Business Proposal: Introduction Of Circuit Buses For Tourist Transportation In Sydney

An overview of the new transportation system

The main purpose of this report is to present a business proposal for an innovative new system of transport and tourism in Sydney. Sydney is one of the most popular tourist spots in Australia. With its famous Opera House and other such tourist attractions, the city draws in hundreds and thousands of tourists all around the year. However, the tourism department of Sydney has remained unchanged and quite stagnant in the past few years. It must be remembered that the tourism industry is growing at a rapid rate and measures must be taken by the governing bodies to upgrade their transport and tourism strategies. Accordingly, innovative new systems must be introduced which would enhance the quality of experiences that tourists have in Sydney. This would not only leave a lasting positive impression on the tourists but also increase chances of return and promotion through word of mouth advertising. This business proposal proposes a new transportation system of circuit buses, which have revolutionized the tourism industry in different parts of the world including Barcelona. The report outlines the target market, the intricacies of the new system, its implications, its practical applications and recommendations for effective implementation of the same.

The concept of circuit buses is relatively new and countries around the world are slowly adopting it as part of their tourism industry. The concept is however not a novel one as other locations like Barcelona and Toronto have implemented it in the past. As the name suggests, such a bus is strictly for tourism purposes. These buses are also commonly known as sightseeing buses. In other words, tourists in a particular location would be driven around the city in these buses, with special emphasis on the major tourist attractions. For example, in Sydney, the bus routes would be designed in such a manner that the major tourist attractions like Opera House, Bondi Beach, Sydney Harbor Bridge and others are covered. The tourists would have to register with the service provider by paying a fixed fee. These buses usually have a fixed timing and tourists can choose the timing based on their schedules. For tourists who are new to the city and unaware of the various routes, such a transportation system would be convenient. Mobile applications would also be included as part of the service. With the help of the mobile application, tourists would be able to coordinate the schedules and itineraries of the tour (Schaller, 2014).

Bus and other forms of public transport are the most commonly preferred choices when it comes to traveling around a particular city. For tourists visiting a city for the first time, the best way to truly get the essence of the city, public transport would be recommended. As a matter of fact, Sydney has a well developed and highly efficient public transport system which tourists may avail. In fact, research shows that most tourists tend to opt for bus and other public transportation means when it comes to Sydney. However, there is one major issue that the tourism department of Sydney has failed to address. The bus routes, like most cities are fixed and cover the most important areas of the city. However, they might not cover the areas of tourist interest. For instance, it has been found that there are actually very few bus routes to the Sydney Harbor Bridge and other such tourist attractions. In that case, tourists might find it difficult to commute from one part of the city to another.

Gap in services and the need for circuit buses

Thus, for tourists, a circuit bus would be ideal. Such buses are exclusively for tourism purposes and would cover all the major tourist attractions. The tourists would be able to visit all their favorite sites and have fun in the process (Rohani, Wijeyesekera & Karim, 2013). They would also be provided with meals and other amenities to make the experience all the more delightful for them. From a tourist’s point of view, this would be the most efficient way of moving around in the city. They would be registering for the bus service by paying a certain amount and would be able to visit all potential tourist spots without hassle. They would not even have to worry about schedules and itineraries, since the bus service provider would be taking care of the same.

Another major reason why the circuit bus should be introduced is because it is eco friendly. Since these buses seldom use diesel, they would be easier on the environment. These buses run on electricity and would reduce the harmful gas emissions which contribute to the environmental degradation. It must be admitted that tourism activities have a major impact on the environment, which must be addressed by the government. Also since a large number of tourists would be traveling together, it would be cost effective and an environmentally sustainable system.

At present, Sydney may have a well developed tourism strategy but it is lacking in innovation. The government of Sydney has taken requisite measures to improve the status of tourism in the state. For example, measures have been taken to improve existing hotels and also incorporate alternative lodging and accommodation facilities. Improvements have been included in the tourist spots to make them more appealing for tourists. Cycling facilities have been provided where the tourists can rent cycles by the hour and roam around the city. Marketing campaigns have been implemented which promote Sydney as the tourism hub of the city. However, these are not adequate to upgrade the tourism industry in the city. For instance, a large number of travelers traveling to Sydney are elderly people and cycling around the city might not be an option for them. While on vacation, people prefer to relax and take a break from the hustle and bustle of daily life. The issue of transportation should not add to their list of worries.

