Market Opportunity Report: Luxury Eco-Friendly Accommodation in Established Tourism (Research Paper Sample)

Market Opportunity Report: Luxury Eco-Friendly Accommodation in Established Tourism Destinations Student's Name Institutional Affiliation Course Number and Name Instructor's Name Due Date Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc163134617 \h 3Introduction PAGEREF _Toc163134618 \h 4Luxury Eco-Friendly Accommodation in Established Tourism Destinations PAGEREF _Toc163134619 \h 5Market Analysis PAGEREF _Toc163134620 \h 5Market Size PAGEREF _Toc163134621 \h 6Target Audience PAGEREF _Toc163134622 \h 6Competitive Landscape PAGEREF _Toc163134623 \h 7Service Description PAGEREF _Toc163134624 \h 7Business Model Canvas PAGEREF _Toc163134625 \h 9Detailed Notes about the Business Model Canvas in Relation to Porter’s Five Forces PAGEREF _Toc163134626 \h 11Reference List PAGEREF _Toc163134627 \h 15Appendix A PAGEREF _Toc163134628 \h 17Reflection PAGEREF _Toc163134629 \h 17 Executive Summary It is no longer a secret that tourism is one of the fastest-growing sectors in the world. Many countries view it as one of the most essential sectors that brings significant foreign exchange from arrivals. Likewise, the sector is receiving significant attention concerning environmental awareness and sustainability practices. We intend to launch luxury eco-friendly accommodation hotels in well-established tourism destinations. The goal of venturing into this market is to make a profit and respond to SDG 8.9, which advocates for sustainable tourism. Based on market analysis, a significant number of tourists want to enjoy the services of hotels that incorporate eco-friendly approaches to their services. Gen Z is also emerging as one of the most critical audiences. Sadly, the competitiveness in this sector demands new entrants like us to up our game if we are to gain a competitive advantage over other players in the market. For instance, we must incorporate proactive environmental strategies and eco-innovativeness to gain a competitive advantage. Failure will be disastrous, as suggested by Porter's Five Forces framework. In particular, the hotel chain will provide designed accommodation services that are integrated with the current comfort demands of tourists and environmental sustainability demands. We also intend to use sustainable approaches such as fiber-building bedding because they are sustainable. We also intend to serve organic food bought from local farmers to reduce emissions resulting from long-distance food transportation. Similar activities, partners, value proportions, customer relationships, customer segments, resources, channels, cost structure, and revenue streams are highlighted using the business model canvas in the paper about Porter's Five Forces Framework. Introduction Tourism is currently recognized as one of the fastest-growing industries, accounting for 10.4 percent of global gross domestic product (GDP) (Merli et al., 2019, p.169). Many countries also recognize it as an essential employment and foreign exchange source. According to the United Nations World Tourism Organization, the number of tourists arriving has continuously increased revenue and employment opportunities. For instance, in 2019 alone, 1.5 billion tourists were reported to have arrived in different countries globally. This international arrival is expected to reach 1.8 billion by 2030 (Rasoolimanesh et al., 2023, p.1). Although international tourism is often highly regarded, it only accounts for 15 percent of global travel, while domestic arrivals account for the rest (Rasoolimanesh et al., 2023, p.1). Given the economic importance of tourism, many scholars have attempted to examine its impacts on different scales. One of the most common scales addressed is sustainable tourism because of the growing concern of growth and sustainability of tourism (SDGs) (Hall, 2021, p.198). In this regard, sustainable development goals (SDGs) are commonly used as the core elements that facilitate the controlling and monitoring economic activities such as tourism. In particular, SDG 8 recommends that by the year 2030, policies should be formed and implemented to encourage sustainable tourism that leads to job creation and promotion of local products and culture (Hall, 2021, p.198; Rasoolimanesh et al., 2023, p.110). For this reason, the market opportunity report focuses on high-end eco-friendly accommodation in established tourism destinations in response to SDGs promoting sustainable tourism. Luxury Eco-Friendly Accommodation in Established Tourism Destinations This report suggests opening a chain of luxury eco-friendly hotels in established tourism destinations. Fortunately, several issues give a glimpse of the current structure of this market. Market Analysis Recent reports suggest that the tourism industry has become increasingly concerned with environmental sustainability. This trend is also seen in the hospitality industry as many businesses continue to apply approaches that