Mangrove Tour and Travel Agency - Business Idea - Example

Operations Report Mangrove Tour and Travel Agency Tutorial Time: Tutor: 1. Executive summary The tourism industry has in the recent past experienced immense growth, in both local and international fronts. The synergy and passion associated with this business venture derived the passion and eventual idea to for ‘Mangrove Tour and Travel Agency’ as a sole proprietor owned business. To position itself in the competeive market the agency wishes to differentiate itself from the competitors by introducing uniques services and present itself as a worthy competitor. Majority of these competirora are fellow tour and travel agencies and paternered stakeholders who will make the agency set a good market presence. Marketing strategies including current trnding techniques are the major pltaforms for the agency to engage more in a level market field. The main agenda in presenting a product or service is to convince a customer that your product or service is better and has value for money as compared to that of the competitor. The tourism sector isripe with opportunities and the gaps need convincing services and innovative ideas. The market is dominated and driven by several key indicators which include, the desire of clients to spend, increased levels of income, increased number of a retired population and relatively low cost of air travel. Tour travel industry has different categories of client’s namely individual and corporate clients. This venture being a service industry intends to specialize in tours and travel. In delivering to the needs of the clients, the agency will brand its services in respect to customer satisfaction. The assertion in the hospitality industry that the client is always right, forms the basis for ensuring customer satisfaction and making the client come again. By succeeding in setting the right attitude and contentement of the client, repeat clients are established and therefore predictable sales projections. The Agency’s business plan consist of the research strategies, marketing plan, competitive analysis and promotion of its services. Table of Contents 1.Executive summary 2 2.Introduction 5 3.Industry description – business idea 5 3.1.Mission statement 5 3.2.Current and future trends 5 3.3.Driving forces 6 3.4. Competitive rivalry 6 3.4.Key success factors 6 3.5.Gaps and opportunities 7 3.6.Goals and objectives 7 3.7.Target market 7 3.8.Marketing and research 8 3.9.Competitive analysis 8 3.10. Promotion mix 9 3.11.Service features and benefits 10 3.12.Key strengths 10 4. Business plan: Operational analysis 10 4.1. Operational Plans 10 4.2. Location and geographical layout and its efficiency 10 4.3. Acquisition and maintenance 11 4.5. Inventory and supply management 13 4.6. Seasonal variations 13 4.7. Business regulations and legal issues 13 4.8. Employee training and legal requirements 14 4.9. Human resource analysis 14 5. Conclusion 15 References 16 2. Introduction The agency ventures into the industry as a start-up business. The agency intends to develop brand service that outwits those of its competitors by putting its competitive advantage on the use of technology and modern marketing strategies including, internet marketing, tour guide journals, public relations, your tube and media advertising. At the start-up stage, the agency limits itself to tour travel. Meanwhile, the agency will also offer food/drinks and accommodation as an outsourced service. The agency will seek the introduction of other related direct services at an advanced stage. The national parks, sports placements and cultural activities available at the city put it in a better placed position for a wider market. The Australian Museum, Rugby League and parks like Royal National Park makes a strong positioning statement in the rich and diversified tourist destination. The Mangrove Tour and Travel shall partner with best destination hotels to provide accommodation and food/drinks for its customers. This outsourcing program involves a well-coordinated partnership with all tourism stakeholders. 3. Industry description – business idea 3.1. Mission statement The hospitality industry is a lucrative industry especially in a geographically strategic nation. To venture into these opportunities, Mangrove Tours and Travel Agency seek to explore this tourism sector. The agency is a sole proprietor legally owned venture. The agencies wish to exploit the market by establishing a pure tour company specializing in travel services to local and international travelers. The agency’s main philosophy is to be a tourism phenomenon and register a brand name in the tourism industry. 3.2. Current and future trends Tourism needs are becoming diversified each dawning day. These needs differ from individual travelers to corporate clients. From changing financial abilities to increased tourism facilities and effects of tourism awaresness to changing cultures and leisure needs. Modern publicity through the internet marketing, social media, digital advertising and interventions by government agencies and departments to promote tourism, has set the tourism sector to public domination and a new sector to spend on. These trends pose the challenge of introducing more and better tour travel services and strategies to meet these current and future demands (Rothaermel, 2013).  3.3. Driving forces To explore the tourism market, customers in the current technological age would wish to spend every opportunity in travelling the world. This factor and others like, increased individual income, the desire to travel the world, early retirement age and reduced travel costs; have made this industry more lucrative. These forces, therefore, put agencies like Mangrove to offer the best tour travel and related services. 