Unit 3 Travel Tourism Entrepreneurs | Mastering Entrepreneurial Ecosystem
Unit 3 Travel Tourism Entrepreneurs is responsible for organizing flights at reasonable rates, planning tours for different tourist destinations etc. for tourists. Their business plan revolves around investments from a third party, finance from stakeholders, duties and responsibilities of supervisors, promoting and advertising your product, whether targets were achieved in the stipulated time etc. The business plan should also include a thorough market research the status of your competitors and how your business will be different from them. The promotional activities and sale of the products have to be looked into carefully as deciding correct price for the product is very essential and the publicity given to it along with the effective selling plans is an important aspect. The travel agency should set an example of the changing trends in the industry. They should provide many alternatives to their customers so that they can flourish in the business (Shefsky, 1994). The factors to be considered while making a successful business plans are
- Maintaining a workbook: I will prepare a workbook of 100 pages outlining all the details of the business. Every aspect will be taken one by one and all details regarding that will be written and explained. Likewise, all point will be covered.
- Model of the business plan: I will design the business plan template having all the information. The new skills developed and the innovative ideas developed demarking me from my competitors will be included in this.
- Statistical data and graphical representation: to make my business plan visually stimulating, I will use charts and graphs to depict all the industry related data. All my creativity will be put in this process.
A brief outline of my business plan
is as below:
Firstly I will describe the concept of my tourism business. It expertise lies in providing the best and first class cervices to the customers and the goals that I have set for future, i.e. to become one of the top travel and tourism businesses. I will identify the potential market for my business and aim to expand it. The target customers are the once who travel very regularly and have an eye for adventure. My company will also try to attract customers who often are on a look out for tours at affordable cost. I will ensure that tours are organized for all economic classes so that everybody remains satisfied. Providing the best in the amount spent would be one of the objectives as only then the customer is happy and have no regrets about the money spent on the tour. The main mission of my company is to connect strongly with the customers who come to me, understand their requirement and expectations and try to meet them at the earliest. The location where the company is located is also important. I will ensure that my company is located at the place which is easily accessible for all so that a visit will clarify all their queries. Also I will develop a user friendly web interface where all the details are readily available. I will appoint sufficient staff to meet the objectives of the company and train them accordingly (Easterby-Smith, M. et al, 2008).
(b) Describe your niche travel and tourism business concept, product/service characteristics, market potential, business analysis and operational plan
Business in tourism is always a fast growing market and the largest business sector. The business concept which I plan for my travel and tourism company will be to ensure all factors which will give the best service provision to all customers. For this, I will ensure that the hotel with is linked with my company will have a policy of 24hrs check in and checkout option. This will be convenient for general public as well as people on business tours. Providing the customers with the best in class features in the airline as well as the hotels will be the main objective such as providing access to internet, TV etc. many a times it so happens that the transit time from boarding one flight to the other is so long that the passengers get bored. My company will collaborate with the concerned airports in the target areas and arrange a package having one hour sightseeing so that the passengers remain entertained. This increase and attract many more. The main operational plan for my company is to make use of the latest technologies.
Unit 3 Travel Tourism Entrepreneurs | Mastering Entrepreneurial Ecosystem
I plan to promote my business on the internet. All aspects such as the world class modern facilities, added recreational activities, and the quality of the service provided; the cultural and traditional attraction will be covered. Online booking facilities for booking of airlines, taxis, hotels will be made a click away on our website. Electronic ticketing is the most preferred mode of carrying tickets now a days and this will be made available to all customers. Alliances with different service providers also help in streamlining the tour. The security of the customers is also a very important criterion and in my travel company I will train the staff so that security is provided to the customers, most importantly to the female customers (Posc
hke, 2013). The market potential of my company will be at par of the expectation i.e. it will give tough competition to the competitors. The operational plan to be at the top of the business will be achieved in a period of two years. The present scenario of the business is that it is gradually growing and with the innovative ideas, it will give sever competition to the people in the market. The main target customers are the people who travel extensively and routinely. This could be youngsters or people on a business tour. When they are satisfied with the
services, they are bound to come again and at the same time they spread a good word about the business to their friends and relatives. Trekking enthusiasts also expect a reasonable deal while they are travelling and hence my company aims to provide them affordable packages with good offers.
(c) Financial projection and a brief cash-flow analysis
Financial projection is very important to meet the aims and goals set by the company. Good growth is observed when financing is done and there is continuous cash flow. The terms of payment are agreed mutually between the customers and the company. Therefore there is a sense of respect between the company and the customers and a healthy relationship is maintained. The continuous flow of cash would be the first priority; growth of the company would be second and third is the profit (Shane, 2003). There are certain assumptions that I make before setting a financial plan, they are, that we won’t face any recession and the economy would be strong. Also, an assumption is made that there won’t be sudden changes in economic policies which would impact my travel and tourism business in a big way. According to my estimates, my tour and travel company will do well gradually and will increase the sales. This will be done because of the marketing. Early investment is very necessary for my company to flourish. The growth projections for the travel company should be accurate and the conditions should be economic for the travel industry. Even break analysis is assumed to be 20% of the gross margin and this will increase gradually. Below is the chart showing sales, gross margin % and operational expenses as key financial indicators. By studying the graph, growth is expected in sales which in turn proportionately increase the operating expenses.
The projected profit and loss is as shown below and gradual increase is seen with the maximum being in third year.
The cash flow analysis plays an impo
rtant role in the success of my tour and travel organization. The following graph shows the analysis and comparison of the net cash flow and the cash balance for every month of the year (Anderson, Warren 2011).
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Entrepreneurship is no so easy and it may seem to be and a successful entrepreneur has many challenges to face in order to be successful. There is a lot of potential for starting a business in the travel and tourism sector but it has many challenges as well. High competition is seen in the market. With the advancement in internet and online booking facilities, things have become much easier. The aim of a successful entrepreneur is bring about innovativeness in the business which will make him stand out from the crowd of tour and travel companies. Having a business plan well though will be very helpful for the company which is a start-up. An entrepreneur should have a clear idea about the concept of the business, operational plan, marketing strategies etc. In the present case study, the entrepreneurship qualities of Thomas Cook is studied and how his qualities have helped his company, Thomas Cook and group to flourish and to become one of the leading travel and tourism company.