business plan for travel and tourism

Travel Agency Business Plan Template

Written by Dave Lavinsky

Travel Agency Business Plan

You’ve come to the right place to create your Travel Agency business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their travel agencies.

Below is a template to help you create each section of your Travel Agency business plan.

Executive Summary

Business overview.

My Itinerary Travel Agency is a new travel agency located in Boca Raton, Florida. The company is founded by Sandra Rodriguez, an experienced travel agent who has gained valuable knowledge on how to run a travel agency during the past ten years while working at Fun Destinations Travel Agency. Now that Sandra has experienced managing a travel agency, she is ready to start her own company, My Itinerary Travel Agency. Sandra is confident that her organizational and communication skills, combined with her understanding of business management, will enable her to run a profitable travel agency of her own. Sandra is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a travel agency – sales and marketing, vendor relationships, customer relationship management, budgeting, and financial reporting.

My Itinerary Travel Agency will provide a full suite of travel planning services for individuals nationwide through its sophisticated online platform and accompanying customer app. My Itinerary Travel Agency will be the go-to travel agency for personalized service, convenience, and expertise of its travel agents. The company will be the ultimate choice for customer service while offering the best travel accommodations available.

Product Offering

The following are the services that My Itinerary Travel Agency will provide:

• Airline travel bookings
• Tour and travel package sales
• Accommodation reservations and bookings
• Cruise bookings
• Car rental reservations
• Travel ticket sales and reservations
• Tour ticket sales and reservations

Customer Focus

My Itinerary Travel Agency will target individuals nationwide who are looking for personalized and convenient travel planning services. The company will target vacationers, tourists, and business travelers who are seeking the best deals on premium accommodations. No matter the customer, My Itinerary Travel Agency will deliver the best communication, service, and the best prices.

Management Team

My Itinerary Travel Agency will be owned and operated by Sandra Rodriguez. Sandra is a graduate of Florida University with a degree in business. She has over ten years of experience working as a travel agent for another local agency. Sandra will be the company’s chief executive officer. She will oversee the travel agency staff, manage customer relationships, and build vendor relationships.

Sandra has recruited sales and marketing expert, Sara Anderson, to be the company’s chief marketing officer and help oversee travel agency’s sales and marketing activities. Sara will handle all branding, marketing, advertising, and outreach for the company. She will also create and maintain the company’s online and social media presence. Sara has a Master’s degree in Marketing and has nearly ten years of experience working as a marketing director for a leading travel industry corporation.

Success Factors

My Itinerary Travel Agency will be able to achieve success by offering the following competitive advantages:

• Skilled team of travel agents combined with the latest technology in the industry will allow the company to provide its clients with personalized service and modern convenience to make planning their trip easy and efficient.
• The members of the leadership team have long standing relationships with a large pool of vendors, allowing them to provide clients with the best deals possible on premium accommodations.
• The company offers a variety of modes of communication to better serve more clients’ preferences. Customers can speak with a travel agent in person, via telephone, video call, email, or chat through the website or app. Support is available 24/7 to ensure all clients’ questions and concerns are promptly attended to.

Financial Highlights

My Itinerary Travel Agency is seeking $290,000 in debt financing to launch its travel agency. The funding will be dedicated towards securing the office space, and purchasing office equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

• Office build-out: $110,000
• Office equipment, supplies, and materials: $70,000
• Three months of overhead expenses (payroll, utilities): $90,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for My Itinerary Travel Agency.

Company Overview

Who is my itinerary travel agency.

My Itinerary Travel Agency is a newly established travel agency in Boca Raton, Florida. My Itinerary Travel Agency will be the first choice for anyone seeking a personalized approach, 24/7 support, and streamlined technology to make trip planning easy. The company will serve customers nationwide from their headquarters in Florida.

My Itinerary Travel Agency will be able to guarantee the best deals possible thanks to the leadership team members’ long standing relationships with a large network of vendors in the hospitality, transportation, and entertainment markets. The company’s team of highly qualified travel agents will provide personalized service to each client, removing the uncertainty and hassles associated with finding and booking the right accommodations.

My Itinerary Travel Agency History

My Itinerary Travel Agency is owned and operated by Sandra Rodriguez, an experienced travel agent who has gained valuable knowledge on how to run a travel agency during the past ten years while working at Fun Destinations Travel Agency. Now that Sandra has experienced managing a travel agency, she is ready to start her own company, My Itinerary Travel Agency. Sandra is confident that her organizational and communication skills, combined with her understanding of business management, will enable her to run a profitable travel agency of her own. Sandra is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a travel agency – sales and marketing, vendor relationships, customer relationship management, budgeting, and financial reporting.

Since incorporation, My Itinerary Travel Agency has achieved the following milestones:

• Registered My Itinerary Travel Agency, LLC to transact business in the state of Florida
• Has identified the ideal location for the company’s office and is in the process of securing a lease
• Reached out to numerous contacts to include transportation, hospitality, and entertainment companies to begin securing vendor contracts
• Began recruiting a staff of accountants, travel agents, and other office personnel to work at My Itinerary Travel Agency

My Itinerary Travel Agency Services

• Airline travel comparisons and bookings

Industry Analysis

The U.S. travel agency industry is valued at $48.5B with more than 90,600 businesses in operation and over 318,600 employees nationwide. Factors currently driving industry growth include an increase in domestic tourism and travel for overnight trips, vacations, and business purposes. More domestic travel typically results in more consumers using travel agencies to book their trips. The travel agency industry can be segmented by brick-and-mortar establishments or online businesses. The global market size for the online travel agency segment reached $432B last year and is expected to rise as more people use the internet to book their trips. The travel agency industry relies heavily on the use of technology. Industry operators must stay up-to-date on the latest travel technology in order to remain competitive in the market.

One of the most significant hurdles for travel agency operators is attracting customers in the age of do-it-yourself booking. Now that customers are able to book many of their travel accommodations themselves, travel agents must be able to demonstrate why booking with them is a better option. Some ways industry operators can add value are by providing personalized services, promotional discounts, and helpful information about accommodation options.

Customer Analysis

Demographic profile of target market.

My Itinerary Travel Agency will target individuals nationwide who are looking for personalized and convenient travel planning services. The company will target vacationers, tourists, and business travelers who are seeking the best deals on premium accommodations. No matter the customer, My Itinerary Travel Agency will deliver professional communication, service, and the best prices.

The precise demographics for Boca Raton, Florida are:

Customer Segmentation

My Itinerary Travel Agency will primarily target the following customer profiles:

• Individuals and families planning a vacation
• Business travelers
• Individuals and families in need of accommodations for events such as weddings, reunions, or conventions

Competitive Analysis

Direct and indirect competitors.

My Itinerary Travel Agency will face competition from other companies with similar business profiles. A description of each competitor company is below.

Fun Destinations Travel Agency

Fun Destinations Travel Agency is one of the largest and oldest travel agencies in Florida. The company was founded in 1958 in Boca Raton with one small office location. Now, the company has over 50 locations throughout multiple states. Fun Destinations specializes in booking accommodations for family vacationers. The company books accommodations near key family destinations such as theme parks, resorts, and tourist attractions. Fun Destinations is family owned and operated so the founders are familiar with the hassles associated with planning a family vacation. For this reason, Fun Destinations focuses on booking the best family-friendly accommodations so its clients can relax and enjoy the family fun.

Best Fit Vacations Travel Agency

Best Fit Vacations Travel Agency is a small travel agency catering to Boca Raton locals from its central office and nationwide clients via its online booking platform. The company was established in 1995 with the mission of providing vacation accommodations that will be “the best fit” for every client. Best Fit Vacations is owned and operated by industry professionals that have extensive experience working with vendors to negotiate the best deals for clients. The company strives to get the lowest prices for every booking and regularly finds additional savings and discounts other agencies might not know about.

Trustworthy Travel Agency

Trustworthy Travel Agency is a Boca Raton, Florida-based travel agency that provides superior service to its consumers. The company is able to provide a wide variety of travel accommodation bookings for customers in the area. Trustworthy Travel Agency has three locations throughout the state and operates an online booking platform for nationwide travelers. Customers can book online or over the phone at their convenience. The company uses an algorithm that finds the lowest prices on travel, lodging, and other accommodations across the country.

Competitive Advantage

My Itinerary Travel Agency will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

My Itinerary Travel Agency will offer the unique value proposition to its clientele:

• My Itinerary Travel Agency offers the best deals through its extensive vendor network.
• The company offers personalized customer service, a variety of communication modes, and 24/7 support.

Promotions Strategy

The promotions strategy for My Itinerary Travel Agency is as follows:

Social Media Marketing

The company’s chief marketing officer will create accounts on social media platforms such as LinkedIn, Twitter, Instagram, Facebook, TikTok, and YouTube. She will ensure My Itinerary Travel Agency maintains an active social media presence with regular updates and fun content to get customers excited about traveling.

Professional Associations and Networking

My Itinerary Travel Agency will become a member of professional associations such as the Travel Agency Association, American Travel Agents Society, and the Florida Travel Industry Association. The leadership team will focus their networking efforts on expanding the company’s vendor network.

Print Advertising

My Itinerary Travel Agency will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also invest in professional ads to place in travel magazines and local publications.

Website/SEO Marketing

My Itinerary Travel Agency’s chief marketing officer will design the company website. The website will be well organized, informative, and list all the services that My Itinerary Travel Agency is able to provide. The website will also list testimonials from happy customers.

The chief marketing officer will also manage My Itinerary Travel Agency’s website presence with SEO marketing tactics so that when someone types in a search engine “best travel agency” or “travel agency near me”, My Itinerary Travel Agency will be listed at the top of the search results.

The pricing of My Itinerary Travel Agency will be on par with (and often lower than) competitors so customers feel they receive value when purchasing the company’s services.

Operations Plan

The following will be the operations plan for My Itinerary Travel Agency.

Operation Functions:

• Sandra Rodriguez will be the chief executive officer for the company. She will oversee the travel agents, vendor relationships, and customer relations. Sandra has spent the past year recruiting the following staff:
• Sara Anderson – chief marketing officer who will oversee all marketing strategies for the company and manage the website, social media, and outreach
• Tom Brown – accountant who will provide all accounting, tax payments, and monthly financial reporting for the company
• Christopher Jones – lead customer support manager who will directly oversee all customer support activities

Milestones:

My Itinerary Travel Agency will have the following milestones complete in the next six months.

12/1/2022 – Finalize contract to lease the office

12/15/2022 – Finalize personnel and staff employment contracts for the My Itinerary Travel Agency management team

1/1/2023 – Begin build-out/renovation of the office, and purchase office equipment and supplies

1/15/2023 – Begin networking at industry events and implement the marketing plan

2/15/2023 – Finalize contracts for initial vendors

3/15/2023 – My Itinerary Travel Agency officially opens for business

Financial Plan Business Plan FAQs

Key revenue & costs.

The revenue drivers for My Itinerary Travel Agency are the commissions earned as a percentage of bookings from vendors and fees charged to customers for consultations and services.

The cost drivers will be the overhead costs required in order to staff a travel agency firm. The expenses will be the payroll cost, utilities, greenhouse equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average accommodations booked per month: 9,000
• Average commissions per month: $15,000
• Overhead costs per year: $640,000

Financial Projections

Income statement, balance sheet, cash flow statement, what is a travel agency business plan.

A travel agency business plan is a plan to start and/or grow your travel agency business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your travel agency business plan using our travel agency Business Plan Template here .

What are the Main Types of Travel Agencies?

There are a number of different kinds of travel agencies , some examples include: independent agency, host agency or franchise.

How Do You Get Funding for Your Travel Agent Business Plan?

Travel agencies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.  This is true for a travel agent business plan and a tour and travel business plan.

What are the Steps To Start a Travel Agency Business?

Starting a travel agency business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Travel Agent Business Plan - The first step in starting a business is to create a detailed business plan for your travel agency  that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your travel agency business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your travel agency business is in compliance with local laws.

3. Register Your Travel Agency Business - Once you have chosen a legal structure, the next step is to register your travel agency business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your travel agency business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Travel Agency Equipment & Supplies - In order to start your travel agency business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your travel agency business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful travel agency business:

• How to Start a Travel Agency Business

Travel Agency Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their travel agencies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a travel agency business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Travel Agency Business Plan?

A business plan provides a snapshot of your travel agency as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Travel Agency

If you’re looking to start a travel agency or grow your existing travel agency you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your travel agency in order to improve your chances of success. Your travel agency business plan is a living document that should be updated annually as your company grows and changes.

Source of Funding for Travel Agencies

With regards to funding, the main sources of funding for a travel agency are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a travel agency is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Finish Your Business Plan Today!

Your travel agency business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of travel agency business you are operating and the status; for example, are you a startup, do you have a travel agency that you would like to grow, or are you operating a chain of travel agencies.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the travel agency industry. Discuss the type of travel agency you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of travel agency you are operating.

For example, you might operate one of the following types:

• Commercial Travel Agencies : this type of travel agency caters to business travelers. These agencies specialize in tracking down deals for business travelers to help companies manage travel costs.
• Online Travel Agencies : this type of travel agency exists only in cyberspace. They provide clients with the convenience of online booking and discounts that are available only to professional travel agencies.
• Niche Travel Agencies : this type of travel agency provides clients with specialized knowledge of a region.
• Membership Associations : Memberships associations give travelers access to the organization’s travel planning services for the cost of an annual membership rather than charging per transaction. This type of agency offers the most benefit to frequent travelers.

In addition to explaining the type of travel agency you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new location openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the travel agency business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the travel agency industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards glamping, it would be helpful to ensure your plan calls for plenty of luxury camping packages.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your travel agency business plan:

• How big is the travel agency business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your travel agency. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your travel agency business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: sports enthusiasts, soccer moms, baby boomers, businesses, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of travel agency you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than businesses.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most travel agencies primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other travel agencies.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes customers making travel arrangements themselves at home. You need to mention such competition to show you understand that not everyone who travels uses travel agency services.

With regards to direct competition, you want to detail the other travel agencies with which you compete. Most likely, your direct competitors will be travel agencies located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide better travel packages?
• Will you provide products or services that your competitors don’t offer?
• Will you make it easier or faster for customers to book your offerings?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a travel agency business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of travel agency that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to regular accommodation and transportation booking, will you offer items such as tour packages and excursions?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the packages you offer and their prices.

