Travel Tour Agency Business Plan

The tourism industry has grown rapidly in recent decades, thanks to advancements in technology and increased information about beautiful destinations worldwide, including the southern African region.

Solution

Sephats Tours will offer individual and group travel services to leisure clients, including pre-arranged tours, custom packages, travel consultation, and lodging reservations. Our goal is to become the leading adventure travel company in the Gaborone area.

Market

We will target foreign tourists visiting Botswana for leisure and sightseeing purposes, focusing on those from Europe and the Americas who may not have transport or extensive knowledge about the country. We aim to provide a reliable and comprehensive service for travelers who prefer escorted tours.

Competition

While we have identified established companies with similar offerings, we will differentiate ourselves through the quality and information provided during our excursions. We aim to attract customers with our superior services and informative experiences.

Why Us?

With a dedicated and experienced staff, excellent networking, effective management, and marketing strategies, Sephats Tours is well-positioned to capitalize on the growth and moderate competition in the city travel sector. Our aim is to become the premier adventure mobile operator in the Gaborone area.

Expectations

Forecast

We anticipate slow initial sales growth as we establish our presence in the market. However, as our services expand and gain popularity, we expect an increase in sales and revenue. We understand the importance of maintaining a solid cash flow by ensuring timely collection from customers.

Financial Highlights by Year

Financing Needed

We have secured funding from two investors, with a total contribution of P202,000. This investment will cover our expenses until we start generating a net profit.

Opportunity

Problem & Solution

The growing demand for travel and exploration has created the need for an affordable and reliable company like Sephats Tours. We aim to provide individual and group travel services, catering to different customer preferences and budgetary constraints.

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Target Market

Our primary target market consists of foreign tourists seeking leisure travel and excursions in Botswana. We will focus on travelers from Europe and the Americas who may lack transportation options and knowledge about the country. Our goal is to provide a professional and uncompromised service that allows them to see and appreciate the country’s attractions.

Competition

We have identified several established competitors offering similar services, particularly safari excursions. However, we see an opportunity to stand out by providing high-quality and informative experiences to our customers. Most of our competitors have South African backgrounds, giving us a unique advantage in the market.

Our Advantages

Our strengths include a diversified client base, a team of skilled employees, and extensive advertising and marketing efforts. We plan to target the right customers through effective messaging and strategic alliances with hotels, lodges, and travel agencies.

Keys to Success

Our success depends on effectively segmenting the market and implementing marketing strategies tailored to our target customers. We strive to provide enjoyable, comfortable, and informative travel experiences that leave a lasting impression on our clients.

Execution

Marketing & Sales

Our marketing strategy focuses on differentiation and extensive promotion. We plan to utilize social media platforms, run promotions and sales, encourage customer engagement, and emphasize competitive pricing. Our goal is to establish long-term relationships with hotels, travel agencies, and individual customers.

Operations

Our current office location is convenient but not critical to our business. However, as we grow, we may consider moving to a more accessible and attractive location in the future. We prioritize keeping up with the latest technology and ensuring efficient operations.

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Milestones & Metrics

Key Metrics

Our key metrics include tours sold, tourists per tour, revenue per tour and per tourist, total tourist prospects, inquiries, Facebook likes, and Twitter follows. These metrics will help us monitor and evaluate the success of our business and adjust our strategies accordingly.

Company

Overview

Sephats Tours is a privately owned company incorporated in Botswana. We are committed to promoting and offering various activities to customers. Our management style focuses on community involvement and fair treatment of employees. We intend to hire experienced staff and seek training in the tourism industry.

Team

Management Team

The founders of Sephats Tours are passionate about the activities we offer and the market we serve. We plan to engage qualified employees and continuously improve our business strategy. The Managing Director has experience in public transportation and government and intends to undergo further training in travel and tourism.

Personnel Table

2020 2021 2022

Accountant P30,000 P33,000 P36,300

Tourguide P24,000 P26,400 P29,040

Sales and Marketing P21,600 P23,760 P26,136

Driver P18,000 P18,900 P19,845

Personal Assistant P14,400 P15,840 P17,424

Cleaner (2) P14,400 P15,120 P15,876

Nightwatchman (2) P14,400 P15,120 P15,876

Mechanic (0.67) P15,000 P17,000

Financial Plan

Forecast

Key Assumptions

We assume a strong and stable economy without major recessions or changes in economic policies that would make our services obsolete. We also assume conservative interest rates, tax rates, and personnel burden.

