Project Everest

Experiment Results

[JAN 19][COLLECTION] Offer Test (b) 'Cheaper' Hotels

Reference to experiment post

https://projecteverest.crowdicity.com/post/808340

Lean Phase: Problem Definition

 

Purpose: To gain a deeper understanding of how cheaper hotel employees, managers and owners personally feel about the waste situation in Timor Leste and how their business approaches waste management.

 This post outlines the results of the offer test experiment performed amongst 10 cheaper hotels in Dili in January 2019. The aim of this experiment was to gain information in regards to:

  • Current waste management practices

  • Individual pain points in regards to waste

  • Ideas for waste disposal and management solutions

Abstract

Our conclusions from the survey showed that our initially arbitrary distinction of cheap and expensive hotels (Below and above 70 USD) was validated in the much higher interest rate that could be seen in the expensive hotel customer segment .The problems identified were waste on the streets (54.5%) and(18.2%) plastic in the ocean, this suggest that their UVP revolves around ecotourism. 40% separated their waste and 20 %said they didn't have a reason to and 42.9% of waste was identified as plastic suggesting that ERS services could provide one of it's existing services to this market and it would be valued. 60% of this market sector said yes to being interested in a solution which satisfied the 15% green light metric. ERS should target this market sector for more testing as a large portion already separates their waste and they have a value in ecotourism.

Assumptions/ Problem Centric message:

Cheaper hotels in the Dili area and surrounds would be interested in a solution to address the waste management problem in their community.

 

Results:

Our conclusions from our survey show that cheaper hotels had 2 major pain points:

  • Waste on the street (54.5%)

  • Plastic in the ocean (18.2%)

The aesthetic nature of these answers suggests that the appearance of their hotels influences their business and the tourism industry and thus, these hotels need to maintain a clean environment in wider Dili to gain customers.

 

Waste Disposal:

60% of cases used government pickup (which often involved some small payment- usually $25-$50 per month) with 20% reporting that internal employees dealt with it. The remaining 20% paid for pick up; however all waste collected still ended its journey in Tibar. Cheaper hotels mainly used the free government service as the white concrete bins were relatively close to their hotel and it ensured that the business did not fill with waste and smell.

 

Waste Separation:

  • Yes (40%)

  • No (40%)

  • No reason to separate (20%)

One cheaper hotel said they separated their waste so local Timorese can take the cans and on sell them. However the remaining hotels that did separate were aware that they all ended up in the same place (Tibar).

 

Most Common Type of Waste:

  • Plastic (42.9%)

  • Food/Organic (42.9%)

  • Glass (7.1%)

 

Waste Solutions:

  • Education (48.2%)

  • Government (32.1%)

  • No solution (19.6%)

Education in the form of changing habits and creating awareness, especially among Timorese people was a major solution to cheaper hotels. Those who said no solution were happy with the current one they had. However these respondents were both Timorese people, which aligns with the qualitative data collected which reported that expats cared more about waste management than the locals did.

 

 

 

Validated Learning:

[Green Light]

The offer for a potential solution successfully met the required Green light metric of 15%. As with expensive hotels, despite the small market size ERS was able to gain a 60% yes response rate to being interested in a solution. 20% of respondents were already recycling and another 20% were not interested in a solution. This has matched the experiment hypothesis and confirmed the assumption that cheaper hotels in Dili would be willing to engage in a solution for the waste problem. The solution itself is open to interpretation as the questions we asked were of a broad nature and due to this there are many potential business opportunities for ERS moving forward.

 

Note:

A uniform survey was carried out amongst all subjects. This was in the form of an electronic survey which we read out in face to face interviews. This may have involved potential confirmation biases in the form of prompting of answers. However, it has been determined that this potential bias is not significant as to influence the integrity of the experiment result.

 

Next Move:

This experiment received positive results in relations to people being interested in solutions for the waste problem. The actions on therefore would be ways to validate the customer segment. In doing so there would need to be identifying the potential early adopters and undertaking more market research. Another step forward is to create a UVP for which ERS can use into the future.

edited on 29th January 2019, 00:01 by Oliver Barnes

Rose Gooding 10 months ago

Status label added: Experiment Results

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