Place : Place refers to the location of your travel agency. Document your location and mention how the location will impact your success. For example, is your travel agency located next to a heavily populated office building, or highly trafficked retail area, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your travel agency marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your travel agency’s storefront extra appealing to attract passing customers
• Distributing travel brochures outside the travel agency
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Social media advertising
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your travel agency such as serving customers, procuring supplies, keeping the office clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your travel agency’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the travel agency business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in travel agencies and/or successfully running retail and small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 50 customers per week or 100? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your travel agency, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a travel agency:

• Location build-out including design fees, construction, etc.
• Cost of equipment like computers, website/platform, and software
• Cost of marketing materials and maintaining an adequate amount of supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Travel Agency Business Plan Summary

Putting together a business plan for your travel agency is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the travel agency business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful travel agency.

Travel Agency Business Plan FAQs

What is the easiest way to complete my travel agency business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Travel Agency Business Plan.

Where Can I Download a Travel Agent Business Plan PDF?

You can download our travel agent business plan PDF template here. This is a business plan template you can use in PDF format.

What is the Goal of a Business Plan's Executive Summary?

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Other Helpful Business Plan Articles & Templates

How to Write a Tourism Business Plan

by Bryan Reynolds | Jul 10, 2023 | Destination Marketing

Starting a tourism business can be an exciting venture, but it’s vital to have a solid business plan in place. Your business plan will serve as a blueprint for your business, outlining your goals, strategies, and financial projections. Here’s a step-by-step guide on how to write a tourism business plan.

Step 1: Executive Summary

• Start with an executive summary, which provides a snapshot of your business.
• It should include your business name, location, and a brief description of the services you offer.
• This section should also highlight your unique selling proposition – what sets your tourism business apart from the competition.

Step 2: Business Description

• Provide detailed information about your tourism business.
• Describe your target market, the types of tours or services you’ll offer, and your business structure (e.g., sole proprietorship, partnership, corporation).
• Also, discuss any partnerships with local businesses or organizations that will enhance your offerings.

Next up is the market analysis.

Step 3: Market Analysis

• This section requires research into the tourism industry in your area.
• Identify your competitors and analyze their strengths and weaknesses.
• Understand your target customers – their preferences, behaviors, and what they value in a tourism experience.

After understanding your market, it’s time to outline your organization and management structure.

Step 4: Organization and Management

Outline your team structure..

• Include the roles and responsibilities of each team member, and provide brief bios if possible.
• If you’re a sole proprietor, describe any outsourced roles (like accounting or marketing).

Step 5: Services or Products

• Detail the services or products your tourism business will offer.
• Whether you’re offering guided tours, travel planning, or other tourism-related services, make sure to describe each offering clearly.
• Explain the benefits of your services and how they meet the needs of your target market.

Finally, let’s talk numbers in your financial projections.

Step 6: Financial Projections

• This section should provide a clear picture of your business’s financial outlook.
• Include sales and revenue projections, a budget, a break-even analysis, and a projection of your cash flow.
• These figures will be crucial when seeking funding or investment for your tourism business.

Why do I need a business plan for my tourism business? A business plan helps you understand your business better, assists in securing funding, and serves as a roadmap for your business’s growth. A company overview is important in the travel and tourism industry. How long should my business plan be? The length of a business plan can vary significantly depending on the size and complexity of the business. However, typically, a business plan ranges from 20 to 50 pages. Who should write the business plan? As the successful business owner, you are the best person to write the business plan. However, you can also hire a professional business plan writer or use business plan software. How often should I update my business plan? It’s a good idea to update your business plan at least once a year or whenever significant changes occur in your business or industry. What if I’m starting a small tourism business and don’t have a team yet? That’s perfectly fine. In your organization and management section, simply focus on your role and any outsourced functions. Do I need to include all these sections in my business plan? Yes, each section plays a critical role in providing a comprehensive view of your business. However, the depth of detail in each section can vary based on your specific business. Can I use my business plan to secure funding? Absolutely. Investors and lenders will often request to see a business plan to understand the viability and potential of your business. A well-crafted business plan is crucial for the success of your tourism business. By following this guide, you’ll be well on your way to creating a comprehensive and effective business plan.

Best Practices when Writing a Tourism Business Plan Template

Writing a business plan for a tourism business involves several best practices that can increase the likelihood of your venture’s success. Here are some key points to consider:

1. Be Clear About Your Business Idea:

• Define your tourism business concept clearly.
• Specify the type of services you will provide, such as guided tours, travel planning, or accommodation booking.

2. Conduct Thorough Market Analysis:

• Identify your target audience and understand their needs and preferences.
• Analyze your competitors, their offerings, strengths, and weaknesses.

3. Create a Unique Selling Proposition (USP):

• Determine what sets your tourism business apart from competitors.
• Your USP could be unique tour packages, superior customer service, or partnerships with local businesses.

4. Detail Your Marketing Strategy:

• Develop a marketing and sales strategy to attract and retain customers.
• This could involve online advertising, social media promotion, collaborations with local businesses, or special offers for repeat customers.

5. Plan Your Operations:

• Outline how your business will operate on a day-to-day basis.
• Include details about logistics, staff requirements, equipment needed, and any regulatory compliance issues.

6. Develop a Financial Plan:

• Prepare a detailed financial plan, including revenue projections, budget, and break-even analysis.
• This section is crucial if you’re seeking investment or loans.

7. Review and Revise Regularly:

• A business plan should not be a static document. Review and update it regularly to keep it aligned with your current business situation and future goals.

Remember, your business plan is not just a document for potential investors or lenders; it’s also a roadmap for your business, guiding your decisions and strategies. By adhering to these best practices, you can create a robust business plan that sets your tourism business up for success.

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Step-by-step guide to creating a tour operator business plan [template included]

By Kevin Tjoe — 13 Jan 2022

Business plan   Business set-up

Updated July 2023 – Ready to take the plunge and launch that tour company or adventure travel business you’ve been envisioning? Before you start welcoming guests, the best first step is always to build a detailed business plan. 

A tour operator business plan is more than just a formality; it is the compass that will navigate your business’s journey. A well-structured business plan for a tour operator provides the framework for transforming your vision into a thriving and sustainable business. It will help you clarify your goals, streamline your operations, and make informed decisions.

Let’s explore the immense value of a clear tour operator business plan as well as the most important elements to consider in this comprehensive document. 

Why create a business plan?

Crafting a business plan allows you to lay the groundwork for your tour operator business effectively. Whether you plan to help travelers make travel plans or to provide amazing tourism experiences, your business plan will serve a couple of key purposes:

• You can hit the ground running with a plan in place, and goals to work towards in the long term.
• You’ll have a quality business case to use if you’re applying for loans or grants.
• You can point your start-up resources, such as cash flow and staff, where they’ll provide the most benefit. This is particularly important if you’re starting with a tight budget.
• You’ll also have a ‘roadmap’ to help you navigate through the inevitable challenges, obstacles, and surprises in business!

Key elements of a tour operator business plan

In order to understand how to set up a tour operator business, you’ll first need to learn the key elements of a tour operator business plan.

1. Business overview

This section of your tour operator/ tour agency business plan provides a holistic snapshot of your company, offering readers a clear understanding of your business’s identity. Ideally, it should include the following:

• Business Name: Your business name should resonate with your target audience, conveying the essence of your offerings and the unique experiences you promise to deliver. Ensure it is memorable, evocative, and future-proof.
• Location: Detail the physical location of your tour operator business. Your location can influence your target market and the types of tours you can offer. Be specific about your base of operations and, if applicable, mention any satellite offices or future expansion plans.
• History: Describe the story behind your tour company’s inception. Share the passion and inspiration that sparked your journey into the travel and tourism industry, and ensure that it aligns with your brand values. 
• Ownership Structure: Clarify the legal structure of your tour operator business. Are you a sole proprietorship, a partnership, a limited liability company, or a corporation? Describe the ownership arrangement and highlight the key stakeholders involved in the venture. 
• Assets and Debts: Provide an overview of your company’s assets and debts. This includes tangible assets such as vehicles, equipment, and office space, as well as intangible assets like intellectual property and brand equity. If applicable, disclose any outstanding debts or financial obligations that may impact your business’s financial health and ability to grow.

2. Market analysis

Start by defining your target market. Are you catering to adventure-seeking travelers, history enthusiasts, or nature lovers? Consider their demographics, interests, and spending behavior. Research industry trends and analyze competitors to gain insights into their strengths and weaknesses. This will help you identify opportunities and potential gaps in the market that your business can fill.

In addition, study the external factors that could impact your business, such as seasonal fluctuations, economic conditions, and any regulatory requirements specific to the tourism industry.

3. Tour offerings

Crafting compelling and diverse tour offerings is at the heart of your tour operator business. Consider the unique experiences and attractions your target market seeks. Develop a range of tour packages that cater to different preferences and budget levels.

Your tours should not only showcase the best of the destination but also provide memorable and immersive experiences. Whether it’s organizing guided city tours, thrilling adventure expeditions, or cultural explorations, your offerings should reflect your passion for travel and your commitment to creating unforgettable memories for your customers.

Use your tour operator/ tour agency business plan to emphasize what sets your tours apart from the competition. Whether it’s exclusive access to hidden gems, knowledgeable guides, or sustainable practices, highlight the value that customers will gain from choosing your services.

4. Marketing strategy

Successful businesses have strong brands, so your business plan should set out branding guidelines . Consider the following key elements when coming up with a strategy that will guide how you should start marketing your tour business:

• Branding Guidelines: Outline your branding guidelines, including your brand’s visual identity, mission statement, core values, and brand voice. Emphasize consistency across all touchpoints, from your website and social media platforms to your tour brochures and customer interactions. 
• Advertising Channels: Identify the advertising channels that best align with your target audience and budget. Consider a mix of online and offline channels to reach potential customers effectively. Online channels may include pay-per-click (PPC) advertising, display ads, and sponsored content on travel websites. Offline channels could involve partnering with local travel agencies, and tourism boards, or participating in travel trade shows and events. 
• Social Media Channels: Social media is a powerful tool for connecting with travelers and building a loyal community around your brand. Engage users with captivating visual content, compelling storytelling, and interactive posts that evoke a sense of wanderlust. Utilize platforms like Instagram, Facebook, Twitter, and YouTube to share breathtaking photos, behind-the-scenes glimpses, and testimonials from satisfied customers.
• Customer Reviews and Testimonials: Encourage satisfied customers to share their stories and feedback on platforms like Google Reviews, TripAdvisor, and your website. Positive reviews build credibility and serve as powerful social proof, enticing potential travelers to choose your tours with confidence. Respond promptly and graciously to all reviews, demonstrating your commitment to customer satisfaction.

• Content Marketing: Create valuable and informative content that educates travelers about your destination, highlights unique aspects of your tours, and offers travel tips and insights. Utilize blog posts, videos, podcasts, and downloadable guides to establish your tour operator business as a trusted authority in the travel industry.
• Partnerships and Collaborations: Consider strategic partnerships with complementary businesses in the travel and hospitality industry. Collaborate with local hotels, restaurants, and activity providers to create enticing package deals that appeal to travelers seeking a holistic experience. This is especially important if you are considering creating an international travel agency business plan, as collaborations can help broaden your reach.

5. Operations and management

The operations and management section of your tour operator business plan delves into the practical aspects that keep your business running smoothly and efficiently. This nitty-gritty exploration ensures that every aspect of your tour company is well-organized, legally compliant, and focused on delivering exceptional experiences to your customers. 

Here are the key components to include in this section:

• Business and Legal Structure: Clearly outline your chosen business and legal structure. Whether you are operating as a sole proprietorship, a partnership, a limited liability company (LLC), or a corporation, this information provides a framework for your business’s governance and responsibilities.
• Risk Management and Workplace Health & Safety Plans: As a tour operator, the safety and well-being of your guests are paramount. Detail your risk management procedures and workplace health & safety plans to mitigate potential hazards and ensure a secure experience for travelers. Assess the risks associated with different tours and activities, develop contingency plans, and implement safety protocols that align with industry best practices.
• Terms and Conditions: Craft comprehensive and transparent terms and conditions for your tour offerings. Clearly communicate cancellation policies, refund procedures, and any limitations or requirements for participants. 
• Staff Scheduling and Training: Outline your staff scheduling procedures to ensure smooth operations and optimal customer service. Consider investing in staff training programs that equip your team with the knowledge and skills to offer insightful commentary, excellent customer care, and handle unforeseen situations professionally. Furthermore, you can optimize the utilization of Full-Time Equivalent (FTE)  tool to help you gauge the potential productivity of your staff and business.
• Reservation System: In the digital age, a robust and secure reservation system like Rezdy is vital for streamlining your booking process for both you and your customers. Invest in a reliable booking software that allows real-time availability updates, secure payment processing, and automated customer confirmations.

• Distribution Channels and Partnerships: Consider the distribution channels that will help grow your bookings and expand your market reach. Will you collaborate with online travel agencies (OTAs) or travel agents to promote your tours? Explore partnerships with local businesses, such as hotels and restaurants, to create enticing package deals. 
• Customer Relationship Management (CRM): A well-organized CRM system enables you to build lasting relationships with your customers. Implement CRM software to keep track of customer interactions, preferences, and feedback. Personalize your marketing efforts and start building customer loyalty through targeted promotions and personalized offers.

6. Financial plan

The financial plan is a key component of your tour operator business plan. It outlines your revenue streams, costs, and projected financial performance over time. A well-structured financial plan demonstrates the viability of your business and helps you secure funding if needed.

Start by estimating your startup costs, including equipment, licenses, marketing, and initial staff training. Calculate the expected cash flow, factoring in the seasonality of the tourism industry. Identify the pricing strategy for your tours, ensuring that it covers your expenses while remaining competitive in the market.

Create financial projections for at least the first three to five years, considering both conservative and optimistic scenarios. This will enable you to anticipate potential challenges and make informed decisions that will help you with growing your tour business.

Remember to regularly review and update your financial plan as your business progresses. Monitoring actual financial performance against projections will help you make timely adjustments and stay on track towards achieving your business goals.

Ready to start building your business plan as a tour operator?

Download the free all-in-one checklist for easy reference.

Getting your tour business off the ground

Now that you have an effective business plan in place, it’s important to ensure your business has the right software.

Online booking software for tour operators like Rezdy is designed to equip your business for success. It includes multiple features integrated into the system, which allows you to reduce your overall admin duties. Some of these tools include real-time availability to avoid double bookings, automatic customer updates and reminders, and secure payment processes.

Furthermore, Rezdy also offers a channel manager platform that connects your business to thousands of resellers instantly. Joining Rezdy Marketplace is as simple as listing your products and setting your commission rates. From there, you can let resellers on the platform promote and sell your services to their customers.

