1.0 Introduction

Visionary business leaders often use canvas business model to plot new venture ideas or to upgrade the existing business models to fit with the recent developments in the industry (Johnson and Scholes, 2008). The present report intends to discuss a new concept hotel which is planned to develop in Riverston Sri Lanka targeting premium tourists who seek comfort, luxury and nature with a touch of Sri Lankan authenticity. The Osterwalder’s ontology will be used to map the business model with respect to the proposed holiday resort. The author has a bare land in Riverston (114 perches) which will be used for the project. It is located close to a beautiful mountain range in the middle of a tea estate. The resort development will take place in two phases and as the first step, an 8 room holiday bungalow will be constructed. The main target audiences will be adventure tourists, families and honeymooners. The canvas model reflects a brief summary with respect to the overall operation of the business. Key customer segments, value propositions, distribution and channel strategy, customer relationships, revenue streams, cost structure, key resources, activities and partners will be briefly introduced within the next few sections of the report.

2.0 Customer segmentation

Customer segmentation can be identified as the process of identifying different buyer groups who share similar characteristics (Kotler and Keller, 2008). Since the proposed hotel is a boutique concept resort, the business will mainly target premium high end tourists during the season. Both local and foreign guests can be expected during the off season as well.