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Pick any business idea in a service industry and create a business plan around it. For part one of your plan, the following topics must be included:
(a) Overview
(b) Business details – what does it do?
(c) Value Proposition of the new venture
(d) Competitor Analysis
(e) Customer segments and targets
(f) Hypothesis and business objectives

Importance of Competitive Analysis in the Hotel Industry

An efficient business plan is essential for the organisation to achieve the competitive advantage. It is required by the organisation to carefully analysis its competitors in the market before starting any business. For providing better hotel services to customers, it is necessary to understand the requirements of the customers well. A better and affordable hotel service attracts the people to take the services of hotel. Hotel service industry is the chosen business plan. The chosen name for the new hotel venture is “Pearl.” The word pearl is chosen for the organisation because by getting the services of hotel, it wants to show the worth of better quality of services. Using the best word for organisation is not only enough, it is also necessary to offer something best to the customers so that they will take the services of hotel (Chang and Ma, 2015). Therefore, creating value proposition for the customers is needed that is discussed in the report. For different type of customers, varied services will be provided accordingly. In order to succeed in the market, it is necessary to do competitor analysis of firms who are offering best services in which the business need to be operated. In addition to living and spa facilities, there is separate portion for wedding. Special discounts are offered by taking booking on time (Ponchione, 2013). Besides having the rooms for guests who are attending wedding, there is special room for bride and groom with special facilities.

The hotel industry is located in the right of the sea where majority of the people come for enjoyment. The hotel provides the peaceful environment so that tourist can enjoy the beauty of Australia. It has total 80 rooms in which 40 rooms are AC rooms and rest are non-AC. The customers can choose the rooms according to their preference. At the entry of the door, housekeepers accommodate the clients for keeping their bags in their rooms. In today’s time, most the people are fitness addicted so Gym and yoga facilities are provided to customers so that they can spend their best quality time in hotel.  There is separate spa section for customers to relax their body.  The high-speed internet services for customers in the hotel are provided to customers. Besides this, it provides the facilities of massage, steam, waxing, laundry service, and ATM facility. There is a luxury facility for the frequent traveller by providing them the standard amenities so that they have great experience from the hotel.

Target Customer Segments for Pearl Hotel

Value proposition is one of the most noticeable aspects of hotel industry. A good value proposition makes the guest feel special about the uniqueness of the hotel.  It states the benefits that are provided to customers. The value proposition for hotel industry will be “not just a bed” that means other than rest facility, the hotel has many benefits and comfort that the visitors can enjoy (Net Affinity, 2017). The value proposition of the selected business plan (hotel service industry) is as follows-

Food and beverage- as every hotel industry provides the service of food in their hotel. The special facility for celebrating special occasion will be provided to guest. In order to make the night memorable for guest, the music band with best-decorated room will be the major attraction for those guests. The good section of fresh fruits, handmade chocolates, champagne, and wine will arouse the guest to order extra. Besides this, the fast delivery of food will be done so that customers can enjoy the real taste of food. While ordering the food, customers can choose the ingredients according to their choice and in 10-15 minute’s food will serve on the respective table. This facility is the major attraction of the hotel.

Spa packages- in order to provide the relaxation to guest after a long travel, hotel will offer the classic massage. The trained spa providers will keep the customers delight for taking these spa services (Wood, 2011). The special facility for customers in the form of discounts and gift hampers will be provided to those who visit the hotel frequently.

Room special features- the hotel includes the room with balcony and sea view so that customers can admire the beauty of nature. Besides this, kind size bed will be provided to newlywed couples (McCall, 2015). For children’s, the facility for bathtub is must which make the hotel unique from other hotel industries. This element will make a difference in the overall satisfaction.

Special offers- the hotel industry will provide the additional services of breakfast in bed, special decoration for birthdays, anniversaries and many more occasions. For these additional services, hotel will charge extra amount but it will create a memorable experience for the guest.

