There are two industries that the business falls under: bicycle tours and bicycle rentals. Both industries fall under larger categories for NAICS code classification. Bicycle tours are classified as 561520.05 under the larger category of tour operators, 561520 (North…Tours, 2013) (Bizminer…Tours, 2013). Bicycle rentals are classified as 532292.02 under recreational goods rental, 532292 (North…Recreational, 2013) (Bizminer…Rentals, 2013).
Size and Growth Rate of Industry
Bicycle tourism is a small, yet growing industry in the United Sates. The annual market volume in 2013 was 91,248,066 dollars up from the 78,949,242 dollars in 2012. The industry sales growth rate during 2010 to 2013 was 42.59% (Bizminer…Tours, 2013). In Oregon alone tours/events bicycle companies accounted for 22.7 million dollars in 2012 (Dean, Feb. 2014, p. 16). The annual market volume for bicycle rentals in the U.S. displays a positive trend. For instance, in 2011 the annual market volume in dollars was 113,318,798. This grew slightly in 2012 to 113,735,229 dollars and then experienced a larger growth in 2013 to 121,859,166 dollars (Bizminer…Rentals, 2013).
Industry Maturity
The bicycle tours industry is in the growth phase because of low competition and high sales growth rate in comparison to the national average (Bizminer…Tours, 2013). However, the tour operators industry has hit maturity, which bicycle tours are a subcategory of. The maturity of tour operators industry comes from an increase in competition and a low industry value added of 3.8% when compared to GDP growth at 2.7% (Jeon, 2014). According to the Dean Runyan Associates, Inc. (Feb. 2014), many of the businesses in the bicycle tourism are relatively young at 13 years old (p. 8). Tour and event ...
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Oregon Bicycle Laws. (n.d.). BikePortland.org. Retrieved 20 April 2014 from http://bikeportland.org/resources/bicyclelaws
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Wright, M.R. (Jun. 2006). Psychographic Characteristics of the Millennial Generation: Developing a Market Segmentation for Use in the Wine Industry. University of Oregon Applied Information Management.
The corporation can use its name as its strong base to attract the attention of new customers as well as to make certain that it is holding on to the old ones. Furthermore, economy of scale plays a significant role in this industry. Travelodge has a higher profitability aspect than the single operations (Wilkinson, 2013). If a new competition enters the market, they will find it difficult to compete with Travelodge as setting a proper quality and price regarding the economies of scale takes time. For Travelodge management, the capital intensive industry is tied with the fixed costs which make the entry of any entrant extremely
Tourism Research Australia, Department of Resources, Energy and Tourism. Tourism contribution to the Australian Economy, 1997-98 to 2009-10., [Online. Available at: [Accessed 7 March 2012].
." Food & Beverage Close-Up 8” July 2013. Culinary Arts Collection. Web. 12 Mar. 2014.http://go.galegroup.com/ps/i.do?id=GALE%7CA336088073&v=2.1&u=mlin_n_great&it=r&p=PPCA&sw=w&asid=15516ffe14f45b797ea1f2430300f97e.
Visit California is a nonprofit organization that was formed in 1998 at a governmental state level that encourages tourism to California. The organization is run by the executive committee and board members. The mission of the organization is “to develop and maintain marketing programs — in partnership with the state's travel industry — that keep California top-of-mind as a premier travel destination” (About Visit California, 2014). The 37 members Visit California commission include individuals from all 12 regions of California and they manage all properties of those regions (About Visit California, 2014). They provide services like “accommodations, restaurants and retail, attractions and recreation, transportation and travel services, and the passenger car rental industry” (About Visit California, 2014). Visit California is composed of many sources of income, such as sale taxes, fees, and more.
There are many interesting trends occurring in the global travel industry today, and one of the most notable is the growing impact of affluent travelers from “emerging” market countries on travel spending and investment. According to Trekksoft.com, tourists in 2016 will be looking for opportunities to explore lesser-known destinations, especially those that are untouched or unique. It’s going to be a huge year for adventure travel, with many people wanting
The Two forces currently affecting the cruise line industry are the economic and political forces. These two forces represent threats to the company and the industry because in 2009 the economy of the use was in a downturn and sales went down for that year. The global recession significantly impacted the financial performance of travel companies worldwide. Carnival suffered significant loss. Reduced travel demand as a consequence of the recessionary economy by 13%. As the consumer’s discretionary spending capacity declines, the demand for Carnival’s cruise services would also decline affecting the revenue growth as well.
Robson, K., Pitt, K., and Wallstrom, A (2013) 'Creative Market Segmentation: Understanding The Bugs In Consumer Behavior', Journal of Public Affairs, 13(2), pp. 218-233 [Online]. Available at: www.swinburnedb.librarynet.com.my (Accessed: 17 May 2014).
