Royal Hotel: Contemporary Issues in Tourism Business Report

This report presents a detailed analysis of the Royal Hotel, a proposed tourism business in Toronto, Canada, focusing on contemporary issues in the tourism industry. The report begins with the identification of the business and its services, which include lodging, accommodation, and additional guest services, with a focus on wellness tourism. It identifies the target customer segments, primarily domestic and international tourists, including business and pleasure travelers. The report justifies the selection of Toronto as the hotel's location, highlighting its accessibility, attractions, and interconnectedness with the broader tourism ecosystem. It situates the hotel within the accommodation sector, emphasizing its role in providing lodging, security, and food services, while also acknowledging the importance of adventure, recreation, and food and beverage sectors. The report outlines the distribution channels, including online and offline booking options, and discusses marketing strategies. Finally, it identifies challenges, such as startup costs, human resource management, customer retention, and environmental impacts, and impacts including cultural mix, providing a comprehensive overview of the business's prospects and potential obstacles.

Running head: CONTEMPORARY ISSUES IN TOURISM
Contemporary Issues in Tourism
Name of the Student:
Name of the University:
Author’s Note:

1CONTEMPORARY ISSUES IN TOURISM
Table of Contents
Section 1: Name of Business and Product Identification................................................................2
Section 2: Identifying Target Customer..........................................................................................3
Section 3: Location Selection..........................................................................................................4
Section 4: Situating the Business in the Broader Industry..............................................................5
Section 5: Channels of Distribution.................................................................................................7
Section 6: Identify Challenges and Impacts....................................................................................7
References........................................................................................................................................9

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Section 1: Name of Business and Product Identification
The business will offer hotel service for the customers under the name of Royal Hotel,
which is directly related to the tourism business. The business will be started as company, where
the capital of the business will be gathered from different stakeholders and financiers. The hotel
business will offer lodging and accommodation facilities ranging from highly decorated hotel
rooms, bigger and high quality beds, food, kitchen facilities, dressers, upholstered chairs,
refrigerator, flat screen television and en-suited bathrooms. Apart from that, the guests of the
hotel will also avail additional guest services like business centers, swimming pool, SPA
facilities Gym and many more. Moreover, the business will be mostly related to wellness tourism
in the tourism industry. The tourists will come to visit several destination tourism places of
Canada for their travelling purpose and choose a hotel that will enhance their wellbeing. The
hotel service meets basic lodging, accommodation and food needs of both domestic as well as
international tourists in any destination place. Furthermore, hotel also meets some recreational
needs of tourist like swimming pool, basket ball court and many more. The Canada hotel
industry seems to have a steady growth over the years, which recently have 78 billion revenues
(Dawson et al., 2016). Hence, the hotel business is expected to get a solid growth in larger
Industry.

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Section 2: Identifying Target Customer
Segmentatio
n
Demographic  Age: 20-60 Years
 Occupation: Business persons, corporate officers and job
holders
 Education: Mostly educated people
 Income: Medium-high income range
 Marital Status: Both Married and Single customers
Psychographic  Personality Traits: Positive Personality
 Behaviors: Positive behavior
 Likes and Dislikes: Modern lifestyle and Travelling mania
Behavioral  Benefit Sought: Seeking extra benefits in purchasing service
 Distribution channel used: Both online and offline
 Usage Level: High
Target
Customer
 Customers having psychocentric mind and Positive attitude
 Targets customers like businesspersons, job holders and corporate
officials
 Customers mostly having travelling mania
Table 1: Target Customers of the Hotel
(Source: Created by Author)
The business will select mostly the tourists of Canada, who can be both domestic and
international tourists. Moreover, the business will target both business travelers and pleasure
travelers. The need of business conferences will motivate the business travelers to book the hotel

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and the need of wondering the tourist destination will motivate the pleasure traveler to book
hotel.

