Innovation and Entrepreneurship in tourism and hospitality

Innovation and Entrepreneurship in tourism and hospitality

Contents
Introduction......................................................................................................................................3
Business plan summary....................................................................................................................3
Business..................................................................................................................................3
Market.....................................................................................................................................4
The Future..............................................................................................................................4
Business details......................................................................................................................4
Registration details...........................................................................................................................4
Business Premises............................................................................................................................5
Organizational Chart..............................................................................................................5
Membership and ownership...................................................................................................6
Key personnel.........................................................................................................................6
Products /services.............................................................................................................................7
Innovation........................................................................................................................................7
Insurance..........................................................................................................................................8
Risk management.............................................................................................................................8
Legal considerations........................................................................................................................8
Operations........................................................................................................................................8
Sustainability plan............................................................................................................................9
Market..............................................................................................................................................9
Market research......................................................................................................................9
Market target........................................................................................................................11
Environment analysis...........................................................................................................11
SWOT analysis.....................................................................................................................11
Promotion.............................................................................................................................12
Future.............................................................................................................................................12
The finance.....................................................................................................................................15
Financial objectives..............................................................................................................15
Finance required...................................................................................................................15
Start-up cost..........................................................................................................................16
Balance sheet forecast..........................................................................................................17

Profit and loss Forecast........................................................................................................18
Cash flow..............................................................................................................................19
Break even analysis..............................................................................................................21
NPV......................................................................................................................................22
Conclusion.....................................................................................................................................22
References......................................................................................................................................23

Introduction
Tourism can be defined as the service sector that fulfils the travel purpose of an individual. The
term travel undertakes all aspects such as recreational, business and travel visits which are
related to the travel industry. The hospitality sector covers a broad area that engages most of the
essential activities like to supply food and beverages, lodging, traveling and many more. The
main agenda to implement all services in the organization is to increase the customer base by
satisfying their essential needs during their period of stay (Baliga & Rodrigues, 2015). This
report is written from the perspective of Bellerive house which is operating their business in the
hospitality industry of Australia at a small level. Further, this report highlights on the realistic
new business ideas, market research, and identification. Along, with this, it also helps in
covering the financial analysis and future opportunities in the context of the hospitality industry.
Business plan summary
The hospitality industry is growing at a global level; therefore, an organized and realistic
business plan is formulated in this report. Market segment is the first step which is taken by the
organization to target the specific customers for the plan. To enter in the hospitality business at
global level management chooses the peak season which is the period of summer holidays. As a
greater number of tourists visit Australia in this period (Berbegal-Mirabent, et. al., 2016).
Further, the price skimming strategy is used by the organization to enter into the new segment of
the market because it most appropriate method for the new business for performing their work in
an organized manner.
Business
Tourism is an important component for a country as it enhances their economic conditions. This
refers it helps the country to increase its national economy by contributing to its GDP. Bellerive
house is performing its work in the hotel industry at a minor level, whereas the scope of the
hospitality industry is wide because it increases their business size with a rate of 8% per year.
This determines that the travel and hospitality industry is increasing its business size by
providing opportunities to the new organization (Burns, & Dewhurst, 2016). So, it is easy for
them to expand their business area which is favourable in enhancing the economic conditions of
the country as well as the profits for the organization.

Market
There are different popular destination are present in Australia which attract a large number of
individuals by providing them luxury experience for their visit. This represents that the coastal
area of Australia helps the Bellerive house to target high profile customers such as celebrities,
business-man, and other upper-class segments. It is favourable for the organization to increase
their customer base (Chambers, & Humble, 2017). Moreover, it also helps the management of
Bellerive house to enter into a new market that increases its market area by entering into a new
segment for targeting upper-class customers.
The Future
Australia is one of the top countries whose economy critically depends on the service sector.
This refers that Australian countries is the hub of service sector organization. In the context of
the service sector, there is a regular growth of 5.2 % every year in the performance of the
Hospitality industry of Australia (Chang, 2017). This determines Bellerive house must undertake
this opportunity to enhance their business area by satisfying the needs of tourists as there is a
high heap is present in Australian countries for attracting a greater number of tourists every year.
Business details
Tourism and hospitality industry represent a high growth among all over the world. It refers that
there is a regular increase in the number of tourists who visit different countries which increases
the market share of hospitality organizations. Therefore, it is the right time for the management
of Bellerive house to enter into new market segments which boost the market share by expanding
their hotels at the international level (DeNoble, & Zoller, 2017). Moreover, it is favourable to
understand all market conditions which increase the market area for the travel and hospitality
industry. Australia is a developed country so Bellerive must expand its hotels in all cities. It
increases their profits by covering the large market area of the hospitality industry.
Registration details
Bellerive house is already operating their hotels at a small level. Hence, the management
categorizes their business to register it under the travel and hospitality industry. The registration
details of the hotel areas Bellerive house, Hobart, 89-91 Cambridge, Bellerive, 7018, Hobart,
Tasmania, Australia (Frøen, et. al., 2016). It governs this is mandatory for the Australian
organization to register their business for performing their operations in Australia.

Business Premises
The hospitality industry performs its work in the service industry and the core business of a hotel
or travel organization is to provide accommodation and food services to the tourist. In the
context of Bellerive house, the business premises is structured at a large level in Sydney which is
one of the largest cities of Australia and attract large number of visitors. Moreover, the
organization decided to place its hotel near Bondi beach because of the high probability of legal
and environmental issues along with sufficient land aspects (Galetto, & Peroncini, 2018). All are
favourable for the Bellerive house for developing a new hotel at a large level. Moreover, the
price factors are also suitable for the hotel to build their structure with a permanent address
which is situated near the most visited destination of Sydney.
Organizational Chart
Bellerive house is performing its business in different sectors. Therefore, they must build an
effective structure so their hotel business also enhances their performance in the market. The
hotel business is at its initial stage; therefore, management is focused to implement the horizontal
structure in the organization which is situated at the global level (Ghezzi, et. al., 2015). This
refers that management can perform its operations and functions at global as well as international