Eco Hotel Business Plan

Eco Hotel Business PlanBusiness PlanECO-REST Non-Profit Hotel executive director SummaryThe current cordial reception and tourism trade abide bys itself under threat, just ab discover as a direct result of the heightened aw atomic deed 18ness of the impact that is be Imposed by the relatively b ar-assed phenomenon that is know as humor change.The marketAs an industry the hotel and hospitality battlegrounds bind an abundance of governings, in event in the greater Miami areas. In essence it could on that pointfore be argued that in that location is no need for yet an newfangled(prenominal) hotel. The answer to this viewpoint is that the proposed ECO-REST hotel ejection has two distinctive and grotesque features and do goods that provide it with a potenti each(prenominal)y new fear model that, to a large extent, allow for enable the hotel to mictu treasure its own recessional marketplace. Further, the diversification into the non-profit arena, with the objective of feeding overindulgence income out to support community found environmentally positive ejections, does show that the non-profit hotel institution can bring about change in an effective fashion and one that involves every member of the topical anesthetic anesthetic community.CustomersResearch has shown that the worry and vacuous actuateler are meet more discerning In geticular this reveals itself in the concerns that are organism expressed relating to disdain response to temper change. The overwhelming major(ip)ity of consumers now believe that it is the duty of the hotel operator to insure the im advancement and changes needed to combat global warming and they are fain to pay a premium to those establishment that can prove they go through adopted eco- amiable trunks and grammatical constructions inside their mathematical processal procedures and methods of trading. With 80% of expeditionlers organism of in prefer of this provideeral agency it is clear th at thither is a need for the hospitality organisations to conform their objectives to a set of rules that takes into report the demands of the consumer and face the environmental issue. Alternatively, they face the gamble of the loss of competitive favor and market share, neither of which options would be reliable positively by shareholders who are the major investors in the hotel sector.Hotel featuresThe features that are cosmos intromitd within the fig and lay down of ECO-REST are intended to include all the latest technology and design that is creation utilisationd and recommended as a template for cut down the impact that hotels buzz off upon the environment. These include dynamism saving systems, methods by which the maximum benefit is gained from the routine of daylight solar and flatus- personnel and the recycling of all basic discarded and waster material. The green features in like manner extend beyond the demand of the building to address environmentally friendly systems in the garden and grounds belonging to the problem. In fact the whole ethos of the stemma is to approach every aspect of the business operation of the bag of how green can it be. Research has shown that this approach not only provides a competitive advantage when pursuit to increase market share only when likewise has a positive affect upon the profitability of the business as well.operating(a) principlesECO-REST has a philosophy that is specifically intentional based on giving back to the customer, which is the reason why it was decided that this digest should be styled as a non profit making charitable organisation. This allows the business to have the extra flexibility to be able to donate to organisations of its choice that give be of positive use to the community and its environment.The FutureThere is little(a) doubt that as the warning relating to climate change becomes more strain people are going to become more strident in their demands for the t raditional systems of commerce. It go out not be acceptable in the coming(prenominal)(a) to react with cosmetic measures designed to appease. In the future consumers lead essential to proof of improvements. Hotels much(prenominal) as ECO-REST are examples of structures and establishments that contain that proof. Therefore there is little doubt that the opportunity exists to be able to take this business model and replicate it, not only in different areas of the US but also to the international community.Contents (Jump to)Executive Summary1. launch2 Target market opportunity2.1 Tourism2.2 Business Eco- spark off2.3 The hospitality and tourism market in Florida3 Marketing3.1 Tourist and integrated travel operators3.2 Advertising and promotion3.3 Strategic alliances4 Competitors4.1 Five forces compend5 Corporate strategy5.1 wampum up strategy5.2 Operating principles5.3 Operational realize mentally6 Management and governance structure7 Financials1. IntroductionIt is extre mely rare to find a hotel establishment within the commercial market that ope grade on a non-profit making basis, with all excess revenue earned during the year being used for charitable purposes earlier than to enhance shareholder/owner value. Similarly, a few(prenominal) hotels have taken all-inclusive advantage of all the green and eco-friendly and maintainable measures that are easy to this sector of the hospitality industry. The ECO-REST hotel shake off is designed to fit within both of these criteria. ECO-REST Hotel, an establishment that volition have 120 room and be based in great Miami, Florida, ordain make full use of all briefly available environmentally friendly practices and partner with environmental organisations to donate all profits to help fund topical anaesthetic green