Transportation facility- transportation facilities will be provided to customers to visit the most beautiful places of city. For starting a good journey of the guest, suitable transportation facility for guest will be provided from airport to hotel.

Value Proposition for Pearl Hotel

Pool parties- the major attraction of the hotel is pool parties. In every week, pool party is organised for the guests of the hotel (Skålén, et al, 2015). However, pool is open every day but some special arrangements are done every weekend like floating breakfast, gift hampers, and games.

It is important for every industry to analysis its competitors because it put a threat to the industries. Analysis of competitors helps in access the competitor’s strengths and weaknesses (Edward Lowe Foundation, 2018). By knowing the competitors, firm can implement effective strategies so that competitive advantage can be improve.

The major competitors in Australia hotel industry are Melbourne, Hilton, Jupiter’s hotel, and casino. People usually stay at these hotels due to their unique facilities (Mclaughlin, 2015). These hotels provide unique additional facilities besides the basic facilities that all hotels provide. Hilton adopted a strategy that believes on international expansion (Hilton, 2018). It seeks to serve to the customers by provided them best quality services.  Hilton (Australia) is the biggest competitor due to its brand name and innovative service. It provides various services like photocopy service, printer, modem, children’s activities, special menu for children’s, pool, fitness room, accessible parking facilities, meeting rooms (Fleisher and Bensoussan, 2015). These facilities attract the customer to take the services of Hilton.

Customer segment tells the two things- who the guests are and why they should stay at the hotel. For the “Pearl Hotel,” the target customers will be the mostly tourist and business travellers. The major attraction for these will be healthy quality time with peaceful environment.

These are the main target customers as these people travel for various reasons such as to give presentation, to attend sales meeting or to meet with other member for the company for important discussion. Besides the enjoyment facility for tourism, spate portion for businesspersons is made in the hotel so that their discussion is done effectively without any discussion (Capozzi, 2018).  Business traveller usually comes for the meeting with client, in order to satisfy the need of these business travellers, proper internet facilities are provided. Besides this facility, printer is there if required by these guests.

The second target customer for the hotel is group of travellers. Group members include all those persons who comes in-group of members. These can be school students, wedding guest, or family members. For example- the group requires the five nights of lodging for 40 rooms with meeting room and breakfast for each day. These members will be given discount according to the number of members (Heyes, 2017). Besides the living facility, there is separate facility for rooms and garden who are attending wedding. For these guests, special email is sent to those guests by mentioning the venue and time of the wedding. For the bride and groom, special email is sent by congratulating them.  

Objectives of Pearl Hotel

Couples are the major attraction of the hotel industry. Special arrangements are done for the couples so that they can spend the best time without any disturbance. The newlywed couple look for perfect honeymoon package with best facility. In order to satisfy these guests, the special arrangements will be done for their special rooms, massages.

These types of travellers want a secure hotel. The families with children usually attract to those hotels that have specials programs such as those hotels where kids can stay free. For these types of travellers, the facilities for sports, lounge is provided (Skift, 2018). The prices for these customers are budget friendly. The budget for these is low so the family may be travelling to attend a family event, vacations, visit relatives or for some emergency such as illness. These travellers come to relax by leaving their worries at home. So to make them utilise their best time, special and amazing menu’s will be provided for children’s.

The initial hypothesis for given business venture is that the demands of customers in hospitality industry is continuously increasing, so to match the requirement of customers with organisational inputs, training will be provided to employees.  For managing the inventory in business, FIFO method will be used so that inventory will be managed timely. In order to ensure the customers satisfied, personalized services will be provided to guests. In order to cope up with the uncertainty that might bring in future, licensing as well insurance requirements are fulfilled.

The objective of “Pearl” hotel is to provide opportunity to people to enjoy the quality time by getting various new services. The goal is to reach on the top by offering best services and experience to customers.  Following are the main objectives for the establishment of hotel industry-

Customer service- In order to establish the brand name of the hotel, the objective is to provide best services to customers so that they get maximum level of satisfaction. The goal is to provide the best level of services to customers who visit the hotel. The various incentives will be provided to the customers who will do the booking online. Besides this, discounts will be given to customers if there is large number of people. There will be some special services for those customers having best interest in living at luxury rooms with special facilities.

