Etivity 4 – Innovation and business model theories in the B&B context

Business Model Canvas
The Osterwalder Business Model Canvas includes nine segments which should be considered when developing a business model. The segments are Key Partners, Key Activities, Key Resources, Value, Relationships, Channels, Clients, Cost Centers and Revenue streams. Christopher and Lisbeth already provided us with a completed Business Model Canvas to give us an impression of their plans. Still, there is some room for additions which will be regarded in this paper, focusing on the Value Proposition and the Clients.

Clients
Lisbeth’s and Christopher’s Business Model Canvas includes

  • Groups of Icelandic horse riders
  • Racing cyclists
  • Mountainbikers
  • Fishing
  • Billund: Lalandia, Legoland.

From Lisbeth’s and Christopher’s point of view, their main target group will be Icelandic horse riders and bikers. I can underline this as being the main customer segments, because the Kjaer family seems to know a lot about horse riding and biking.

Regarding the Icelandic horse riders, they are supposed to bring their own horses for which a stable will be provided. As the Kjaer family has own Icelandic horses and also participates in competitions, they know many other Icelandic Horse riders and owners, who could be future guests. Through the Danish Icelandic Horse Association they could reach many people which might be interested in traveling with their horses, staying in a nice place and experiencing the beautiful landscape.

Regarding the bikers, the place would be perfect for either overnight stays for people who want to have some comfort during a tour through Denmark or for bikers who want to explore the surrounding area during a longer stay. Both possibilities could attract guests, but the family has to be aware, that one night guests might not be as profitable as guests that stay for a longer timer (regarding spendings in the area and it also means more work compared to a longer stay). For this customer segment, I can imagine that the network of people they know is not as large as for the Icelandic Horse riders, so it might be more difficult to attract customers.

A target group that has not been mentioned by the Kjaer family could be hiker. According to the flyer of the Vejle Ådal region, there are several marked hiking routes which could be attractive for guests to stay several days. Additionally, the national biking and hiking route 36 (The Bindeballestien Route) and the coast to coast hiking tour pass directly at Bindeballe station. As for the bikers, the future Ruggård Hay Hotel would be a good place for guests seeking some more comfort during their hiking tour.

Regarding the fishers, I do not see them as one of the main customer segments. Surely, the surrounding area offers many nice places for fishing; nevertheless, I do not see fishing as a main interest of the Kjaer family.

 

Value Proposition
Lisbeth’s and Christopher’s Business Model Canvas includes

  • Folding for horses
  • Riding Trails
  • Bring your own horse
  • Guided trip
  • Experience of nature
  • Riding arena
  • Accommodation with tent
  • Outdoor hot (wellness)
  • Lunch/coffee arrangements
  • Ruggård (experience of nature).

The aspect that creates most of the value and is also very important for setting up a business such as the future Ruggård Hay Hotel is the surrounding nature and landscape. It is a value on which the Kjaer family does not have a big influence, but they have to maintain it to keep up the value it will create for future guests. The nature and the trails are the basis for the horse riding and biking activities that the family wants to offer for their guests. For some guests, the nature might create an unique experience that they may not find again. To be able to maintain it, the Kjaer family should make the guests aware of the uniqueness of the surrounding area. This could for example be happening in cooperation with the nature school.

A second value that the business may create is the escape from the daily life. Again, being in nature is very important for that, but also simply being away from the usual environment. Families, for example, may spend a lot of valuable time together, as there is not a lot that may distract them from being together.

The third value the family creates is a very personal one. They let guests in their private area and therefore create a relatively close relationship to their guests. It is not as anonymous as in a big hotel, but the family and the guests will be close together and also spending time together on guided tours. With their welcoming way, the family creates value as well.

Value will also by created by offering stables for the horses, as the horse owners then know that their horses will be in a safe place. Additionally, foldings for the horses, which will have to be set up, will create value. As mentioned in an earlier Journal entry, the family could also create value by developing an own map of the surrounding area, which includes the trails which they would recommend their guests (only necessary when such a map does not already exist).

There are many more ways to create value, such as cooperation with the Bindeballe Købmandsgård, a breakfast offer or special events and offers.

 

Innovative Initiatives – “Attractor based model”
The “Attractor based model” shows how different actors in an industry have to work together in order to create positive effects. This innovative model can be applied to the tourism sector as well to improve economic cooperation and the quality of tourism in a certain area. There is a relationship between the Attractor, Attraction, Scene, Scene-Maker and Scene-Taker.

Regarding the Ruggård Hay Hotel and Vejle Ådal region, there are several possibilities to apply this model. As discussed in class, events could be hosted in the region. As there are several horse owners, there could be some sort of special horse festival, which could attract visitors. During summer holidays, there could also be an event for children (with their families). In cooperation with the camping grounds at Kirstinelyst and Bindeballestation (and other places in the area), this event could also last for several days. The region could offer several activities for children, such as nature tours, horse riding or other (creative) activities related to nature. A third possibility would be a food festival for which the locals offer different kinds of foods at one central place, for example the Bindeballestation.

All these suggestions require a good cooperation of the local businesses and should also include the local community and politicians. The surrounding area offers many possibilities for such events and cooperation, which could attract guests.

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