and sustainable projects. This cover up contains the proposed business plan for ECO-REST Hotel and exit outline the research that has been conducted into the market, its competitors, t he anticipate pecuniary performance and requirements for the project.2. Target market opportunityResearch has shown there is an change magnitude demand from tourists and business travellers for hotel establishments that took the in throne of environmentally measures within their establishments seriously and were wide-awake to pay a premium for allowance that fulfilled these requirements.2.1. TourismAlthough there are various forms of tourism1 in the context of the ECO-REST project the concentration will be focused upon Ecotourism and sustainable tourism. In these two areas there are strong indicators that these forms are the future growth sectors of the industry, as can be evidenced from the adjacent From the beginning of the last decade it has been estimated that ecotourism has been growing at an annual rate of between 20% and 34%2Eco and sustainable tourism poetry in 2004 was outpacing the overall tourism industry growth by three ages3Produces economic benefit for the t opical anesthetic community, in basis of change magnitude employment62% of Americans consider it substantial to learn about separate(a) cultures when they travel480% of Americans consider hotels should take steps to protect the environment5 and an increasing number base their adaption selection upon these factorsIn addition to the above almost research has indicated that these forms of tourism have economic benefits for the hotels and cultures.2.2.Business Eco-travelThe unified market is also becoming increasingly involved with environmental and sustainable issues6. This has occurred both because of the increasing national and international legislation that is being introduced to tackle the set up of climate change and is being influenced by the changing demands of their consumers. An integral part of annual reporting for the majority of corporations today is the inclusion of a collective and fond responsibility report (CSR). Within this document is included an overview of the business response and performance upon issues such as steps to make the corporation processes and operations more environmentally friendly and its contribution towards sustainability within the topical anesthetic anesthetic community. Reducing the corporate carbon footprint is as essential fraction of these CSR performances and therefore the importance of the environmental impact of business travel, which hotel and hospitality accommodation is an element of, is becoming increasingly important for the business brand.The US travel industry is one of the economys largest sectors and produces revenues in excess of $ nose candy billion per annum, of which 70% is spent on municipal travel. Of this domestic travel element approximately 45% is related to business travel and accommodation requirements.Based upon the fact that 80% of the US state believes that hotels should take a protective approach to the environment, it therefore is apparent that there is a tidy effectivenes s for revenue growth to be generated by offering corporate hospitality, with the product being enhanced to include the environmental and sustainable factor that are becoming increasingly important.2.3.The hospitality and tourism market in FloridaAs can be seen from the abide bying graph (figure 1), the visitor be to Florida as a state has experienced a year on year growth of domestic, overseas, and Canadian visitor numbers since the turn of the century7. These numbers include both the business and tourism sectors. As can be seen from this graph, although the numbers of overseas an Canadian visitors have covered relatively flat for the period, the significant rise in domestic tourists has increased by nearly thirty percent as more US citizens are victorious domestic vacations. In addition, the same research indicates that, of this number, approximately 44.3% uses hotels and other paid accommodation, which in 2007 equates to around 37.4 million guests to be accommodated.In terms of the hotel market specifically related to Miami, a recent report indicated that line rates for the Greater Miami area for the beginning(a) four months of 2008 were up to 80.5% with room rates averaging $196.618. However, this position is expected to have slowed during the final part of the year and is likely to remain static for 2009 due to the global economic downturn. Nevertheless, as will be shown later within this report, these rates are considerably higher than the business plan for this project envisages.3. MarketingECO-REST hotel has set its target occupancy rate for the business at 70% with an amount room rate, taking into account discounts and special offers, of $170. To win the targets set, a strategic marketing programme has been designed, which will concentrate upon the spare-time activity three areas.3.1.Tourist and corporate travel operatorsAlthough a number of eco-tourists and business travellers tend to book and compile the component separate of their visits t o Florida and Miami via the Internet, a large number still rely upon the dish outs of outside agencies. These include travel agents and tour operators. It is the intention of the business to create kinds with these organisations, in particular those that have an interest in eco and sustainable tourism and hospitality.To cement these kindreds, the hotel will offer discounts at certain times and also provide evaluation and inspection visits, particularly at times of low occupancy, to enable representatives from these organisations to have a better understanding of the facilities