With the variety of choice available to consumers from hotels, B&B's, caravan parks, guest houses or self catering accommodation it is important that tourist accommodation businesses take an entrepreneurial approach to generate profits or grow.
Taking an entrepreneurial approach in the tourist accommodation industry could include exploiting opportunities presented by increased visitor numbers due to major events, festivals, tourist attractions or celebrations.
Potential investors in tourism accommodation should be careful that there is a sustainable demand for more accommodation – beyond one event or one year. As with any investment, investors should look for a reasonable return on investment. The investment should only be made when a real tourism market need has been identified and not just because a building or site has become available for development.
Entrepreneurship can be encouraged in business by being forward thinking, well organised, responsive to change and by encouraging staff to think outside the box. In addition to this businesses can cut out bureaucratic processes, simplify decision making, take a structured approach to financial management reward staff for new ideas and business improvement suggestions.
Factors to consider
When assessing options for entrepreneurial opportunities, consideration should be given to the following:
- current accommodation provision
- occupancy levels
- attractions and events
- research and trends
- strategic tourism policy
- pricing levels of competition