Service Management for Tourism and Hospitality: Fraser Cottage Report

This report provides a comprehensive business plan for Fraser Cottage, a tourism and hospitality business located on Fraser Island, Australia. It addresses core and supplementary services, organizational structure, target market segmentation, and operational strategies. The report identifies challenges such as skilled labor shortages, infrastructure gaps, and the impact of climate change. It also analyzes the implications of technology and changing consumer preferences. Strategies to resolve these issues include hiring from educational institutions, recruiting internationally, and adapting to technological advancements. The report emphasizes the importance of a strong service concept, focusing on providing unique coastal experiences. It also discusses the vision and mission of the business. The report analyzes the strengths and weaknesses of the business and provides recommendations for future success.

Running head: SERVICE MANAGEMENT FOR TOURISM AND HOSPITALITY
Service Management for Tourism and Hospitality
Name of the Student
Name of the University
Author Note

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Executive Summary
Purpose of this report is to create a business operational plan for a business called Fraser
Cottage located right at the Fraser Island in Australia. Business offers a broad series of core
and supplementary services to visitors across the world. However, during the implementation
it is most likely to face a series of challenges starting from the shortage of skilled employees
in the sector, counting the government’s laidback attitude towards tourism as well, to
disruption of technology. Findings also indicate that wild-life, Great Barrier Reef, unspoilt
natural wildness, national park with the inclusion of rainforest are considered threatened by
the changes in the climate and such barrier definitely impact the business of Fraser Cottage as
many of its services are designed to give consumers a unique experience of coastal life.
However, the good news is that the demand of tourism and hospitality services are
consistently high and sudden fall in airways fares.

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Table of Content
Introduction................................................................................................................................3
Organizational overview........................................................................................................3
Core Services.........................................................................................................................3
Workforce Strength:...............................................................................................................4
Suppliers:................................................................................................................................4
Organizational Structure........................................................................................................5
Target market segment...............................................................................................................5
Current and future implications.................................................................................................6
Strategies to resolve the stated issues.........................................................................................9
Service concept..........................................................................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................11

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Introduction
This research report a contemporary business plan fundamentally presenting the
operational scenario of a proposed businesses. The purpose of the report is to gain a proper
understanding about establishing a new business in today’s competitive business world.
Service management is the core of area of discussion in the report. The name of the proposed
business is ‘Fraser Cottage’ Australia which is an organization providing hospitality and
tourism services such as accommodation, food, banquet, conference, resort management, spa
and wellness management, etc. An overview of the services and functions of Fraser
Cottage’ Australia has been given in the following to further map out the target market and
factors which could influence the business. Operational scenario of Fraser Cottage has been
mapped out by following four major element service vision of Heskett –such as target market
segment, service concept, operating strategy, and service delivery system.
Organizational overview
Fraser Cottage provides a broad range of hospitality and tourism services to people
around the world. Fraser Island of Australia has been core inspiration of developing Fraser
Cottage. The business has been designed to satisfy visitors’ needs and give them sea-life
experience lived throughout the island.
Vision: ‘To become a sustainable hospitality service partner in the Coastal area of
Australia’
Mission: ‘To give people an unexplored sea-life experience connecting through the nature’
Core Services
The organization Fraser Cottage provides a broad range of tourism and hospitality
services such as accommodation, food, conference, party, dining, award function, Banquet,

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resort management, spa and wellness programs. Being an alpha member of the hospitality
sector of Fraser Island, Fraser Cottage covers a wide geographical area when it comes to
providing services to the tourists. In addition to satisfying the needs of domestic consumers,
Fraser Cottage also focuses on oversea market through the digital platform.
Supplementary Services: Under the resort management service, Fraser Cottage
provides external sea life experience, such as fishing, deep sea-divining, paragliding, bungee
jumping, water skiing, and several other sea entertainment services
Fraser Cottage
Workforce Strength:
As Fraser Cottage covers a wide geographical areas when it comes to providing
services, workforce strength of business is comparatively higher. In order to maintain the
class of services, Fraser Cottage hires people from both regional and international market,
especially the candidates who are having years of industrial experiences in the hospitality
sector. The overall workforce strength of the business is 400 employees.
Suppliers:
As the business of Fraser Cottage delivers a broad range of services, suppliers’
strength is certainly a significant area of business. In order to create a balance in suppliers-
business requirement, organization creates terms with the suppliers under a certain period.