The market gap identified in this case is with respect to the tourists and the environment. Sydney has an efficient public transportation system, but lacks an exclusive service for tourists. Introduction of such a tourism service would draw in more travelers from all around Australia and the rest of the world. Research on tourist behavior shows that tourists would prefer to travel to locations which are tourism friendly and also easily accessible. Having a bus service like this would reflect favorably on the tourism department of Sydney and make the tourists feel welcome in the city. From an environmental point of view, such buses would be much more eco friendly than the ordinary modes of transport.

Links with other aspects of the tourism industry

The main modes of transport in Sydney are its heavy rails, ferries, trams and so on. Mostly, tourists make use of these public transportation systems to commute to and fro from various tourist attractions. The circuit bus will not serve as a substitute to these common means of transportation. Instead, they would serve as an extension of the Sydney transportation system. They would be mainly reserved for tourists, but may also be hired by the locals for special occasions like parties and celebrations. The proposal seeks to present the circuit bus as one of the premier options for improving tourism in Sydney. It must be realized that Sydney has tremendous potential for tourism industry. Yet, it has not been optimized to its fullest capacity. This new and innovative system of circuit buses is also expected to help the tourism industry grow, providing it with the boost it needs.

As mentioned earlier, the circuit bus would be reserved for the tourists, both local and international. On an average, at least a hundred tourists visit Sydney each month. These tourists could be traveling in from different regions of Australia, or might be international tourists traveling to Australia and passing through Sydney. If one were to carry out a segmentation of the tourism market, it would be evident that tourists can be segregated on the basis of psychographics, demographics and consumer behavior. For instance, different tourists have different opinions on how they should vacation or the modes of transport they should avail during trips. The older tourists tend to be more inclined towards comfort and would prefer to travel in hired cars and other such customized means of transport. Students or backpackers, who travel on a budget, would prefer the public transportation system. The circuit bus would cater to a large target market, that of tourists (Jomnonkwao & Ratanavaraha, 2016). Tourists between the ages of twenty and fifty would be targeted for the service. Accordingly, the service providers would have a range of offers and services based on the budget of the tourists. For example, tourists who are willing to spend more could opt for the complete package which would be a two day service comprising three course meals. Backpackers and budget travelers could opt for the cheaper package which may not include all the benefits that the complete package consists of.

Here are some of the reasons why such circuit buses would sit well with the tourists and their practical implications:

• In the case of circuit buses, tourists would be able to travel in groups. Without a doubt, traveling in a group is all the more exciting and entertaining than traveling alone. This gives people more opportunity to imbibe the culture of Australia, socialize, meet and interact with people from other locations – this provides for a more wholesome experience (Hasuike et al., 2013). Circuit buses also usually come with onboard entertainment. Such amenities are attractive offers for the tourists.
• In large cities like Sydney, tourists may feel bewildered and lost. They might not know the way and may even lose their way. Without someone to show them the way, they might miss out on some valuable experiences (Ratanavaraha & Jomnonkwao, 2014). On the other hand, in the case of a circuit bus, an experienced tour guide would accompany the tourists on the tours. This guide would be able to direct the tour and provide tourists with information on the tourist attractions (Larsen & Meged, 2013). The guided tour would be tried and tested. People who have years and years of research in the field would be hired as guides and they would accordingly be able to draw up the most efficient itineraries.
• Such group traveling facilities are usually safer than solo travel. Sydney attracts a large number of backpackers each year who travel alone or in groups of two or three. For such travelers, staying alone in a metropolitan like Sydney might be challenging. However, opting for registered tourism services which are funded by the government would be safer and more convenient.
• For travelers traveling for a short duration, using a circuit bus would be the most fulfilling way of experiencing the city (Zhang et al., 2016). In a day or two, the tourists would be able to visit all important sites. It is also much less stressful, since the tourists would no longer have to worry about commutation. They can leave it entirely to the bus service providers.

Before the marketing plan for the circuit bus system in Sydney is explained, it is important to first understand the marketing mix proposed for the service (Dolnicar & Ring, 2014). The marketing mix composes of the product, the price, the promotion and the place.

• Product – The product, or service, as mentioned earlier is a circuit bus that would be exclusively reserved for tourism purposes. The bus would have a specialized route throughout Sydney and would cover all major areas of tourism interest. The service provider would have a number of packages, of different price ranges, providing personalized service to the tourists.
• Price – The pricing strategy of the tourist bus would be between moderate to high. It is expected that tourists traveling to Sydney would be willing to spend lump sums on transport. Accordingly, high range packages will also be included. Such packages would be more extensive and even include meals. Low price packages would also be available for tourists traveling on a fixed budget.
• Place – The place chosen for marketing of the circuit bus would be Sydney. The entire city would be a part of the service provided.
• Promotion – In order to ensure that tourists traveling to Sydney are aware of the new service, extensive and aggressive promotional strategies would have to be implemented. The details of the promotional strategies have been explained in the next segment.

