MGT607 - Innovation, Creativity & Entrepreneurship

Introduction and Context

Bhutan is a destination full of spiritual, cultural, and natural experiences. For Australians, Bhutan offers the chance to see something different and revolutionary. Though increasingly popular, Bhutan hasn’t caught on yet, partly because of lack of awareness and due to the complexity of Bhutan’s tourism policies, including the Sustainable Development Fee (SDF).

Bhutan Horizons, a startup travel business, will attempt to overcome these barriers by offering customized, easy travel for Australians. Dedicated to cultural immersion, sustainability and seamless journeys, Bhutan Horizons strives to open Bhutan to the world while ensuring Bhutan stays authentic and preserves its controlled tourism approach.

This study investigates the viability of Bhutan Horizons based on its market, value, and competitive advantage. Not only does the concept align with Australians’ rising interest in authentic, environmentally sound travel but it also takes advantage of Bhutan’s own tourism model to create memorable trips.

Target Market Archetype

Bhutan Horizons targets Australian travelers aged 30–60 who are seeking unique, immersive travel experiences. This group includes mid- to high-income professionals, retirees, and families who prioritize cultural enrichment, sustainability, and spiritual exploration in their journeys. Many of these travelers have already explored popular destinations and now desire something more exclusive and meaningful, aligning with Bhutan's reputation as a serene, culturally rich destination.

This demographic values seamless, all-inclusive travel planning, including assistance with Bhutan's Sustainable Development Fee (SDF) and visa requirements. They seek experiences that go beyond typical sightseeing, such as trekking through pristine landscapes, attending traditional festivals, or engaging in local cultural practices (Florido-Benítez 2024). Australians in this segment often prefer ethical and sustainable tourism options, emphasizing a connection with local communities and preservation of the environment (Chevtaeva et al., 2023).

Most potential customers are not deterred by Bhutan’s controlled tourism policies but may find them complex to navigate independently. They prefer travel providers that simplify the process and offer convenience without compromising on the quality of the experience. Bhutan Horizons meets these needs by offering curated, culturally immersive travel packages that blend adventure, wellness, and sustainability, addressing the shifting preferences of Australian travelers.

Unmet Need

Australia’s traveller increasingly craves places that promise culture, spiritual regeneration and environmental sustainability  (Janoškováety al 2024). Bhutan, with its traditional ways, scenic beauty and unique Gross National Happiness ideology, perfectly fits these aspirations. Yet, the country’s stringent tourism laws, from the Sustainable Development Fee (SDF) to visa requirements, pose obstacles for many Australians unfamiliar with such regulations (Florido-Beníte 2014). This complexity dissuades travelers who might otherwise choose Bhutan for its exclusivity and culture.

Additionally, already available tours are often uncustomisable and do not cater to the various tastes of Australian travelers: adventure trekking, wellness retreats, or family friendly. The lack of seamless, custom-built bundles that incorporate all these components creates a real gap in the marketplace.

Even Australian travellers care about sustainability and ethical travel, but find it hard to find suppliers who adhere to those ideals. Bhutan Horizons answers this gap by providing customized, cost-free travel packages. It eases the logistical strain of Bhutan’s tourism laws while providing culturally enriching and environmentally friendly travel experiences (Tarlow 2017). This makes Bhutan affordable and desirable to Australians, and answers the call for quality, experiential travel in a way that is sustainable and local.

Value Proposition Canvas

Customer Jobs 

Book and organize hassle-free cultural experiences in Bhutan.

Take your time and know Bhutan’s strict policies concerning tourism, such as visas and SDF.

Experience real Bhutanese culture, religion and nature.

Take advantage of professionally-organized tours that fit into one’s niche (adventure, wellness, or family friendly).

Travel responsibly and sustainably.

Pains 

Lack of clear knowledge on Bhutan’s tourism conditions (viz, SDF).

Availability of diversified and adaptable tour packages to suit individual tastes (trekking, spa, culture immersion).

Sustainable and making donations to the local people of Bhutan.

It’s expensive to travel without any idea what you’re getting for your money.

Having a hard time finding reliable and reputable travel agents with experience in Bhutan’s specialised industry.

Gains 

Visa & SDF management free of hassles while planning your travel.

Individualised, immersive tours exploring Bhutan’s culture, landscapes and traditions.

Consolation from ethical tourism, in service of Bhutanese populations.

Free entrance to local festivities, monasteries, trekking iconic treks like Tiger’s Nest.

Good, transparent pricing and suggestions for how to get the most out of the experience.

Pain Relievers 

Delicated visa/SDF services provided by Bhutan Horizons to save your time and effort.

Customised trips for all tastes, from adventurers to spiritualists and family.

Good relationships with local Bhutanese companies and tour operators to ensure true experiences.

Responsible business models, such as environmentally friendly lodging and contributions to communities.

Itineraries are carefully written, open and showcase the special significance of Bhutan’s culture and landscape.

Gain Creators 

Hand-picked excursions, like attending Bhutanese festivals, attending traditional ceremonies, or hiking through mountain passes.

Luxury and budget flights are all offered, ensuring flexibility for everyone.

Easy booking and interaction through a slick interface and expert support.

-A chance to help preserve Bhutan’s culture through responsible tourism.

Stories and lessons of Bhutanese culture are woven into the experience, thereby increasing the connect with the destination.

