Operations Report for Queenspark: a Short Stay Tourist Park in Australia - Case Study Example

Operations Report for Queenspark: A Short Stay Tourist Park in Australia Executive Summary This operations report for Queenspark Holiday Park seeks to establish how feasible the idea of running a short stay holiday park targeting tourists in Queensland, Australia is. To this end, it contains a range of information about the industry, products and services offered and the operations plan for the establishment. It can be seen that the idea of establishing Queenspark arises from trends in the sector in particular and the entire industry at large which indicate positive growth in the future. As such, Queenspark will seek to pursue cost-leadership as a competitive strategy in the market. This strategy will be evident in the services that will be offered at the establishment. The management will seek to offer basic guest services to tourists visiting the region. With regard to the operations plan, the industry will be open every day of the week. Also, the different facilities required for operations will be sourced from trusted suppliers. The need for quality, durability and usability will be given consideration when sourcing for equipment and general supplies for the establishment. Further, because of the need to reduce operational expenses, Queenspark will operate with five permanent employees. The rest will be on casual basis. Finally, it can be seen that Queenspark can successfully operate in the market and achieve its operational objectives. Table of Contents Table of Contents iii Introduction In this report, the operational plan for Queenspark, a short stay tourist holiday park in Western Australia, is presented. The report is divided into two major sections. In the first section, a brief description of the tourist park industry in Australia is presented. This includes information about current trends, future opportunities and potential challenges in the industry. A detailed description of the services that will be offered at the park is also presented in the first section. The second section of the report is made up of the operations plan for the park. In this section, information about the location of the park, its general layout, materials and facilities required for successful operation is presented. Information about different licenses and other regulatory requirements for the business is also presented, in addition to details about human resource management practices that will be used in managing the park. Finally, a feasibility analysis for the tourist park is presented. Description of Industry The tourist park sector, which is part of the larger tourism industry in Australia, remains critical for both the local economies in the areas in which the parks are located as well as to the general economy of the country (Government of Western Australia, 2013, p. 1). This is because of the critical role that the sector plays in supporting the entire tourism industry which forms an important source of revenue for both the federal governments and the national government in the country. The number of establishments in the country has grown from the figure of 2,700 and an occupancy level of about 54% per annum back in 2006 (Breen et al., 2006, p. 1). In general, tourist parks in this sector vary in terms of their sizes, range of services offered and complexity of their operations. On one hand are the small tourist camps which offer a limited range of services to visitors and campers. These are in contrast with large scale operators that cater for a wide range of services including beach houses, villas and other advanced services. Also, since many of the tourist parks are located in remote areas, the range of services offered is designed to cater for the needs of different types of the clientele. This is because the parks, which are located in remote areas, are the only places that tourists can access accommodation and other services. There are several trends and factors that determine the future of the industry. By extension, these factors define opportunities in the existing market which Queenspark will use to develop its unique selling proposition. The first one regards the outlook for the industry in terms of revenue growth and other indicators. In general, the industry, which has had an above-average performance over the course of time, is set to experience growth in demand for the services (Hooper & van Zyl, 2011, p. 24). This is because it has managed to maintain a relatively positive performance even during times of local and global economic downtowns. However, current statistics indicate a general decline in the number of domestic tourists in Australia. As such, Queenspark will seek to position itself in the market by taking these factors into consideration. Products and Services of the Business Essentially, Queenspark will operate as a short stay park. Targeting primarily the tourist market, the establishment will offer communal facilities for tourists who, while visiting the Queensland area of Australia, will be based at the park during the time of their stay. Queenspark will offer a range of different services to its clientele. These are described in the sections that follow. First, Queenspark will offer recreation facilities to its clients. These will be in the form of the following: (1) a large swimming pool with all the other facilities like furniture and shades installed; (2) a full size play field; (3) a modern gym with modern equipment and installations; and (4) indoor recreational facilities such as dedicated movie rooms and select indoor games. Second, Queenspark will offer retail goods and services to clients in the following manner. First, there will be a retail shop at the site to cater for the different needs of the clients. Second, the establishment will have an on-site licensed café that will provide all meals and other foods required by the clients. The shop and café will be appropriate for clients who, while staying at the establishment, would like to purchase different items. Third, Queenspark will offer guest services in the form of accommodation, self-contained park cabins and other facilities. The following facilities will be available to the clients using the cabins within the establishment: a dining set, microwave, fridge and vacuum cleaner. These facilities will cater for the needs of visitors who choose to stay in the cabins during their short stay at the establishment. It can be seen that the services offered by the park will correspond to the needs of the market in which the demand for tourist parks is pegged on three key factors: price, atmosphere and extra facilities (Government of Western Australia, 2013, p. 6). Operations Plan Operations objectives Queenspark will operate to achieve a number of objectives. These are outlined as follows. 