The marketing plan for the circuit bus would have to be strong and well developed. Tourists traveling to Sydney might not be aware of the brand new system, and an effective marketing plan would help in spreading awareness about the service. Customers could be offered an exclusive preview of the service. For instance, locals could be invited and given a glimpse of the new service. The local communities could prove to be instrumental in spreading awareness about the circuit bus through word of mouth advertising. Marketing gimmicks and public events could also be organized in Sydney which would lure in more customers. This new service could be marketed as the first of its kind in Australia. Consequently, public events may be organized in different parts of Australia as well. Email marketing and Facebook advertisements could be another effective means of marketing (Hudson & Thal, 2013). Social media, thus, would be one of the most effective means of advertising (Leung et al., 2013). Tourism agencies may be included as part of the advertisement. It is likely that tourists traveling to Sydney might book their vacation through tourism agencies or travel agencies. Partnering with these agencies would help in the promotion of the circuit bus services. Contests on social media may also be introduced to promote the contest. Without a doubt, social media is one of the most common modes of communication and advertisement. Such contests or attractive posts on Facebook and Twitter would help the news spread like wild fire.

The financial estimate has been presented in a tabular form below:

The implementation plan would be as follows:

• Firstly, an implementation plan must be devised for development of the circuit bus system. The implementation plan presented in the above section could be followed for that. The implementation plan must include the intricacies of the service development and market segmentation.
• Exclusive marketing campaigns must be organized so as to spread awareness about the new service. This would include an exclusive preview for the local citizens, along with advertisements through traditional media and social media.
• Marketing of the product would also include the marketing mix, as presented in the previous sections. The target market must be developed and the need for the circuit bus service must be propagated.
• A moderate to high pricing strategy must be introduced. This would ensure that the service reaches out to a maximum number of tourists in Sydney.

Conclusion:

To conclude, it can be said that the tourism industry of Sydney would require an innovative new system of transportation which would be exclusively reserved for tourists. The circuit bus is one such concept. The concept is relatively new in Australia, but has found popularity in other places like Toronto and Barcelona. The circuit bus runs on electricity and is comparatively eco friendly. Such a bus would be reserved for the tourists and would cover all major areas of tourist interest. It would consist of a number of packages, with different price ranges, depending upon the budget of the tourists. Such a bus would be beneficial for the tourism industry as a whole mainly due to two reasons. One, it would satisfy the market gap for eco friendly modes of tourism activities. Secondly, it would also provide an exciting new opportunity for tourists to experience the city and all that it harbors.

References:

Dolnicar, S., & Ring, A. (2014). Tourism marketing research: Past, present and future. Annals of Tourism Research, 47, 31-47.

Hasuike, T., Katagiri, H., Tsubaki, H., & Tsuda, H. (2013). Tour planning for sightseeing with time-dependent satisfactions of activities and traveling times. American Journal of Operations Research, 3(03), 369.

Hudson, S., & Thal, K. (2013). The impact of social media on the consumer decision process: Implications for tourism marketing. Journal of Travel & Tourism Marketing, 30(1-2), 156-160.

Jomnonkwao, S., & Ratanavaraha, V. (2016). Measurement modelling of the perceived service quality of a sightseeing bus service: An application of hierarchical confirmatory factor analysis. Transport Policy, 45, 240-252.

Larsen, J., & Meged, J. W. (2013). Tourists co-producing guided tours. Scandinavian Journal of Hospitality and Tourism, 13(2), 88-102.

Leung, D., Law, R., Van Hoof, H., & Buhalis, D. (2013). Social media in tourism and hospitality: A literature review. Journal of travel & tourism marketing, 30(1-2), 3-22.

Ratanavaraha, V., & Jomnonkwao, S. (2014). Model of users? expectations of drivers of sightseeing buses: confirmatory factor analysis. Transport Policy, 36, 253-262.

Rohani, M. M., Wijeyesekera, D. C., & Karim, A. T. A. (2013). Bus operation, quality service and the role of bus provider and driver. Procedia Engineering, 53, 167-178.

Schaller, R. (2014, August). Mobile tourist guides: bridging the gap between automation and users retaining control of their itineraries. In Proceedings of the 5th Information Interaction in Context Symposium (pp. 320-323). ACM.

Zhang, L., Wang, Y. P., Sun, J., & Yu, B. (2016). The sightseeing bus schedule optimization under park and ride system in tourist attractions. Annals of Operations Research, 1-19.

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