Revenue by Month

Expenses by Month

Net Profit (or Loss) by Year

Financing

Use of Funds

We have used the funds to purchase a Mercedes Benz mini-bus for our tours and cover initial expenses such as legal costs, branding, website development, insurance, and rent. The total start-up expenses amounted to P5,000.

Sources of Funds

We have secured investments from two investors, totaling P202,000.

Statements

Projected Profit & Loss

2020 2021 2022

Revenue P678,000 P802,000 P916,000

Direct Costs P325,440 P384,960 P439,680

Gross Margin P352,560 P417,040 P476,320

Gross Margin % 52% 52% 52%

Operating Expenses

Salaries & Wages P136,800 P163,140 P177,497

Employee Related Expenses P27,360 P32,628 P35,499

Rent P14,400 P14,400 P14,400

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Sales and Marketing P101,700 P120,300 P137,400

Insurance P12,000 P12,000 P12,000

Travel P1,800 P1,800 P1,800

Miscellaneous P2,400 P2,400 P2,400

Maintenance P12,000 P12,000 P12,000

Startup Expenses P5,000

Total Operating Expenses P313,460 P358,668 P392,996

Operating Income P39,100 P58,372 P83,324

Interest Incurred P7,451 P5,978 P4,416

Depreciation and Amortization P16,700 P16,700 P16,700

Income Taxes P2,242 P5,354 P9,332

Total Expenses P665,293 P771,660 P863,124

Net Profit P12,707 P30,340 P52,876

Net Profit/Sales 2% 4% 6%

Projected Balance Sheet

Starting Balances 2020 2021 2022

Cash P25,365 P46,323 P57,282

Accounts Receivable P43,500 P40,100 P45,800

Inventory

Other Current Assets

Total Current Assets P68,865 P86,423 P103,082

Long-Term Assets P167,000 P167,000 P167,000

Accumulated Depreciation (P16,700) (P33,400) (P50,100)

Total Long-Term Assets P150,300 P133,600 P116,900

Total Assets P219,165 P220,023 P219,982

Accounts Payable P26,085 P22,827 P25,820

Income Taxes Payable P2,242 P1,360 P2,355

Sales Taxes Payable P0 P0 P0

Short-Term Debt P23,869 P25,342 P26,905 P28,564

Prepaid Revenue

Total Current Liabilities P23,869 P53,669 P51,092 P56,739

Long-Term Debt P111,131 P85,789 P58,885 P30,321

Long-Term Liabilities P111,131 P85,789 P58,885 P30,321

Total Liabilities P135,000 P139,458 P109,977 P87,060

Paid-In Capital P202,000 P202,000 P202,000

Retained Earnings (P135,000) (P135,000) (P122,293) (P121,953)

Earnings P12,707 P30,340 P52,876

Total Owner’s Equity (P135,000) P79,707 P110,047 P132,923

Total Liabilities & Equity P219,165 P220,023 P219,982

Projected Cash Flow Statement

2020 2021 2022

Net Cash Flow from Operations

Net Profit P12,707 P30,340 P52,876

Depreciation & Amortization P16,700 P16,700 P16,700

Change in Accounts Receivable (P43,500) P3,400 (P5,700)

Change in Accounts Payable P26,085 (P3,258) P2,993

Change in Income Tax Payable P2,242 (P882) P995

Change in Sales Tax Payable P0 P0 P0

Change in Prepaid Revenue

Net Cash Flow from Operations P14,234 P46,300 P67,864

Investing & Financing

Assets Purchased or Sold (P167,000)

Net Cash from Investing (P167,000)

Investments Received P202,000

Dividends & Distributions (P30,000)

Change in Short-Term Debt P1,472 P1,563 P1,659

Change in Long-Term Debt (P25,342) (P26,905) (P28,564)

Net Cash from Financing P178,131 (P25,342) (P56,905)

Cash at Beginning of Period P0 P25,365 P46,323

Net Change in Cash P25,365 P20,958 P10,959

Cash at End of Period P25,365 P46,323 P57,282

Travel Tour Agency Business Plan Example

Business Plan Outline

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