Revenue Generation Analysis in Global Tourism Industry

This paper focuses on revenue generation analysis in the global tourism industry, with a specific focus on the accommodation sector. The chosen case study is Abigail's Hotel, a small boutique hotel. The report provides insights into distribution levels, service providers, technological support, and overall global tourism.

Running Head: GLOBAL TOURISM
Topic- Revenue generation analysis in tourism industry
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2GLOBAL TOURISM
ABSTRACT
The paper focuses on the various aspects of global tourism and the various sectors within
it. The accommodation sector is chosen for the discussion and in it small boutique hotel is
chosen. For better understanding of the various operations in tourism service sector the boutique
hotel Abigail’s Hotel is chosen. All factors like distribution levels, service providers and
technological support are explained based on the hotel. And a conclusion on overall global
tourism is drawn henceforth. The report provides a comprehensive outlook of the global tourism
sector in general.

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TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................4
DISCUSSION.............................................................................................................................................5
GLOBAL TOURISM..............................................................................................................................5
DISTRIBUTION LEVELS WITHIN THE TOURISM INDUSTRY......................................................6
SERVICE PROVIDERS.........................................................................................................................8
TECHNOLOGICAL SUPPORT...........................................................................................................10
CONCLUSION AND RECOMMENDATION.........................................................................................11
REFERENCES..........................................................................................................................................12

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INTRODUCTION
Business analysis enables the organization to cope up with changes and increases the
stakeholders market valuation significantly (Wu, 2016). The revenue generation analysis
approach in business provides a holistic knowhow of the various aspects of global tourism
industry. Here, in this paper, the accommodation sector is chosen and in it, small boutique hotel
is considered for the discussion. The various aspects considered for study are global tourism,
distribution levels, service providers, and technological support. Each point is discussed in the
next segment.

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DISCUSSION
GLOBAL TOURISM
Global tourism has flourished considerably in the recent years. The global economy has
improved a lot due to the incorporation of tourism sector in it. Tourism has become a global
leisure activity and travelers are opting tourism for a number of reasons like business, personal
reasons, psychological reasons and many more (Mowforth & Munt, 2015). Generally, in tourism,
people travel and stay in places outside their usual place of stay and in a new environment but for
not more than a year.
A number of sectors are involved in tourism like water, air and land transportation and
basic accommodation. Both accommodation sector and transportation sector are the primary
requirement for global tourism. Travelers need to stay and travel back to their own residents after
the travel need is fulfilled.
The small boutique hotel Abigail’s Hotel is selected for the paper, under the
accommodation sector. A boutique hotel generally comprises of not more than 100 rooms and
has strong personality of a 5-star hotel hospitality. It is the right mix of contemporary vibe with a
quirky and modern spirit. Boutique hotels provide rich local flavor focusing mainly on food and
beverage and also is pet-friendly (Stephenson & Bianchi, 2014). A brief history of the considered
boutique hotel needs to be provided to understand the ultimate factors of global tourism.
Abigail’s Hotel
Location: The hotel is located in the heart of downtown Victoria, British Columbia in Canada.
The hotel is set in the 1930s Tudor style mansion with modernized heritage (“Amenities | Luxury

6GLOBAL TOURISM
Hotels Victoria BC | Abigail's Hotel”, 2019). The location is ideal both for business purposes as
well as for heavenly pleasure and comfort.
Offerings: The charming small boutique hotel offers a pleasant stay opportunity for its
welcoming atmosphere. It offers 5-star comfort and have 23 rooms with luxurious beds and cozy
breakfast accommodation facilities to the visitors (greatsmallhotels, 2019).
DISTRIBUTION LEVELS WITHIN THE TOURISM INDUSTRY
Distribution channel in tourism industry can be subdivided into two broad divisions-
national and international. The national market is served by large tourism operators and retail
travel agents. International medium includes tourism operators, wholesalers and retail travel
agents (Saarinen & Rogerson, 2014). The public consumers may be individuals, groups or
business entities. A typical tourism distribution chain incorporates the followings.
Customer services
Customer service plays an immense role in distribution channel networking and
operations in tourism industry. Because all channels end links to the customers. Based on the
level of benefit and preference the customers can choose from any type of distribution channels.
Tourist Retail travel agent Tour wholesaler Inbound /outbound
tour operator Local tour operator
producer customer
producer retailer customer

