Pro Travel Network Company - Report Example

Pro Travel Network Company (PTN) Introduction Pro Travel Network Company was started in 2003, and it has developed to be one ofthe leading travel organizations worldwide. The offices of the Pro Travel Network Company are based in Canada and the United States. Just recently, PTN official lease contracts for the new offices in Quebec, Canada. The company intends to effectively expand to new markets in Western Europe, Australia and the Pacific Rim countries. In the beginning of 2005, PTN got the important approval from the U.S. Securities and Exchange Commission to be a public company using the name PTVL. The company is debt free, which make it a powerful organization which is financially solid. The top management of the company comprises executive management and the board of directors. The current Chairman of the Board and the CEO is Mr. Paul Henderson. The Vice President and the Chief operation officer is Mr. Ray Lopez. Other members in the Board of Directors are: Harold Cardwell, Doug Singer and Jim Estes (Tichy, 2007). Branding and Marketing PTN employs Multi Level Marketing in recruiting travel agents. The over 500 home based agents are continuously trained on company operations and tourism issues and trends. The training programs enable the agents to meet with the executives of the company, and learning more on developments in the tourism industry, as well as development of their businesses (Blanke, 2013). The major market segments targeted by PTN entail the travel agents and the home based agents in the international tourism sector. The target market requires the services provided by the PTN. These services entails; Independent travel agent Program; this ensures the purchasers become Independent travel Agents. Marketing Opportunities product is sold to enable the purchasers to be Independent representatives of PTN. PTN uses the internet media to reach the target market. The company provides online travel stores for the home based representative and travel agencies through the communications technology services. The marketing strategy of PTN entails creating a network of authorized sales representatives, who appropriately market online travel agencies on behalf of PTN. The purchasers of the online travel agencies are referred to as Independent Travel Agents (ITA). Each ITA pays $439.99 fee, for purchasing the Independent Travel Agent Program. PTN usually gets a percentage of the commission generated by the ITAs. Business within the Corporate Umbrella PTN currently supports an estimated 5,000 Independent representatives, and 15,000 Independent Travel Agents, throughout North America. Since the formation of the company, an estimated 5,000 Independent Travel Agents have become inactive due to non-payment of their yearly fee (Taylor, 2013). Any person can be registered as an Independent Representat9ive of PTN. Individual are exempted from purchasing the ITAP so as to be eligible. The company has less than 100 Independents Representatives, who didn’t buy the ITAP. On a continuous basis, the company offers the representative training events for a fee. These training sessions improve the capacity of the representatives, for example national sales training. The agents are given appropriate source of travel products through agreements with appropriate travel providers. The travel providers are so diverse; for example, car rental agencies, hotels, cruise lines, major airlines and wholesale travel providers. Wholesale travel providers give package tours, car rental agencies give cars for hire, airline provides air tickets and hotels provide accommodation, at discounted rates. These business agreements are terminable at the discretion of the service providers. The company does not depend on single providers for the travel services, and these agreements are not entirely exclusive. The service providers do not provide products or services which are more than 10% of the revenues of PTN. PTN and its agents do not pay any fee, so as to obtain the services of these travel providers. The company also gives the agents the ability to reserve with the; over 25 airline, 300 hotels, several car rental companies, tour package operators and cruise lines (Bhatia, 2006). Employees The company currently has 55 full time employees, including the board of directors. Clerical employees are 41, operations staffs are 2, administrative staffs are 5, and management staffs are 7. Other crucial functions of the company are performed through the agents and representatives. The company gives the agents and the representatives all the resources to ensure success. The business ownership has many tax benefits. The agents and representative of PTN are given a Business to Consumer website that is designed to identify the proportion of the market that wants to book their travel arrangements. If a customer books from the website of a particular agent, the agent gets paid (Bhatia, 2006). PTN also gives the agents the opportunities to utilize the Agent Only Booking Platform. This platform enables the agents to book travel just like other major tourism or travel companies globally. The agents, employees and representatives benefit from the Comprehensive Travel Training Program. This enables them to understand and succeed in the tourism and travel business. The profitability benefit of the agents and representatives is that they receive 70% commission on sales, with minimal overheads. The employees, agents and representatives receive additional benefits in the tourism, hospitality and travel industry; due to amusement parks discounts, familiarization trips, and all inclusive vacation packages. Global Impact The company majorly operates in North America. However, there are immediate plans and strategies of increasing operations to Europe and South America. There is stiff competition in the travel sectors, due to many players offering similar services and products. Therefore, PTN controls a small market segment, in a highly competitive sector. This is the reason why PTN utilizes the most superior online marketing tool to get clients. The main competitors of PTN are organizations which offer tour packages. These organizations vary from hotels, tour firms, cruise ships and airlines (Blanker, 2007). The company is eco-friendly. This is because almost all of its transactions are done electronically; from booking travel arrangements to payments. Minimal use of papers ensures environmental sustainability, because of less timber use. The company also encourages group travel, so as to minimize carbon emission from automobiles. The company participates in safe disposal of wastes. This is knowledge of effective waste management is given to employees, agents, representatives and clients, during training sessions. The major social responsibility of the company is to their staffs. The company provides a flexible work environment to employees, to enhance their motivation. Employees are allowed to work outdoors, away from their offices, during travel and tourisms operations. The company also participates in environmental sustainability through computerizing all its operations, and encouraging group travels to reduce automobile carbon emissions. Growth Potential PTN is expected to increasingly participate in the tremendous growth of the internet travel industry, and the increase of the home based travel agents. In the past, the company and other travel agencies relied heavily on commissions paid by the airlines to the travel agencies. This travel business transaction was recently stopped by the airlines, forcing the travel agencies to look for alternatives (Fuller, 2013). PTN therefore currently concentrates mostly on online travel industry. The online travel industry is projected to expand in the future; because of minimal costs through home offices, and the entrepreneurship aspect that enables people to own their own businesses. In order to increase business operations and profitability, the company is currently diversifying business. The revenues source for the company entails; annual renewals of Training Agents Program, selling of the training resources, license to market travel training programs and commissions from the bookings of agents. Conclusion Pro Travel network represents an emerging growth in the consumer service business and leverages on the effective home based business approach in the travel industry. The company offers an effective travel agent training programs in the travel sector. References Bhatia, K. (2006). The Business of Tourism: Concepts and Strategies. London: Sterling Publishers Pvt. Ltd Blanke, J. (2007). The Travel & Tourism Competitiveness Report 2007: Further the Process of Economic Development. World Economic Forum. Fuller, E. (3 December 2013). "Impact of the World’s Travel / Tourism Industry adds up to more than a walk on the beach". Forbes. Taylor, I. (10 April 2013). "Bill Clinton tells WTTC summit: ‘Travel good for the future’". Travel Weekly. Tichy, M. (2007). Corporate Global Citizenship: Doing Business in the Public Eye. NY: Lexington Books. Read More