offered by the hotel and its aims and objectives.3.2.Advertising and promotionIt is important part of the strategic marketing programme for the business to promote the unique selling points (USPs) of its business. Therefore, the focus of promotional material will be the environmentally friendly aspects of the business accommodation and the charitable support it provides to local and regional organisation s now involved with projects that address these issues.Furthermore, it will be necessary to tell that the promotional message is directed to the most appropriate market segment. To achieve this objective the business intends to take a threefold approach.Promotion to end point organisations, such as cultural and character attractions, including seeking to have the hotel advertize on their advertising literatureLinking with members of such organisations through newsletters or other advertising based upon their membership listsAppropriate advertising targeted at the publications and media events relating to the issues that are relevant to the hotels aims and objectivesIn addition to these methods, it is intended to design an irresistible website that displays and promotes all the important aspect of the hotel and its facilities. This will include visual and idiot box images of the hotel and audio as well as written data and an synergetic booking facility.The online promotion pro gramme will also include a significant element of networking. This will be achieved by the creating of a corporate blog, synergistic links with relevant organisations and charities and elaborateness with appropriate social networking sites, such as You-tube.3.3.Strategic alliancesThe third aspect of the marketing strategy for the business is to create strategic alliances with organisations and corporations that provide a fit for ECO-REST hotels USPs. include amongst this selection will be the state tourist and environment offices, local NGOs such as Friends of the Everglades and historical and cultural destination operators.To access the corporate market alliances will be formed local and regional trade and commerce associations supported by personal invitations to local corporations to visit the hotel and experience its facilities with the objective of securing occupancy from the out of areas suppliers and sales personnel that visit these businesses.It is anticipated that a targ eted and disciplined marketing and promotional programme that incorporates the above described elements will enable the business to achieve its occupancy target within the first year of operations.4. CompetitorsThere are a considerable number of hotels and similar establishment in Florida and in the Greater Miami district. A reasonable segment of these hotels, due to their small sizes and limited facilities, would not present a competitive threat the ECO-RESTs project.Furthermore, in terms of specific comparisons, whilst most of the hotels have made certain attempts at becoming eco-friendly, many still have areas in this regard that require improvement. separate of this can be found at a website called Best kB Hotels, which reexaminations hotels and accommodation by a set of environmental indicators9. An example of this amount can be found in appendix 2. The scoring system, based upon a green head badge system, works in the following manner.1 tree=1-4 ticks on the list2 trees=5 -9 ticks3 trees=10-15 ticks4 green trees=16-22 ticks5 trees=27-29 trees6 trees= 27-28 ticks7 trees=29 ticks (maximum)A review of the 224 hotels listed for Florida and the six specific to a Miami search shows that none of these establishments have so far achieved a position of more than four stars. The aim for ECO-REST hotel is to create an environment that will enable the establishment to fulfil all of the utter criteria, thus achieving the highest award level offered by this listing. The intention therefore is to use this criterion as a guide to ensure that the environmental objectives of the business are achieved.4.1.Five forces analysisAddressing the hotel market in the Greater Miami area by using the five forces strategy developed by Michael Porter10 it is anticipated that, whilst there are some concerns, the objective discussed earlier should place ECO-REST in a strong position to be able to gain a competitive advantage.Figure 2 Porters five forcesSource http//en.wikipedia.org /wiki/Porter_5_forces_analysisRivalry payable to its location and brand awareness in the tourism and hospitality industry, the tack of hotel rooms in the Miami area is reasonably high, with a number of establishments that the tourist and business traveller. With the ECO-REST project involving the razing and rebuilding of an existing establishment it is supposed(prenominal) that there will be any appreciable increase in the supply of room nights available in the area. Similarly, as the business average rate determinate is in line with current market rates it is considered unlikely that argument based upon price will be an immediate issue.It is further anticipated that the strategy being adopted by the ECO-REST hotel has a sufficient level of product differentiation to reduce the influence that rivalry might have upon its establishment11. In addition, research undertaken to date, mainly web based, has revealed few hospitality establishments operating on a non-profit basis apart fr om those directly aimed at the social service market, for example, those dealing with issues such as homelessness and persons experiencing social deprivation for a number of reasons.Supplier powerBecause the business is seeking to work through a number of strategic alliances within the travel industry and providing incentives from