3.4. Competitive rivalry Co-operation companies and other hundreds of travelling agencies offer a healthy driving force for Mangrove Tour and Travel Agency. Cost of cheap agencies also need a specialist coupled with knowledge of tourism environment an introduce more friendly services. Supplier power versus buyer power; to match the gap between supplier of clients and destination hotels and other outsourcing partners makes the competitive equation more innovative. Threat of substitution; the difficulty to make cheaper services and products or change hotels to new and friendlier hotels poses as driving force in the tourism agencies; in this regard for Mangrove Tour and Travel Agency. 3.4. Key success factors The agency’s key success indicators are increased local and international travelers who seek tour and travel services at the tourism industry. This, among others, is enhanced by sound government tourism and international policies which make its favorable for tourists to travel with ease. Peaceful political environments also put confidences in tourists who wish to travel to any part of the world (Longenecker et al, 2014). Finally, the key success indicator is stable financial environment. The stable dollar and other foreign currencies have ensured regular tourist travels. Studies have proved that businessmen can create a wide network of clients by engaging inbusiness seminars and sector related forums to build their market scope. Apart from engaging clients through normal communication strategies, a company can engage more in building customer and sector confidence. 3.5. Gaps and opportunities Many opportunities still exists in local tourism who have been neglected by tour companies who seek to utilize international markets. Mangrove tour and travel Agency seek to seize this gap and use it as an opportunity satisfies the local market. It intends to use local marketing modes like tourism journals, mobile phone marketing and online marketing. This strategy will help reach a wider market and convince the local leisure and cooperate travelers to try its services. To explore these opportunities the agency takes advantage of perceptions on tour agency that tour operators are more aggressive to capture new markets and engage more on existing client base. 3.6. Goals and objectives Mangrove Tour and Travel Agency goals are to provide the best travel services to the travelers regardless of their class, financial ability or geographical location. It seeks to; Offer the most reliable travel services to all clients. Maintain market growth and domination in five year strategic plan. Position itself as a travel agency of choice locally and internationally. Offer services and tourism products that meet international standards. 3.7. Target market The agency targets the leisure and corporate markets. The leisure travel market has two categories of clients; the independent travelers who book travel and chose their own accommodation and other facilities. The second group travelers are organized a group guided by a tour guide. Corporate market travels for business and conference conventions, but still converges as a group for a destination. The agency partners include museum, parks, cultural centers, tour planners and hotels. This partnership brings a wide business and corporate association (Hodgetts & Kuratko, 1989). 3.8. Marketing and research The synergy and teamwork associated with the tourism industry will prompt the agency to use creative marketing strategies to partner and grow the industry. The market environments involve many research dynamics that require modern techniques and skills. To realize this, the agency will seek to focus on two aspects; the competition and quality of services offered. Mangrove Tours and Travel Agency will package its services by putting into consideration prices, quality and unique services (Bonet, 2014). 3.9. Competitive analysis To compete effectively in the industry, the agency will profile its competitor’s services, locations and client classification. This will help establish the front to put its services at a competitive advantage. Competitive analysis will be used putting into consideration certain competitor’s factors. Competitive analysis and differentiation Factor Me Strengths Weaknesses Competitor A Competitor B Importance to client Price Slightly lower prices √ Using standardized prices High valued & priced services 1 Quality The best in the market √ Slightly compares with me Exceptional quality 1 Service Uniquely branded √ More customized (no repackaging) Regular rebranding 1 Reliability Seek to assure clients √ Established repeat clients Highly established repeat clients 5 Advertising Limited scope of advertising √ Internet marketing Wide scope of advertising 5 Sales method Personalized (direct) and outsourced √ Direct (personalized) and internet marketing Personalized and electronic strategies 5 Location Strategic √ Less strategic Positively strategic 1 Reputation New market entry √ Considerable market ownership (above 15%) Market domination (long market existence) above 20% 1 Note: 1 = Critical 5 = Not very important Quality, service, good reputation, price, advertising, sales method, location and timely client’s satisfaction affect the ultimate choice by a client to take the service. The already exploited tourism market makes it even more competitive. Marketing strategies yields the desired objectives if clients needs are categorized as first priority and exploiting emerging opportunities. Mangrove Tour and Travel Agency will adopt the following strategies to realize its objectives: 1. Emphasize on quality, superior sales method and reliability. 