Adventure Travel International Tours Agency's Business Plan - Case Study Example

The paper “Adventure Travel International Tours Agency's Business Plan" is a thrilling example of a case study on marketing. In order to determine successfully the financial viability of the business, it is necessary to determine, the adequate wages required and the return on the company’s investments. At this point is necessary to develop an annual personal plan with actually estimates as shown below.

Projected Profit and Loss
Operating in a competitive market with almost 4,500 competitors gaining tremendous growth quickly will not be easy hence initially we foresee a slow growth in sales as we strive to gain a stable market. Operating expenses are expected to be relatively high but as the company gains access to a larger market we anticipate a bump in our sales and revenue generation as we spread our services during expansion. Collection days are very significant to any business hence we will not allow our average collection days to get above our client’s actual subscription period under any circumstances. Allowing this kind of situation can cause a serious problem with our company’s actually cashflows since the company’s working capital situation is chronically tight (Charles, 2010). Though this situation is very critical we are not in a position to control it easily because we intend to create a positive relationship with our clients by avoiding them judging us.32

Profit and Loss Projections
The projected company’s profit and loss will be as shown below with anticipated sales increasingly annually from $350,000 during the first year to $556,500 the second, and $ 630,000 in the third year. The company’s net profit margin is anticipated to be relatively good for any start-up organization. In relation to the break-even, we are projecting it very conservatively regarding the cost of sales and gross margin due to the changes in the market factors. With market uncertainties, the projection of the cost of sales and gross margin has been projected conservatively to ensure that the company has enough cash. Refer to appendix for detailed monthly projections

Ratio calculations
The tourism and travel industry is playing a significant role in the Australian economy. Financial statistics undertaken in the year 2010 indicate that the tourism and travel industry represents 20% of Australia’s GDP (Australian Bureau of Statistics, 2010). Despite the economic hardships, Australia’s tourism and travel industry have remained relatively strong with an increased number of visitor arrivals as well as rapid growth due to the increasing demand for travel products. With the growing market, Adventure Travel International Tours Agency Company intends to take advantage of the opportunities present in this industry to provide excellent and high-quality travel and tourism services among them travel services and tour packages with upscale accommodations and other tourist’s services. The Australian national income is growing at a fast pace which presents another opportunity for ATITAC to take advantage of this growth and moderate competition within the city travel portion to penetrate the lubricant luxury travel and tourism market (Australian Bureau of Statistics,2010).

ATITAC intends to provide travel and adventure packages to tourists and local Australian residents across Australia. Services and products which are going to be provided by the company will cater to the needs of tourist tours and local residents. ATITAC seeks to differentiate itself as an excellent travel and tour mobile operator across Australia (Dolnicar and Laesser, 2007). The company’s services and products will be positioned very carefully primarily they will be of extremely high quality, comfortable, informative and tailored towards the customer’s needs. The main marketing strategy will be tailored towards building a brand image by creating customer awareness as far as the services of the travel agency are concerned. The main intention of the company is to make the right information available to the right target customers (Dolnicar and Laesser,2007).