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Suppliers provide the raw materials for food, room, services, water, and instrument for the
supplementary services that brand provides.
Organizational Structure
Unlike the conventional concept of organizational structure, Fraser Cottage mostly
relies on modern structure that business follow today. Hospitality and tourism mostly
depends on the quality of services that business provides, it is always important for the
organisation to make communication more dynamic as well as blend individual into a
cohesive whole. Providing a high quality service is the major mantra of Fraser Cottage,
thereby, the firm does not have a rigid hierarchy or chain of command, rather each team
works how it fits and then the supervisor of each team tend to coordinate across several
department for service related issues. In addition to this, organization follows an open
communication forum in which employees can directly talk to the managers, supervisors if
any sort of operational issues business face.
Target market segment
For segmenting the market for Fraser Cottage, Heskett’s first element of identification
of Target market segment has been applied. As put forward by Heskett, Sasser and
Schlesinger (2015), market segmentation is more of a technique of diving the whole market
into different homogenous sub-segment. It has been identified that there are two different
approaches that are usually considered to identify the market segment such as consumer
personal characteristics and response towards a service.
As put forward by Heskett, Renoso and Cabrera (2016), consumer personal characteristics
fundamentally includes demographic, geographic and psychographic elements.
Geographical element:

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When it comes to geographical segment for the target market, Fraser Cottage would
focus on broader geographical areas such as the domestic market of Australia, overseas
market such as the Asian nations. However, as Fraser Cottage is on its onset, it initially sticks
to the domestic market such as North East of Australia, South West, Queensland and other
Western part of the areas, which means specially the urban areas where people are more
attracted towards the coast areas and the life in coastal region. When it comes to cost of
living, Fraser Cottage would focus on medium and high cost of living –particularly the
people who are living in urban and sub-urban areas of nation (Camilleri 2018).
Demographic Segmentation: It has been identified that demographic segmentation
could include population, size, age, income, occupation, and family and life cycle Camilleri
(2018). When it comes to targeting consumers, Fraser Cottage would focus on all age group
of consumers such as the young adults 18 to 30 years, 31 to 60 years. The organization would
particularly focus on the people who are living in the urban area and earning more than
$30,000 per year, however, all sort of consumers are focussed in the target segment. In
addition to this, organization would also pay attention to Families, newly married couple,
retired employees, and young college students (Wilkinson 2013).
Psychographic Segmentation: Fraser Cottage has no particular social class, because
it focus on all sort of social classes such as lower, middle class and upper.
Current and future implications
It has been identified that tourism has been a good news story news for Australians’
economy over past few years, and Mair (2014) mentioned that almost 8.2 million
international visitors visited Australia in the year to November. Rittichainuwat (2013)
mentioned that inbound tourism growth is almost triple the world’s average 3.9% and much
of this growth come from NE Asia as well as North America along with China, Japan and

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USA. The major reason for the growth in the tourism sector is lower Australian dollar, record
low airfare and a perception of safety in the most unsafe world (Shamim et al. 2017).
However, while the tourism ten to look bright for Australia such rapid growth showed the
fundamental issues. For example, the sector has an underlying shortage of trained as well
as quantified people to serve the increasing number of tourists as well as the
infrastructure in several parts of the sector that has failed to keep with the demand of tourism
industry (Gibbs 2019)
According to the article, there is a clear shortage of 38000 people in all area of the
tourism sector (Gibbs 2019). So, Fraser Cottage is most likely to face the challenge of skilled
labour when it comes to providing the hospitality service. There is a shortage of upmarket
hotel accommodation in Australia’s core gateway and business cities. Secondly, as per Cruise
Line International Association, Australians cruise sector has increased more than six fold in
the last few years and this speedy growth has created a significant gap of port facilities
particularly in Australia’s the most popular cruise destination port (conversation.com 2019) .
Thereby, it is worth stating that when the organization Fraser Island is going to provide its
core as well as supplementary facilities in the island areas, it is most likely to face the issue of
gap in the port facilities (Gibbs 2019).
Furthermore, Morton (2019) mentioned the fact that Tourism is Australia’s most
vulnerable as well as poorly prepared sector to deal with the climate change in spite of the
fact that it is already experiencing its impact. Author of the article has also mentioned the fact
that wild-life, Great Barrier Reef, unspoilt natural wildness, national park with the inclusion
of rainforest are considered threatened by the changes in the climate (Morton 2019). It is
learnt that federal as well as the state government of the nation have mostly underplayed or
did not consider the risk to tourism and this is most likely to be a significant challenge for the