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Section 3: Location Selection
The hotel will be established at the most popular city Toronto in Canada. Toronto is
selected as location, as the hotel will be highly connected with the five component of this
tourism destination like accommodation, accessibility, amenities, attraction and activities.
Moreover, accommodation is the basic need for the tourists the tourism destination
(Aimagambetov et al., 2016). Hotels can meet such basic needs of primary accommodation of
the tourists effectively. Hence, Toronto will be selected as the location for this hotel. On the
other hand, accessible tourism is always intended to provide set of facilities for allowing the
tourists in enjoying their holidays and leisure time. Moreover, the tourists of Toronto can easily
access the tourist attractions by staying in nearly hotels. Hence, the hotel will be placed in
Toronto. Furthermore, Amenities are purpose-built around the needs and wants of the tourists
(Wang et al., 2015). The restaurant service, swimming pool, cafes and bars of this hotel will
meet the needs of amenities of the tourists coming in Toronto. Hence, the hotel can acquire wide
customer access in Toronto.
Tourist attraction is the place of interest for the tourists, which is inherently associated
with natural beauty or built beauty, cultural or historic value and amusement opportunity (Rosi &
Jurše, 2016). The hotel cannot be a direct tourist attraction for the tourists in Toronto, but it can
provide facilities to easily access to the tourist attraction of Toronto. On the other hand, hotel
being located at Toronto can meet the needs of tourists in terms of providing entertainment and
sport facilities like bars, basket ball court and many more.
Toronto is highly popular to the tourists all around the world for its tourism attraction.
The tourist can avail the tourism products and services like natural falls, theme parks, historic

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sites, destination restaurants and many more. The main tourism attractions of Toronto are CN
Tower, Lake Ontario, Royal Ontario Museum, Art Gallery of Ontario and many more
(Vongsaroj, 2018). Toronto is the leading tourism destination in Canada, which welcomes
around 40 million visitors in each year. Hence, the hotel will get access to huge customers, who
come to Toronto as tourists. The hotel will be highly interconnected with the other tourism
business like theme park, historic sites and lakes by providing accommodation to the visitors.
Furthermore, the hotel will be interconnected with the destination restaurant through getting
supply of foods for the hotel guests.
The pull factors make a location highly attractive to the people, where the people can
access all the basic amenities for living a quality life. The pull factors of Canada are better living
condition, religious and political freedom, better civic security, better medical condition and
many more. The hotel business will meet the basic and luxurious accommodation needs, food
needs and entertainment needs of the tourists coming in Toronto. Hence, it will add to tourism
development of this location. Toronto is having most popular tourism attraction like CN Tower,
Lake Ontario, Royal Ontario Museum, Art Gallery of Ontario and many more. Hence, the hotel
will acquire huge tourist groups as their customers. Being the popular city, Toronto is having
best infrastructure, which enhance the accessibility of the tourists to several tourism attraction.
Hence, Toronto is the best location for establishing in this hotel.
Section 4: Situating the Business in the Broader Industry
The hotel service belongs to accommodation tourism sector of tourism industry.
Accommodation sector meets the basic needs of tourists by providing accommodation and
lodging. The tourists and travelers need accommodation and lodging for rest while they are

7CONTEMPORARY ISSUES IN TOURISM
travelling. This hotel will meet such lodging and accommodation needs of the travelers and
tourists. Moreover, the luxurious accommodation will offer comfortable accommodation to the
tourists of Toronto. Hence, this hotel service falls under accommodation sector. On other hand,
besides providing just accommodation, the accommodation sector also provides security to the
tourists by provide a safe and secure accommodation. Likewise, the well decorated and secured
rooms of this hotel will provide best security to the tourists during their travel. In this way, the
hotel service is greatly related to accommodation sector of tourism industry. Apart from that, the
accommodation sector is also concerned about offering hygienic and delicious foods to the
tourists. In this way, the accommodation sector meets the need of foods of the tourists, while
they are far away from their own home. Likewise, this hotel service will supply hygienic and
quality foods to the tourists in a homely environment. Hence, this service is definitely related to
accommodation sector.
The adventure and recreation sectors of tourism are always have significant contribution
the success of accommodation sector (Komppula, 2014). Moreover, the attraction and recreation
sectors will attract huge tourists in Toronto, which will ultimately increase the numbers of
customers of the new hotel. On the other hand, the food and beverage sector of tourism industry
supplies quality and hygienic foods the hotels for meeting the food needs of the hotel guests.
Hence, the food and beverage sectors will be highly significant for this hotel. The tourists can
book the hotel online through the website of the hotel. The tourists can recommend the hotel
service to others once they leave the hotel, when they will get an overwhelming hotel experience.

