The Market Situation of Hidden Valley Cabins - Report Example

Contents Contents 1 Executive Summary 2 Introduction 3 Purpose of the Report 3 Situation Analysis 3 Opportunities for Growth 5 Implementation 7 Prioritization and implication of Measures 8 Conclusion 8 References 10 Executive Summary Hidden Valley Cabins is one of the major businesses that have risen in response to demand for tourist accommodation throughout the years. Current developments have brought with them challenges that have limited the supply of tourists both in Queensland and elsewhere. Although comparatively small, it has set itself apart as having a greater focus on sustainable tourism. This is highly practical in light of the current trends towards environmental awareness and also the facility’s location in a well-protected ecological zone. This paper recommends that, considering the need for greater competitiveness, economic and industry challenges and changes in tourist expectations, the company will need to expand on the number and quality of its workforce, differentiate itself more in the market as an economically friendly facility and strengthen its ties with supportive institutions. Introduction Hidden Valley Cabins is a famous and award-winning resort. It is situated in an hour and a half drive North West of the Townsville area, and lies on the western slopes of the Paluma ranges of in Queensland, Australia. Because of its elevation, its climate tends to be much cooler and with less humidity when compared to areas around the coast. The pleasant temperature throughout the year makes it very attractive to tourists. In addition, it relies fully on solar power, making it entirely eco-friendly (Hidden Valley Cabins, 2012). According to Travel Queensland (2012), the resort is a family business that prides itself in personalised service, unique tours and home-cooked meals of high quality. The environment within which the company operates is quite challenging, both due to local and international issues surrounding the tourism industry. Purpose of the Report This paper analyses the market situation of Hidden Valley Cabins. It then identifies the possible ways of improving its competitiveness in the face of rising hardship and competition and offers recommendations and implications of what the measures entail. Situation Analysis Global economies are fluctuating with exchange rates varying and therefore continuing to affect he demand for travel. In legal and political aspects, terrorism continues to be a major issue. This has led to standardization of security measures in many countries and their cost raises air fares and overall costs of tourists’ trips (Conrady et al., 2011). World Tourism Organisation (2008) adds that in technology, there is a continuous rapid development which affects all sectors. Mobile phones are used in the planning and organization of holidays while computers and high-definition TV are capable of enabling virtual visits. Transport innovations have also affected the speed, range, safety and comfort of travel. According to Carson (2010), there is a trend towards increased social and environmental awareness while geo-political events and natural disasters also have a direct impact on tourist travel. In the wider industry, liberalization and reduction of travel costs influences travel demand and there is generally an oversupply of services and products hence affecting competitiveness. There is also an increase in market fragmentation and expansion of special niche and interest markets. Travelers generally have higher and increasing expectations from services. The resort business is generally in decline around Queensland although the company has a reputed eco-strategy that differentiates it. According to Saminather (2012), the industry in the state and country in general has been faced by challenges, making competitive strategies necessary. For instance, luxury resorts have been charging far less than their peak prices because of a stronger Australian dollar, with the effect of domestic vacationers opting to go overseas, and this has limited the ability of resorts to recover after two hurricanes that occurred in February 2011. There are many competitors to Hidden Valley Cabins around Queensland.The closest and therefore most significant are however those found around the Paluma Range. The nearest in this case are the itara Apartments owned by Q Resorts in Townsville and located 49 Kilometres to the southeast, Tropixx Motel and Restaurant found 51 Kilometres to the northwest, Oaks gateway, found 55 Kilometres to the Southeast, Seagulls Resort, located 52 Kilometres and on the seafront and Mercure Inn of Townsville, located 54 Kilometres to the southeast (Hephaestus Books, 2011). Opportunities for Growth There is an increasing amount of potential tourism opportunities in the regions around North Queensland (Buckley, 2003). Conrady et al. (2011) suggests that in order to capitalize on and benefit more from the growth in potential, there is the need for businesses to engage in more internal support efforts such as marketing, mentoring and management services, as these will enable the further setting of standards for the success of Hidden Valley Cabins. The company is well-equipped for these. According to World Tourism Organisation (2008), the resort is perfectly located for customers, whether they are self-driving or opt to take on the cabins’ personalized tours. The company has a lot of value added services such as the tours which are three-day/two nights and start off every Tuesday. There are also additional daily tours that guests can sign up for. The Night Safari and Platypus Safari options are capable of improving the bush experience of Australia for tourists and extensively cover the unique ecosystems, landscapes and animals around the Hidden Valley area. Travel Queensland (2010) observes that the area is generally a tourist’s paradise. It is attractive as a destination, with various natural attractions that appeal to both international and domestic visitors. The natural charm is also significantly set within the background of typical Australian law, hygiene, safety, business and community facility standards. As a result, tourism has grown to be a significant industry, especially backpackers. One of the main objectives of the business is to achieve environmental sustainability. Its activities are supposed to ensure the minimization of