Set your business up for success with Rezdy

Set your business up for success with a FREE 21-day trial or alternatively, book a demo to learn more about Rezdy and our products!

If you enjoyed this article then make sure to follow the Rezdy blog . There are a lot of marketing tools and tour operator tips designed with businesses like yours in mind.

Enjoy a 21-day free trial to take a look around and see if we are a good fit for your business.

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Here is a free business plan sample for a travel agency.

Have you ever envisioned launching your own travel agency but feel overwhelmed about where to start? You've landed in the perfect spot.

In the following paragraphs, we will guide you through a comprehensive sample business plan tailored for a travel agency.

As an aspiring entrepreneur, you're likely aware that a meticulously developed business plan is crucial for achieving success. It serves as a roadmap, outlining your vision, objectives, and strategies for your venture.

To craft an effective plan swiftly and with ease, you can utilize our travel agency business plan template. Additionally, our specialists are on hand to provide a free review and refinement of your plan.

How to draft a great business plan for your travel agency?

A good business plan for a travel agency must reflect the unique aspects of the travel industry.

To start, it is crucial to provide a comprehensive overview of the travel market. This includes up-to-date statistics and identifying emerging trends in travel, as illustrated in our travel agency business plan template .

Your business plan should then articulate your vision clearly. Define your target market (such as adventure travelers, luxury vacationers, corporate clients, or budget backpackers), and establish your travel agency's unique value proposition (specialized tours, personalized itineraries, eco-friendly travel, etc.).

Market analysis is the next important section. This requires a thorough understanding of the competitive landscape, travel trends, and consumer behavior.

For a travel agency, it is essential to detail the services you plan to offer. Describe your range of travel products - package tours, custom itineraries, travel insurance, booking services - and explain how they cater to the preferences and requirements of your target customers.

The operational plan is also vital. It should outline the location of your agency, the structure of your customer service and booking system, partnerships with travel providers, and the logistics of trip planning.

For a travel agency, it is important to highlight your expertise in destination knowledge, customer service excellence, and the ability to handle travel disruptions.

Then, delve into your marketing and sales strategy. How will you attract and retain clients? Consider promotional tactics, customer loyalty programs, and cross-selling opportunities (such as travel insurance or add-on excursions).

Embracing digital strategies, like maintaining a robust website or an active social media presence, is also critical in the digital age.

The financial plan is another crucial component. This should include your startup costs, revenue projections, operating expenses, and the point at which you will break even.

In a travel agency, margins can vary widely depending on the type of service, so precise financial planning and a solid understanding of your profit centers are essential. For assistance, refer to our financial forecast for a travel agency .

Compared to other business plans, a travel agency's plan must pay special attention to global travel trends, currency fluctuations, and the impact of international events on travel.

A well-crafted business plan will not only help you clarify your strategy and vision but also attract investors or secure loans.

Lenders and investors are looking for comprehensive market research, realistic financial projections, and a clear operational strategy for managing a travel agency.

By presenting a thorough and substantiated plan, you showcase your professionalism and dedication to the success of your travel agency.

To achieve these goals while saving time, you can complete our travel agency business plan template .

A free example of business plan for a travel agency

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a travel agency .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The travel industry is a dynamic and lucrative sector with significant growth potential.

Before the pandemic, the global travel and tourism market was valued at approximately 9.25 trillion U.S. dollars. While the industry faced a downturn due to COVID-19, it is expected to recover and grow in the coming years, driven by pent-up demand and increased consumer confidence.

In the United States alone, the travel and tourism industry contributes substantially to the economy, with millions of international and domestic travelers spending billions annually.

These figures underscore the travel industry's resilience and its critical role in global economic development.

The travel industry is experiencing a transformation, with current trends shaping the future of how people explore the world.

Sustainable travel is becoming increasingly important, with travelers seeking eco-friendly options and destinations that prioritize conservation and community impact.

Personalization and unique experiences are also in high demand, as travelers look for tailor-made itineraries and off-the-beaten-path adventures.

Technology plays a pivotal role, with virtual reality previews, mobile booking, and AI-powered personal assistants enhancing the travel experience.

Health and wellness tourism is on the rise, with destinations offering retreats and activities focused on physical and mental well-being.

Lastly, the demand for flexible booking options and comprehensive travel insurance has grown, as travelers seek security in uncertain times.

These trends highlight the evolving preferences of modern travelers and the need for travel agencies to adapt and innovate.

Success Factors

The success of a travel agency hinges on several critical factors.

Exceptional customer service is paramount, as personalized attention and expert advice can differentiate an agency in a crowded market.

Offering a diverse range of high-quality travel packages and services that cater to various preferences and budgets is also essential.

A strong online presence, with an intuitive booking platform and engaging content, can attract and retain customers in the digital age.

Strategic partnerships with reputable service providers, such as hotels and airlines, can enhance the value proposition and provide competitive pricing.

Lastly, the ability to adapt to industry changes and embrace new trends, such as sustainable travel and wellness tourism, is crucial for long-term success.

The Project

Project presentation.

Our travel agency project is designed to cater to the needs of modern travelers who seek unique and personalized travel experiences. Situated in a convenient location with a strong online presence, our agency will specialize in crafting tailor-made itineraries for individuals, families, and groups. We will focus on providing exceptional travel packages that include gluten-free dining options, ensuring that travelers with dietary restrictions can enjoy their journeys without compromise.

We aim to offer a seamless travel experience, from the planning stage to the return home, with an emphasis on customer satisfaction and attention to detail.

Our travel agency is set to become a go-to resource for those who value health-conscious travel options, as well as for adventurers looking to explore the world with the assurance of their dietary needs being met.

Value Proposition

The value proposition of our travel agency is centered around delivering personalized and health-conscious travel experiences. We understand the challenges faced by travelers with dietary restrictions and are dedicated to providing gluten-free solutions as part of our travel packages.

Our commitment to customization, combined with our expertise in identifying gluten-free friendly accommodations and restaurants, offers peace of mind and an enjoyable travel experience to our clients.

We are dedicated to creating travel itineraries that not only meet the dietary needs of our customers but also enrich their lives through cultural immersion and adventure.

Our agency strives to be a leader in the niche market of health-conscious travel, offering innovative solutions and educational resources that empower our clients to travel freely and safely.

Project Owner

The project owner is a seasoned travel professional with a passion for exploring the world and a deep understanding of the challenges faced by travelers with dietary restrictions.

With years of experience in the travel industry and a personal commitment to healthy living, the owner is well-equipped to guide the agency in providing top-notch, gluten-free travel experiences.

Driven by a vision to make travel accessible and enjoyable for all, regardless of dietary needs, the owner is dedicated to building a travel agency that stands out for its personalized service, health-conscious options, and commitment to customer satisfaction.

With a blend of industry knowledge and a personal touch, the project owner is the driving force behind this innovative travel agency, aiming to transform the way people with dietary restrictions experience the world.

The Market Study

Market segments.

The market segments for this travel agency are diverse and cater to various customer needs.

First, there are adventure seekers looking for unique and off-the-beaten-path travel experiences, who value personalized itineraries.

Next, there are luxury travelers who desire premium, all-inclusive vacation packages with high-end accommodations and exclusive services.

The market also includes budget-conscious travelers who seek affordable yet memorable trips, often in groups or as solo travelers.

Finally, corporate clients represent a significant segment, requiring professional travel arrangements for business trips, conferences, and team-building retreats.

SWOT Analysis

A SWOT analysis of this travel agency project highlights several key factors.

Strengths include a knowledgeable team with expertise in travel planning, strong partnerships with service providers, and a commitment to customer satisfaction.

Weaknesses might involve the volatility of the travel industry, dependency on economic factors, and the challenge of maintaining competitive pricing.

Opportunities can be found in the growing trend of experiential travel, the potential for digital marketing to reach a global audience, and the ability to offer niche travel packages.

Threats include unpredictable global events affecting travel, such as pandemics or political instability, and the intense competition from online travel agencies and direct booking platforms.

Competitor Analysis

Competitor analysis in the travel agency sector indicates a highly competitive landscape.

Direct competitors include other local and online travel agencies, as well as larger travel companies with extensive marketing budgets.

These competitors strive to capture the attention of various traveler demographics by offering deals, loyalty programs, and comprehensive travel services.

Potential competitive advantages for our agency include personalized customer service, unique travel packages, expertise in niche markets, and strong relationships with reputable service providers.

Understanding the strengths and weaknesses of competitors is crucial for crafting strategies that emphasize our unique selling propositions and foster customer loyalty.

Competitive Advantages

Our travel agency's competitive edge lies in our personalized approach to crafting travel experiences that resonate with individual client preferences.

We offer tailored travel solutions, from adventure tours to luxury getaways, ensuring that each trip is a perfect fit for our clients' desires and budgets.

Our dedication to customer service excellence allows us to build lasting relationships with our clients, securing repeat business and referrals.

We also pride ourselves on our insider knowledge of destinations, which enables us to provide exclusive experiences not readily available through other channels.

You can also read our articles about: - how to start a travel agency: a complete guide - the customer segments of a travel agency - the competition study for a travel agency

The Strategy

Development plan.

Our three-year development plan for the travel agency is designed to cater to the evolving needs of modern travelers.

In the first year, we will concentrate on building a robust online presence and developing personalized travel packages that cater to niche markets, including eco-tourism and adventure travel.

The second year will focus on establishing partnerships with airlines, hotels, and tour operators to offer exclusive deals and expanding our service offerings to include corporate and group travel.

In the third year, we aim to enhance our customer service with the introduction of a mobile app for itinerary management and real-time travel assistance, as well as exploring the possibility of opening branch offices in key cities.

Throughout this period, we will remain dedicated to providing exceptional travel experiences, maintaining strong customer relationships, and staying ahead of industry trends.

Business Model Canvas

The Business Model Canvas for our travel agency targets a diverse range of customers, from solo travelers and families to corporate clients and adventure seekers.

Our value proposition is centered on delivering tailor-made travel experiences, exceptional customer service, and competitive pricing.

We offer our services through a user-friendly online platform, complemented by personalized consultation from our travel experts.

Key activities include travel planning, booking management, and customer support.

Our revenue streams are generated from service fees, commission from partners, and premium travel package sales, while our costs are associated with marketing, technology infrastructure, and staff salaries.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is built on creating memorable travel experiences and establishing a reputation for reliability and customer satisfaction.

We plan to engage with our target audience through storytelling and sharing travel success stories across various digital platforms.

Partnerships with travel influencers and the use of targeted advertising will help us reach a wider audience.

We will also offer loyalty programs and referral incentives to encourage repeat business and word-of-mouth recommendations.

Lastly, attending travel expos and networking events will allow us to build industry relationships and stay connected with market trends.

Risk Policy

Our risk policy focuses on mitigating risks associated with travel disruptions, customer satisfaction, and industry volatility.

We will offer flexible booking options and comprehensive travel insurance to protect our clients against unforeseen events.

Regular training for staff on the latest travel advisories and safety protocols will ensure informed and safe travel planning.

Prudent financial management and maintaining a diversified portfolio of travel products will help us navigate economic fluctuations.

We will also secure liability insurance to cover any potential travel-related disputes, prioritizing the safety and satisfaction of our clients.

Why Our Project is Viable

We are committed to launching a travel agency that adapts to the dynamic preferences of today's travelers.

With our focus on personalized experiences, customer care, and strategic partnerships, we are poised to capture a significant share of the travel market.

We are enthusiastic about making travel planning seamless and enjoyable, contributing to memorable journeys for our clients while growing a successful business.

We are flexible in our approach and ready to adapt to the ever-changing travel landscape, looking forward to a bright future in the travel industry.

You can also read our articles about: - the Business Model Canvas of a travel agency - the marketing strategy for a travel agency

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a travel agency and our financial plan for a travel agency .

Initial expenses for our travel agency include securing a prime location for our office, investing in robust travel booking software, creating an engaging website for online reservations, obtaining the necessary licenses and insurance, training staff on various travel destinations and customer service excellence, as well as costs related to brand creation and launching targeted marketing campaigns to reach our ideal clientele.

Our revenue assumptions are based on a thorough analysis of the travel market, considering trends in tourism, consumer vacation spending habits, and the unique value proposition of our personalized travel planning services.

We anticipate progressively increasing sales, starting modestly and growing as the reputation of our travel agency strengthens and our customer base expands.

The projected income statement indicates expected revenues from our travel booking commissions, service fees, and customized travel packages, minus the costs of operations (staff wages, office rent, marketing, utilities, etc.).

This results in a forecasted net profit essential for assessing the long-term viability of our travel agency.

The projected balance sheet reflects assets specific to our business, such as office equipment, software, and prepaid travel inventory, and liabilities including debts and anticipated operational expenses.

It shows the overall financial health of our travel agency at the end of each fiscal period.

Our projected cash flow budget details incoming and outgoing cash flows, allowing us to anticipate our financial needs at any given time. This will enable us to manage our finances effectively and maintain a healthy cash reserve.

The projected financing plan lists the specific financing sources we plan to use to cover our startup expenses, such as business loans, investor capital, or personal savings.

The working capital requirement for our travel agency will be closely monitored to ensure we have the necessary funds to finance our daily operations, including marketing efforts, office expenses, and staff salaries.

The break-even point specific to our project is the level of sales needed to cover all our costs, including startup expenses, and begin generating a profit.

It will indicate when our business is expected to become financially sustainable.

Performance indicators we will track include the profit margin on our travel packages, the customer satisfaction rate to gauge service quality, the liquidity ratio to assess our ability to cover short-term obligations, and the return on investment to measure the efficiency of our capital invested in the agency.

These indicators will help us evaluate the financial health and overall success of our travel agency.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a travel agency .

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How to create a tour operator business plan in 8 steps

Preparing to Write a Business Plan

Tour operator business plan template, tips and tricks for a strong tour operator business plan.

Wondering how to turn your tour operator idea into a real business? The first step to launching a startup and getting investors onboard is to develop a formal proposal called a business plan . Whether you want to start a travel agency, a walking tour company, or an adventure travel business, you will use a business plan to communicate exactly how you plan to make your idea come to life. 

Creating a tourism business plan might sound daunting; in this article, we’ll show you how to do one and offer lots of advice for first-time founders. You’ll be able to use this article as a tour operator business plan template to write your own sample business plan (as an exercise) or to create the real thing.

To more clearly illustrate how to create a tour operator business plan, we’ll use a sample business as we go through each section. Our sample business is a small tour operator startup that specializes in ecotourism in Thailand.