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Section 5: Channels of Distribution
The customers can use both online and offline channels for booking the hotels. Moreover,
the tourists can book the hotel online through using the hotel website. The tourists will also be
able to book the hotel by going out the hotel physically. The hotel will offer luxurious
accommodation, quality foods, sport facilities, SPA facilities bars and many others. The hotel
will use affordable pricing for making the hotel service affordable to the tourists. On other hand,
in order to promote the hotel, it will use print media, mass media, digital media and social medial
for reaching to target market. Moreover, the hotel will use newspapers and TV commercials for
promoting itself to mass customer section. On the other hand, the hotel will use Facebook,
Twitter, Instagram and others to promote itself to young generation customers.
Section 6: Identify Challenges and Impacts
In a competitive hospitality industry, the hotel sectors face huge challenges in its business
progress (Webster & Ivanov, 2014). In case of this new hotel, the hotel will face extreme
challenges in terms of acquiring start up cost for operating the business. Moreover, the hotel can
face challenges in getting proper financiers for financing the hotel service. On the other hand, the
effectiveness of hotel service is completely dependent on the service quality of the hotel staffs.
Hence, the hotel can face challenges in sourcing talented and skilled human resources having
high level of service providing ability. Satisfaction of the customers is the one and only factor for
the success of hotel service. Being a new hotel, it can face the challenge of retaining the
customers by immediately resolving their complaints. The hotel can also face extreme challenges
of acquiring customers in off-season. Furthermore, the hotel can face huge challenges with the
broader industry trends of providing eco-friendly service.

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The carbon emission from the hotel facilities like air-condition, refrigerators, cooler,
heater and others can pollute the environment of the community. The hotel can also consume
huge energy for operating all of its amenities. Furthermore, the hotel will offer accommodation
to the tourists of Toronto coming from both from national and international countries. Hence, it
will lead to a cultural mix in the community of Toronto.

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References
Aimagambetov, E., Grela, M. F., & Bespayeva, R. (2016). Ways of Improving the Efficiency of
the Organization of Business Activity in Tourism on the Basis of Cluster Development of
the Territory. International Journal of Economic Perspectives, 10(3), 159-165.
Dawson, J., Stewart, E. J., Johnston, M. E., & Lemieux, C. J. (2016). Identifying and evaluating
adaptation strategies for cruise tourism in Arctic Canada. Journal of Sustainable
Tourism, 24(10), 1425-1441.
Komppula, R. (2014). The role of individual entrepreneurs in the development of
competitiveness for a rural tourism destination–A case study. Tourism Management, 40,
361-371.
Rosi, M., & Jurše, M. (2016). Market orientation of business schools and development of
professional competencies of students in the tourism business. TIMS. Acta, 10(1), 53-62.
Vongsaroj, R. (2018). Business ethics of tour operators for supporting sustainable tourism
development and its determinants. AU Journal of Management, 11(1), 28-35.
Wang, S., Hung, K., & Bao, J. (2015). Is lifestyle tourism business in the age of
commercialization just a dream? Challenges and remedies. Journal of China Tourism
Research, 11(1), 19-34.
Webster, C., & Ivanov, S. (2014). Transforming competitiveness into economic benefits: Does
tourism stimulate economic growth in more competitive destinations?. Tourism
Management, 40, 137-140.