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So, the effect of distribution channel is based on the end customers. They choose their
convenient type of channels and decide their tourism needs.
Market segmentation
Customer market can be segmented into four basic segments namely demographic,
geographic, psychographic and behavioral. Based on these segments tourism sector can decide
upon their distribution channels.
Segments Attributes
Demographic Quantifiable population based on gender, age, education, income, social
status, family size and economic stability
Geographic Based on physical location and regional differences in terms of country,
state, province, region, city, urban and suburb.
Psychographic Includes lifestyle, social and characteristic personality
Behavioral Purchase and consumption behavior which may be need based, usage
based, occasional needs, benefit based, frequency of purchase, loyalty
based and readiness to buy based.
Abigail’s Hotel uses its distribution strategy in the most proficient manner and has
adopted business mix optimization strategy, online and offline booking channels and
technological support. Understanding the various traveler’s segment help in diversifying
business mixes. Generally, travelers are of either lower-yield or higher-yield segments
(greatsmallhotels, 2019). Lower yield segment travelers derive from wholesalers and can book
producer wholesaler retailer customer
producer agent wholesaler retailer customer

8GLOBAL TOURISM
rooms for the entire year whereas higher yield travelers are derived from OTAs and from hotel’s
own booking engine. They generally offer higher prices due to last minute arrival and have
shorter span of stays. Such travelers rush during peak seasons (Cook, Hsu & Marqua, 2014).
Abigail’s Hotel clearly segregates such travelers so that their revenue generation approach
becomes well defined.
SERVICE PROVIDERS
The service providers in tourism industry support tourism development and enhances the guest
service experiences.
Transportation
Transportation is the key to effective tourism. If the transport and logistics system is not
appropriate then tourism will fail and travelers experience will not be met. It can be said that due
to improvement in transportation tourism industry has flourished a lot in recent times.
Transportation is a medium of linkage between the various travel destinations and connect
people, goods and services holistically (Bowie et al., 2016). Air, rail, water and land
transportation are well developed in Canada and for this reason the tourism industry has
developed so remarkably.
Abigail’s Hotel is located in such a prime location that it can avail all transportation effectively.
It is nearly 27 km from the Victoria International airport and the harbor is also close to the hotel.
Besides it is located in the heart of Victoria where land transportation is very frequent.
Accommodation
A number of luxury hotels, restaurants, inns, boutique hotels, lodges, cottage, chalet,
mansion, resort, villa, apartment, treehouse, penthouse, manor, guesthouse, farmhouse, motels

9GLOBAL TOURISM
and road side stays comprise together to form the accommodation sector (Vellas, 2016). Ultimate
traveler comfort and quality experience delivery is the main motive of developing
accommodation services.
Abigail’s hotel is a small luxury boutique hotel in Victoria. It offers primary
accommodation with cozy breakfast to its customers. A number of rooms are provided based on
customer needs like deluxe ruby rooms (king, queen, double bed), amethyst rooms, superior
opal, rose and emerald rooms and premier sapphire rooms (“Amenities | Luxury Hotels Victoria
BC | Abigail's Hotel”, 2019). A number of mandatory facilities are provided to add value to the
accommodation service. They include car parking, 24*7 reception and customer care service, AC
rooms, laundry services, free Wi-Fi and internet facilities and also satellite TV services, safe
deposit boxes and quality sanitary services.
Food and beverage
Food and beverage services is one major thing that customers consider while choosing
their accommodation. Keeping this in mind Abigail’s Hotel has structured its meal plans. A very
cozy mandatory breakfast is provided to customers every morning. A three-course gourmet
breakfast based on the local seasonal sourced food supply is served (“Amenities | Luxury Hotels
Victoria BC | Abigail's Hotel”, 2019). Freshness and quality taste are what are emphasized upon
the most. Moreover, delicious hors d’oeuvers appetizer is served in the evening for refreshment.
Entertainment and attraction
This is another major reason in choosing the accommodation service and hotels.
Generally, locations having more entertainment attractions are chosen for stay. In this regard,
Abigail’s Hotel has added advantage. It is located in the supreme location of Victoria township

