Factors that affect your private accommodation establishment
The main factor that affects most business is the degree of competition - how fiercely other private accommodation establishments compete with yours. The other factors that can affect your business could be:
Legal - the way in which legislation in society affects the business. E.g. changes in employment laws on working hours.
Economic - how the economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates and European and global economic factors
Social - how consumers, households and communities behave and their beliefs. For instance, changes in attitudes towards health, or a greater number of pensioners in a population
Political - how changes in government policy might affect your business e.g. a decision to build a park close to your establishment or reduce parking areas.
Technological - how the rapid pace of change in production processes and product innovation affect your business. For instance, the perceived importance of Wi-Fi for your customers
Ethical - what is regarded as morally right or wrong for a business to do. For instance, a question my customers may have: should I stay in accommodation establishments which do not care for fair trade?
Environmental - Tourism is responsible of about 5% of global CO2 emissions. Accommodation sector accounts for approximately 20% of emissions from tourism. For instance, is there something I can do to cope with this while engaging my customers on it?
Think for a minute: could these factors also become opportunities to innovate?
See more on Internal & External Factors Affecting Inbound and Domestic Tourism with examples from the UK (in English).
Trends and opportunities
While no one can predict the future with 100% certainty, a careful observer of travel, tourism and hospitality is able to notice various trends that are taking place throughout the industry in general. Here we are introducing you to 14 tourism trends that may create new products and services in the travel, tourism and hospitality industry:
1. Sustainable Tourism: A practice of ecotourism, sustainable tourism is tourism that sustains or protects and enhances the destination, its environment, culture, heritage and the well-being of its residents or local communities. Also referred to as geo-tourism
2. Ecotourism: Ecotourism is tourism that is primarily focused on experiencing natural areas that foster environmental and cultural understanding, appreciation and conservation
3. Culture/Heritage Tourism: Tourism that is focused on experiencing the places and activities that authentically represent the stories and people of the past and present
4. Sport Tourism: Leisure travelers participate in sports, go to sports events and visit sports museums. Based on this, destinations use sports as a way to create tourism, through the hosting of various sporting events. A great example of this is the Olympic games
5. Health/ Wellness Tourism: Travel that is done to promote a healthy lifestyle from a physical, mental and spiritual perspective is health or wellness tourism. Often referred to as medical tourism; hotels, resorts, spas, salons, exercise and fitness centers etc.
6. Technology and Tourism and Hospitality: Technology is having a profound effect on the travel, tourism and hospitality industry. These changes will lead to many opportunities for entrepreneurs who can understand mobile technology and social media and how to make it work within the industry
7. Student/ Young Travelers: Student and youth travel is defined as teenagers or young adults that travel for leisure and educational purposes. Today’s generation of young people or “millennials” as they are called in the industry, are more informed, more mobile and more adventurous than ever before
8. “Voluntourism”: Otherwise referred to as volunteer travel or volunteer vacations, voluntourism is travel that has volunteering for a good or charitable cause as its main purpose. Especially in light of the natural disasters that have been going on around the world, travelers are taking vacations not only to relax and have fun but also to give back and be of service to the communities they are visiting
9. Adventure Tourism: As travelers are looking for activities to fuel their sense of adventure and experiences to cross off of their bucket list, this form of tourism is such that takes place in an unusual, exotic, remote, or wilderness destination
10. LGBT Travelers: LGBT travelers are travelers that are lesbian, gay, bisexual and transgender. As the global visibility of the LGBT community increases tourism and hospitality industry are realizing the economic potential these travelers can bring to their destinations.
11. Luxury Tourism: Despite what type of economic health the world is in at the given time, luxury tourism is a growing trend across both wealthy leisure and business travelers
12. BRIC Travelers: BRIC travelers are travelers that are from Brazil, Russia, India and China. The reason why these countries are singled out to create a specified acronym is because they are the fastest growing emerging markets in travel, tourism and hospitality and is expected to drive economic growth for the industry worldwide
13. Culinary Tourism: It is traveling to countries and getting to know the respective cultures through food and food related experiences and events such as festivals and food competitions
14. Shopping Tourism: Shopping can be part of the travel experience or the main focus of travel. Some destinations and retailers even provide special events and incentives just for tourists to shop such as festivals or special discounts and sales.
Take some 5 minutes to think:
• Could you think of other trends you have not read here?
• Which of these trends are new to you?
• Which trends will you research further to plan for a new product, service or strategy?
For more read this article: Service Design in Tourism | Customer Experience Driven Destination Management
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