Tourist Hubs in Australia
Discuss about the Tourist Hubs of Australia and Bli Bli House.
The city which has been chosen in this example is Sydney, one of the major cities and tourist hubs of Australia in the recent times. The city has been chosen in the example as it is one of the booming tourist destinations in the recent times and has experienced a considerable increase in the number of tourists coming to the country from the various parts of the world including the developing nations of China and India (Hu, Blakely & Zhou, 2013). The country has seen an increased amount of air traffic from the various countries of the world and the increase rate has been consistent to cross over 5% in the overall market of tourism (Hu, 2012). The city is one of the best developed city in the world and is the most flourishing city in the continent of Oceania with a huge native as well as foreign population base. The revenue and the financial state of the city is one of the most distinguished in the market which makes it one of the major tourist attractions on a global platform both in terms of finance and tourism revenue (Griffit & Hayllar, 2014). The city has been an explicit revenue to the government in terms of tourism making it one of the best examples suited in the example.
The main hotel that is being chosen is Bli Bli House Riverside Retreat while the competitor hotel that is being chosen for the comparison is Rumba Beach Resort. Both the two resorts mentioned in the example are high-end 5 star resorts that are one of the major tourist attractions of the country. Both have their own set of facilities for their guests and tourists that range from the fully decorated spa rooms to the exclusive suits that are there for the utmost comfort of their guests and travellers. Both provide utmost luxury to their guests and be the ultimate hosts with their line of rooms and suits that provide utmost exclusivity to the people staying there. Both the hotels provide a luxury experience to their clients like giving them the opportunity to indulge in some of the most exquisite experiences offered and also to give them the required amount of services that can make them the regular visitors of the hotel. Both the 5 star properties are exclusive in their own rights and have their own ways to provide their customers and guests with the best of their capabilities. Bli Bli House Riverside Retreat is a boutique hotel with an old world charm clubbed into the modern amenities which has its own set of clients ("Bli Bli House Riverside Retreat | Luxury Accommodation, Sunshine Coast", 2018). Rumba Beach Resort is a modern resort having their own set of customers, both of them have enough in common in terms of monetary and the type of occupancy to be considered as competitors in the example ("Rumba Beach Resort - Caloundra Holiday Accommodation", 2018).
Luxury Accommodations: Bli Bli House and Rumba Beach Resort
Book Value of a property is defined as the price of the assets owned by the company subtracted by its liabilities. Expanding the concept, it can be said that book value is the amount of money that a particular shareholder of a company will receive if the company winds up their business due to certain reasons after solving the liabilities and putting forward the assets (Penman & Reggiani, 2013). After doing the required in the calculation process of the Bli Bli House Riverside Retreat, it has been found that the book figure of the said hotel is 225$ which is way lesser than the original market value of the hotel. The book figures have been decided by calculating the assets owned by the hotel and the liabilities it has upon itself and thereafter subtracting the same from the assets amount.
Occupancy forecast is defined as the number of rooms that has been occupied or pre-booked by the guests at a particular time in a particular hotel (Pan & Yang, 2017). The occupancy rate of Bli Bli House Riverside Retreat has been calculated by taking into account the total number of rooms that the hotel has and the number of rooms that have been occupied or pre-booked by the guests. The number is then calculated on the basis of the days and is seen that weekends have a better occupancy rates than weekdays. In addition, the price of the room per night is also considered while deciding on the occupancy rate as with the less price per night, there is a possibility that more number of rooms will be occupied by the guests (Lehtomaki, Vuohtoniemi & Umebayashi, 2013).
In the market where the competitor consideration is very high, the Bli Bli House Riverside Retreat Hotel provided in the example case study will perform fairly well in the business when compared to the major competitor, Rumba Beach Resort. Both of them have a lot in common and both of them have the same kind of guest category wanting the same kind of features and amenities from a high end hotel (Cooper & Lemckert, 2012). However, the Bli Bli House has all of the facilities provided to the guests at a cheaper cost than the Rumba Beach Resort which is seen in the table stating the price of both the hotels in AUD from 4th June to 24th June. The date includes weekdays, weekends in one of the most popular seasons of Australian summers. The Bli Bli House has more or less fixed rates for the different days of the week with the highest on Sundays and the lowest in the span of Tuesday to Thursday while for the case of Rumba Beach resort, the rate fluctuates with no particular order making the guests prefer Bli Bli House more as they have a better idea about the rates and the facilities provided (Patiar, 2016).
Book Value and Occupancy Forecast of Bli Bli House
Target market is defined as the part of the market and the consumers that the particular product or service specifies for being their potential customers and clients. The target market of different companies varies differently and so there is a specific target audience and market for every kind of product and service stated (Cheng, 2013). The target market for the Bli Bli House is the higher sections of the foreign tourists who would want to splurge for a luxury living in their holiday time. They will be the kind of customers who prefer the touch of heritage and luxury and can pay a huge amount of money for that purpose (Hsu, Oh & Assaf, 2012).
When the demand of the hotel is slower than anticipated, there will be an initial tensed reaction coupled by the need to make the hotel popular in the market thereby increasing the demand in the course of the time. The demand of the hotel in the market can be increased by implementing some revenue management measures in the process. Minimisation of rates and giving considerable discounts and offers to the loyal customers is one of the primary measures that can be implemented to make sure that the customers of the hotels are getting attracted towards it (Ivanov, 2014). Introduction of some of the modern amenities can be done to attract and providing the same with a lower rate than the competitors will surely make the hotel more prone to customer demands. The generation of good online reviews and to focus the hotel as being one of the best revenue earning platforms can also create an illusion in the minds of the tourists making the hotel more prone to tourist attraction and getting greater revenue from the tourism (Ivanov, 2014). The other revenue management techniques that can be implemented for making the number of tourists more in the hotel is the introduction of different types of digital marketing strategies for making the place more prone to getting tourists and clients of their own value.
If the demand of the hotel is higher than expected, then the initial reaction of the managers and the owners will be happiness followed by a satisfaction that their efforts in attracting the tourists and clients into their hotel has been successful. The revenue management techniques that has to implement to keep the situation same in the case is to make sure that the authorities of the hotel implement the same measures in their future and do not change their perspectives in terms of business. In addition, the marketing techniques adhered by the people of the hotel should be the same and improved under certain conditions implemented. Also, the price of the hotel and the discounts given can be decreased and increased in accordance to the need and the demands of the customer at different times of the year (Ivanov, 2014). The financial plan of the hotel should be made on a prior basis expecting a certain amount of inflow of guests at a particular time of the year which can help to maintain and guess the amount of revenue that is to be generated in the due course of time. The revenue of the hotel is to be anticipated in the course of time and taken appropriate measures related to financial planning wherever needed.
Bli Bli House Riverside Retreat | Luxury Accommodation, Sunshine Coast. (2018). Retrieved from https://bliblihouse.com.au/
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Rumba Beach Resort - Caloundra Holiday Accommodation. (2018). Retrieved from https://www.rumbaresort.com.au/