Before you start to create your official business plan, it can be helpful to think through several aspects of your business so that you are fully prepared to address each topic in the business plan template. One excellent preparation exercise is to complete a Business Model Canvas for your company. 

The Business Model Canvas encourages you to think critically about your customers, cost structure, revenue streams, marketing strategy, and more. It’s the perfect warm-up for your business plan because you’ll incorporate your Business Model Canvas notes into the actual business plan document. We recommend that you do this exercise with your co-founders, if you have any, and with a whiteboard – you’ll probably make lots of changes as you go!

You can find a printable Business Model Canvas template here .

Your tour operator business plan should contain at least seven sections: an executive summary, a company overview, a description of your services, an analysis of your market, an implementation plan, a team summary, and a financial plan. You might have one or more appendices at the end, if you have additional relevant information to include. The finished product should be formatted nicely and incorporate your company’s logo and branding.

Executive Summary

As the first component of your business plan, the executive summary is arguably the most important section. If you’re pitching your idea to investors, they’re likely very busy people, so you want to grab their attention from the beginning. The executive summary should contain a concise outline of your tour operator company’s objectives and goals, your mission and/or vision statements , your key success factors, and a clear description of your value proposition. 

Company Overview

Think of this section as what you would post on the “About” section of your tour operator company’s website. The company overview should explain who your company’s key leaders are, how and when the business started, what the ownership structure looks like (if you have investors, for example), where your office is located, and an outline of your current assets and debts. If you’re in the early stages of your business, this section might be quite short.

Operations Plan

The operations plan is where you describe exactly what your company will offer. What kinds of tours will you sell? Where exactly will you operate? This is the type of information you would list on your website for potential customers or guests to read – but without too much of a sales pitch. 

In this section, it can also be helpful to include a description of the full “ life cycle ” of your business. What happens before, during, and after a tour? What steps does the guest complete, and what happens behind the scenes at your company’s office?

Thinking about our Thai ecotourism company, we might illustrate how someone could book a tour perhaps six months in advance on our website. Between booking and arrival, we coordinate accommodation, meals, and transportation with partner providers. When the tour concludes, we offer transportation back to the airport and follow up with a special offer to book another tour with us at a discount. 

Market Analysis

This section explores your specific niche within the tourism industry and the geographic location(s) where you plan to operate. Who are your target clients or guests? Who are your main competitors? What trends exist in this facet of the industry? Is the amount of visitors to your location increasing or decreasing? 

Try to include statistics from reputable sources whenever you can. Destination marketing organizations, tourism bureaus, and air traffic data, just to name a few, can provide valuable insight and add credibility. This section should leave no stone unturned so that your reader can truly understand your market conditions.

In our ecotourism business in Thailand, for example, we would include information about travel trends in Thailand (like the most popular feeder markets), new air routes, economic trends, the number of new hotels being built, etc. We would also explore the ecotourism market; are more people choosing eco-friendly travel options today compared to five years ago? What companies are the current ecotourism market leaders globally and in Thailand?

Implementation

Now that you’ve explained your business idea and described the market in which you plan to operate, it’s time to outline exactly how you will bring your tour operator business to life. This section should include a SWOT analysis , details about your marketing and pricing strategies, and a sales projection. 

In the SWOT analysis , you will explore your company’s strengths, weaknesses, opportunities, and threats. What does your company offer that nobody else in the market does? What are some potential challenges that you will need to face? Using our ecotourism company example, a threat could be natural disasters – if there are floods or mudslides, our business cannot operate. On the other hand, an opportunity is that more people are interested in eco-friendly travel options. 

Your marketing and pricing strategies should be very specific. How will customers find your company? Which online channels will you use? Will you work through travel agents or directly with your customers? 

Your pricing strategy should include the exact rates you plan to charge for at least a year in advance. For example, our ecotourism company in Thailand might charge $699 for a package during low season, $899 during high season, and $999 over holiday periods, with rates increasing 5% each year. 

We might also offer a 10% discount for advance purchase bookings made at least 6 months in advance and charge a 50% cancellation fee for any reservations cancelled within 3 months of the tour departure date. Based on your pricing strategy, you can create a sales projection that will estimate your company’s sales performance, preferably over the next three years.

Team Summary

After your reader understands what your tour operator business will do, they’ll wonder who is going to make it happen. And if you’re planning to launch a full-fledged tour operator business, you’re probably not going at it alone. The Team Summary section should include a thorough plan for your company’s organizational structure, key leaders, employees, and training processes. 

Do you already have a management team in place, or will you need to hire additional leaders? How many employees will you need, and how much will you pay them? And how will you train and develop your employees? The Team Summary should answer all of these questions and provide enough information for potential investors to understand exactly how you plan to staff your business, pay your employees, and ensure all team members are trained properly. 

Financial Plan

The financial plan is extremely important to potential investors because they will want to maximize the return on their investment. Your financial plan is essentially a projection of your revenue streams and cost structure for your company’s first five or so years of operation. It will include not only revenue from ticket sales and costs from employee salaries, but also details like tour-operator software costs, insurance, taxes, marketing spend, depreciation of assets, interest on loans, and more. 

If you don’t have a finance background yourself, it may be helpful to seek assistance from an accountant or someone who knows the ins and outs of financial modeling. 

Additional Information

In an appendix, you can include supporting information or statistics that may be helpful for potential investors, but not essential to your business plan. For instance, you could include a full report on air traffic trends that you used in your Market Analysis section.

Download Your Tour Operator Business Plan Template

Now that you know what a Tour Operator Business Plan should include, below we provide the one we have specially created for you.

Writing a business plan is certainly not an easy task. It’s time consuming and requires a lot of thought, but a well written business plan can lead to significant growth for your company. As you complete your business plan, keep these pieces of advice in mind:

• Conduct thorough research on your market . When you pitch your company to investors, you want to be seen as an expert, so learn as much as you can about your competitors and market trends.
• Simplify your words and descriptions whenever possible . A business plan is not the place to wow your reader with flowery language – instead, you want your reader to easily grasp your value proposition. Think about writing so that a fifth-grader can understand it. The last thing you want is for your reader to be confused about what your company actually does.
• Don’t be afraid to make changes . As you work on your business plan, you might discover that some aspects of your business need to be adjusted for the greater good of the company. After all, the companies that are the most adaptable are the ones that survive!
• Get a second opinion (or a third or a fourth). A good test of your business plan’s readability and clarity is to let someone outside your industry read it, like a family member or friend. If they have a lot of questions, you might need to adjust your descriptions or more clearly explain your plans.
• Proofread ! Your business plan is a reflection of your company’s values. If your formatting is sloppy and your text is full of typos, your reader might question whether you have the attention to detail necessary to run a successful business.

Now that you have all the tools to create a great tour operator business plan, it’s time to get to work!

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Adrienne Fors is the founder of Strategic Stays, a consultancy specializing in tech solutions and copywriting for short-term rental businesses and boutique hotels. She was previously a Market Manager at Expedia, and she graduated from the School of Hotel Administration at Cornell University. Adrienne is originally from Minneapolis, Minnesota and enjoys traveling and playing tennis.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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How to Create a Business Plan for Your Tour or Travel Company

Do you have the next great tour business or travel company idea, but don’t know how to turn it into reality? You’ve found your niche and even come up with the best tour company name ever, but who do you tell and how do you get started? 

Table of Contents

Why your tour company needs a business plan.

We’ve previously covered topics on how to build your business, but one beneficial, even crucial, practice before you start is to write up a small business plan, one that compiles all the important aspects of your brand in a single 15-20 page document. Having a simple tourism business plan will help you plan for the future and even discover new things about your brand. 

Whether you’re a young entrepreneur building a tour startup in search of investors, or you’re an established tour operator looking to better understand your business and take it to the next level, a tour operator business plan can help guide you in the right direction. 

The Benefits of a Business Plan

As mentioned above, a tour company business plan is a document that outlines all the important aspects of your tour business. From your company goals and objectives, to your team members, and even your financial statements, a business plan is an effective tool for analyzing the ins and outs of your business.

It is the ultimate document used to convince investors and lenders to support your tour company. If you’re not looking for investors, writing a simple business plan for your tour business is still useful practice to align the leaders in your company, discover any shortcomings you might have missed, and plan for future growth.

How to Create a Tourism Business Plan

Now that you understand why having a small business plan is important, you’re probably wondering how to write one. You can use a business plan template, but it’s good to know why you’re including the information it asks for. It’s also acceptable to cater the content of your business plan to suit your unique company, but there are certain sections that investors expect to see, making them beneficial for you to include.

Here is what you need to include in your company’s business plan: 

Executive Summary

One of the most important sections of your business plan will be your executive summary, which serves as a high-level overview of your business, providing highlights of the fundamentals of your brand.

You’ll notice that most, if not all, of the topics covered within your executive summary will have their own dedicated section later on in your business plan. Because the executive summary is typically limited to a single page, leave the nitty-gritty details for their respective sections and use the executive summary as a way to simply introduce the topics to your reader. 

Executive summary topics:

• What is your business and what does it do? Do you host walking tours or provide bicycle rentals? Are you a tour guide or do you run a themed hotel experience? Give the reader a clear understanding of your business concept.
• What are your business goals and where do you envision your company in the future? How do you want to see your business grow?
• What makes your business different from your competitors? Whether you’re renting out a specific product like Segways or providing a service like guided tours, discuss what sets you apart from (and makes you better than) similar businesses in your industry.
• Who is your target audience? Who are you selling to and why are they interested?
• What is your marketing strategy? How do you plan to connect with and convert your customers?
• What is your current financial state? What is your projected financial state?
• What is the purpose of your business plan? Are you looking to secure investors and/or lenders? If so, how much are you asking for? You won’t need to discuss this if your business plan is strictly for your own planning purposes.
• Who is on your team, what are their job titles, and what do they do?

Again, like your business plan as a whole, not all of the topics listed above may be applicable to your business or your specific needs, so include only what you see fit. 

Company Overview

Your company overview should give your reader a detailed understanding of who you are and what you do. This includes technical topics like your business description, structure, and model, but should also cover the heart and soul of your company. That is, not only what you do, but why you do it. Developing your brand story is an important step to branding in the travel and tourism industry .

What is it about running a bungee jumping business, wine tasting tour, or spelunking course that inspires you? What is your company’s mission, vision, purpose, and USP (unique selling proposition)? What are your business goals and objectives, both short-term and long-term? Defining these aspects of your business helps readers, whether investors or your own employees, connect with your business at a deeper level.

Market Analysis

Another important section to include in your business plan for your tour company is a detailed market analysis. Even if you’re creating your business plan for internal use only, conducting market analysis and research is an excellent way to gauge your position within your industry, identify areas of concern, and create an effective marketing strategy using the 7 Ps of Travel and Tourism Marketing .

Things to consider in your market analysis include your target market and demographic, whether your marketing strategy is aligned with your target market, where you want to position yourself in the industry in relation to your competitors, and where you have room to improve. 

Try conducting a SWOT analysis for your tour business to explore your:

• Strengths – what do you do well?
• Weaknesses – what could you do better?
• Opportunities – are there gaps in your industry that you can take advantage of?
• Threats – what external factors affect your chance of success?

Team Summary

Use your team summary section to outline the leaders and key players in your tour company. An organizational chart works well to display this information and will usually explore members of management and other key personnel, their job titles, and their roles and responsibilities. Be sure to address how each person plays/will play an integral role in the success of your tour business or travel company.

Even if your business is very small or you run a sole proprietorship, it’s still worth including a team summary section so that potential investors can get to know who they’re investing in. A team summary adds a human element to your business plan and can help build your readers’ confidence by showing them that they can trust the leaders (even if it’s just you) to bring the company to success.

Financial Plan

Discuss your finances. What is your current financial state, what is your future financial projection, and how do you plan on getting there? If you’re looking for an investment, how much do you need? Include relevant documents, paperwork, statements, calculations, etc. to back up the numbers you’re sharing.

Marketing Plan

Needless to say, tour marketing is one of the most important aspects of your tour business.

Your business plan should have a detailed marketing strategy and promotional tactics, including pricing strategy, advertising channels, and innovative tactics. It should also leverage social media and other tourism-related technology to reach your target market effectively.

Your Business Plan Can Set You Up For Success

Investing the time up front to create a simple business plan for your tour company is worth the effort, and is crucial to becoming a successful tour operator. Going into anything without a plan can be risky, and starting a tour business is no different. 

Once you know how to write a business plan and understand the main components that make one effective, you’ll have an invaluable tool for securing investors and planning your company’s growth in the competitive tourism and travel industry. There’s really no better time than now, so go out there, write a killer business plan, and start the tour business of your dreams .

Written By | Edward Nieh

Edward Nieh is a freelance writer and copy editor working across multiple mediums for clients from various industries. He has a degree in creative writing with a focus on screenwriting for feature films.

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Travel Tour Agency Sample Business Plan

Start-up your travel tour agency with a business plan similar to this detailed example..

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Car wash business plan, event planning sample business plan, coffee shop business plan.

Starting your own travel tour agency but don’t know how to compile your business plan? Here’s an example of a dummy company’s business plan to get you thinking about how to create yours.

Travel Tour Agency Business Plan

1. executive summary.

The tourism industry has undergone rapid growth of unsurpassed nature over the last several decades. This has mainly been due to the advent of a ‘borderless’ world and increased information dissemination about the majestic sceneries throughout the world, with the southern African region being no exception.

We are on the brink of penetrating a lucrative market in a rapidly growing industry. The current trend towards an increase in the number of tourists entering the country presents an opportunity for Sephats Tours to penetrate the market.

An opportunity for Sephats Tours’ success exists because the national tourism industry is growing at a rapid pace annually.

Sephats Tours is poised to take advantage of this growth and moderate competition in the city travel portion of the industry, with a dedicated and experienced staff, excellent networking, and effective management and marketing. Sephats Tours intends to provide travel and adventure packages to tourists primarily in the Southern region, but also the whole of Botswana.

Services and products provided by Sephats will initially include pre-arranged tours, custom packages according to clients specifications, travel consultation, and as time progresses making reservations for lodging amongst other related services. Sephats Tours seeks to differentiate itself as the premier adventure mobile operator in the greater Gaborone area.

Our services will be positioned very carefully: They will be of extremely high quality, comfortable, informative and tailored to the clients needs such that they will enable individuals to have a greater appreciation of the natural environment and its intricacies.

Our marketing strategy will be based mainly on ensuring customers know about our existence and the service(s) we fulfill. Hence our intention is to make the right information available to the right target customers. This will be done through implementing a market penetration strategy that will ensure that we are well known and respected in the tourism industry.

