Backpacking Hotel

Topics: Hotel, Singapore, Hotels Pages: 11 (3937 words) Published: January 15, 2013
Backpacker Hotel Proposal
OPIM 201 Business Process|

Ngai Kuo En G12

Individual Paper
Individual Paper

Table of Contents
1.1.Overall Market Demand3
1.2.Overall Business Environment3
2.Proposed Backpacker Hotel4
2.3.Backpacker Hotel Plan4
2.3.2.Clean Accommodation5
2.3.3.“Chill-lax, it feels like home” Atmosphere5
2.3.4.“Be a Singaporean for a day” Tour6
3.Competitive Edge against Existing Backpacker Hotels7
4.Key Operations8
4.1.Sourcing for the Ideal Location & Securing the Relevant Licenses to Operate8
4.2.Design and Furnishing9
4.3.Cleanliness Maintenance of Proposed Backpacker Hotel10
4.4.“Be a Singaporean for a Day” Tour11

1. Introduction
Singapore is one of the places backpackers have their short pre-stopovers, taking the opportunity to explore the city at the same time. Therefore, this business plan explores the idea of setting up a new budget hotel in lieu of the recent trend of backpacking. 2.1. Overall Market Demand

Budget travelling in the past is often associated with the idea of backpacking where the original backpackers are not regarded as legitimate tourists. Today, there is an emerging trend of budget travellers, due to the rise of low-cost carriers, creating a “significant tourist market” all over the world. Budget travellers are usually young, aging from 18 – 35 years old, and are not only constrained to backpackers alone. These travellers are usually adventurous and price conscious who prefer budgeted accommodations, allowing them to spend the rest of their travelling finances on other activities. Singapore, being located in South East Asia (the “oldest backpacker trails”), is one of the common places backpackers have a pre-stopover before heading off their next destination, therefore, leading to the rising number of budget hotels and hostels. In fact, some budget hotels are aiming to go upmarket to cater to the increasing trend of flashpackers (budget travellers who have a bit more cash to spare). This proposed new budget hotel aims to cater to such travellers and the mass market budget travellers coming from all around the world. 2.2. Overall Business Environment

Cost is a huge factor travellers consider, however, travellers also consider the reviews of the hostel before making their decision. Currently, there are approximately about 66 backpacking hostels in Singapore. The amount of hostels is increasing steadily to cater to the rising numbers of tourists in Singapore for inaugural events such as the recent F1 race. In general, it is relatively easy to enter the market due to low barriers of entries. However, the reputation of the backpacker hostel is one important factor that enables the hotel to survive. Therefore, to ensure the success of the hostel, owners will have to ensure that it is not only price competitive, it also must be comparable in terms of reputation. This proposed hotel will be able to sustain due to rising popularity low cost carriers. People are now hunting for the cheapest ticket in the market instead of cancelling their trips. At the same time, to allow travellers to spend more on the activities that tend to interest them more such as food and shopping. The proposed budget hotel will be able to provide travellers with a proper and comfortable accommodation without having them to spend too much during their stay in Singapore. 2. Proposed Backpacker Hotel

3.3. Vision
To be known as an affordable hotel provider of that aims to create a personalize experience for each guest 3.4. Mission
To create a homely atmosphere within the hotel coupling with friendly and warm staff members As mentioned in the Vision and Mission, the proposed hotel aims to create a “it feels like home” feeling for its guests. Apart from having the basic necessities in...
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