES & MARKETING 11,000 11,220 11,444 11,673 11,907 12,145 12,388 12,636 12,888 13,146 120,447

HEAT, LIGHT & POWER 24,000 24,480 24,970 25,469 25,978 26,498 27,028 27,568 28,120 28,682 262,793 REPAIR & MAINTENANCE 12,000 12,240 12,485 12,734 12,989 13,249 13,514 13,784 14,060 14,341 131,397

TOTAL DEDUCTIONS 116,000 118,320 120,686 123,100 125,562 128,073 130,635 133,248 135,912 138,631 1,270,168 % of Sales 9% 8% 7% 6% 5% 5% 4% 4% 4% 4% 5%

HOUSE PROFIT 798,843 847,168 1,021,863 1,186,348 1,339,221 1,530,115 1,738,931 1,877,277 2,020,336 2,174,898 14,535,000 % of Sales 58.6% 55.8% 56.8% 57.6% 58.1% 58.6% 59.1% 59.3% 59.5% 59.7% 58.6%

Insurance 9,600 9,792 9,988 10,188 10,392 10,600 10,812 11,028 11,249 11,474 105,123 Property & Municipal 1,800 1,836 1,873 1,910 1,948 1,987 2,027 2,068 2,109 2,151 19,709 OTHER FIXED EXPENSES 11,400 11,628 11,861 12,098 12,340 12,587 12,839 13,096 13,358 13,625 124,832 % of Sales 1% 1% 1% 1% 1% 0% 0% 0% 0% 0% 1%

PROFIT TO OWNER 787,443 835,540 1,010,002 1,174,250 1,326,881 1,517,528 1,726,092 1,864,181 2,006,978 2,161,273 14,410,168 % of Sales 57.8% 55.0% 56.2% 57.0% 57.6% 58.2% 58.7% 58.9% 59.2% 59.4% 58.1%

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14.2.2 Operational Costs

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

HUARAZ GLAMPING DOMES TOTAL SALES ROOMS 970,200 1,081,156 1,279,606 1,466,678 1,640,520 1,857,492 2,094,838 2,252,893 2,415,886 2,592,022 TOTAL SALES F&B 388,080 432,462 511,842 586,671 656,208 742,997 837,935 901,157 966,354 1,036,809 OTHERS SALES 4,850 5,600 6,400 7,150 8,200 8,800 9,000 9,500 10,700 11,550 TOTAL SALES 1,363,130 1,519,218 1,797,848 2,060,499 2,304,928 2,609,289 2,941,773 3,163,550 3,392,941 3,640,380

DEPARTMENT PROFIT ROOMS 776,160.00 810,866.70 959,704.20 1,100,008.35 1,230,390.00 1,393,119.00 1,571,128.65 1,689,669.45 1,811,914.65 1,944,016.20 DEPARTMENT PROFIT F&B 135,828.00 151,361.78 179,144.78 205,334.89 229,672.80 260,048.88 293,277.35 315,404.96 338,224.07 362,883.02 DEPARTMENT PROFIT OTHERS 2,855.00 3,260.00 3,700.00 4,105.00 4,720.00 5,020.00 5,160.00 5,450.00 6,110.00 6,630.00 TOTAL DEPARTMENT PROFIT 914,843.00 965,488.48 1,142,548.98 1,309,448.24 1,464,782.80 1,658,187.88 1,869,566.00 2,010,524.41 2,156,248.72 2,313,529.22

ROOM OPERATIONAL COST -194,040.00 -270,288.90 -319,901.40 -366,669.45 -410,130.00 -464,373.00 -523,709.55 -563,223.15 -603,971.55 -648,005.40 F&B OPERATIONAL COST -252,252.00 -281,100.46 -332,697.46 -381,336.23 -426,535.20 -482,947.92 -544,657.93 -585,752.08 -628,130.41 -673,925.62 OTHER OPERATIONAL COST -1,995.00 -2,340.00 -2,700.00 -3,045.00 -3,480.00 -3,780.00 -3,840.00 -4,050.00 -4,590.00 -4,920.00 TOTAL OPERATIONAL COST -448,287.00 -553,729.36 -655,298.86 -751,050.68 -840,145.20 -951,100.92 -1,072,207.48 -1,153,025.23 -1,236,691.96 -1,326,851.02

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14.3 Cash Flow Map

HUARAZ GLAMPING DOMES In USD Cash Flow Map Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Forecasted Bank Bal: 17,987 24,536 38,487 56,995 78,689 103,071 131,443 160,815 220,596 Actual Opening Bank Balance 16,560 0 0 0 0 0 0 0 0 0 Receipts: Cash Receipts 35,000 37,500 42,150 45,300 47,600 49,900 52,000 54,200 56,430 59,050 Credit Card Receipts 105,000 109,200 113,000 115,600 118,000 120,050 123,500 123,960 124,210 124,700 A/R Receipts 17,500 18,800 21,075 22,650 23,800 24,950 26,000 27,050 28,215 29,500 Total Receipts: 157,500 165,500 176,225 183,550 189,400 194,900 201,500 205,210 208,855 213,250