Unique Value Proposition

Bhutan Horizons provides travellers in Australia with a seamless, life-changing experience to Bhutan, combining cultural immersion, sustainability and comfort. In contrast to common travel agencies, Bhutan Horizons understands Bhutan’s strict tourism regulations – including visa and SDF obligations – and creates individualized trips tailored to the individual. With a commitment to authenticity and ethical travel, the company offers memorable trips that enhance the traveller’s knowledge of Bhutanese culture and local communities. Bhutan Horizons allows visitors to experience Bhutan seamlessly — making it easy, fulfilling and meaningful.

Product/Service Description

Bhutan Horizons Adventure Travel is a boutique adventure travel agency that tailors experiences to Australian travellers to Bhutan. The services include: 

Easy Travel Planning: Bhutan Horizons covers everything including visa, SDF, flights, hotel, and transportation.

Individual Tours: Company offers a variety of packages categorized by interest such as adventure trek, religious trips, wellness, and family tours. Highlights include trekking Tiger’s Nest, attending local Bhutanese festivals and engaging in the local culture (Digital nomad 2023).

Responsible Tourism: Bhutan Horizons practices responsible tourism, using local guides, green hotels and investing in Bhutanese social issues.

All-inclusive Services: Guests are given personalized consultations, trip plans and on-site support during the entire tour, so there is nothing to be concerned with.

Business Model

Bhutan Horizons has a package-based revenue model that provides Australian visitors to Bhutan an easy and rewarding experience while traveling. Customization, sustainability and convenience are central to the model, which gives them a competitive edge in the fast-growing travel market (Mccall et al., 2020).

Key Components 

Revenue Streams: 

Tour Packages: Set-price all-inclusive packages including visas, SDF, flight, hotels, tours, and excursions.

High-end Extras: Extras include private guides, hotel accommodations, wellness programs, and cultural excursions.

Affiliate Alliances: Fee-share partnerships with Bhutanese Hotels, Airlines, and Local Services.

Cost Structure: 

Fixed Fees: Partnerships with Bhutanese travel companies, green accommodation, and booking platform technology investments.

Cost Variables: Hiring, advertising, and management associated with individual tours (travel, guides, permits).

Key Activities: 

Controlling visa and SDF for easier onboarding of travelers.

Designing and curating personalized itineraries. 

Building effective collaborations with local Bhutanese enterprises.

Promotion and communication with Australian tourists via digital mediums.

Value Proposition: 

Bhutan Horizons aims to deliver an easy, culturally relevant and sustainable experience that complements Bhutan’s policy of controlled tourism and provides Australian visitors with individual, customized tours.

Customer Segments: 

Mid-to-high-income Australian travelers – professionals, families, retirees who are looking for culturally rich and sustainable travel.

Business Model Canvas

Key Partners: 

• Developers: For buying or leasing lands in strategic areas.
• Technologies Partners: For smart living and app integration.
• Off-shore Allies: Cleaning services, repairs, and delivery of food (Janoková et al., 2024).
• Event and Workshop Facilitators: To facilitate community development sessions.

Key Activities: 

• Property acquisition and management.
• Organizing community gatherings and sessions.
• Marketing and customer acquisition.
• Reservation and tech management.
• Value Propositions:
• Affordable, all-inclusive urban housing.
• Work spaces where individuals convene socially and professionally.
• On-site co-working areas for remote employees.
• Quick and easy property management by means of innovative technology (Janoková et al., 2024).

Customer Relationships: 

• Personal interactions through a native app.
• Community managers for support and engagement.

Channels: 

• Social media campaigns.
• Relationships and collaborations with universities and coworking spaces.

Customer Segments: 

• Mid-career workers, freelancers and city dwellers.

Cost Structure: 

• Property leases or purchases.
• Operational and maintenance costs.
• Marketing and IT systems (Janoskova et al., 2024).

Revenue Streams: 

• Subscription fees.
• Additional premium services.

Industry Attractiveness

Travel and tourism are enjoying a comeback and people are looking for unique and experiential experiences while traveling in the post-pandemic era. Bhutan, with its Gross National Happiness philosophy, its untouched nature, and culture, is the destination of choice for experiential travelers. This global transition to sustainable, ethical tourism fits perfectly with Bhutan’s monitored tourism practice, whose focus is on both environment and culture.

Australia has a strong outbound travel market, with more than 9 million Australians traveling abroad every year. Many of these tourists — especially professionals, retirees and families — are searching for places away from the beaten track that deliver meaningful experiences. Bhutan’s exclusivity and its commitment to sustainability makes it a draw for this emerging market (Liewendahl&Heinonen 2020).

In addition, Bhutan’s government policies, including the Sustainable Development Fee (SDF), make sure that tourism does not alienate local communities and is protected by natural and cultural resources. Although SDF and visa are insufficiencies, they do offer exclusivity and high value to those travellers who can afford quality, unique experiences.

Competitor Analysis

2-Axis Matrix: Affordability vs. Cultural Immersion

Total Realisable Market Size

More than 9 million Australians go overseas every year, with 10 per cent heading for obscure destinations such as Bhutan. This would be a potential market of 900,000 tourists per year. If you’re taking just 0.5% of the market, that’s 4,500 passengers, earning approximately $27 million a year (let’s assume a package price of $6,000).

Conclusion and Critical Reflection

Bhutan Horizons provides the opportunity for Australians to experience Bhutan in a way that is seamless, culturally authentic and sustainable. It overcomes logistical barriers and offers bespoke experiences that respond to growing appetites for sustainable tourism. It is now about completing operational plans, building partnerships, and setting up marketing initiatives to tap into the market.