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Inn at the Falls Case Solution

Solution Id Length Case Author Case Publisher
2323 1717 Words (9 Pages) Niels Billou, Elizabeth MA Grasby Ivey Publishing : 9A98M005
This solution includes: A Word File A Word File

As mentioned in the case, the definition of success for the Inn at the Falls is when awareness and interest is generated in the community (residents of Bracebridge) regarding the Inn. Since the town is small, word-of-mouth travels quickly and people taken interest in businesses which positively impact the community. Therefore, the expansion of the Inn at the Falls is the definition of success with regards to the case. 

Following questions are answered in this case study solution

  1. Definition of Success

  2. Critical Issues

  3. Situational Analysis

Case Analysis for Inn at the Falls

2. Critical Issues

The Rickards planned to expand the Inn by building a two-story extension onto the front of the building. This expansion plan for the Inn would definitely increase profits, as the Inn will be able to accommodate more travelers instead of turning them down. 

However, the critical issue faced by the Rickards is that they were doing good in the current scenario, and taking upon another debt for this expansion plan would mean that they’ll have to work extra hard to expand their business. Furthermore, they were planning to sell off the business within the next two to five years, and it was uncertain whether the expansion would increase the final price of the property and efficiently cover the expense of the expansion. 

3. Situational Analysis

The situational analysis consists of microenvironment analysis (PESTLE), market analysis, consumer analysis, and SWOT analysis (Exhibit 1).

i. PESTLE Analysis
Political Factors

The tourism industry of Canada is an essential contributor towards economic growth for the country. Therefore, the federal government invests heavily in this industry in order to develop facilities and improve infrastructure to promote tourism. Furthermore, the Canadian Tourism Commission (CTC) regulates this industry and is responsible for the marketing and promotion of the tourism industry (Library of Parliament 2014).

Economic Factors

Economic factors greatly impact the tourism industry in Canada, as well as globally. The demand and supply within the industry is heavily impacted by global economic factors, as positive economic growth means an increased influx of tourists and increased spending on tourism. 

Taxes levied by the government can also impact this industry, and the tourism tax set by the local municipal government negatively impacts this industry as rent charges on hotels and inns are increased (Cruickshank 2018).

Social Factors

Social factors positively affect the tourism industry in Canada. Tourism is a recreational activity, bringing people closer and helping them understand different cultures and practices. However, tourism jobs are not sought after within Canada, and employee turnover is extremely high, which has a negative impact on many players within this industry (Tiac-aitc 2021).

Technological Factors

The advent of technology within this industry has promoted both positive and negative changes. Travel companies are now implementing various technologies and tools to improve operations in order to meet customers’ expectations. Technologies like augmented and virtual reality and artificial intelligence have been used within this industry to improve customer experience (Global Data 2018).

Legal Factors

The tourism industry in Canada is regulated by the Canadian Tourism Commission (CTC), a legal body. Therefore hotel owners, travel companies, and all related parties are required to abide by the by-laws implemented by this body (Government of Canada 2021). 

Environmental Factors

Climate change, a global concern, is linked with the tourism industry. Activities like transportation and accommodation result in increased CO² emissions, which can negatively impact the environment. This industry also increases the consumption of natural resources (Dodds and Graci 2009). 

ii. Market Analysis

The tourism industry in Muskoka, Canada was flourishing rapidly, and was expected to grow at a rate of 4.2% as per the forecast in 2002. In 2001, $300 million was spent by travelers in this region. Different types of accommodation facilities including private cottages, hotels, camping, motels, resorts, commercial cottages, and country inns were present in the region. 67% of tourists stayed in private cottages, hence being the most popular option of accommodation. 12.2% of them stayed in hotels, 7.6% stayed in camps, 6% stayed in motels, 1.4% stayed in resorts and 1.1% of them stayed in commercial cottages. Therefore, Inn at the Falls faced immense competition from the 

iii. Consumer Analysis

Travelers were divided into two segments, leisure, and corporate travelers. 47% of leisure travelers stayed at Inn at the Fall, and the rest were corporate travelers. The Inn was also booked for weddings and social events 85.5% of the guests were from Canada, while 12% were from the USA and 2.5% were from Europe. During the summer season, the type of customers who commonly visited the Inn was married couples with children under ten years of age. Weddings also took place during the summer season, and on average the Inn catered 20 to 30 weddings, each with a guest list of up to 110 people. During the fall and spring season, young and old couples visited the Inn, particularly those who wanted to relax in a secluded place with scenic surroundings. 

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