Her support and guidance along with the new knowledge we gained and the steps to follow when creating a business plan; were very helpful. Thanks to the new topics learned, experiences from different aspects and a great focus on hospitality; there was personal growth.
Executive Summary
To summarize our strategy and competitive advantage, we consider it a great business opportunity in Bolivia because of the 45 hotels and hostels in Coroico. There is not one that applies sustainable practices according to the recommendations of the Sustainable Development Goals of the 2030 Agenda (SDGs). ).
Business Description
- Literature review
- Business model concept
- Mission and objectives
- The entrepreneurial team
In the first four modules (key partners, key activities, key resources, value propositions) they refer to the type of product/service we will offer. Reducing the carbon footprint by using the cleanest possible energy and using renewable resources, especially in the installation.
Analysis of the Business Environment
The market
- Market characteristics and major trends
- Purposes & Expectations of visitors
- Size and expected growth
- Segments
In conclusion and according to the data collected, we can see that the growth in the hotel industry in Bolivia is increasing more and more. What can attract the attention of adventurers is the "Road of Death", which is the most dangerous road in the world.
Competitive environment and sector
- Competition
- Threat of new entrants
It does not have its own website; they have no corporate image and have not published on Facebook since 2017. They do not have a website, but due to the types of publications found on their Facebook page, their offers are aimed at large groups and families.
Marketing Plan
Target segments and key success factors per segment: Quantitative analysis
- Quantitative analysis
- Qualitative analysis
- Customer empathy map
Construction and design with architects will be the first steps of the initial process. Each cabin will have a cement corridor that will lead to the rest of the hotel facilities.
Positioning strategy
- Current positioning
- Desired positioning
- Peste Analysis
- Product/service strategy
- Pricing strategy
- Channel strategy
- Communication strategy
Forecasting and sales outlook
At this point we will make the forecast for "Hotel Alwa Eco" based on the sales perspective for the next 3 years by analyzing the pricing strategy and the occupancy rate. The following data was collected from the Statista Online website and from the financial section of this project. Then, the following table is created to make a forecast of the hotel's revenue evolution for the first 3 years.
The relevance is in the results of "Total revenue from rooms" per year, which, as can be seen from the table, will increase the revenue next year according to the percentage of occupancy. Based on the sales forecast, the following table was created to collect data on room revenue and food and beverage revenue. On the other hand, we calculate the sales and revenue forecast for the next 5 years for the activities, workshops and adventure activities offered by the hotel.
The total income for all activities is reflected in the following table of which 10% of each year corresponds to expenses. Below we add the forecast tables and activity income for the first 3 years in detail.
Operations Plan
- Process identification and map
- Process of the guest operations before, during and after the stay
- Location, physical infrastructure and layout
- Tree house sketch
- Cabins sketch
- Resources: machinery and facilities
- Stocks management and purchases
- Subcontracting
- Launching: provisional planning
After the client is settled in their room, they will be given a tour of the property and will be introduced to the services and activities they can book and enjoy. Check-out: once the farewell ritual is completed, the receptionist will verify the information of the stay and the payment status of the customer. After a month, the client will be contacted again to send him a photo of the seed he planted on the day of the farewell ritual.
The structure of the eco-hotel will be built with natural materials from the area such as mud, straw, wood or dry palm trees. In order to provide food and drinks for the restaurant and bar, ordering of the products will be done weekly. We will need their services for the start of the project on creating the website, google positioning, social media campaign and monitoring.
The person will be responsible for the control, inspection and arrangement of various areas of the hotel. To offer the rest of the activities/workshops we will hire other professionals such as: yoga teacher (8€/hour), trainer in creating natural products (26€ for 4 hours) and a professional guide for the coffee route (30 € for 2 hours).
Organizational Plan and Human Resources
Organizational structure
General Manager: have experience and knowledge of hospitality by working in various hotels; one of the members Maria Jordana will be in charge of the management of the hotel. That's why we decided to appoint an executive chef to take care of the scandals, to talk to the suppliers, among other things. The cook will support the executive chef and both will be in charge of the restaurant services.