Operational Expenses: A/P 11,800 12,450 13,500 13,950 14,250 14,650 14,800 15,000 15,250 15,700 Payroll 100,000 102,000 104,040 106,121 108,243 110,408 112,616 114,869 117,166 119,509 Utilities 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,800 Other Total Operational Expenses: 115,100 117,750 120,840 123,371 125,793 128,358 130,716 133,169 135,716 139,009

Cash In/(Out) 42,400 47,750 55,385 60,179 63,607 66,542 70,784 72,041 73,139 74,241

Balance I: 58,960 65,737 79,921 98,666 120,602 145,231 173,855 203,484 233,954 294,837

Fixed Charges: Insurance 9,600 9,792 9,988 10,188 10,392 10,600 10,812 11,028 11,249 11,474 Taxes 1,800 1,836 1,873 1,910 1,948 1,987 2,027 2,068 2,109 2,151 Total Fixed Charges: 11,400 11,628 11,861 12,098 12,340 12,587 12,839 13,096 13,358 13,625

Balance II: 47,560 54,109 68,060 86,568 108,262 132,644 161,016 190,388 220,596 281,212

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Debt Service: Debt 29,573 29,573 29,573 29,573 29,573 29,573 29,573 29,573

Total Other Obligations: 29,573 29,573 29,573 29,573 29,573 29,573 29,573 29,573 0 0

Ending Balance: Cash Flow Balance 17,987 24,536 38,487 56,995 78,689 103,071 131,443 160,815 220,596 281,212

14.4 Balance Sheet HUARAZ GLAMPING DOMES Balance Sheet

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 ASSETS Cash 35,000 37,500 42,150 45,300 47,600 49,900 52,000 54,200 56,430 59,050 Accounts Receivable 122,500 128,000 134,075 138,250 141,800 145,000 149,500 151,010 152,425 154,200 Inventory 15,500 15,500 15,500 15,500 15,500 15,500 15,500 15,500 15,500 15,500 Prepaid Expenses 23,400 23,868 24,346 24,832 25,329 25,836 26,353 26,880 27,418 27,966 Total Current Assets 196,400 204,868 216,071 223,882 230,229 236,236 243,353 247,590 251,773 256,716

Long Term Investment Land 39360 40200 40950 41500 42350 42800 43410 43900 44300 44850 Building 0 0 0 0 0 0 0 0 0 0 Total Fixed Assets 39360 40200 40950 41500 42350 42800 43410 43900 44300 44850

TOTAL ASSETS 235,760 245,068 257,021 265,382 272,579 279,036 286,763 291,490 296,073 301,566

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LIABILITIES Accounts Payable 11,700 12,350 13400 13840 14140 14530 14680 14880 15130 15570 Short Tem notes 100 100 100 110 110 120 120 120 120 130 Accruals 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 106,000 106,000 Total Current Liabilities 111,800 112,450 113,500 113,950 114,250 114,650 114,800 115,000 121,250 121,700

Long term Liability-debt Mortgage 29,573 29,573 29,573 29,573 29,573 29,573 29,573 29,573 0 0 Other Long Term 0 0 0 0 0 0 0 0 0 0 Total Long Term Liability 29,573 29,573 29,573 29,573 29,573 29,573 29,573 29,573 0 0

TOTAL LIABILITIES 141,373 142,023 143,073 143,523 143,823 144,223 144,373 144,573 121,250 121,700

RETAINED EARNINGS 94,387 103,045 113,948 121,859 128,756 134,813 142,390 146,917 174,823 179,866

0 0 0 0 0 0 0 0 0 0

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CONCLUSIONS

Currently, tourism activity is considered very important to overcome the economic crisis that our country will face. Tourism as an element of the national economy plays a central and fundamental role. It has the capacity to generate a fast income of foreign currency, create jobs and improve the quality of life, in socioeconomic and cultural aspects, of the inhabitants.

We believe that the ideals and objectives that “HUARAZ GLAMPING DOMES” will pursue as an undertaking, will increase the flow of tourists and make the city of Huaraz even more attractive in the coming years, improving economic activity in the region.

According to what is detailed in each of the corresponding parts of this work, we determine that the project is definitely possible and profitable. This is reflected in the financial plan, and long-term profits will be obtained with possibilities for growth and expansion in the future.

Ecotourism is currently booming, and we consider that it is the right time to invest in a project of this nature. We hope to have provided throughout the work, a comprehensive description that offers future investors who, completing the study presented with economic, financial, and legal analyzes, among others, can make it a reality.

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APPENDIX 1:

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