We will ensure that our prices take into consideration peoples’ budgets, that these people appreciate the service(s), know that it exists, and how to contact us. The marketing will convey the sense of quality in every picture, every promotion, and every publication.

Our promotional strategy will involve integrating advertising, events, personal selling, public relations, direct marketing and the Internet, details of which are provided in the marketing section of this plan.

It is important to recognise that we do not intend to just take individuals on sightseeing excursions, but also to ensure that they appreciate nature through informative briefings on objects’ origins.

This element will assist in differentiating us from our competitors and contribute towards the development of a sustainable competitive advantage.

Hence we need to engage the right people in the right place at the right time if we are to ensure optimum growth. We intend to develop our team so that our people can grow as the company grows – a mutually beneficial relationship.

We project sales to increase from more than P350,000 (Botswana Pula [P]) the first year to more than P556,500 the second, and P630,000 in the third year.

In a nutshell, we do not just intend to market and sell our service, but to market and sell travel solutions and a total-quality environment. This will ensure we establish a reputable corporate image.

1. Objectives

Our business strategy will revolve around the need to provide quality service to our various target customers, in the process fully satisfying their needs. This shall be undertaken through recruitment of a professional team and the provision of good quality custom-designed travel packages, catering to the client’s particular needs.

With time our marketing campaign will increase the awareness of our services in the various market segments we shall be targeting. This is particularly so with the organisation looking at establishing a clear advantage(s) in an increasingly competitive market.

We will provide clients with the opportunity to focus on their core activities whilst their transportation side needs are fully satisfied. Marketing material shall be professionally done so as to be reflective of our intended image and reputation.

We shall position ourselves as a quality commercial transportation operator that provides customer-need fulfillment, enjoyment, reliability and a good image. We intend to establish a good rapport with all the relevant stakeholders, especially hotels and travel agents.

We also intend to have well-designed brochures and other promotional material that will enable clients to have an understanding of the types of services we offer and advantages of utilising them.

In addition well-done, informative brochures, fact sheets and business cards often have a triggering effect on clients contemplating utilising our services. Hence this will undoubtedly generate increased sales of our service.

In summary we intend to attain the following objectives:

• Continuously provide enjoyable quality excursions/trips on time and on budget.
• Develop enthusiastically satisfied customers all of the time.
• Establish a market presence that assures short-term and long-term profitability, growth and success.
• We are fully committed to supporting growth and development in the tourism and overall economy of Botswana.
• Contribute positively to our communities and our environment.

Internally we intend to create and nurture a healthy, exuberant, respectful, and enjoyable environment, in which our employees are fairly compensated and encouraged to respect the customer and the quality of the service we intend to provide.

In addition follow-up will be mandatory so as ensure customer satisfaction and make any improvements as recommended by the customers in future.

We seek fair and responsible profit, enough to keep the company financially healthy for the short and long term, and to fairly remunerate employees for the work and effort.

3. Keys to Success

The keys to Sephats Tours success will undoubtedly be effective market segmentation through identification of several niche markets and implementation strategies.

Along these lines the company intends to implement advertising, personal selling and direct marketing strategies to the target markets.

Our personal selling marketing strategies will rotate around keeping in touch with hotels and travel agencies for major customers, and advertising for more individual customers.

Hence our key success factors will include the following:

• Excellence in fulfilling the promise: We intend to offer completely enjoyable, comfortable and informative travel excursions that will ensure that travelers are thoroughly satisfied and appreciative at the end of their trip.
• Timely response to customers’ requests: We cannot afford to delay our clients for whatever reason, as this will have a negative bearing on our image and reputation, including future business. Hence we need to be continually communicating with the client, including hotels and lodges so as to ensure that we are constantly available to the client meeting their expectations.
• Solid and fruitful strategic alliances : Considering the nature of our services and our relative infancy on the market, we realise the importance of establishing and maintaining fruitful strategic alliances with various stakeholders, including hotels, lodges, and travel agencies, amongst others, so as be assured of a constant flow of customers, fulfilling their needs at every opportunity.
• Marketing know-how: As a relatively new company on the market there will be a need to aggressively market our business and the services we provide so as to be continuously at the top of our prospective clients minds. This will also act as a temporary deterrent for companies contemplating entering our market. Advertising shall be undertaken on a regular basis.

2. Company Summary

Sephats Tours intends to provide individual and group travel to leisure clients.

Services and products provided by Sephats will initially include pre-arranged tours, custom packages according to clients specifications, travel consultation, and as time progresses making reservations for lodging amongst other related services.

Sephats Tours seeks to differentiate itself as the premier adventure travel company in the greater Gaborone area.

As it grows it will take on people and expand into related markets and services. It will also look for additional leverage by establishing relationships and representations with appropriate strategic allies.

1. Company Ownership

Sephats Tours is a Private Limited company incorporated at the Registrar of Companies through the foresight and vision of Mr. X and Mrs. Y. It is a 100% wholly owned Botswana firm.

2. Start-up Summary

Thus far the directors have contributed one hundred and sixty seven thousand pula (P167,000) to purchase a Mercedes Benz mini bus currently in its possession and P30,000 for cash expenses. Total start-up expenses covered (including legal costs, business plan compilation, license costs and related expenses) come to approximately P5,000.

3. Company Locations and Facilities

At present the company offices are located at Plot Number 28338, Block 3, Belabela road opposite Gaborone Television Station, near Hill Crest Primary School.

However, as time progresses the intention is to move into more accessible and attractive offices in a prime area. This regardless of the fact that our type of business is not too dependent on office location and size.

3. Services

Sephats Tours is a travel company that intends to deliver leisure travel excursions to customers. Sephats intends to guide customers in selecting a trip(s) based on pre-defined vacation criteria. This analysis will be based on user profiles, set by the consumers, which includes preferences such as:

• Activities sought
• Destination, and
• Time of Travel

A traveler will hence be able to select areas of interest based on their preferences and subsequently identify destinations to visit.

The intention is to provide customers with access to exclusive travel destinations, service to fully appreciate destinations through information packages, not just sight-seeing, and access to special interest travel according to the group’s/individual’s preferences.

1. Competitive Comparison

There are presently few competitors offering services similar to ours. However considering the pace of change and current growth rate of the tourism industry luring many companies into the sector, this may be short-lived.

Hence there will be a need to not only firmly establish ourselves on the market, but also strongly differentiate ourselves from these other businesses. However on a broader scale our competition comes in several forms:

The most significant competition are hotels and travel agencies offering travel excursions to their clients. They undertake this service in order to establish a competitive advantage over their competitors.

However, instead of directly competing with them we intend to establish good working relationships in the form of strategic alliances such that we are able to offer the service for their clients and thus enabling them to concentrate on their core activities whilst ensuring customers are fully satisfied.

Our key advantage in this regard will be our specialty of the service and hence wide knowledge ensuring customer satisfaction at all times as well as flexibility in providing the service. Existing hotels, lodges and travel agencies may identify the opportunity to diversify into our intended services utilising their current client database.

Naturally, existing clients will be inclined towards utilising these familiar companies due to the fact that a good relationship may have already been nurtured over the years during their business dealings.

This presents a potential challenge to us, as we need to aggressively market our services and expertise in the field. Existing safari operators that mainly focus on the remote environs such as Maun and Kasane are at times able to compromise, offering excursions in and around Gaborone, though very rare. Hence we intend to focus on this market. An analysis of competition is provided in the Market Analysis section of this plan.

2. Service Description

Sephats Tours intends to offer the service and knowledge a discerning leisure traveler seeks whilst on vacation, with the intention of seeing and appreciating the numerous sights in the area.

Keeping in mind the comforts of a tourist, our fleet shall be very well maintained and designed as per customer standard and expectations. However not wanting to limit ourselves we intend to be open to special hire by churches, organisations, groups, schools and sports teams, amongst other related groups.

The game reserves and lodges that we intend to be our main destinations are:

• Mokolodi Nature Reserve
• Goborone Game Reserve
• Gaborone Dam
• The Oodi and Mochudi Craft Villages
• Kolobeng and Thamaga
• Khutse Game Reserve

Below is a briefing of several places of interest and their various attractions.

• Mokolodi Nature Reserve: Set in a wide valley just 10 minutes drive from the city, this scenic reserve offers a well-developed network of game drives and stone and thatch chalets overlooking a water hole. Mokolodi also offers the rare opportunity to track rhino or to walk through the bush with young elephants. These excursions offer excellent photographic opportunities. Evening drives can include a bush braai giving visitors the chance to see the more unusual nocturnal creatures.
• Gaborone Game Reserve: This 550 hectare reserve provides an ideal get-away for tourists who can see a remarkable range of wildlife in the park including rhino, eland, zebra, gemsbok, wildebeest, kudu, ostrich and impala, all on well-maintained bush roads that are designed for easy access. Bird watching in the Gaborone Game Reserve is excellent, particularly along the eastern edge, bounded by Notwane River, and it typifies the incredible diversity of bird life to be found throughout the Gaborone area.
• Gaborone Dam: On the south bank a remarkably rich variety of bird and wildlife can be seen, including herds of impala, kudu and scuttling families of warthog. New picnic sites, which are currently under development will also provide places of interest. The Gaborone Yacht Club is the main attraction on the dam with its swimming pool, bar and wide verandah overlooking the water off a rocky koppie in the middle of the dam which often becomes an island in the wet season.
• The Oodi and Mochudi Craft Villages: In Oodi the main attraction will be the Lenstwe-la-Oodi weavers. In Mochudi apart from traditionally decorated Setswana architecture, the tourists will find the most southerly baobab trees in Botswana and traditional crafts including the Ithuteng Tin Workshop and Ikgabiseng handmade jewelery. The Phuthadikobo Museum in Mochudi will also be an attraction site.

Other sites will include Matsieng Foot Point, Gemsbok National Park, Mabuasehube Game Reserve, Legaga la ga Kobokwe, Central Kgalagadi Game Reserve, Nxaii Pan and Khama Rhino Sanctuary.

Integrating the above places of interest into our tours we intend to be offering the following tours:

• “Capital Crusade” – City Tour: This will be a professionally guided tour around the city centre including visits to the Main Mall, Finance Mall, National Museum, City Council Library, Gaborone Station, and House of Parliament including others. These tours shall be eye opening in terms of the normal Botswana town folk life style providing knowledge and information throughout the guided tour. Included in this package will be refreshments and information folders detailing the main sites and history of Gaborone. This tour will cover approximately 50 kilometers taking about half a day to complete. Cost: PX per person.
• “Cultural Enrichment” – Cultural Tour: This shall involve tours to the main historical and cultural sites in and around Gaborone including Mokolodi Nature Reserve, Oodi and Mochudi Craft Villages, including the cultural dances. This tour shall reveal the ‘Kgotla’ – cultural villages, traditional paintings and art, as well as the traditional lifestyle. Obviously baobabs will make for good viewing. The tour package will include an information folder, guided tour and refreshments. This tour will cover approximately 200 kilometers taking the whole day to complete. Cost: PY per person.
• “The Essence: Past & Present” – City & Cultural Tour: This will be a combination of the cultural tour and city centre excursion. This will be marketed as a “total package” enabling tourists with very little time to appreciate the Botswana lifestyle, both in the present and past. This tour will invariably take the whole day and cover approximately 250 kilometres. The tour package will include the information folder, guided tour, refreshments and a picnic lunch. Cost: PZ per person.

3. Macro-environment

At a large scale research demonstrates that tourism is undergoing a rapid growth of unsurpassed nature. Generally there is a trend towards shorter stays but increased visits, as individuals strive to experience as many cultures as possible, including seeing as many attractions as possible.

Increasingly Botswana is being marketed as “one of the few places in Africa where game sanctuaries have remained completely unspoiled.

A destination that unlocks the mystery of nature – an oasis in a wilderness which is an ideal escape for nature lovers. Very little of this fascinating country has seen human habitation – this is true Africa in all her remoteness and authenticity.

With such marketing in place the number of tourists entering the country is bound to increase, presenting a larger potential market for ourselves. This potential market is what we seek to tap.

4. Sales Literature

The business will begin with a general corporate brochure establishing its position on the market. This brochure will be developed as part of the start-up expenses including the business cards and Company Profile, mainly for the large organisations that often recommend services to potential customers.

Compliment slips are also intended so as to raise awareness of the company and its services. We also intend to have information pamphlets that will provide information on our various tour packages. Literature and mailings for the initial market forums will be very important.

5. Fulfillment

The key fulfillment and delivery will be provided by the employees of the company. The real core value will be professional expertise, provided by a combination of expertise, experience, hard work, and education (in that order). Hence we intend to ensure that the work we undertake is always thorough and relevant to the clients’ needs.

We will turn to reputable companies for supplying the necessary individuals and groups for our services. Hence the need to establish good relationships with our strategic allies.

6. Technology

Sephats Tours will strive to ensure that it contains the latest, or extremely recent personal computer including relevant software so as to ensure that the company is continuously at the forefront in our market arena.

The one certainty in our industry is that technology will continue to evolve and develop, changing what we market as well as how we market it. Our aim will be to be aware of the implications of this new technology and utilizing it in our existing framework where possible. However it should be noted that as we are new on the market it will take some time before we have in place our own website and other multimedia presentations.

With time we also intend to have the latest and most efficient software in place to enable smooth operations.

7. Future Services

In putting the company together we have attempted to offer enough services to allow us to always be in demand by our customers and clients. The most important factor in developing future services/products is market need.

Our understanding of the needs of our target market segments shall be one of our competitive advantages. It is critical to our effort to develop the right new services. In the future, Sephats Tours intends to broaden its coverage by expanding into additional markets.

One of the main services it aims at providing is to become a destination management company that brings alive the magnificence of this country to the traveler. This will be done by co-coordinating the traveler’s entire experience from hotel bookings, safaris and tours, greeting and porter services, and to tour packages and incentives. However in doing so we will strive to ensure that it is compatible with the existing products and company personnel.

As time progresses the intention will to provide a Southern Africa tour package covering the whole of southern Africa.

4. Market Analysis Summary

We are today experiencing a rapid growth in the economy of unsurpassed nature. This has been brought about by, amongst other things, the relaxation of foreign exchange policies and macroeconomic policies geared towards attracting foreign investors into the country.

The fiscal and monetary policies of the government geared towards maintaining growth with social justice have largely contributed towards this, evidenced by our economy averaging a growth rate of 7% since 1990 – very high by international standards.

The current drive and emphasis by the government on diversification of the industrial base away from the minerals sector presents an opportunity for Sephats Tours to make a valuable contribution towards achieving this goal. Having undertaken a thorough and comprehensive research of the market we realized that there was a need for a tourist transport company that focuses on providing leisure excursions to tourists.