The Leisure and Recreation Industry The leisure and recreation industry is an industry, which has grown and affected the economy in a big way. The industry is one of the fastest growing industries in the UK. The leisure and recreation is defined in many ways for example leisure is referred to the time spent outside employment and other essential activities such as sleeping. Recreation, where as referred to the type of activities undertaken during leisure time? The leisure and recreation industry can be described as a whole range of activities taken in people's free time.
UNEP, ‘Leakage’ 2013. Negative Economic Impacts of Tourism: Leakage. [online] Available at: http://www.unep.org/resourceefficiency/Business/SectoralActivities/Tourism/FactsandFiguresaboutTourism/ImpactsofTourism/EconomicImpactsofTourism/NegativeEconomicImpactsofTourism/tabid/78784/Default.aspx [Accessed: 10 Nov 2013].
He write “Adventure Tourists – that’s those young people who come with back packs, take selfies all over the place, and talk loudly about how ‘awesome’ they are in the bar, isn’t it? “. (Local Council Member: 1). Author of this reasoning show unknowingness of a basic idea of who is the Adventure Tourist. Research conducted in 2014 by The Adventure Tourism Trade Association, demonstrate that global average age of Adventure Tourism customer is 48. (ATTA, Industry Snapshot) This information prove that not only young people are adventure tourist, furthermore they are the minority. Next words of Local Council Member who suggest that this kind of tourist don’t have a jobs, are again the falsehood. According to ATTA, the average global trip price per day is 477 US Dollars, this statistic indicates that customers of this niche of tourism definitely have a financial resources to pay for their active holidays. There is no research about employment of average adventure tourist, but it can be assumed that most of them earn their money at some kind of work. Local Council Member said that in his opinion this part of industry not bringing much money in. As stated in UNWTOs “Global Report on Adventure Tourism” in comparison, on a global level, non-adventure tourists spend about 500 US Dollars per person per holiday, this is about 40% less than the amount spent by adventure tourists. What is more in mass tourism, approximately four-fifths of the revenue from a trip goes to airlines, hotels and other international companies. In contrast, in adventure tourism, quarter of the revenue goes to local communities. This means that this niche brings more money than ordinary kind of tourism and is more beneficial to local
Tourism industry is a booming sector of business emerging recently as the development of civilization. Tourism booms its business
The economy can be clearly identified as the most beneficial aspect of tourism. “According to recent statistics, tourism provides about 10% of the world’s income and employs almost one tenth of the world’s workforce” (Mirbabayev, 2007). In Australia alone, Tourism contributed $87.3 billion in 2012, and employed 908,434 (7.9%) people (Kookana & Duc Pham, 2013). Tourism is “one of the most profitable and rapidly developing industries in the world” (Popushoi, 2004). Every year the number of tourists increase dramatically and consequently the revenues from tourism will increase substantially.
The overall industry saw a strong boom rate from 2010-2014. The global hotels & motels industry had total revenues of $677.1bn in 2014, representing a compound annual growth rate (CAGR) of 4.6% between 2010 and 2014. In comparison, the Asia-Pacific and US industries grew with CAGRs of 6.6% and 5% respectively, over the same period, to reach respective values of $163.7bn and $166.2bn in 2014(Global Hotels & Motels 7). The reason for this growth is due to the Asia-Pacific Region and Americas. The US alone with its world’s largest hotels/market has conquered net value growth, while China has literally doubled the revenue in the same time span. The leisure segment
Barry, J., & Weinstein, A. (2009). Business psychographics revisited: from segmentation theory to successful marketing practice. Journal Of Marketing Management, 25(3/4), 315-340.
Generally, infrastructure is divided into two main parts which involves hard and soft infrastructures. According to UNWTO (United Nations World Trade Organisation), (2011), the enlargement of tourist arrivals, went up by approximately 7% in 2010 to 940 million, has led to increase in the number of new and state-of-the-art hotels, restaurants, airports and other tourist apartments. The rising share of amenities illustrates the improvement of hard infrastructure caused by more tourist number. Other contributions of the industry to the former accessibility of electricity and water, better road systems and transport services are also involved in the related expansion of economic activity (cited in Boz, 2011). Besides that, tourism offers numerous positive impacts to the latter, according to OECD, (2014) “soft infrastructure” can be defined as the creation of events and spaces which shows the spirit and unity of that country’s culture. These forms of infrastructure programmes have been applying to both urban and rural areas in order to make the place more well-known and tourists attractive. For example, in Australia, 2007 several events including the Booktown Festival were held to develop marketing strategies and increase tourist numbers. The results were more satisfactory than expected with place-branding advantages, noticeable rural regeneration, growing tourist numbers and