Hikkaduwa has been attracting tourists for the past few decades. Hikkaduwa is known amongst tourists for its pristine beaches, Surfing spots, Corel reef and many activities thus increasing competition amongst all the lodges in the area no matter the scale or the type of accommodation each provides.
Rivalry is fierce in the industry because barriers to entry are relatively low, Many guest houses does not adhere to tourist board regulations hence the startup costs remain lower for these illegal guest houses which impacts the trade.
Tourists are given plenty of choices to choose from such as luxury hotels like Hikka tranz, Citrus Hikkaduwa to medium scale like Drifters, Hikkaduwa beach hotel to guest houses such as Nippon villa which pressures …show more content…
• Offer full package with Transport, HOTAC & Excursions to attract more business and revenue.
• Loyalty program to increase the retention of customers.
• Register on sites like trip advisor Etc, subsequently receiving reviews from the customers to improve the product.
• Tie up with overseas outbound tourism companies.
• Use of marketing tools such as Segmentation, Targeting and Positioning to correctly identify the customer base which will help to focus our online advertisements using Google or Facebook advertising.
Awareness
As Cielo is a starting business in the trade the awareness is low and since Cielo is in a highly saturated area it needs to mark its presence and brand itself by means of advertising.
How to overcome
• Send flyers, newsletters, email marketing.
• Creating Cielo Facebook page and webpage.
• Registering or entering into contracts with Inbound tourism companies
• Increase the relationship with customers so that they will spread the word (Grapevine strategy or word of mouth)
• Registering on Hotel booking sites (Booking.com, Agoda, Tripadvisor)
• Referral programs I.E – Refer a friend and get points for the loyalty …show more content…
Lack of trained or professional staff
Lack of productive managers and chefs and motivated staff, Labor-finding, training, scheduling and managing staff is an ongoing process. Controlling labor costs is very hard and can be a daily struggle without a great team. It takes time and effort to build the team and keep it going.
How to overcome
• Staff retention is hard since there are plenty of employers (hotels) to choose from.
• Recruiting experienced staff and managers to run the business and introducing incentives.
• Offer internships to current students who study in the hospitality industry.
High costs
Renovation will add a major portion to the startup budget along with fixtures and Air-conditioning units, fans, Hot water system, lights, electricity bills and water bills Etc.
Webpage
Payment gateway and credit card machine installation costs
Advertising costs
Tourist board licence
• Budgeting.
• Financial forecasts.
• Checking for alternative suppliers and compare the prices, lead time and quality.
• Maintaining a proper finance
Rivalry is fierce in the industry because barriers to entry are relatively low, Many guest houses does not adhere to tourist board regulations hence the startup costs remain lower for these illegal guest houses which impacts the trade.
Tourists are given plenty of choices to choose from such as luxury hotels like Hikka tranz, Citrus Hikkaduwa to medium scale like Drifters, Hikkaduwa beach hotel to guest houses such as Nippon villa which pressures …show more content…
• Offer full package with Transport, HOTAC & Excursions to attract more business and revenue.
• Loyalty program to increase the retention of customers.
• Register on sites like trip advisor Etc, subsequently receiving reviews from the customers to improve the product.
• Tie up with overseas outbound tourism companies.
• Use of marketing tools such as Segmentation, Targeting and Positioning to correctly identify the customer base which will help to focus our online advertisements using Google or Facebook advertising.
Awareness
As Cielo is a starting business in the trade the awareness is low and since Cielo is in a highly saturated area it needs to mark its presence and brand itself by means of advertising.
How to overcome
• Send flyers, newsletters, email marketing.
• Creating Cielo Facebook page and webpage.
• Registering or entering into contracts with Inbound tourism companies
• Increase the relationship with customers so that they will spread the word (Grapevine strategy or word of mouth)
• Registering on Hotel booking sites (Booking.com, Agoda, Tripadvisor)
• Referral programs I.E – Refer a friend and get points for the loyalty …show more content…
Lack of trained or professional staff
Lack of productive managers and chefs and motivated staff, Labor-finding, training, scheduling and managing staff is an ongoing process. Controlling labor costs is very hard and can be a daily struggle without a great team. It takes time and effort to build the team and keep it going.
How to overcome
• Staff retention is hard since there are plenty of employers (hotels) to choose from.
• Recruiting experienced staff and managers to run the business and introducing incentives.
• Offer internships to current students who study in the hospitality industry.
High costs
Renovation will add a major portion to the startup budget along with fixtures and Air-conditioning units, fans, Hot water system, lights, electricity bills and water bills Etc.
Webpage
Payment gateway and credit card machine installation costs
Advertising costs
Tourist board licence
• Budgeting.
• Financial forecasts.
• Checking for alternative suppliers and compare the prices, lead time and quality.
• Maintaining a proper finance