reduce negative environmental consequences caused by the consumption of hospitality products. For instance, the lodging industry is currently filled with "green hotels” in the US and other countries (Line and Hanks, 2016, p.1). These are hotels that apply approaches aimed at reducing carbon footprint and negative impacts on the environment. The pressure to join such efforts originates from recent studies' reports that have observed that close to 20 percent of tourism emissions result from the accommodation sector (Merli et al., 2019, p.169). Hence, going green is seen as an essential corporate social responsibility approach. Many hotels valuing eco-friendly approaches use different strategies to fulfill this goal. For instance, some hotels have adopted solar or wind energy as a substitute for electricity. Additionally, such hotels prefer a paperless approach to reduce the cutting down trees for making paper. Others have significantly reduced plastic water bottles in favor of filtered water dispensers’ water pitchers, and refillable water bottles for visitors and guests (Merli et al., 2019, p.169). These are some approaches that accommodation facilities intending to go green should embrace. Market Size There is a growing consumer awareness of environmental issues and a push for sustainable approaches. According to numerous studies, many consumers want to be associated with products and services that do not endanger the environment. In particular, about 43 million tourists globally have identified themselves as environmentalists who would rather stay in hotels that advocate for eco-friendly approaches and pay more than stay in those hotels that do not value the impacts of their activities on the environment and pay less. This interesting fact about this market opportunity should be viewed as proof of the prominent market size for hotels intending to go green. While this is true, many studies have shown that the market size for eco-friendly hotels will continue to rise, making it an ideal business opportunity. For instance, a report filed by TripAdvisor that included more than700 tourists indicated that about 71 percent of tourists based in America are fond of arranging eco-friendly holidays, which is a significant increase from the previous years (Aksöz et al., 2021, p.85). This study also shows that the number of tourists who desire to spend money on eco-friendly accommodation is continuously increasing. Target Audience The massive market size discussed above forms the target audience for eco-friendly hotels in well-established tourism destinations worldwide. In other words, the primary target audience for our eco-friendly accommodation is green travelers who are out for eco-friendly accommodation and want to be associated with hotels with an unwavering commitment to the sustainability of the environment (Aksöz et al., 2021, p.85). Apart from green travelers, people advocating for sustainable practices are also seen as the target audience in this market. This is seen as a joint effort to increase environmentally friendly tourism. More importantly, recent studies indicate that Gen Z is environmentally conscious and more likely to engage in environmentally sustainable practices than any other segment (Prayag et al., 2022, p. This data means that they should also form a significant portion of the target audience for any new entrant in the tourism and accommodation industry. Competitive Landscape Although ecotourism and the market for eco-friendly accommodation are relatively unpopular to some people, studies indicate that they have existed for a long time. This has been the case partly because of increasingly strict environmental regulations and the awareness of tourists on sustainable tourism and environmental protection (Kuo et al., 2022, p.1240). This also means that the competitive landscape of this sector is also stiff. In the US, for instance, many hoteliers are under "green," signaling environmental friendliness in their services and practices to attract this market. This is signaled by the fact that 92 percent of consumers in the country want to associate with firms that are conscious about the environment Rahman et al., 2020, p.102444; Ahn and Pearce, 2013, p.90). This is why any new entrants are demanded to up their game. For instance, studies show that new green hotels and accommodation facilities must incorporate proactive environmental strategies and eco-innovativeness to gain a competitive advantage over other players already established in the market (Kuo et al., 2022, p.1240). Doing so also allows them to meet emerging environmental demands that interest the ever-growing number of green travelers. Service Description The services of eco-friendly hotels in established tourism destinations are all based on a high regard for environmental conservation. In particular, our luxury eco-friendly hotel chains will feature well-designed accommodation services integrated with the current comfort demands of tourists. These practices will...