2. Build a long-term relationship-oriented business. 3. Provide solutions, service, and quality tour travel services to clients. To differentiate with the worthy competitors, marketing efforts will focus on getting satisfied clients and continues fulfillment of promises. Sales strategy for Mangrove Tour and Travel Agency is simple: client satisfaction which will provide referrals to new clients. 3.10. Promotion mix To promote its services, the agency will use promotion strategies to introduce its services and promote sales. Classifying market by segmenting into class, pricing and geographical groups. The promotions will seek to boost sales and increase tour travel services offered uniquely by the agency. Mangrove Tour and Travel Agency intends to use modern marketing strategies to promote its services. To capitalize on high seasons, the agency will introduce branded services like bonuses and discounts on certain services. Different tourism forums will be used to reach a wider market. These forums will engage both individual and corporate clients. The agency will also us favorable financial situation in the country’s economy to capitalize on high income level and the promotional inteventions by the government. 3.11. Service features and benefits The Mangrove Tours and Travel Agency service features are characterized by affordability, luxury travels and timely service provision. These services include picking clients from airports, hotels, cultural centers and other reference points. This will also include offering travel services from a local destination to another. These services will benefit the clients by providing timely delivery and pick schedule. The comfort will also assure clients of better hospitality and fulfilling tours in a specific tour location. The agency will recruit experienced tour travel experts who understand the prevailing market and different environmental factors (Williams, 2013).  The agency will be disadvantaged in the initial years of operation because it will use vans and other categories of motor vehicles as compared to more efficient modes like flights. However, due to different travel preferences of customers, the agency will seek to use all possible mean of travel to meet client's need. 3.12. Key strengths The customers of Mangrove Tour and Travel Agency will enjoy confortable services blended with affordable prices and sound corporate partnership. The company positioning as defined by strategic location and quality services puts it at an advantaged position. 4. Business plan: Operational analysis 4.1. Operational Plans The objective of the agency is to provide travel services to all tour clients. The objectives are designed to offer timely and cost effective travel services in all seasons. These objectives are outlined in the agency’s operational plan. 4.2. Location and geographical layout and its efficiency Mangrove Tours and Travel Agency is located at the capital city, Sydney, New South Wales coast of Australia. The geographical location in Australia, New South Wales, Sydney city positions the agency with the large population and numerous travels made to the city. The challenge for the agency in this strategic location is to assure its clients and sector partners of its reliability and the capacity to deliver in the immense demand for quality services. This location is strategically located to enhance easier logistical operations and prompt delivery of clients at their destinations proximity to partnered hotels for food and drinks and accommodation services. This location gives a competitive advantage as this city is favored by tourists for its serene environment and advanced infrastructural marvels (Ahmad et al, 2013). Though most tourists like residing at the silent environments outside major cities, the agency enjoys the advantage of being at the capital city’s suburbs. Source: Google Map (© 2014) 4.3. Acquisition and maintenance Mangrove Tours and Travel Agency will be acquired by purchasing an existing premise with fully furnished facilities. The agency will procure operation equipment’s like the computers, the motor vehicles and incur minimum refurbishment costs. The premise has four, sixty four square meters (64m2) rooms which will perfectly serve agency’s start-up plan. Borrowed loan from a family business will help finance three (van) motor vehicle which will be used to meet travel needs and other equipment. Office maintenances will be done quarterly by contracted engineer. The motor vehicle will be serviced by the company supplying the same at an agreed cost and period. List of facilities, office equipment’s and assets Item Quantity Value Appx (US $ 000) Mode of Acquisition Computers 4 120 Purchased Motor Vans 3 104,400 Purchased Business Premise 1 (4 rooms) 348,000 Purchased Total US $ 452,520 4.4. Service process (flow chart) Stage 1: The availability of the agency services are made available to clients through different marketing strategies and referral contacts. Stage 2: This stage involves placement of orders by potential customers through online booking services or direct bookings. Stage 3: The stage involves execution of orders according to client’s requests. Stage 4: The customer is at this stage offered the service which includes transport and comfort. Stage 5: This stage involves outsourcing services which the agency doesn’t have the capacity to offer e.g accommodation and food/drinks. Stage 6: This stage is critical to both the agency and the customer. The ultimate agenda is to achieve high customer satisfaction. 