Though there are mobile operators currently on the market, some of whom have been in existence for a relatively long period of time, we believe that there is a market need for one that specializes on providing comfortable and enjoyable transport to tourists and visitors.

This, also considering the fact that, potentially Botswana’s richest natural resource, the tourism industry is becoming an increasingly important player in the economy and may in the long term prove even more valuable than mineral resources in earning foreign exchange.

Aware of the fact that operating in such a market is largely dependent on good networking, we intend to establish networks and strategic relationships with various hotels, lodges and travel agents to ensure a steady stream of clients.

However in so doing we intend to ensure that the service we provide is of extremely high quality and comfortable. Our initial overall target market share shall be 10% of the market, mainly focusing on the greater Gaborone area and southern Botswana.

We appreciate that entering such a market is not a ‘bed of roses’ and will require us establishing strong links with strategic partners as outlined previously. Hence we intend to implement an aggressive marketing strategy, well supported by the other business functions.

The above prognosis influenced our decision to enter the tourist transport industry.

1. Market Segmentation

We will be focusing on those foreign tourists seeking leisure travel and excursions whilst on vacation in Botswana, with the intention of letting them see and appreciate the numerous attractions in our country.

Though we realise that the majority of our tourists come from South Africa we shall be mainly targeting those from Europe and the Americas who often do not have transport or adequate knowledge about the country, unlike their South African counterparts who often do. Hence we shall be mainly targeting those who are not that mobile but wanting to see as many sites as possible.

These people often do not want to waste their money on hiring vehicles to move about by themselves, but instead want to be escorted around places of interest by a reliable source. Hence the need to professionally market ourselves and the services we provide, offering a service of uncompromised nature.

2. Target Market Segment Strategy

Our marketing strategy will be based mainly on making the right service(s) available to the right target customer. We will ensure that our services’ prices take into consideration organisations’ and peoples’ budgets, and that these people know that we exist, appreciate the value of our services, and how to contact us.

The marketing will convey the sense of quality in every picture, every promotion, and every publication. Our intension will be to target those individuals and groups looking for leisure activities and places to visit.

We realise the need to focus our marketing message and our service offerings. We need to develop our message, communicate it, and make good on it. The decision to establish strategic alliances with several hotels, lodges and travel agencies is aimed at tapping our target market effectively and efficiently.

2.1. Market Needs

Though the tourism sector has undergone rapid growth over the last decade the vast majority entering this sector have rushed to the North where we have the Okavango Delta, Chobe National Park, and other sites as attraction points.

Very few have focused on south and central Botswana. With this in mind we intend to exploit the untapped market in this area so as to provide our customers with a good service and realize our business objectives.

We understand that our target markets need more than just being shown the areas of interest but also to be informed about their significance and origins. Hence we don’t just intend to provide a service(s), but to provide one of unparalleled nature relative to the market.

2.2. Market Trends

Of all the uncertainty surrounding this industry, one fact is certain: tourism is here to stay. The only question is how large the industry will become and whether it can sustain, if not exceed, its current growth rate. However large the market ultimately becomes, the company strongly believes that travel will be an important component of this market place. Tourism statistics provide a reliable guide as to the size of the market.

According to the latest tourism statistics total arrivals for 1998 amounted to 1,351,798 representing an increase of approximately 12.65% from the previous year. Of the total arrivals in 1998 205,146 (15.2%) were holiday/tourists whilst 319,440 (23,6%) were visitors, both groups of which constitute our target market, totaling approximately 524,586 individuals.

Source: Tourism Statistics 1998 – Central Statistics Office .

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Travel Business Plan

Traveling is one of the most generous things anyone could ever do. It’s like opening oneself up to the reality of being small and the truths of an endless universe. It creates a sense of compassion for everyone who learns foreign cultures and opens up a peaceful mind to nature. However, as a fledging, the business could prove difficult at times. So, to ease out your worries, we’ll help you out. We provide travel business plan samples and creation guidelines that will surely smoothen your worries and help you enjoy your venture. Check these items below.

10+ Travel Business Plan Examples

1. travel business plan template.

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2. Business Travel Planner Template

3. Business Travel Planning Checklist Template

4. Tour Operator Business Plan Template

5. Business Plan for Travel Company

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6. Business Plan for a Travel Agency

7. Sample Travel Business Plan

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8. Travel Agency Business Plan

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9. Business Plan for Adventure Tour

10. Tourism Business Plan

11. Travel Business Plan Form

Size: 218 KB

What is a Travel Business Plan?

A travel business plan is a business plan that companies inside the travel and tourism industry can use. They can ensure that the business will stay strong for more than a few years and guarantee its growth. With a proper and high-quality business plan, people can have peace of mind knowing that they are not stagnant.

How do Travel Planners make money?

It is not a secret that people seek and love to travel. Discovering new places and experiencing fresh encounters. According to a study from  Cornell University , the anticipation of travel itself excites people that it lessens their stress levels. So if you’re a travel agent or tour operator, you can sure get much money through these avenues:

Commissions

Although commissions from booking tickets and creating itineraries have been somewhat becoming less with the advent of the internet, it is still an important avenue to make money. An airline company may not provide you with any commission for a few bookings, but you can be sure something out of it if this volume goes up.

This is the bread and basket of a travel agency. Charging tourists and other companies fees for creating the whole plan is how travel planners or travel agencies get more revenue .

Specialized Services

Specialized provides a specific fee depending on the service offered by the travel agency. Some examples of these special services include consultation, planning, set-up, and organizing. 

Premium Listing

Whether you like it or not, when your agency becomes exceptional in the field, people will flock in for your service. Through this, you can expect to provide a premium listing to hotels, airlines, and other companies that can take advantage of your business. You can do this by showing their hotel or airline as the top 1 option or something of the same matter.

How to Create a Travel Business Plan?

The best way to start a business is not with SlideShare, and many documents rambled. Instead, it is by creating a plan. With proper planning and strategy, you can be sure that your project and venture will see the light of day. So if you desire to create one, follow these steps below and see your business grow.

Step 1: Establish the Essentials

Although technically this is not part of the business plan, it is still important. This enables you to smoothen your creation process. What is it? The essentials. Your company’s purpose, vision, mission, and business model . In this way, you can be sure that your business will stand the test of time.

Step 2: Specify a Market

Another thing that you should think about is the target market. Business is not all about cashflow. You need to have a target market before you can start. As a travel agency , you can even team up with other businesses such as Imvelo tours to provide you with a good target market.

Step 3: Use a Format or a Sample

With all those things ready, you can now start creating your business plan. Some of the essentials in your business plan are executive summary, title, analysis, and so on. You can also try using a sample to make your work easy. Just don’t get confused with other plan templates such as marketing plan templates ’cause business plans are different.

Step 4: Identify the Specifics

Lastly, you should start identifying specifics. This is when you can start worrying about the building, the staff, and other business-related concerns. Whether you like it or not, your vision is more important. Without vision, the people scatter.

What is the tourism business plan?

While close to the travel business plan, a tourism business plan is a document that businesses use to plan ahead. It will provide the business with its business model and whole purpose. Without it, businesses may not appear.

Is a travel agency a profitable business?

Depending on your take on the business, it could be profitable or not. However, when it comes to the industry, it is extremely profitable. So, if you are handling your travel agency right, you can expect that you’ll get many profits. Nonetheless, due to the current Corona Virus Pandemic, the industry became weak. So, expect that after the Pandemic that this industry will grow again.

What are the three types of tourism?

The three types of tourism are as follows:

1. Domestic Tourism

2. Inbound Tourism

3. Outbound Tourism

The Current Corona Incident is a dread of the tourism industry. However, as a businessman, it’s your time to create business proposals . This is an avenue for business-minded individuals to start using these breaks as productive times and not depressing times. This is only a tunnel in our train ride, a little darkness before the light.

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Beginners Guide to Starting a Tourism Business

Your Beginners Guide to Starting a Tourism Business

Writing for WikiHow, Claire Fess provides eight steps on how to start a tourism business .

Table of Contents

Definition: Tourists are people who travel outside of their home-base environments in order to spend time visiting a different environment in either a business or leisure capacity. Both vacationers and those on business trips are considered tourists, and they may be touring either domestically (within their home country) or internationally. A tourism business is any business that centers on catering to tourists’ needs.

Step 1: Decide on which sector of tourism you would like to focus.

You have several options to choose from when it comes to establishing a business in tourism :

• Transportation service. This sector involves transporting tourists to, from and around the tourist destination.
• Travel agencies. Travel agencies are the 1-stop-shop for everything involved with visiting a place, including transportation, accommodations and attractions.
• Tour Operator. A tour operator typically combines tour and travel components to create a holiday. They prepare an itinerary.
• Destination Management Company . A DMC possesses extensive local knowledge, expertise and resources, specialising in the design and implementation of events, activities, tours, transportation and program logistics.
• Accommodation. These include hotels, guesthouses, bed and breakfasts, hostels, rental houses, lodges and any other place tourists may stay while travelling.
• Guided tours and tourist guide. A guided tour service or professional tourist guide is a tourism business that specializes in providing informative and entertaining tours through an area’s local attractions.
• Hospitality. A hospitality business pertains to any food or beverage establishment that tourists may frequent.

Step 2: Take your geographical location into account.

Your local tourist attractions are good indicators of what would and would not make a successful tourism business venture. For example, if your area is secluded from the populace and dense with wineries, then guided winery tours, local bed and breakfasts, and airport transportation services are all viable business options.

Step 3: Size up the competition.

Thoroughly research the tourism businesses in your area before you decide which business in tourism is right for you. You will want to choose a tourism sector that is not overly congested, and one that you can contribute something unique to.

Step 4: Write a business plan.

Your business plan is the blueprint for your tourism business, and should include the following sections:

• Executive summary. Describe your business’s purpose, name, location, personnel needs, tourism business management staff, market sector, competition, marketing plan and financial projections.
• Tourism business summary. This should detail how the business’s ownership will be distributed and the start up requirements (funding, assets and location).
• Products and/or services. You need to outline the products and/or services your business will be providing for tourists.
• Analysis of the market. Provide information about your target market and your competition. Tourism business strategy. Describe how you plan on running your business, marketing your business and pricing your product or service.
• Financial summary. State your projections for your business’s expenses and income.

Step 5: Procure the necessary funds.

Present your business plan to potential lenders and/or business partners in order to obtain the start up and operating capital you will need to run your business in tourism.

Step 6: Select a business location.

If you plan to operate a walk-in travel agency or an accommodation establishment, there are 3-things to consider. They are location, location, and location!

Step 7: Obtain all applicable business licenses.

Get the necessary business licensing through your local government’s business regulatory agency.

Step 8: Market your tourism business :

• Use social networking sites . Set up accounts/pages on free social networking sites such as Linked In .
• Create a website for your tourism business. Be sure to hire a specialist for search engine optimization (SEO) in order to maximize your site’s online presence. List your business on all applicable online directories and review websites.
• Advertise in print mediums. Take out ad space in newspapers, magazines and trade/lifestyle publications.

Source: www.wikihow.com/Develop-a-Tourism-Business

Read more on this topic:

• 10 Steps To Starting Your Own Tourist Transport Business
• How To Streamline Your Tour Operator Business
• 10 Tips on Selecting Tour Operator Software
• 10 Tips on Tour Quoting
• How to Keep Tour Itineraries Current
• So you want to be a tour operator?
• The Role of Tour Operators in Safari Bookings
• 13 Tips to surviving as a Small Tourism Business
• Effective Sales Secrets For Small Businesses

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Sample Travel & Tourism Agency Business Plan

Travel agency business plan.

Are you planning to start an online travel agency from home? Today, traveling has been much easier than it used to be a decade ago. There are many travel agencies these days taking care of everything that has to do with traveling.

Starting a travel agency at this present time won’t be a bad idea.

Travel agency provides a lot of services to clients starting from booking of flight, to find a good taxi, to booking hotels and resort reservation, to providing information about specific destinations.

If you have always had a love for traveling and providing traveling advice, you should start a travel agency so as to compliment your passion. Though relatively competitive, it is a very lucrative business and doesn’t require too much capital to start.

It is also an industry that is not affected by the economy because people must travel and some are too busy for the running around and so will need traveling agencies to do the running for them.

Here is a business plan for starting an online or home based travel business.

1.  Conduct a Market Research and Find Your Niche

The travel agency is a vast industry with many niches. You have to conduct a market research to find out the kind of travel agency that is hot in the market and would suit you. Use the needs of the market to decide on the niche you should launch your travel agency in.

For example, corporate or academic travel may be what might be in high demand from a travel agency in your locality, but you won’t know until you conduct a market research. This will be helpful when choosing a travel business name to use .

During the research, also inquire about the startup cost for the niche that you might choose. Travel agency expenses are not more than office rent, office equipment like computer and phone lines, furniture and electricity.

So, don’t skip this step as if you do, you will find yourself to blame.

2.  Check Local and State Laws

After you must have decided on the niche of travel agency you want to embark on, you need to make sure you are complying with the applicable laws concerning starting a travel agency.

Depending on your location, some paperwork will be needed to become established as a recognized business in your state. You will need to register your travel agency with the appropriate agents of government and apply for a Tax ID number.

Also, have it in mind that you will be needing a corporate account to operate this business.

3.  Create a Travel Agency Business Plan

Not only does a business plan help you run your agency effectively, it also helps you secure funding from investors in the case you might need additional capital. If you will need financial backing from investors for your travel agency, your business plan must be professionally written to include a great deal of information.

Don’t rush into creating your business plan. Try to gather enough information before coming to conclusion.

Notwithstanding, if creating a business plan is something you are not sure of yourself that you can do, kindly outsource it to a professional business consultant.

Also, you may likely find samples of a travel agency business plan if you search online. There is also business plan software that can ease the process for you too.

4.  Get a Location

I know you must have heard about home-based travel agency. Yes, they exist. But, check out the top travel agencies, are their offices located at home? if you want to join the top players in your market, you will need to get a location for your travel agency.

Contact real estate agent to find a good retail space for your business. Space should be large enough to accommodate clients while also housing furniture, marketing materials, and office equipment. There should also be enough car parking space too.

Location most suited for this kind of business is where the business is needed which include places like flight booking channels, hotels and airports. Your location should also reflect your brand image.

5.  Market Your Travel Agency

You don’t just start a travel agency and sit down waiting for clients, you must market aggressively to your target clients. Making your business visible to the local people in your city is also a way to position your business for success.