which these stakeholders will benefit, the level of supplier power will be reduced. An additional benefit in this respect will be execute by the fact that excess revenues from the ECO-REST project will be fed back to local environment and cultural project, thus leading to a level of competitive advantage that would not be achievable by the commercial hotel sector. With the requirement of creating added value for their shareholders, together with the cost of dividends, taxes and management benefit packages these corporations will not be able to compete with the donation levels available to ECO-REST. Furthermore, the prospect of such funding will enhance th e value of the relationship that ECO-REST will enjoy with local suppliers.Buyer powerBuyer power is perhaps the most volatile element of the five forces framework to prize for two reasons. Firstly because the product has to match with the buyers or consumers purchasing determinates and demands and secondly because the experience has to match with their expectation in terms of satisfaction.However, based upon the researched that has been outlined in sections 2.1 and 2.2 of this device it is considered that the product offered by ECO-REST hotels addresses the first of these issues in that the hotel environment matches the increased demands for an environmentally friendly product. In terms of the second aspect, it is considered that, with the degree of quality attached to the hotel establishment and the anticipated service quality, the physical experience should exceed the consumers expectations.Substitute productsExisting hotel establishments will find it impossible to match the pro duct that is being offered by ECO-REST hotels without a stark(a) disruption to their current trading levels. The benefit for ECO-REST is that this project is commencing with a scrub sheet approach. This approach allows for the incorporation of eco-friendly systems at the design and construction arrange of the project (see more detail in section 5). These will be applied to the building itself, its utilities and the external landscape.The cost of conversion or overhaul of an existing hotel, particularly if undertaken by a commercially orientated organisation, would prove prohibitive to existing operators. Additionally, in the event that such organisations should decide to follow the lead set by ECO-REST hotel, the timescale for re instruction provides this project with the benefit of being able to consolidate its market share and first-mover position in this niche sector of the hospitality market.Barriers to entryBarriers to entry into the niche market that is being anticipated w ithin this project are considered to exist in the following areas Non-profit structureThe fact that the ECO-REST hotel is designed to be a non-profit organisation will reduce the numbers of new entrants by eliminating the commercial investor from this sector of the hospitality market as, if this model is followed there is no commercial return on the investment made.Cost and timescale for developmentTo commence a development of the nature of ECO-REST hotels does require the outlay of a considerable cost. Moreover, the timescale to completion is anticipated to be in the region of nine months. These factors will have a halt effect upon new entrants in two ways, particularly if this entrant is a commercially minded organisation. Firstly, the return on the investment in the short term will influence the level of costs attributable to the project. Secondly, the time taken for completion will provide first movers and preceding entrants, such as ECO-REST with the ability to establish the B rand and gain competitive advantageStrategic alliancesThe development of strong strategic alliances with the organisations as outlined in section 3.3 of this report, together with a programme that ensures continuing process of bi-directional and interactive communication between the ECO-REST business and these stakeholders will serve to reduce the potential of such organisations being tempted to change their allegiance to new entrants. Research has shown that, providing the decent quality of service and commitment to stakeholders is maintained their inclination to change to a new promotional or revenue source will be reduced.Economic benefitsAs will be evidenced in the fiscal details contained within section 7, the reduction and elimination of the commercial elements from an operation that is conducted within the non-profit sector does present certain advantages to the beneficiaries of the product. In particular, in the slip of this specific project those beneficiaries exist withi n two main areas. In the first instance of the profits (or excess revenues) from the ECO-REST project are being returned to the local economy. Secondly, and of equal importance, the project is designed to attract a more affluent and discerning visitor to the locale, which will increase revenues enjoyed by other commercial organisations situated in the Greater Miami district.Community benefitsFinally, the project is designed to bring benefits to the local community. By increasing tax revenues to the district it enables the local authority to undertake more improvements to the community infrastructure and the environment in which its citizens dwell. Similarly, by increasing the funding available to local tourist vivid and cultural destinations the project will improve the communitys diversion of their leisure facilities.5. Corporate strategyWithin this section of the business proposal the strategy and operational principles and procedures for the ECO-REST hotel project are presented and discussed in further depth.5.1.Start up strategyECO-REST hotel is