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industry. So, the organization, Fraser Cottage would face the challenge of its service related
to deep-sea diving, water skiing, etc.
It has been identified that the issue that are found in the above newspaper articles are
quite similar to the factors that are most likely to influence the business of Fraser Cottage in
the coming days. Firstly, Mair (2014) mentioned that less focus on educational institutes on
travel and hospitality education with respect to industry services could significantly affect the
operation of hospitality organization. This is a challenge for Fraser Cottage because, level of
hospitality service in Australia is competitive due to the growing demand and to create
uniqueness in the service, industry –based skills and knowledge are highly required.
Conversely, the facilitation in the transportation by Australian government is another
factor that strongly impacts the business of Fraser Cottage. Fare of airways are reduced by
10-15% on average, which is an easy option for the travellers of overseas market. On the
other side, Rittichainuwat (2013) insisted on technology advances as the major factor which
has significant impact on hospitality industry. Visitors sitting in any remote corner of the
world can search information about the places they want to visit. This means that people can
seek detail about the places, hotels, booking, services tapping on their mobile screen only.
Social media platforms one such forum allowing people to change their preferences and
adjust their needs. Technology advances have generated another sub-factor which is most
likely to have an equal impact on the hospitality services. Travel agency such as
Booking.com, AirBnb, makemytrip.com are approaching consumers with their customer
centric travel packages while creating terms with all size of hotel (Espinosa Abascal, Fluker
and Jiang 2015). However, this is most likely to be a threat for the large businesses like
Fraser Cottage. Home-stay, small hotels can easily attract the consumers through social
media and give a cherishing experience of sea like to people who mostly care about places
instead of the rooms and foods.

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Strategies to resolve the stated issues
So, to resolve the issue related to skills gap, Fraser Island should take the initiative
hiring individuals from the training and educational institutes that are nationally accredited
training institution programs. In addition to this, since hospitality services are globally
handled, it is always effective for the organization to hire people from the oversea market.
Particularly, the institutions in the developing nations are more inclined towards the real-
world skills with respect to hospitality services. Likewise, to resolve the issues of climate
change as stated above, Fraser Island should pay attention to environmental sustainability
initiatives as per the UN sustainability requirements. This initiative would also help the
organization to receive tremendous support from the government of the nation which is again
a solution of developing brand image.
Service concept
Fraser Cottage should pay attention to its quality of services as demand of hospitality
and tourism services are increasing rapidly. Thus, the organization should focus on the
uniqueness in the services. For example, to enhance the service quality, organization should
increase the number of complimentary items on the long-stay of the visitors. Visitors who are
booking the rooms for long-stay can avail this service. Booking of the services should take
place online. To create the uniqueness in the service, organization should provide own
vehicles to receive customers from Airport or any other stations where visitors land.
Conclusion
In conclusion, it is worth stating that Fraser Cottage is most likely to have a
sustainable future in the hospitality sector as there is a growing demand of tourism and
hospitality services in Australia. However, the shortage of skilled workforce, changes in the
climate and port facilities are an exclusive challenge for Fraser Cottage and to overcome

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these challenges, the business should focus on hiring people from nationally affiliated
institutions, and the individual from the oversea market. Moreover, uniqueness in the services
such as substitute services could help the business to remain sustainable.

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References
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel Marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Espinosa Abascal, T., Fluker, M. and Jiang, M., 2015. Domestic demand for Indigenous
tourism in Australia: Understanding motivations, barriers, and implications for future
development. Journal of Heritage tourism, 10(1), pp.1-20.
Gibbs, A. (2019). Read this before planning that last-minute summer break. [online] CNBC.
Available at: https://www.cnbc.com/2016/08/08/2016-a-challenging-year-for-the-travel-and-
tourism-industry.html [Accessed 10 Aug. 2019].
Heskett, J.L., Renoso, J. and Cabrera, K., 2016. KidZania: Shaping a Strategic Service Vision
for the Future. In SERVICES MARKETING: People Technology Strategy (pp. 744-762).
Heskett, J.L., Sasser Jr, W.E. and Schlesinger, L.A., 2015. What great service leaders know
and do: creating breakthroughs in service firms. Berrett-Koehler Publishers.
Mair, J., 2014. Academic conference attendance-motives and barriers affecting the tourism,
events and hospitality university education sector. CAUTHE 2014: Tourism and Hospitality
in the Contemporary World: Trends, Changes and Complexity, p.1009.
Morton, A. (2019). Tourism is the Australian industry least prepared for climate change,
report says. [online] the Guardian. Available at:
https://www.theguardian.com/environment/2018/feb/08/climate-change-tourism-is-australias-
least-prepared-industry-report-says [Accessed 10 Aug. 2019].
Rittichainuwat, B.N., 2013. Tourists' and tourism suppliers' perceptions toward crisis
management on tsunami. Tourism Management, 34, pp.112-121.

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theconversation.com (2019). Australia needs to invest if it wants the tourism boom to
continue. [online] The Conversation. Available at: https://theconversation.com/australia-
needs-to-invest-if-it-wants-the-tourism-boom-to-continue-71407 [Accessed 10 Aug. 2019].
Wilkinson, F. ed., 2013. The dynamics of labour market segmentation. Elsevier.