AAA International Travel Services Ltd Business - Essay Example

Business Plan for AAA International Travel Services Ltd. i. Introduction The name of the firm chosen for the development of a business plan is AAA International Travel Services Ltd. The firm will provide outbound travel services to European, American, Africa, Australia and Chinese people. At present, the firm deals in wholesale and retail industries. The business plan is for launching a tourism services business. The firm will have free cooperation with the Travel Channel media resources. The firm will have about one hundred available overseas tours. The number of employees of the firm will be 500. AAA travel agents will be proficient in arranging tours, cruises, vacation packages, high quality accommodations, rental car services, and travel guides to people. Travel agents work with their member firms for designing cost effective packages, special fares, and extras benefits, such as, credits, gifts, vouchers, and free passes (AAA 2011). The firm will maintain long-lasting relationships with the most trusted travel services providers of the world that will help the firm in providing exclusive packages to the customers with outstanding quality of service. ii) Mission and Vision The mission of the firm is to expand the British travel services market and build the best quality travel services business office, whereas the vision of the firm is to provide excellence to customers. iii) Aims and Objectives The aims and objectives of the firm are; to provide high quality tourism facilities for consumers, to provide assistance in all tourism activities, to arrange best vacation packages for customers, and to reach the top position in the rankings of the world’s best tourism services providing companies. iv) Business Structure The firm will have three main departments, which will be working in collaboration with each other. The departments will be AAA travel services web, AAA international, and AAA advertising. The web will help the customer locate the firm and know about the services that it provides to customers. The advertising department will advertise the company’s products and services through different media channels. The international department will play the lead role. It will include branch office, ticketing services, business office, and direct sales stores. Following is the business structure of the firm: b) The Product Following are the products and services that the firm will provide to its customers: i. Gaps in Market The products and services that the business is going to launch differ from that of their competitors. All other travel firms offer different services to customers based on available budget and resources. AAA travel services will provide services based on customers’ preferences. Although all packages have been designed already in accordance with the schedules and available resources, but the firm can bring little changes in the packages in accordance with the needs and demands of the customers. For example, if a customer asks for a ten days trip to some Eastern country and the firm offers an eight days package, then the company will change the schedule and package accordingly but the customer will have to pay some extra amount to the firm because of modifications. The firm will also provide best available accommodation to its customers. “Comfortable hotels and accommodation facilities play a very important role in popularizing any tourist destination” (Ahliya 2008, p. 1). ii. Target Market Target market is the group of people that a company wants to target for the sale of products and services (Tatum n.d.). For AAA Travel Services company, the target market for the firm will cover a large number of local and international customers. The company is located in an area where travel companies are also operating there business activities, so there is also a tough competition in place. However, the range of the services that AAA travel services will provide to the customers will be more as compared to the services of the competitors. The firm will offer packages in accordance with the customers’ categories. For example, the firm will offer low cost packages to local customers in local currency, whereas for international customers, the prices will be set a little high. iii. Market Condition “Many external and internal factors can affect product innovations, business process innovations or their combination” (Zakic, Jovanovic, & Stamatovic 2008, p. 18). The external factors and tourism market conditions justify the need for some new services that can provide the customers with comfort, as well as cost effect tourism facilities. Some of the main external factors that justify the need include economy and market conditions. Economy of our country depends to some extent on tourism. Therefore, launching such a business can really boost the economy. Economy is one of the main external factors affecting a business’s success (Baldwin n.d.). Moreover, the market conditions are such that a travel services company can show a dynamic progress here. iv) Business Products The firm will have more than 100 kinds of travel routes to offer to customers. The business will have increase in services every year. High-End Services The traits of high-end services will be freedom of tour scheduling and high quality service. The key features of high-end services will include Leap Alps, Germany World Cup passionate journey, Finnish Polar trip, Arctic trip, Premiership trip, and Luxury Cruises. Ordinary Services The traits of ordinary services will be tightly scheduled, content rich, and cost effective touring facilities. The key features of ordinary services will include an eight days trip South Africa, an eleven days trip of South Africa and Egypt, a five days trip to five European countries, and a ten days trip to ten European countries. Featured Services The traits of featured services will be comfortable and rich in contents tour to classic cities. The key features of featured services will include South Africa luxury travel, Australian leisure trip, New Zealand tour, Egypt Nile Cruise trip, and Four-nation tour (southern France, Italy, Spain and Monaco). c) Forecasts Capital Requirements - 6M Pounds Planned use of funds (First Year） - AAA Travel network build and Operations - Marketing - Traditional wholesale business expansion - Direct sales marketing The business forecasts will be very attractive, as the firm is going to launch a comprehensive tourism services business. Following are the historical financial analysis of the firm based on the results of existing businesses of wholesale and retail: £ 2008 2009 Main business income 3000,00 500,000 Wholesale 3000,00 450,000 Retail store --- 50,000 Gross Profit 300,00 60,000 Wholesale 300,00 50,000 Retail store --- 10,000 Net Profit 15,000 33,000 For the next three years, following are the projections of the firm’s businesses: 　 £ 2013 2014 2015 Main business gross profit 300,000 435,000 610,000 Wholesale 80,000 120,000 180,000 Retail (store, internet, Call center) 20,000 40,000 80,000 Tourism Services 200,000 275,000 350,000 Net Profit 151,000 230,000 361,000 Wholesale 35,000 50,000 80,000 Retail 16,000 30,000 56,000 Tourism Services 100,000 150,000 225,000 Even if these targets are not met, the firm will continue to operate but the packages and strategies will be reformulated according to business responses. References AAA 2011, AAA Travel Services, viewed 19 December 2012, http://exchange.aaa.com/automobiles-travel/international-travel/aaa-travel-services/ Ahliya, S 2008, The Importance of Hotels and Accommodation in Promoting Tourism, viewed 19 December 2012, http://ezinearticles.com/?The-Importance-of-Hotels-and-Accommodation-in-Promoting-Tourism&id=3656576 Baldwin A n.d., Internal & External Factors That Affect an Organization, viewed 19 December 2012, http://smallbusiness.chron.com/internal-external-factors-affect-organization-16641.html Tatum, M n.d., What Is a Target Market?, viewed 19 December 2012, http://www.wisegeek.com/what-is-a-target-market.htm Zakić, N, Jovanović, A & Stamatović, M 2008, ‘External and internal factors affecting the product and business process innovation’, Economics and Organization, vol. 5, no. 1, pp. 17-29. Read More