You will need to have a promotional plan in place and be ready to spend money on the business card, logo design and also online marketing. Advertise your business in newspapers, billboard, hangout fliers etc.

Social media is still another channel you can use to market your business. you will have to create an account on social media platforms specifically Facebook, Instagram, LinkedIn, and Twitter. These are social sites your potential customers are always visiting. You should take your business to them.

Creating a website is also a must. This is where you will be directing your traffic from social media to so as to engage them with your content. A well- designed website conveys professionalism to potential clients and it is the best way to convert interested customers.

How to Start a Tourism Company

Do you have the mindset to start a tourism business but don’t have the confident to kick-start because you are not clear about some aspect of the business? Tourism business is a very profitable business if you are well-informed about the business and how you can make money with it.

Why Do People Travel

People travel from one town to another, one city to another, one country to another and one continent to another for different purposes. They include;

• Conferences: This can be academic, religious, economic and so on.
• Leisure: People travel for relaxation, to ward off stress, to initiate and complete a healing process.
• Health: People travel to get better medical assessment and assistance.
• Sports: People travel from place to place for sports.

Above are some of the reasons why people travel and hence promote tourism.

The tourism business is a broad business in the sense that there are many aspects of it. A person that want to start a tourism business will have to study the different aspects of the tourism business.

Tourism services are provided for tourists. A tourist can be said to be a stranger to the visiting environment and so will need assistance in performing almost all his/her activities in the said environment.

It is in providing these required assistance to a tourist that one can really start a tourism business and make money.  A tourist will need assistance with:

• Accommodation

The hospitality aspect of the tourism business comes in handy here. A place to live for the time being is very fundamental to a tourist and so accommodation is a key need of tourists and this is why you need to start a tourism business.

Of course human beings need food to function maximally. Food business is a thriving sector of the tourism business.

The local cuisine of the environment can be well prepared and made available to tourists. Even the native cuisine of the tourists can be made available to make them feel at home.

• Transportation

Another reason why you should start a tourism business is because being a stranger in the environment, a tourist will need a reliable means of transportation to take him or her around to desired destinations. Flight tickets can also be booked for them.

• Language Translator

Sometimes, tourists go to countries with languages that he or she is not familiar with and therefore need a translator who understands both his or her language and the language of the environment. This is one way to make money from tourism business.

Most tourist, especially the ones traveling solely for leisure will need a person who is familiar with the terrain and sites of importance or places of tourist attraction as a guide to lead him/her around.

• Sales of Cultural Items/Goods

Most tourists want to take home some goods or items that are indigenous to the countries they visited.  This is also a means of income to the tourism business. Local items and materials like clothing, footwear, jewelry, stationary and so on can be beautifully made and sold to the tourists at attractive prices.

• Local Entertainment

Every country is known to have their own cultural heritage and identity.  This aspects of culture can be explored to be a source of income for the tourism business. The local dance of the people, local plays and so on can be performed to entertain the tourists.

Having mentioned the different ways of how to make money in the tourism business, it is now left for a person that wants to start a tourism business to decide on the aspect of the tourism business that he/she intends to focus on.

STARTING A TOURISM & TRAVEL AGENCY

Location is very important factor to consider in starting a tourism business.  Most tourists want to see exciting sights and sounds. To start a tourism business , one has to be in a location that is easily accessible to tourists.

The environment where a tourism is located has to be such that visit regularly and one that geographically has a lot of tourist attractions.  Environments with caves, rocks, stream, waterfalls, museums and so on are suitable environments to start up tourism business.

Tourism Business Plan

A business plan is a very important tool that will help a person intending to start a tourism business. A business plan is a document, more like a roadmap on how to start any business.

Aspects of the business that will be captured in the business plan include:

• The company profile
• The service/products to be offered
• The financial plan
• The marketing plan
• The unique selling point of the business
• The selling strategy and so on.

There are complete courses available for free on writing a business plan and an individual interested in starting a tourism business should study such courses as it will come in handy in providing a guideline for the success of the business.

There are authorities that control business startups and growth in the different sectors of the economy. These authorities issue licenses to business operators which enable them to run their businesses under the provisions of the law.

In starting a tourism business, the appropriate authorities should be contacted and the conditions that need to be met for a license to be issued to operated a tourism business should be taken into cognizance and met in order to obtain a license to start a tourism business.

The world tourism organization forecasts that international tourism will continue growing at the average annual rate of 4%. Did you hear that?  4%! What are you waiting for?  Arise and take the steps above on how to start a tourism business and start rolling in the “bucks”!

How to Start an Online Travel Agency Working From Home for Free

Do you know how to become a home based travel agent? Here are the basic steps to becoming a successful travel agent from home.

The internet has increasingly changed the way work is done. This applies for a wide range of businesses including the travel industry.

If you seek to establish a travel agency business and also want to work from home, you can achieve both. This article will show to how to start an online travel agency working from home.

• What Products/Service will you be selling?

As a home based travel agency, you can still function effectively. But what type of services will you be providing? There are several of these travel products. These include car rentals, hotel and accommodation, and special packages such as cruises and incentive programs.

Guide: Ideas to Choose a Travel Agency Name

Other services and products include airline loyalty, travel insurance and emergency services and many more.

• A Business Partnership is Highly Essential

Operating a successful online travel agency requires partnership. This is the lifeblood of the business. But who are these partners? They consist of tour or activity providers. These are businesses which are on ground and will offer direct services to clients. Such include hotels or other types of accommodation arrangements, car hire services, flight companies, tour services and many others.

This partnership is bound by an Agency Agreement that allows you as the travel agency to resell their products.

Under such an agreement, the client or consumer pays for the service while you pay the net rates to the provider(s).

• Choosing a Host Agency

These agencies offer you the incentive of using its booking numbers, therefore presenting a unified front as a single agency. This is highly crucial for a new online travel agency business. The benefits of host agencies are enormous.

Any host agency you choose has its numerous benefits. Hosting agencies provide different business models. You get to choose which best fits your needs. Some host agencies require the payment of a one-time fee only. You get to retain every commission made.

Others charge a fee for each booking made without a commission split, while others will require a commission split.

• Advantages of Using a Host Agency

One of the major benefits of using a host agency is the low start-up requirement. It significantly lowers your cost of doing business. Others include ready support for your online travel agency, training, helpful tools, using its accreditation as well as access to its Seller of Travel (SOT) license.

In spite of its obvious benefits, there are those who would prefer not to use this option. If you are one of such persons, other options like joining a co-operation,  operating independently or buying an online travel agency franchise are available.

• Patience is a Necessity

Starting an online travel agency as with other businesses requires a reasonable amount of time to stabilize. For a new business, it is usually challenging getting your first clients and maintaining steady patronage at the early stages. You will need to also understand that there are peak seasons. This means that apart from such periods, patronage is usually low even for established online travel agency businesses.

We recommend that you maintain your current job while gradually building your travel agency business. This is because if you depend on it for some income from the onset, you are likely to get disappointed. A lot of work is necessary to build a strong brand.

• Choice of a Niche

If you are surprised, you shouldn’t be. There are several online travel agency niches you can choose from. These can be effectively run from the comfort of your home. Some of these include wellness travel, specialty cruises, lifestyle or libertine travel, organized tours and special needs travel.

Others are women-only travel, travelers with pets, adventure travels, luxury travels and those for honeymooners. There are several more niches you can pick from.

It is necessary when picking a travel niche that you choose those with a higher demand. This should also align with your interest.

• Do you have a Source of Funding?

In other words, have you made adequate financial preparations for your proposed online travel agency business?

Luckily, running a successful online travel agency business from home will cut down significantly on funding. This is because you do not need a brick and mortar office. This takes up a substantial amount of your start-up costs.

With your computer and an internet connection, the funding requirement is significantly reduced. Having the right relationships are important to your success.

• Consider Sorting Out All Legal Issues

There are several laws that apply to different types of businesses. This includes travel agencies operating from home.

Such laws may vary from one state to the next. Whatever the case is, you should ensure that you abide by all stipulated guidelines. The legal structure of your business is also crucial to its smooth running or otherwise.

• Create Catchy and Effective Ads

Because your business is done entirely online, you should pay special attention to your marketing strategies. You need to create highly engaging ads with catchy infographic content. You may want to seek/hire the services of experienced graphic designers to get the job done. You also need marketing tips to sell your business to your target market.

• Is Your Business Deserving of Trust?

This is an important question that you will need to ask yourself. To build trust, you will need to establish a close relationship with your clients. A good thing with starting an online travel agency from home is that you set your pace. You should genuinely care for the needs of your clients.

In other words you should go the extra mile to satisfy your clients.

Once they know of your willingness to make them comfortable and happy, you would have won over some dedicated clientele.

We have discussed on how to start an online travel agency working from home . If you have followed to this point, you would see that there are definite steps that contribute to success.

Above all, your clients should not be taken for granted. Your whole aim should be to maintain the trust of these clients and to give them the picture of a reliable and well run business. The benefits are tremendous!

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Setting Up a Tourism & Travel Company - Making a Business Plan

Read Time: 5 Minutes

Posted: 06 Mar 2019

06 Mar 2019

Updated: 15th May 2023

If you’re planning on setting up a tourism business, you’ll definitely want to start with an airtight business plan . Here's everything you need to know about creating a business plan to start a travel company.

What is a Business Plan?

Your business plan is a document that sets out your business objectives and how you are going to achieve them.

When starting a travel or tour company, goals could include reaching new markets in different countries, making the booking experience easier or other gaps in the market. Crucially, you'll need to think about why you're starting this business.

Why is a Business Plan Important for Setting Up a Tourism Business?

Business plans are important for every kind of business. A successful business needs goals and to know the ways of reaching these goals. Without this important tool, it would be difficult to grow your business.

To succeed in the travel and tourism industry, you'll be providing customer service that could make or break someone's trip. From travel agencies to sightseeing tours, having a plan in place is necessary to succeed in this field.

How to Write a Business Plan for a Tourism Company

Here's what we recommend including in your tourism business plan.

Executive Summary

Company summary.

• Investments.

Market Analysis Summary

• Market segmentation - the groups of people you want to target.
• Key market trends in the tourism sector.
• Market needs based on current statistics in the tourism industry.
• How your competitors are positioned in the market.
• Where you have found a business opportunity in the market.  

Management Summary

Financial forecast, funding and costs.

• When will I start to see a profit?
• If I get any investment, when can investors expect a return?
• How much profit will you see over time?
• What kind of income can I expect from my business?
• How can I reduce the risk of failure?

Setting up a tourism business is no mean feat; we hope these tips give you a strong foundation for your new travel and tourism business. There are also plenty of free templates to suit all kinds of travel, tourism and hospitality companies that are easy to fill in with the help of this blog. Ready to start creating your business plan? Start here with how to determine your business model .

If you need any additional advice, our friendly team are on hand to help with every step of the way. Simply contact us here and we’ll do the rest. 

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Fact sheet: 2022 national travel and tourism strategy, office of public affairs.

The 2022 National Travel and Tourism Strategy was released on June 6, 2022, by U.S. Secretary of Commerce Gina M. Raimondo on behalf of the Tourism Policy Council (TPC). The new strategy focuses the full efforts of the federal government to promote the United States as a premier destination grounded in the breadth and diversity of our communities, and to foster a sector that drives economic growth, creates good jobs, and bolsters conservation and sustainability. Drawing on engagement and capabilities from across the federal government, the strategy aims to support broad-based economic growth in travel and tourism across the United States, its territories, and the District of Columbia.

The federal government will work to implement the strategy under the leadership of the TPC and in partnership with the private sector, aiming toward an ambitious five-year goal of increasing American jobs by attracting and welcoming 90 million international visitors, who we estimate will spend $279 billion, annually by 2027.

The new National Travel and Tourism Strategy supports growth and competitiveness for an industry that, prior to the COVID-19 pandemic, generated $1.9 trillion in economic output and supported 9.5 million American jobs. Also, in 2019, nearly 80 million international travelers visited the United States and contributed nearly $240 billion to the U.S. economy, making the United States the global leader in revenue from international travel and tourism. As the top services export for the United States that year, travel and tourism generated a $53.4 billion trade surplus and supported 1 million jobs in the United States.

The strategy follows a four-point approach:

• Promoting the United States as a Travel Destination Goal : Leverage existing programs and assets to promote the United States to international visitors and broaden marketing efforts to encourage visitation to underserved communities.
• Facilitating Travel to and Within the United States Goal : Reduce barriers to trade in travel services and make it safer and more efficient for visitors to enter and travel within the United States.
• Ensuring Diverse, Inclusive, and Accessible Tourism Experiences Goal : Extend the benefits of travel and tourism by supporting the development of diverse tourism products, focusing on under-served communities and populations. Address the financial and workplace needs of travel and tourism businesses, supporting destination communities as they grow their tourism economies. Deliver world-class experiences and customer service at federal lands and waters that showcase the nation’s assets while protecting them for future generations.
• Fostering Resilient and Sustainable Travel and Tourism Goal : Reduce travel and tourism’s contributions to climate change and build a travel and tourism sector that is resilient to natural disasters, public health threats, and the impacts of climate change. Build a sustainable sector that integrates protecting natural resources, supporting the tourism economy, and ensuring equitable development.

Travel and Tourism Fast Facts

• The travel and tourism industry supported 9.5 million American jobs through $1.9 trillion of economic activity in 2019. In fact, 1 in every 20 jobs in the United States was either directly or indirectly supported by travel and tourism. These jobs can be found in industries like lodging, food services, arts, entertainment, recreation, transportation, and education.
• Travel and tourism was the top services export for the United States in 2019, generating a $53.4 billion trade surplus.
• The travel and tourism industry was one of the U.S. business sectors hardest hit by the COVID-19 pandemic and subsequent health and travel restrictions, with travel exports decreasing nearly 65% from 2019 to 2020. 
• The decline in travel and tourism contributed heavily to unemployment; leisure and hospitality lost 8.2 million jobs between February and April 2020 alone, accounting for 37% of the decline in overall nonfarm employment during that time. 
• By 2021, the rollout of vaccines and lifting of international and domestic restrictions allowed travel and tourism to begin its recovery. International arrivals to the United States grew to 22.1 million in 2021, up from 19.2 million in 2020. Spending by international visitors also grew, reaching $81.0 billion, or 34 percent of 2019’s total.

More about the Tourism Policy Council and the 2022 National Travel and Tourism Strategy

Created by Congress and chaired by Secretary Raimondo, the Tourism Policy Council (TPC) is the interagency council charged with coordinating national policies and programs relating to travel and tourism. At the direction of Secretary Raimondo, the TPC created a new five-year strategy to focus U.S. government efforts in support of the travel and tourism sector which has been deeply and disproportionately affected by the COVID-19 pandemic.

