Business Model Assignment on Travel and Tourism Giant Globetrotter
Task:The objective of this individual assessment submission is to learn how to develop a business idea, complemented by brainstorming and leveraging the insights and skilisets of others. Assessment comprises two parts: Please submit a 5-page briefing paper of your business idea, its essential business model components, and aspects that will influence its success. A business model canvass can be included as an appendix.
Tourism in Australia is an integral part of Australian economy. This Business Model Assignment focuses on the travel and tourism industry reached out its zenith in this country due to its high profile destinations like Gold Coast, Great Barrier Reef; even Australian wildlife plays a significant role in the tourism sector.
The Business Model Assignment will focus on creating a business report wherein the various issues and market problems that need to be addressed are discussed. A business idea of opening a travel and tourism company by the name Globetrotter is considered a profitable idea in a country like Australia. A vivid discussion on the proposed business model and the factors that should be considered during an execution of the idea has also been discussed. Moreover, the task will shed light on the several arguments related to the benefits that can be generated by the business idea.
Effective explanation of the customer/market problem that needs solving and /or reasons the innovation is required
Although the tourism industry of Australia is a multi billionaire industry, still it is under the threat of climate changes. Some of the greatest natural wonders are in the firing line due to the rise in temperature and sea levels. Tourism is booming in this country and tourists travel to this place due to the natural wonders. According to the ecologists, the popular destinations like beaches can become a “no go zone” due to extreme temperatures that can rise up to 50 degrees.
It is evident that a solution in this case is required to cope up with the situation and thereby save the natural destinations. “Globetrotter” has thereby thought of bringing an innovation in this sector and position them in the tourism market. In order to deal with the climatic change the company has thought of accommodating their travelers in resorts, which are at a given height above the seal level and even make arrangements of food during emergencies. A modification of the infrastructure that can withstand the weather calamities should be taken into consideration too. However, the best innovation that is required in this sector is a hotel energy solution that can enhance energy efficiency in the business (Niži?, Grdi? & Husti?, 2017).
Persuasive argument of the benefits to be generated by the idea
The Business Model Assignment investigates how a business that plans to combat the climatic changes in Australia with the help of hotel energy solution is identified with some basic advantages that are beneficial not only for this new business but also for the customers of the tourism sector. The requirement for a better energy management and an intelligent energy oversight is advantageous for both the business and their clients. The initiatives that can be taken to curb the complex issues of climate change is the use of LED lighting and even form a large rooftop solar array which can be less harmful to the climate and saves energy too. The business has received huge investment from some of the foreign bankers and hence it aims to create a nuclear-fusion energy power plant that demands a large investment but it will produce zero emission of green house gas(Van Vuuren et al ., 2017). This will help in carbon management and will thereby lure customers who are in recent time more attracted to the organization’s corporate social responsibility. Reducing green house will keep the balance of the water level on earth and summers will be much cooler. The economy will also flourish. This will help both the business and travellers in a much more comprehensive ways (Schandl et al., 2016). The idea of reducing the green house gas emission although has an argument laid forward by many ecologists that it is not feasible as a huge investment is involved, however Globetrotter is launching their business with a huge capital that will make it feasible for them.
Discussion of the proposed business model
In this Business Model Assignment the travel and tourism company, there are few key components that need an elaborate discussion and without which the business will fall flat on the ground. The local museums, heritage sites, parks, The Department of Parks and Wildlife, The Australian Government's Great Barrier Reef Marine Park Authority can be the key partners of the organization. All these partners are important to the business as tourists who come to visit the place has to comply with the certain rules and regulations of the country and a tie up with all these departments will help the tourists of Globetrotter’s to take a tour of the whole country without much hassles.
Customer segmentation is another component for the business. It is necessary to categorize their customers, as this will help them to identify their targeted markets and thereby make their promotional activities and advertisements accordingly. Customer segmentation will enhance their competitiveness and will help in market expansion. By using segmentation, retention of customers is possible through the customer’s life cycle. The business will chose to target the youth travelers as they have high level of energy approach to travel and are more interested in adventure sports as well activities that can generate high adrenaline rush. It will help Globetrotter to enhance their profitability with the help of brand recall, brand equity, communication and many more.