carbon emissions as a unique feature (World Tourism Organisation, 2008). The environmental concerns in the strategy go well with the reputation of the area as a favourite destination for nature lovers. According to Hephaestus Books (2011), the actual Hidden Valley feature is extremely well-preserved. The vegetation is protected and has therefore flourished within 300 deep crater which covers about a 110 hectare space. It is a secluded place that is found between two mountains favourite due to their being mentioned in various folklores. It is a place that has an abundance of nature’s gifts such as trees, water, rare animals, plants and flowers. The company has already managed to achieve an annual carbon dioxide emission savings of 78 tonnes and approximately $45000 yearly in diesel. When calculated over two decades with a minimum of 5% price rise for diesel, this amounts to savings worth $1.2 million. The idea of going green has also assisted in offsetting various other expenses by the business (Travel Queensland, 2010). This can be pursued further for the overall benefit of the company. Woodside & Martin (2007) argue that the resort’s location can be a challenge. Because it is considerably remote, there is the need for a lot of networking with other players in the industry, in addition to a concentrated form of marketing. The cabins are run by only four family members. There is the need for them to get more staff to assist in the effective running of the organization. In addition, they should pursue their vision of achieving a complete dependence on solar power, in order for their business to attain full carbon neutrality. Implementation After ensuring that the conservation strategy has been fully embraced as a business policy, there is the need to promote its unique characteristics to the outside world. According to Wearing & Neil (2009), this can be done through modifying advertising. For instance, the company’s website can bring out the eco-friendliness as the main aspect of operations. Eco-friendliness can also be the main catch-word in every marketing activity. Because the resort will be trying to be highly competitive and cooperative, it can ask for help from the numerous tourism agencies in Queensland and come up with a marketing strategy that differentiates it from the rest. This is in addition to ensuring that there is consistency and quality enhancement in its service delivery. The implementation of a new human resource strategy will greatly facilitate implementation. Woodside & Martin (2007) explains that in addition to the setting of competence standards for potential employees, it should ensure that it offers competitive terms in order to retain them in the face of pressures within the markets and large number of competitors. It should make more effort at hiring friendly and well-qualified people. Hephaestus Books (2011) adds that Queensland generally has a good pool of potential employees to choose from. Most importantly, the hospitality business needs people who are nice. Although it is easy to teach people who are nice the skills for their work, it is not easy to teach qualified people to be nice with customers. The secret to success in this regard will therefore be to hire people who are nice. The advances made should be accompanied by proper evaluative structures. Advances made by the business should be consistently monitored and evaluated so as to ensure that suitable practices are identified and wrong ones eliminated. Measures to acquire feedback from the customers should be put in place. For instance a well coordinated complaints desk will enable the identification of weakness areas so as to make changes. Suggestion boxes and comment sections in the company’s website will further facilitate the meeting of customer expectations (Wearing & Neil, 2009). Prioritization and implication of Measures The prioritization of measures should begin with the human resource changes, changes in advertising and fostering of cooperation with other institutions. The financial implications of the new measures will be likely to be insignificant because the structures for each are already in place. It is only for aspects such as suggestion boxes where some costs will be incurred. For instance, the hiring of staff should have them working just like the others. Changes in advertisement will only require an alteration of already existing information. Links with outside institutions are only to be strengthened further. Conclusion In spite of the challenges being faced, Hidden Valley Cabins can still strengthen its market position. To achieve this, the management will need to be more accommodative and flexible. It should be open to any suggestions given by others and not to fear change. The business will therefore need to adapt easily in order to cater for the changing needs of customers. To be competitive, the business should always strive to deliver way above the expectations of other people. The bottomline in this regard is that every effort should be geared towards people and not money. References Buckley, R, 2003, Nature-based Tourism, Environment and Land Management, CABI Publishers: Wallingford Carson, D, 2010, Drive Tourism: Trends and Emerging Markets, Taylor & Francis: London Conrady, R, Buck, M and Viehl, P, 2011, Trends and Issues in Global Tourism 2011, Springer: Heidelberg Hephaestus Books, 2011, Articles on Townsville, Queensland, Hephaestus Books: Texas Hidden Valley Cabins, 2012, Hidden Valley Cabins-The perfect Location for a Romantic Getaway, Retrieved on 10 June 2012 from http://www.hiddenvalleycabins.com.au/ Saminather, N, 2012, Queensland Resorts Sell at a Discount as Aussie Clips Tourism, Retrieved on 11 June 2012 from http://www.bloomberg.com/news/2012-03-19/queensland-resorts-sell-at-a-discount-as-aussie-clips-tourism.html Travel Queensland, 2010, Sustainability and Climate Case Study - Hidden Valley Cabins, Retrieved on 11 June 2012 from http://www.tq.com.au/resource-centre/sustainability-and-climate-change/case-studies/case-study---hidden-valley-cabins.cfm Wearing, S and Neil, J, 2009, Ecotourism: Impacts, Potentials and Possibilities? Butterworth-Heinemann: London Woodside, A and Martin, D, 2007, Tourism Management: Analysis, Behaviour, and Strategy, CABI Publishers: Wallingford World Tourism Organisation, 2008, Tourism Market Trends, World Overview & Tourism Topics, World Tourism Organization: Madrid Read More