10GLOBAL TOURISM
and has a number of attractions nearby it. The beach Dallas road is only 2 km from the hotel
where travelers can enjoy their beach vacations and George Valley golf club is only 5.6 kms
from the hotel. The Victoria conference center, the Royal British Columbia Museum are all
nearby where both business travelers and recreational travelers can fulfil their needs. The hotel
provides a great sight of all points of interest in Victoria.
TECHNOLOGICAL SUPPORT
There is direct online booking engine, distribution channel manger, and a property
management system that incorporates technology well into the core service operations in
Abigail’s Hotel. Both online and offline mode of communication is adopted so that customers
find the hotel user-friendly (Buhalis, & Amaranggana, 2015). The supportive staffs in the hotel
are ready to help the guests in their problems and guide them accordingly. Because of the hotel
structure there is no scope of elevators and this at times create problems among visitors but is
mitigated by the in-house staff service there. Professional quality service is provided at the most
affordable cost which help in maintaining the profitability above the set benchmark (Neuhofer,
Buhalis & Ladkin, 2015). Timely feedback is collected from travelers so that if there is scope of
improvement that will be considered to the earliest. Overall what can be said is that the hotel is
the best example of having traditional service with the best contemporary tech support.

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CONCLUSION AND RECOMMENDATION
To conclude the paper, it can be said that Abigail’s Hotel is one of the best tourist
destinations in Canada and its revenue generation approach is fair and is economical both for
customers as well as the hotel itself. It has all factor requirement for a global tourism identity and
has good customer review in terms of food services and lodging. And people just love to stay in
Abigail’s hotels.

12GLOBAL TOURISM
REFERENCES
Amenities | Luxury Hotels Victoria BC | Abigail's Hotel. (2019). Retrieved from
http://www.abigailshotel.com/amenities-en.html
Bowie, D., Buttle, F., Brookes, M., & Mariussen, A. (2016). Hospitality marketing. Routledge.
Buhalis, D., & Amaranggana, A. (2015). Smart tourism destinations enhancing tourism
experience through personalisation of services. In Information and communication
technologies in tourism 2015 (pp. 377-389). Springer, Cham.
Cook, R. A., Hsu, C. H., & Marqua, J. J. (2014). Tourism: the business of hospitality and travel.
Boston, MA: Pearson.
greatsmallhotels. (2019). Retrieved from https://www.greatsmallhotels.com/victoria-boutique-
hotels/abigail-s-hotel
Mowforth, M., & Munt, I. (2015). Tourism and sustainability: Development, globalisation and
new tourism in the third world. Routledge.
Neuhofer, B., Buhalis, D., & Ladkin, A. (2015). Smart technologies for personalized
experiences: a case study in the hospitality domain. Electronic Markets, 25(3), 243-254.
Saarinen, J., & Rogerson, C. M. (2014). Tourism and the millennium development goals:
perspectives beyond 2015. Tourism Geographies, 16(1), 23-30.
Stephenson, M. L., & Bianchi, R. (2014). Tourism and citizenship: Rights, freedoms and
responsibilities in the global order. Routledge.
Vellas, F. (2016). The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Wu, C. W. (2016). Destination loyalty modeling of the global tourism. Journal of Business
Research, 69(6), 2213-2219.