Channels that will be used by the business are print media, company website and even e-advertisement, which is in vogue in today’s generation. Promotions through print media and use of e-advertisement is essential as this will ensure that the information related to the new business will reach the whole world and an attractive promotion will definitely win the race.
Value Proposition that will be delivered to the tourists is an enhanced customer service and ensures carbon management that will help in dealing with climatic changes. This will be beneficial for their business and will attract who nowadays have an inclination to eco tourism.
Customer relationship will be maintained with social media aid and electronic mails. This can be done by arranging customer relationship management with their values customers (Pearson, 2016).This will help in dealing with their viable clients in a better way.
Revenue streams play a pivotal role in the tourism business. The clients are going to pay for the state of the art arrangements made for accommodations and even concentrate on the choice of the places chosen for sightseeing.
Key resources in this sector are both tangible and intangible. The most important resources for the said innovation will be improved equipments and tools for reducing green house emission and arranging solar panels for utilizing solar energy. Machines that can be used for sucking carbon also form one of the key resources. Moreover, the financial resources play a crucial role (Kumar & Reinartz, 2018).
Key Activities that are required is arranging proper space and use vertical transportation equipment during the hotels energy solution. This will help to combat with the climatic changes in Australia with its growing hot climate.
Cost structure will include maintenance charges and taxes payable to the government as well as the payment to their viable suppliers. Since this business have decided to combat with the climatic changes, maintenance charges of equipments and tools will be higher and hence budgeting should be done accordingly.
Evaluation of the feasibility of the idea
The idea of starting travel and tourism Company with a unique innovation of reducing green house gas emission should be judged in terms of its feasibility in the sector. Vertical transportation equipment will be highly beneficial to fulfill the plan and a supplier has already been selected for supplying such equipment. Nowadays people are sometimes reluctant to take a trip in Australia due to the temperature that can shoot up to 50 degree Celsius. However, the Business Model Assignment investigates the model set by Globetrotter will enable them to fight with climate challenges and thereby attract several customers. It is already mentioned in the above section that this will require a huge investment and will even involve a huge capital from Globetrotter’s side. However, investment from foreign bankers if delayed can completely disrupt the entire planning.
Critical success factors to be managed during execution of the idea
In the execution of the idea, there can be critical success factors that need to be managed by them. Carbon management makes a very good business sense for an organization. The business idea of starting the tourism company and sticking to the point of persistently remaining as an eco-tourism organization can be the critical success factors for this new business model. History has experienced that there are number of companies who promises to bring forward sustainable tourism but finally fails to do so. However, this business model has concentrated to plan their business much ahead of time and have strictly concentrated on carbon management since they believe that an ethical and sustainable business may require a huge expenditure initially but slowly and steadily it will capture the global market and can multiply their profit to an extensive level. High-end equipments and technological drive in the business can also be an important success factors that needs to be managed by Globetrotter.
The Business Model Assignment have discussed on the innovation that Globetrotter is planning to make in order to support eco tourism and concentrate on carbon management. The different features that forms an inherent part of the business canvas model have been lime lighted with special attention to the unique idea the organization has to combat with climatic changes. The different equipments and tools that a business has to arrange for making their idea a big success have also been analyzed. Although the Business Model Assignment identifies the idea is feasible but any delay in receiving financial resources can be disruptive for this business idea.
Kumar, V., & Reinartz, W. (2018). Customer relationship management: Concept, strategy, and tools. Springer.
Niži?, M. K., Grdi?, Z. Š., & Husti?, A. (2017). The Importance of Energy for Tourism Sector. Academica Turistica-Tourism and Innovation Journal, 9(2).
Pearson, S. (2016). Building brands directly: creating business value from customer relationships. Springer.
Schandl, H., Hatfield-Dodds, S., Wiedmann, T., Geschke, A., Cai, Y., West, J., ... & Owen, A. (2016). Decoupling global environmental pressure and economic growth: scenarios for energy use, materials use and carbon emissions. Journal of Cleaner Production, 132, 45-56.
Van Vuuren, D. P., Stehfest, E., Gernaat, D. E., Doelman, J. C., Van den Berg, M., Harmsen, M., ... & Girod, B. (2017). Energy, land-use and greenhouse gas emissions trajectories under a green growth paradigm. Global Environmental Change, 42, 237-250.