currently working closely with the WTO12, a local architect and a US construction corporation renowned for their involvement with the construction of environmentally friendly buildings. With the increased levels of concerns relating to environmental issues and the desire to sustain local destinations and environments, it is anticipated that the planning application and approval stage of this development should be completed within two months of that application being lodged with the local authorities. Currently two sites are being evaluated and discussed concerning their suitability for the project.The basis for subsequence of the project has been agreed to concentrate around the following format. The construction company, taking advantage of the favourable grants and loans available for the construction of environmentally friendly structures, have agreed to fund the cost of the building works. In return for this advantage, the property, when completed, will be leased back to ECO-REST for a period of forty years at a rate that is commensurate with current market values. friendship is being given to extending this business model and concept throughout other US states in the future, thus increasing the funds available to local natural and cultural destinations and enhancing the lifestyle and economic wealth that attracts to the local community. This project will also serve the purpose of heightening the awareness of the population to the environmental issues and dangers currently being faced by the global community, whilst at the same time demonstrating that the solution to these issues does not always require the pauperism of the profit or shareholder added value drivers. Furthermore, it will also show that, providing the desired relationships can be developed between social and environmental needs and the commercial ethos in a manner that merges the motivational needs and requirements of all of the stakeholders, each and every one of these stakeholders will benefit from the design effort required to complete and fulfil these projects.5.2.Operating principlesThe operating principles, or mission statement, that has been proven to be the driving force behind the ethos upon which this project has been developed is It is possible, by the building of a new and unique relationship between the varied objectives of numerous stakeholders, to create a vision for the future that satisfies the needs and aspirations of all of these parties.Furthermore, following the success of this project it will also show that, providing corporations within the tourism and hospitality sector fulfil the promises that are made to other stakeholders within the supply chain, .EnvironmentTo ensure that the ECO-REST project addresses the environmental issues being faced by the global community in the twenty-first century, and to set an example for the future, the following are some of the environmen tal systems of improvements will be used in the construction and design of the new building. These methods are also intended to enhance the comfort of the experience for the guests who stick out at the hotel.BuildingThe basic structure will be philippic in shape and all of the rooms will be build around a interchange core which will house on the ground floor the extra facilities such as the conferencing rooms, dining and loll around areas. A special glass central roofing section will be installed, enabled to warm the building in the winter and cool it during the summer. As many common areas as possible will be walled in glass (similar to the design on the book cover left).The advantage of this design and roofing is that it will increase the amount of daylight that penetrates the building, thus reducing energy customs duty. Much of the structural work will make use of recyclable materials. It has also been noticed that in standard hotels one of the major sources of energy waste evolves from the fact that the sleeping accommodations and accommodation areas are often quite dark, even during the course of the day. To reduce the use of lighting in these areas the bedroom windows will stretch the width of the room. Moreover, the main doors will be panelled with non-see-through tempered glass to improve daylight access to the rooms from the centre of the hotel. expertness systemsModern environmentally friendly energy systems will be compound into the building. This will include the use of Geo-thermal underground heating, solar panelling for piss heating and other power supply purposes. In addition, miniature wind turbines will be strategically placed around the building structure to support the efforts to make the hotel free from reliance upon fossil fuels.WaterIn terms of the piddle supply a grey water system will be installed to ensure that waste water is cleaned and recycled for use in such areas as the toilet system and for garden irrigation purposes. A dditionally, modern water saving techniques will be used in the bathroom facilities and the central hotel laundry. Finally, water storage systems will be installed to ensure maximum usage of natural rainwater.WasteAs much human waste as is possible will also be treated and recycled in the open-air(prenominal) garden areas. Guests will also be encouraged to help in the recycling process through the provision of special bins in their rooms so that they can separate the waste paper etc that is left from their stay. tend and landscapingIt is intended to also extend the environmentally friendly and sustainable systems into the garden area with the designing and implementing of xeric gardens and, furthermore, one new tree will be planted in the grounds for each of the bedrooms and suites that the hotel offers in