MARKET

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Market Description

 

Provincetown, Massachusetts has a varied collection of different types of accommodations, including B&Bs, inns, hotels, motels, cottages, and many private Airbnb options as well. There are lodging options for all price-points and all demographics, both seasonally and year-round in the area.

 

Competitive Advantage

 

The House has researched three potential inns in the market which would be considered like-competitors. These inns were chosen due to their design, marketing, amenities, and size.

 

1. Prince Albert
2. White Porch Inn
3. Carpe Diem

Industry Outlook

 

The indicators show the Provincetown 2016 season was good for restaurants, attractions, a majority of accommodations, art galleries and higher-end retail shops. While the number of rooms available for lodging has decreased by 5.5% over the past 5 years, the average room income has increased by 20%. The room tax revenue and money spent on rooms has increased year-over-year growth for the past four seasons:

 

• FY 2014 +6.20%
• FY 2015 +6.90%
• FY 2016 +5.16%
• Q1, FY 2017 +4.70%

Source: www.provincetown-ma.gov, July 2017

 

Provincetown ranks as the most expensive New England coastal town in comparison of the cheapest room that is

The data presented above were obtained using the competitors booking portal and availability calendar, with their published room rates. The research also included occupancy rates for each of the three properties for use in projecting potential revenue for the third-quarter.

 

The data are intended to be a baseline for the potential room rates and occupancy projections for The House during peak season.

 

The projected occupancy rates for White Porch Inn were

checked twice, first on June 17, 2017 and again on July 4, 2017. Over this two-week period, the booking rate increased for the first two weeks of July, and the first two weeks of August, by 2.5% and 7.5% respectively.

 

After reviewing the data, it has been determined that The House has the ability to increase revenue, and will be entering the market at a slightly lower price point than the direct competition. Also, the business model of The House  is unique and has no direct competition in the Provincetown market. While providing similar designs, amenities, and sizes, the comparison inns do not offer the type of experience which will be offered by The House.

available during July 1–Aug 31, 2015 according to Cheap Hotels, as reported by the Boston Business Journal and reported in the Provincetown Office of Tourism Summer–Fall 2016 Tourism & Economic Activity Report. Source: www.cheaphotels.org/press/newengland2015.html, July 2017

 

One of the trends in tourism which is gaining momentum is food-related travel destinations. According to Skift UK Editor Patrick Whyte at TouRRoir 2016, food experiences are not limited to simply dining out. It includes cooking courses, farm tours, and the classic food markets, which make up about 95% of these experiences. Source: www.trekksoft.com/en/blog/7-travel-trends-for-2017-that-will-drive-the-global-tourism-industry, July 2017

 

Provincetown, being the most expensive and most unusual New England coastal town, has experienced solid tourism growth year-after-year. Considering also the number of available rooms is decreasing, and the average room rate is increasing, the hosts firmly believe now is the time to build the business of the House of Salt & Such.

 

The House also believes in building a presence beyond Provincetown, to promote the community and the inn on a larger scale. This includes certification with the National Gay and Lesbian Chamber of commerce (www.nglcc.org) and with the Green Business Bureau (www.greenbusinessbureau.com).