Waiters: They are responsible for serving breakfast, lunch, dinner, food home delivery and events. If at any time we complete 100 percent of occupancy, we will hire another waiter. Housekeeper and chambermaids (male/female): The housekeeper is responsible for distributing the rooms and common areas that need to be cleaned among the chambermaids.
Michelle, who is one of the members, will be responsible for managing the hotel's marketing and advertising. If the occupancy of the rooms and the number of events increases, in that case and depending on the service we offer, we will hire or subcontract more staff.
Job descriptions
Guide and supervise the cooks in the preparation, cooking, plating and final presentation of the dish. We offer: uniform, ongoing training, activities with the rest of the staff (team building) and food. Once the interviews are over, there will be a selection of the best candidates we consider suitable for the position.
ROA (Return on Assets) is an indicator that refers to the efficiency of total assets to measure the profitability of the company. If not, there is a possibility for the hotel establishment to refund the entire estimated canceled reservation; to the guest. Therefore, Alwa Eco Hotel will participate in the economic development of the municipality of Coroico.
I would like to work with the people from the area (building, harvesting, helping) to contribute my grain of sand. And what I liked most was the location because it was in the center of the city.
Human Resource Policy: selection, management, compensation
Financial Plan
- Financial hypothesis / assumptions
- Project financing: needs and sources
- Financial statements forecast
- Feasibility analysis
The following tables show that the total income for the first year is low compared to the following years. Due to the increase in occupancy ratio, income from F&B, adventure activities, workshops and other activities. This is positive as the non-current liabilities provide liquidity to the company and allow that capital to be used in new investments and grow it.
Referring to the treasury results, it is shown that from the second year to the next the treasury is higher which means; the economic outlook is better. It appears that the results obtained are positive and they are higher than the minimum profitability. In relation to the table, it is shown that the "roa ratio" is much higher than the minimum which is 5%.
This means that our average cost of the debt we have is higher than the economic profitability we have. We consider the information that the “ROA” provides us to be more important for the fact that the ROE does not take into account the “leverage ratio” and for “ROA”; the emphasis is on providing the overall vision of the company without considering the other sources of funding.
Legal Aspects
- Legal format and structure
- Intellectual and industrial property
- Future long – term actions
- Limitations and barriers
Later, the step is to register the company in "El Registro de Comercio de Bolivia". In addition, what is also important to consider is the cancellation policy, regulations when a guest makes a cancellation, cancellation of the reservation. And the regulation for the fact that it affects the tourism sector of the area; would be the introduction of Law Nº 292, Ley General de Turismo "Bolivia Te Espera".
Apart from that, there are other articles related to "Authorization and Register of the Hotel Infrastructure and Operation and Functionality". As mentioned earlier in the Marketing section, there are regulations on advertising and marketing communications directed at the telecommunications sector (Act 164). Therefore, it is important to have a method to control the uncertainties that may occur in the company.
In the organizational structure of the Alwa Eco hotel, the risk management functions belong to the hotel manager, who is responsible for analyzing possible risks and ways to reduce the negative effects if risk situations arise. As for the errors, we evaluated that they arise from the answers to questions 4 and 14 for the survey, related to the price intervals, ages, etc.
Bibliography
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Attachments
The room should have a good bed, with smart TV with Netflix, Wi-Fi in the cabin, bathroom with a large bathtub to rest and relax or to be with the partner. It should be eco-friendly accommodation, clean, comfortable, friendly staff, for the hotel to provide you with information about the area, activities to do, a good breakfast, good food, good Wifi and a smart TV in the room with netflix for the night. It also depends on the activities to do or just relax in the natural accommodation.
And what I didn't like was the lack of information about what to do in the area and the lack of staff. We ate together, we had breakfast together, the huts were simple, but we didn't need more, because we were in the middle of nature.
Business Environment
Financial Part
Legal format and structure (Bolivian trade registration form)
Scenario 2. Solar charger, hydro turbine and solar powered water heater
Statistics on the population in Bolivia by age of the year 2012-2020 (INE)
Branding. Designs with the brand's logo
Product/service strategy. Inspiration on how we want our accommodation to be
Holiday and Observances in Bolivia 2020
Total Investment Calculation
Complete assumptions & hypothesis, financial and P&L
