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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Virginia Beach concentrates the bulk of its direct marketing efforts on prospective tourists, or leisure travelers, in the Northeast region of the US—their geographic proximity to Virginia Beach, which is only a day’s drive, makes it a convenient vacation destination for them. Therefore, major markets for the direct marketing
The tourist industry has changed by a large amount, over the past few years due to the change in peoples’ life style and the change in the economy. Now that people earn much more money than in the past people can afford to spend more money on leisure. People now have the benefits of a paid holiday which leads to a lot of tourism as the individual gets his/her holiday money from their work place.
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
Tourism, in many developed countries, has reached a point of maturity where resorts which flouris...
The hospitality industry in the United States is large, complex and intensely competitive. Within this industry is a segment comprised of hotels and motels, which will be the relevant sector for this marketing plan. To note, the hotel and motel industry in the United States had an estimated value of $137.5 billion as of the end of 2012 (MarketLine, 2012). The industry is forecasted to experience a compound annual growth rate (CAGR) of 5.5% from 2011 to 2016, to attain a value of $179.5 billion (MarketLine, 2012). In this industry, the most lucrative segment is leisure which has a market share of 71.1% (MarketLine, 2012). Sunshine Inn (fictional) is a small independent hotel that operates within the leisure segment of the hotel and motel industry in the United States. It is an adventure-themed hotel situated along the California-Nevada border in order to capture the tourist market for Lake Tahoe. Sunshine Inn has 30 bedrooms and 15 suites and offers specialty home-cooked type meals to guests for breakfast, lunch and dinner. It must be emphasized that the hotel and motel industry is one of the most fiercely competitive in the United States, and in fact, in the world (Johanson & Cho, 2009; Kosarkoska, 2010). Therefore, in order to compete with large hotel chains with five-star hotel rankings, Sunshine Inn will have to depend on strategic approaches, such as effectively targeting and positioning itself in the appropriate market, as well as developing a marketing plan that will promote the unique value propositions that only small, personalized hotels can provide: excellent customer service, customized adventure packages as well as a total customer experience that revolves around enjoyment, fun and discovery. As this marketing plan wi...
Sharma (2004) points out that tourism industry in the Queensland in divided into several broad sectors with accommodation, adventure tourism and recreation as well as events and conferences forming the major tourism sectors. This paper will focus on adventure and recreation tourism sector and narrow down to sports subsector. The adventure and recreation tourism sector is very distinct because it has its own independent customers and the numbers of tourists who visit Queensland for sporting activities keep on increasing every year. This tourism sector has been affected by the changing travel trends that hav...
Bicycle tourism is a small industry on the national level with a high sales growth rate indicating its status as a growing industry (Bizminer…Tours, 2013). The bicycle rental industry is also a small, however this industry has reached maturity and while not declining it is not growing (Bizminer…Rentals, 2013). These trends show that bicycle tours have an advantage over bicycle rentals in terms of growth. Therefore, the main strategy will be to focus on the promotion of the bicycle tours, using the bicycle rentals as a way to use inventory during slow months of the operating cycle.
For the introduction, brief information regarding my purchase and the travel and tourism industry is presented. It was then followed by the explanation of the 2 chosen theories from two different chapters.
The travel and tourism is one of the leading job creators in the world recently. The tourism industry hires about 98 million people directly, signifying over 3% of all employment. If indirect and induced impacts are included in the tourism industry, it contributes to around one in eleven jobs worldwide. Over the last two decades for example, Travel and Tourism has played a more and more important role in the economic development of many countries especially less-developed ones. Increased travel across the globe has been driven by growth in greater amounts of leisure time; improved and highly accessible transportation systems; real incomes and including supply chains; highly effective communication systems that enable marketing and a important number of the new tourism services. The more visitors go to destination, the more restaurants, hotels and additional tourism services are needed and the more jobs in Travel and Tourism are created to stimulate the economy of a specific country. For example, in 2011, India and China were responsible for about 48% of Travel and Tourism jobs worldwide, compared with 43% a...
This also significantly reduces cost of inventory and transportation costs. Since 1965, there has been continuous change in process and the process has been improving over the time. The company has collaborated with National Bicycle Industry, subsidiary of Matushita Group, to manufacture high performance bicycles. The company has invested heavily in its research & development facility so that it can produce innovative products to meet the market requirements. Due to this the company can catch up with the competitors’ products in just 2 days while complex products can take time up to 10
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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.
(EXIM Bank, 2016). According to Department of Tourism (2016), indicated that the number of registered business in the year 2016 is up to 12,391 companies. These numbers show that there are many competitors in the travel industry. There are many inbound tour
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
Many investments for infrastructure construction in the destination primarily designed for the business tourists (hotels, restaurants, transportation…) provide economic profits, and they can also be enjoyed by local residents and leisure tourists.