4.5. Inventory and supply management Inventory management will be enhanced by intergratting controls softwares with human skills for efficient and accurate control system. The online system will be used to procure online orders from clients. Orders will then be acted upon accordingly. To manage assets like motor vehicles, tracking equipment’s will be procured from trucking companies to manage eventualities and to monitor movements of the vehicles (Schroeder et al, 2013). All other office supplies shall be handled by accounts department. 4.6. Seasonal variations The high and low seasons present a fluctuating demand curve. The demand at the low season will significantly affect turnover and from this the agency seeks to use promotional strategy to compensate on this variation. The agency will capitalize on the turnover gained from high season to compensate the minimum turnover realized the low season variation. The company will use market segmentation and promotion strategies to reach the leisure and corporate clients. The market segmentation strategy intends to allow room for possible expectations and make definite projections. The tourism sector partnership offers a wide market network, which is vital in realizing sizeable customer base. The target markets will be leisure and corporate companies that utilize diverse tourism packages (Taylor, 2013).  4.7. Business regulations and legal issues The business involves tour travel operations. This includes operating vehicles and carrying passengers. Transport licenses include driving licenses and commercial vehicle license. Use of park and other recreational facilities managed by governments also requires permits to operate. The facilities include national parks and national reserves. Operating a business involves machinery, humans, physical properties, intellectual property and other legal entities. In this regard, insurance comes in handy (Longenecker et al, 2013). This ranges from motor insurance, life insurance and risk liability management. Mangrove Tour and Travel Agency will seek legal and expert advice on insurance matters and risk management policies. 4.8. Employee training and legal requirements Professional and advisory support Profession Quantity Terms of Employment Remuneration Board of directors 2 Full time $ 21 per day rate Accountant 1 Full time $ 18 per day rate Tour guides 6 Full time $ 13 per day rate Front office operator 2 Full time $ 15 per day rate Office attendants 2 Part time $ 9 per day rate The company seeks to employ the services of a recruitment agency that is specialized in handling tour and related business. The procured process saw the use of advertising option and referral method. The referral method proved more successful since it gives well-seasoned personnel. This will give an advantage over competitors because it brings out expertise which could otherwise be gained over a longer time (Malhotra et al, 2013). The remuneration package for each personnel will be based on an hourly and monthly rate as will be developed by the human resource department. Regular inductions and in-job training are major strategies the agency will employ in ensuring employees match with current trends in tour travel, restaurant satisfaction and comfortable accommodation needs of the clients. 4.9. Human resource analysis The human resources department will undertake an individual ability assessment to ascertain performance and match remuneration with productivity. This practice has proved efficient with modern practices of human resource. Hourly and monthly rates practice is applied in the international job market. The standard legal procedures of employment will be followed to avoid any unfortunate legal situation. Each employee in all capacities will sign appointment letters which outline the terms and conditions of the employment. Remuneration packages and terms of employment are also included in contracting the employees. This will ensure compliance to standard operations and enhance productivity. This also guarantees the employee of the nature of their employment and completely eliminates the fear of victimization and ensures compliance. This also ensures dedication and sense of ownership, thus quality service realization (Wheeler & De Richey, 2013).  5. Conclusion In conclusion, Mangrove Tour and Travel Agency rely heavily on changing market trends to set the right impression in the market about tour travel services. A feasibility study of this business idea proves to be viable. To capitalize in gaps and opportunities available in the market provides the agency with better competitive advantage to register a good brand. Other factors and drivers for this industry including, current and future trends, increasing desire and fun in tour and travel and reduced travel costs across the world. The operational plan analysis will present a strong background to establish a reliable service company. By undertaking market, competitive advantage and feasibility analysis, business through funding and the obligation to the objectives set. Being passionate with this idea putting into perspective the objectives, the guarantee to succeed is probable. References Ahmad, M. F., Zakuan, N., Jusoh, A., & Takala, J. (2013). Review of relationship between TQM and business performance. Applied Mechanics and Materials, 315, 166-170. Bonet, R. (2014). 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(2013). Scientific management. Routledge. Wheeler, J. J., & De Richey, D. D. (2013). Behavior management: Principles and practices of positive behavior supports. Pearson Higher Ed. Williams, C. (2013). Principles of management. South-Western/Cengage Learning. Read More