Analysis of Luggage Delivery Services for Tourism in Australia

This report provides a business analysis of luggage delivery services targeting tourists in Australia. It highlights the growth in the tourism and hospitality sector and identifies the need for convenient luggage handling services. The proposed company aims to offer luggage delivery services from major ports and airports to tourists' accommodations, focusing on comfort and security. The business plan includes service pricing based on distance and luggage size, targeting travelers entering or leaving Australia. Branding and positioning strategies emphasize reliability, affordability, and convenience through media campaigns, online bookings, and strategically located offices. The report also explores future expansions, such as hotel room booking services, to enhance business performance. Access more detailed reports and study resources on Desklib.

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Introduction
Tourism and hospitality sector in Australia is growing exponentially over the last few decades.
Regardless of the sector operating in a globally competitive market, it has continued to improve.
Therefore, investing in this sector is not a bad investment choice because of the growth
anticipations near future (Investinaustralia.com. (n.d.)).
Key industry figures for the tourism market (2009) are as follows (Australia, T. 2016):
Key Industry Figures 2009
Industry Revenue 81,415
Revenue Growth -1.2 %
Industry Gross Product 43,703
Number of Establishments 62,032
Number of Enterprises 55,715
Employment 503,276 People
Exports 23,699
Imports --
Total Wages 20,997
Usually, when people are travelling or touring, they carry with them luggage of tour necessities
and other personal effects. Ideally, people carry them to make their life away from home free like
home by being self-sufficient in any way possible. However, for comfort and need to be free and

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flexible, luggage makes their travelling difficult and tiresome. Therefore, there is a need for
luggage handling services near or at the points of their arrival.
That where the business idea is conceived. The whole idea is about offering luggage delivery
services for the travellers and tourists. The service targets tourists with bulk luggage which may
take longer to be cleared by the authorities and difficult to carry without assistance. The clients
who opt for our services will not have to wait for inspections but directly go to their
accommodation. We will then deliver their luggage later in their hotel rooms without delays and
safely.
(Tourist waiting for luggage pick up)
Business Operations
1. Products
The company offers luggage delivery services to the tourists across Australia from all major
ports and airports. Our services aim at making our client vacation or business trip comfortable
and fulfilling. They will not have to worry about the security of the products or to make custom
clearances; the company will take that responsibility.
2. Location and Distribution

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The company headquarters will be located in Melbourne City
with subsidiaries operating
near the ports, and near all major airports in Australia. The subsidiary locations are strategic to
the target market, and the company representative will be at the arrivals exist to meet the clients.
Also, our offices will be easily accessible to all the clients from the particular airport where it is
located.
3. Service pricing
Our services will be priced on every mile covered and the size of the luggage. That is, the larger
the size of the luggage the more cost to the customer and the more miles from the point of arrival
or correction, the higher the price of delivery.
Using this model, every mile covered will be charged at A$4.00 in addition to:
i. A$4.00 for 20kg to 30kg luggage.
ii. A$6.00 for 31kg to 40kg luggage
iii. A$8.00 for 41kg to 50kg luggage
iv. A$10.00 for 51kg to 60kg luggage
v. A$20.00 for 61kg and above
4. Market segment
The company target travellers and tourists coming to Australia or moving out of Australia

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(Tra.gov.au. 2017).
They carry with them loads of luggage and their visit is made all the worse by the fact that they
find themselves in a foreign culture and city, possibly with language barriers, needing to locate
their luggage and even replace belongings. It can make any vacation or business trip a complete
nightmare. Therefore, providing them with luggage delivery is a relief to them. To capture them,
the company intends to have subsidiary offices near all the major ports and airports in Australia.
5. Branding and position
The company will have to brand itself to stand out in the competitive market. Due to the
attractiveness of the market more competitors have joined the field. Therefore, the company
must brand itself as the better option in offering luggage delivery services. To achieve this, the
company will do media campaigns to create brand awareness in the market segment
(Rosenbaum-Elliott, 2015). The company will make our services available in all major ports and
airports and to create conveniently, it will have offices near the arrivals and checkpoints, so
customers will not have hassles of coming to look for services, we will be there waiting for them
to arrive. Also, the company will have online service bookings, where the client can login and
notify his arrival so that his luggage can be collected on his/her behalf. The company mainly
target tourists and travellers from outside Australia especially new visitors.
Brand strategy Brand positioning Brand image
The extensive campaign to
create brand knowledge in
the market.
Better prices for our delivery
services
The convenience of our
Reliable services
Affordable

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services by being near arrival
points
Online notifications for
luggage collection at the
airport/port
Convenience and flexibility
6. Promotion and marketing
Promoting the company delivery services will be done online on the television and radio
campaigns, travel magazines and use of posters and billboards. The marketing campaigns will be
strategically placed at the entry points to the airports and ports.
Future campaigns
The company intends to intensify the marketing campaign for its services to include
i. Social media advertising by having a dedicated Facebook and Twitter account for
posting delivery offers and news.
(Social media campaigns)
ii. A company website where the clients can make service bookings and get notifications
of their luggage deliveries.
Innovative idea
This is an idea that will be noble to invest in future. This idea will add value to the overall
business performance and competitiveness and survival in the market. In future, the company

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will consider exploring hotel room bookings services to our clients. This area is also prolific and
will add more business to our company. Considering the hotel deliveries, we make, we can also
make the booking for these customers too. Large numbers of tourists coming to Australia have
no permanent homes, and therefore arranging for them a place to stay saves them time and
worries of having to do it themselves. The company will use its website to offer the service in
which customers will choose from different hotels and restaurants depending on their budget and
preferences (Auspost.com.au. 2017).

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References
Auspost.com.au. (2017), Travel trends - how Australians travel. [online] Available at:
https://auspost.com.au/travel-essentials/how-australians-travel [Accessed 18 Aug. 2017].
Australia, T. (2016), Tourism Statistics - Research - Tourism Australia. [online]
Tourism.australia.com. Available at: http://www.tourism.australia.com/statistics.aspx [Accessed
20 Sep. 2016].
Investinaustralia.com. (n.d.), Tourism & Hospitality Industry in Australia | Invest in Australia.
[online] Available at http://www.investinaustralia.com/industry/tourism/tourism-hospitality-
industry-australia [Accessed 10 Jun. 2018].
Rosenbaum-Elliott, R., Percy, L. and Pervan, S. (2015), Strategic brand management. 3rd ed.
Oxford: Oxford University Press.
Tra.gov.au. (2017), International Visitors in Australia: March 2017 year ending results of the
International Visitor Survey. [online] Available at:
https://www.tra.gov.au/tra/ivs/ivs_march_2017.html [Accessed 18 Aug. 2017].