1. To meet the demand for tourist park services in Queensland area by offering a wide range of tourist park services to clients at affordable prices and manageable costs. 2. Be a market leader in the industry by offering a unique value proposition to the market that balances quality and operational costs. This model will enable the business attain profitability in the market within the shortest time possible and achieve sustainable growth over the course of time. 3. Contribute positively to the local economy of the Queensland region in terms of economic, social and cultural aspects. The objectives of Queenspark will be tied with the competitive strategy of leading the market in terms of operational costs. Theoretically, organizations pursuing this strategy seek to save on operational costs and pass the benefits down to the average consumer in the market in the form of reduced prices (Peng, 2013, p. 45). This is what Queenspark will do. Also, it has been established that holiday parks have social, economic and environmental effects on the areas in which they are located (Pickering & Hill, 2007, p. 6). It is because of this that Queenspark will seek to make a positive impact on the local area. Location Queenspark will be located in the Sunshine Coast in Queensland, Australia. Facing the beach, the establishment will be located on crown land leased from the State Government of Queensland. There are several reasons for this site to be chosen as the location of the establishment. First of all, it has been established that many tourist parks are located within the many cities that are found in Queensland area of Australia (Hooper & van Zyl, 2011, p. 26). These areas are ideal because of the physical attractiveness and availability of land. Also, with extensive and beautiful beaches, the areas form a natural tourist attraction, thus creating many opportunities for camping sites and other holiday parks to develop and cater for the demand from the high number of tourists visiting the areas. One advantage arising from this location is that there are already a number of well established tourist parks in the region. The presence of such parks will therefore provide several advantages in terms of operations to Queenspark. Although there are a number of well established parks in the region such as Ashmore Palms Holiday and Treasure Island Holiday Park, Queenspark will not face direct competition from them since the kind of positioning will be different. Whereas many of the parks already operating in the area focus on family holiday makers, thus acting as destination parks, Queenspark will focus on tourists who, while visiting the entire area, seek a place to put up. The third factor that makes Queensland an ideal location for the establishment arises from the role of the local government. According to the strategic objectives for the tourism industry developed by the State Government of Queensland, the tourism industry is set to increase in the next few years (2013, n.pag ). As such, Queenspark is set to benefit from additional benefits such as infrastructure that will be offered by the government as a way of ensuring that the strategic vision is achieved. Service process The service delivery process at Queenspark can be explained using a flow chart diagram as shown in figure 1. Figure 1: Flow diagram indicating the general process of service delivery at Queenspark Layout Generally, the design and layout of tourist parks is a complex process that calls for the effort of professional landscapers and designers. Also, the layout of the establishments is determined by different factors such as the size and nature of the available land, the number of facilities required and the level of extra facilities desired to be incorporated in the establishment. Although all these factors are important, one important factor that will be taken into consideration when designing the layout for Queenspark is the need for safety. Since recent fire outbreaks in different regions of Australia have threatened tourism operations (Sanders & Laing, 2010, p. 224), the need for overall disaster preparedness will be taken into consideration when designing the overall layout of the park. Figure 2 is a graphical representation of the layout of Queenspark showing how different facilities will be distributed on the site. Efficiency, safety and quality will be taken into consideration by allocating enough space for all the different facilities. Figure 2: A graphical illustration of the general layout of Queenspark Facilities The following is a description of the different facilities and information about how they will be obtained, maintained and replaced if need arises. For accommodation services, the establishment will have 20 self-contained accommodation cabins for visitors requiring such services. Each of the cabins will have the following facilities installed: a kitchen, bedroom, a bathroom, a dining area and other essential facilities. The cabins will be built in accordance with industry standards and to reflect the highest standards of quality, functionality and attractiveness. Also, the facilities installed and equipment made available will cater for the different needs of the clients. Recreation services offered at Queenspark will require a number of different facilities and installations. Outdoor facilities will include a large swimming pool with all related facilities such as shades and furniture. Also, there will be an extensive playing field that can be easily modified to accommodate any kind of recreational outdoor sport. Unlike other establishments which develop different facilities to accommodate different outdoor sporting activities, Queenspark will simply maintain a large uniform playing site that can be modified for a number of different activities. This will be one of the ways by which the establishment will reduce its operational costs. Lastly, the establishment will have a gym that will contain all modern equipment and fittings. Internal recreation facilities will include a TV and movie watching area. The establishment will also operate a small