Product quality- As customers love good service so in order to fulfil the needs of the customers, the proper quality services will be provided to the customers. The business objective is to keeps the customers happy by providing them best quality of services like housekeeping services, proper pool facility and travelling facility for picking the customers from airport or any other destination. All these services will lead to the satisfaction of customers thus results in achieving the objectives of the hotel. It is the main motive as the hospitality industry is for providing safe working environment so that it put a positive impression on the guest.

Positive as well as clean energy management- besides satisfying the customer with good quality and service, the aim is to improve the overall footprint by the usage of renewable and clean technology and resources.

Wellness- it is the main goal of the business plan by providing a safe and secure environment that stimulates the wellness lifestyle to all the employees, guests and nature. Foe ensuring the wellness in hotel, there is spate space for the refreshment of guest. Proper sitting arrangement has been done in order to make the guests happy and delighted (Heyes, 2017). There will be spate programs for ensuring the wellness of guest who stay at the hotel. Yoga trainer will be hired to assist the guest in their exercising. 


From the above report, it can be concluded that before opening a business venture, it is necessary to carefully analysis the competitors of that area. Besides analysing the competitors, it is essential to know the needs of the customers. In order to remain competitive in the hotel service industry, it is necessary to offer something unique that is different from other competitors. The first attraction of the guest to any hotel is its name. Therefore, name of the hotel should be such that which puts the best impression in the mind of the people. in a hotel industry, customer’s needs are totally changing. They want other than room and garden facilities. So to fulfil the demands of the customers, various extra facilities are provided so that customer feels satisfied after taking the services.


Capozzi, C. (2018) Consumer segments in the hotel industry. [online] Available from: [accessed 14/08/18].

Chang, H.P. and Ma, C.C. (2015) Managing the service brand value of the hotel industry in an emerging market. International Journal of Hospitality Management, 47, pp.1-13.

Edward Lowe Foundation. (2018) How to Conduct and Prepare a Competitive Analysis. [online] Available from: [accessed 15/08/18]. 

Fleisher, C.S. and Bensoussan, B.E. (2015) Business and competitive analysis: effective application of new and classic methods. New Jersey: FT Press.

Heyes, A. (2017) Hotel spa and wellness management. In Hotel Accommodation Management (pp. 83-93). United Kingdom: Routledge.

Hill, B. (2013) Customer Segmentation for the hotel industry.  [online] Available from: [accessed 14/08/18].

Hilton. (2018) About Hilton. [online] Available from: [accessed 7/08/18].

McCall, M. (2015) Ways to Enhance the Customer Value Proposition in a Competitive Service Environment. [online] Available from: [accessed 14/08/18].

Mclaughlin, K. (2015) Australia’s biggest hotel by number of rooms. [online] Available from: [accessed 14/08/18]. 

Netaffinity. (2015) How to Create a Hotel Value Proposition that converts. [online] Available From: [accessed 15/08/18].

Ponchione, A. (2013) A hotel’s name important for SEO, marketing. [online] Available from: [accessed 15/08/18].

Rauch, D.A., Collins, M.D., Nale, R.D. and Barr, P.B. (2015) Measuring service quality in mid-scale hotels. International Journal of Contemporary Hospitality Management, 27(1), pp.87-106.

Skålén, P., Gummerus, J., von Koskull, C. and Magnusson, P.R. (2015) Exploring value propositions and service innovation: a service-dominant logic study. Journal of the Academy of Marketing Science, 43(2), pp.137-158.

Skift. (2018) 3 Ways Hotels Can Effectively Use Targeted Guest Marketing. [online] Available from: [accessed 15/08/18].

Wood, P. (2011) Hotel value proposition: Factors of success. [online] Available from: [accessed 14/08/18]. 

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