convenience store, a food café and a bar. These facilities will be stocked with all the products and services required by the clients. Lastly, general buildings and the reception area will be built to reflect the decoration and standards of quality and durability. Supplies and materials In general, suppliers of products and services for the establishment will vary in accordance with the different services that will be offered at the establishment. For the café and convenience store, the management of the establishment will contract different suppliers of raw products and stock respectively. When selecting the suppliers of the products, care will be taken to ensure that the establishment gets goods of the highest quality at reasonable prices. Once the contractors have been selected, formal contracts will be developed and entered into with them. This will be necessary as a way of ensuring that the establishment is assured of a steady supply of goods and services required. In addition to this, care will be taken to ensure that the supplies are fresh and meet all the standards. When sourcing for equipment during the stages of establishment, care will be taken to ensure that equipment of the best quality is obtained from suppliers. This approach will be used when sourcing for equipment to be used in the recreation and accommodation facilities. As a way of minimizing capital expenditure, quality equipment will be obtained, thus saving the extra costs of maintenance and repair. On the other hand, it has been pointed out that the industry experiences a trade cycle which is affected by the weather, calendar and special events (Kulendran & Dwyer, 2010, p. 5). Because of this, the stock needs for different types of supplies used by the establishment will be adjusted in accordance with the trade cycle. Laws and regulations There are several laws and regulations that govern the construction, registration and general operation of tourist parks in Australia. For the case of Queenspark, several regulations will be applicable. These regulations and laws will fall into the following general categories: (1) laws governing registration with local authorities and the duties of the owners; (2) registration fees; (3) general standards covering safety and general management; (4) standards covering constructions, installations and general facilities; and (5) general standards covering amenities, hygiene and other services provided (State Government of Victoria, 2011, p. 2). Since Queenspark will operate in an area that is generally considered open to the public and the services offered will be standard, there will be need to obtain a permit to operate a tourist park from the national government. This, together with other licenses, permits and accreditation certificates, are important requirements for registration of such businesses in Australia (Australian Government, 2010, p. 2). Human resource management The human resource management plan for Queenspark will be in accordance with standards and practices that have been established in the industry by other players. This will be evident in the following ways. To begin with, the establishment will operate with five full-time employees. This small number of employees is in accordance with the practice that has been established in the sector in which operators are known to be highly labor-intensive in their operations. The five full-time employees of the establishment will have different duties. There will be a receptionist who will be responsible with all the operations at the front-office of the establishment. The receptionist will also handle all maters with regard to registration, payments and clearance. Secondly, there will be a person in charge of all guest services offered to clients. The person will be in charge of indoor recreation activities facilities within the establishment. Thirdly, there will be a general manager who will be in charge of all operations at the establishment. Fourth, there will be a person in charge of all outdoor activities within the establishment. Lastly, there will be a person in charge of the camping sites. The other functions will be carried out by part-time employees who will be employed on a casual basis. It has been seen that there is a mismatch between academic training and actual industry needs in the field of tourism (Wang, 2008, p. 2). In order to address this problem, Queenspark will develop a rigorous and continuous training program for all its employees. This approach will also be useful in addressing the general shortage of skilled workers in the hospitality industry in Australia (Western Australian Hospitality and Tourism Industry Training Council, 2006, p. 3). Therefore, all the employees will be subjected to an in-house training program to further develop their skills for better service delivery. Also, the process of recruitment, remuneration and motivation of employees will be carried out in accordance with the best practices in the industry. Conclusion From the information provided, it can be seen that it is possible for Queenspark to operate successfully and achieve all its objectives. This is because of the following reasons. To begin with, there is a positive outlook for the tourism industry in Australia and the tourist park sector in particular. This offers an opportunity for Queenspark to suddenly enter the market. The second reason regards the operational plan for the establishment. It can be seen that Queenspark will offer standard services by targeting the tourist population in Queensland area. This product offering will be augmented by a cost-saving model that will be adopted by the management. As such, it will be easy for the management to manage stock, ensure effective use of facilities and attain operational efficiency using the layout and design of the establishment. References Australian Government (2010). Parks Australia: commercial tourism activity license guidelines. Retrieved from https://www.google.com/#q=+tourist+park+-+licences+-+Australia+-+pdf Breen, J., Bergin-Seers, S., Roberts, L., Frew, E. & Jackson, Carlsen, J. (2006). Innovation and change management for small and medium tourism enterprises in the tourist park sector. Retrieved from http://www.crctourism.com.au/wms/upload/resources/bookshop/Breen_innovationSMTEs.pdf Government of Western Australia (2013). Evaluating the caravan park and self-contained traveler sector in Western Australia. 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