Read the full strategy here

May 17, 2024

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Tourism sector rolls out road map to boost visitor numbers to pre-pandemic levels

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The tourism industry hasrolled out a road map it hopes will bring more visitors to Canada after the bruising it took during the COVID-19 pandemic.

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At the country’s largest annual tourism convention being held in Edmonton, Destination Canada and the federal government unveiled a plan Thursday that aims to extend the travel season, increase the length of stays and attract more locals, foreigners and business people to a broader range of sites.

A warming planet means wildfires are warding off visitors and milder winters are wreaking havoc on ski resorts. But the hotter weather has also opened a way to draw travellers in the spring and fall that could fill hotels and tour buses into the shoulder seasons, Destination Canada CEO Marsha Walden said.

“We would love to retain our workforce longer into the season. And normally the product doesn’t need to be hugely adapted to take in a new season like fall and approaching into winter,” Walden said in an interview.

“We really need to lean heavily on expanding further into the shoulders.”

Building out attractions into year-round vacation spots is also an option, with resorts from Quebec’s Mont Tremblant to Ontario’s Blue Mountain showcasing how summer activities can lure visitors beyond the traditional ski crowd.

“When you think Whistler, what do you think — you think skiing, right? But Whistler in the summer, it’s also pretty amazing,” said Tourism Minister Soraya Martinez Ferrada in an interview.

Meanwhile, more drawn-out getaways would amount to millions more in the coffers of hospitality companies.

“Having people stay longer — having people spend more money — is just good for tourism for us in Canada,” she said. Marketing campaigns that focus on “getting travellers to say, ‘If you’re going to come, you’d better stay a couple days more, because Canada is big,’” comprise part of the plan.

The federal strategy also looks to promote a broader range of destinations, from Indigenous-owned projects to ecotourism spots off the beaten path.

Business trips continue to lag behind the return of leisure travel, a post-pandemic hangover the plan aims to address as well.

By 2030, the goal is to boost Canada’s spot in a World Economic Forum ranking on tourism development after the country slipped out of the top 10 for the first time in 2022.

Tourism has come roaring back from pandemic lows, but operators say the sector has yet to reach pre-COVID levels and debt remains a hefty burden for thousands of small businesses across the country.

International visitor numbers last year sat below figures from four years earlier, with tourists from the U.S. at 85 per cent of 2019 levels and those from further afield at 78 per cent, according to Destination Canada. However, nearly four out of every five dollars generated from tourism comes from a Canadian, Walden said.

The industry brought in more than $109 billion in revenue in 2023, about four per cent more than in 2019 but significantly less in real terms after accounting for inflation, according to the Tourism Industry Association of Canada.

Beth Potter, who heads the association, has called on the federal government to create a new low-interest loan program and temporary foreign worker stream, both specific to the tourism industry.

She said she has seen no signs of movement on those fronts in Ottawa.

Beating back Canada’s growing reputation as a country ablaze marks yet another challenge.

“People thought the whole country was on fire,” Martinez Ferrada said of last summer’s wildfire evacuations. “We made the New York Times front page.”

The minister highlighted a marketing campaign by British Columbia in the fall that made an “urgent appeal” to residents there and in Alberta and Washington to explore areas recently affected by wildfires.

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Even a month of lost revenue can be “devastating,” added Walden.

The sector’s recovery continues to trail that of the broader business world.

The number of active tourism-linked businesses sat slightly below pre-pandemic levels as of December, while the number of businesses overall surpassed 2019 figures, data from Destination Canada showed.

Across all sectors, two in three small- and medium-sized enterprises still held pandemic debt at the end of last year, with an average of $107,700, according to a Canadian Federation of Independent Business survey of 3,148 members. Out of 14 sectors surveyed, operators in hospitality and transportation were among the most pessimistic about the coming year. Only retail scored worse.

This report by The Canadian Press was first published May 16, 2024.

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This Saudi Airline Hopes to Triple in Size: The CEO’s Plan For Getting There

Gordon Smith , Skift

May 13th, 2024 at 5:56 AM EDT

Flyadeal's new CEO Steven Greenway says the scale of airline's expansion attracted him to the role. His challenge now is turning targets into tangible results.

Gordon Smith

Leaders of Travel: Skift C-Suite Series

What are the top trends impacting hotels, airlines, and online bookings? We speak to the executives shaping the future of travel.

Even by Saudi standards, the goals are ambitious: By 2030,  the country wants 330 million passengers to pass through its airports annually, up from around 112 million last year.

To get there, the Saudi airline sector is growing faster than almost anywhere on the planet.

New carrier Riyadh Air has grabbed  most of the attention . However, there’s another shift underway: The rise of the Saudi low-cost airline. 

Flyadeal is the budget subsidiary of Saudia, the country’s national carrier . Since launching in 2017, it’s grown to become one of the nation’s biggest low-cost operators. 

By the end of the decade, flyadeal is set to triple in size, from 32 planes today, to almost 100. Dozens of new destinations are set to be added to its route map, with international links into Europe and the Indian subcontinent. 

Trying to take this vision from spreadsheet to the skies is Steven Greenway, who was appointed flyadeal CEO in January. He was a founding member and CCO of Scoot, Singapore Airlines’ budget subsidiary , and also served as president of Swoop, a Canadian ultra-low-cost carrier that later merged with WestJet.

While the opportunities for Greenway are vast, so are the challenges. Adding huge capacity into a developing market in a short space of time can be difficult.

In the latest of our  Leaders of Travel: Skift C-Suite Series , we sit down with Greenway to find out how ambitions can translate to reality.

Which Planes Will Fuel the Expansion?

Skift: Before you joined flyadeal, there was a publicly shared goal of having around 100 planes in the fleet by the end of the decade. Is that still on the cards? 

Steven Greenway: Yes. The ambitious growth plan at flyadeal was the reason I was attracted to the airline. You’re going to see us leapfrog from 32 aircraft today to just shy of 100 in four or five years – more than tripling in size.

Our background is domestic flying and this still makes up around 80% of our capacity. Moving forward, the dynamics will change slightly because we’ll continue to grow domestically, but also branch out internationally. The airline is morphing into more of an equal blend of domestic and international flying.

We know that the additional 65 or so aircraft will be Airbus narrowbodies. Do you have any wiggle room regarding the size and variant? 

The order book is a mix of Airbus A320s and A321s. I can’t talk about what the actual mix is, but our A321s start arriving in 2026. It’s that well-worn strategy seen in other parts of the world wherever you have slot constraints where you deploy the A321 to give you extra capacity. But it’s also about enabling us to grow with what we have.

There are only so many times you can fly between Riyadh and Jeddah. We already have 22 flights a day. You can add another one every 15 minutes, you can use that slot for something else like an international service, or you can upgauge the size of the aircraft.

The mission set between the A320 and A321 is exactly the same, it’s just that we’re getting more seats. It offers flexibility in a part of the world where there’s a lot of seasonality. There are peaks and troughs in terms of demand. Of course, that’s true for a lot of markets, but particularly here in the Middle East.

Taking a look inside the plane, would you consider introducing a hybrid premium product like we’ve seen at other low-cost carriers?

I’ve worked at airlines that have done both. However, in my mind the premium cabin really only comes into play after four or five hours. We’re comfortable with the product we have. We’re constantly upgrading the seats, installing huge overhead bins, and offering in-seat power. When you consider all of these things combined, there’s enough there that people are reasonably comfortable for the mission sets that we have for the aircraft.

An Increasingly Familiar Business Model

How responsive is the Saudi market, and consumers more generally in the region, to the low-cost carrier (LCC) concept? 

Saudi Arabia is as commercialized as any country in Europe. They get what the trade-off is. You have airlines like Wizz coming into the country, Air Arabia, you have us. We all have similarly common practices with unbundled fares, so it’s nothing unfamiliar to this market. 

You have Saudia at the top offering full service, you have flynas in the middle doing a hybrid, and you have us doing a pure LCC play. People have choices in the market, which is great. They get what the proposition is, it’s not something that you have to educate them on per se. 

Are there any areas where further progress could be made?

I think the things that we need to improve are more around customer service and expectations. In some countries and regions, online check-in can be between 90-99%. It’s not here. Online check-in is not anywhere near as high as we would like, but it is progressing in the right way.

People also still carry a lot of baggage. For example, in Europe, people are able to survive with a backpack for the weekend because they want to save the money. That’s their choice. Here it’s a slightly different market, but it is adapting.

Flyadeal’s Growth Trajectory 

Flyadeal plans to operate to more than 100 destinations by 2030. What are the key markets and geographies to watch? 

The country is opening up for both domestic and inbound tourism. What you have is Saudis discovering Saudi Arabia. It’s not that they couldn’t travel around before, it’s that there simply wasn’t that mobility five or ten years ago.

I read the other day that Riyadh to Jeddah is probably going to be the busiest route in the world in the next couple of years – it’s come out of nowhere.

But there’s a lot more expansion to do within Saudi Arabia, especially when you look at the mega projects that are opening up. One good example is the Red Sea resorts. A new airport has opened there and it’s not even on our route map at the moment. It’s certainly something that we’ll be looking at over the next couple of years.

And what about your international ambitions? 

India is of incredible interest to us. The UAE and the Middle East in general are still underserved in terms of points into and out of Saudi Arabia. We also have to consider the secondary points. Everyone speaks about Riyadh and Jeddah, but what Dammam, what about Madinah? For example, we might already be operating to Dubai from Riyadh but we’re not from Madinah. So we’ll start joining the dots on that type of route as well. 

And then there’s southern and southeast Europe. We really haven’t touched on that except for some summer seasonal flying, which has been successful. But getting in there and branching into that market is a huge opportunity for us as well.

We’ve seen other low-cost airlines in the region and further afield open foreign subsidiaries. Is this of interest to you?

Never say never, but it’s really not on our radar. The reason is we believe in so much potential in Saudi Arabia that we don’t have to go fishing. Typically it happens when you’re a city-state, you’ve got no domestic market, you’re a pure international player – therefore you’re looking for other markets to open up. We’re not in that position.

We have a 10-year fleet plan, we know where the aircraft are going to go – obviously subject to change – and all of those are going into the Saudi market, either domestically or internationally.

The Future of Flying

Before joining flyadeal you were involved in the AI space. How much scope is there for this technology in the airline industry?

I think there’s huge potential. The question is does it replace human thinking and decision making? Or does it supplement and support and provide insight? I think there’s a lot of hype out there and that question still hasn’t been answered. I see AI as a companion to decision-making to support a whole range of factors.

Everything from call centers to network planning to operations control. We’re putting in scenarios, and we’re getting back a range of options that we can make decisions on as a business – that’s where we are experimenting as an airline. 

And finally, what are your key trends to watch for the coming year?

The continued growth, or boom, in Saudi Arabia. Watch how it manifests itself. You’ll also continue to see the Kingdom shape what its ambitions are. Keep an eye out for that because some of the things that are coming online, or to be announced, are absolutely phenomenal. I can’t speak about them, but I certainly know what’s coming and I think this is going to be a very interesting market.

This interview was edited for clarity and length.

Read more from our new  Leaders of Travel: Skift C-Suite Series   here .

Airlines Sector Stock Index Performance Year-to-Date

What am I looking at?  The performance of airline sector stocks within the  ST200 . The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.

The Skift Travel 200 (ST200)  combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number.  See more airlines sector financial performance . 

Read the full methodology behind the Skift Travel 200.

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Tags: airlines , flyadeal , low-cost carriers , middle east , saudi , saudi arabia , saudia airlines

Money blog: 'Good news' as major drop in energy bills predicted in July

A significant drop in energy prices has been forecast for July. Read about this and all the latest consumer and personal finance news in the Money blog - and leave a comment or your money problem in the box below.

Friday 17 May 2024 16:00, UK

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• New Greggs stores to open in these locations
• Drivers hit by 'unfairly high margins' on fuel

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Ask a question or make a comment

A group of social media influencers have been charged in relation to promoting an unauthorised investment scheme.

The Only Way Is Essex (TOWIE) original cast member Lauren Goodger, 37, former Love Island star Biggs Chris, 32, and Celebrity Big Brother winner Scott Timlin, 36, also known as Scotty T, are among seven TV personalities alleged to have been paid to promote the scheme to their combined 4.5 million Instagram followers.

The others charged by the Financial Conduct Authority (FCA) include former Love Islanders Rebecca Gormley, 26, Jamie Clayton, 32, and Eva Zapico, 25 and TOWIE member Yazmin Oukhellou, 30.

The UK's financial watchdog brought the charges in a crackdown on "finfluencers" who use their online platforms to offer advice and information on various financial topics.

It alleges that between 19 May 2018 and 13 April 2021 Emmanuel Nwanze, 30, and Holly Thompson, 33, used an Instagram account to provide advice on buying and selling investments known as contracts for difference (CFDs) when they were not authorised to do so.

The watchdog said CFDs were high-risk investments used to bet on the price of an asset, in this case the price of foreign currencies.

It previously warned that 80% of customers lost money when investing in CDFs.

Mr Nwanze has been charged with running the scheme. He faces one count of breaching the general prohibition of the Financial Services and Markets Act 2000, and one count of unauthorised communications of financial promotions.

Ms Thompson, Mr Chris, Mr Clayton, Ms Goodger, Ms Gormley, Ms Oukhellou, Mr Timlin and Ms Zapico each face one count of unauthorised communications of financial promotions.

All nine will appear at Westminster Magistrates Court on 13 June.

The FCA asked anyone who believed they had sustained a loss due to the scheme to contact its consumer contact centre.

A hotel part-owned by Gary Neville and other ex-Manchester United legends has been named one of the best places to work in hospitality. 

Each year, The Caterer releases its top 30 best places for employees in the sector, with the top six featuring some familiar names.

The list is compiled via anonymous employee survey - with no input from managers or owners. 

Hotel Football, the only hotel with a rooftop five-a-side pitch, was among the top six venues selected by employees across the UK. 

The hotel's benefits package was particularly well-praised by those who work there - given that it "prioritises the financial wellbeing of employees during the cost of living challenge".

Management at the hotel, which is situated next to Manchester United's Old Trafford stadium, was also praised for enhanced maternity, paternity, parental and adoption leave policies and a strong belief in diversity and inclusion. 

The other five to make up the top six are The Biltmore in Mayfair, Cycas Hospitality (which has 18 locations across the UK), Dalata (which boasts some 1,000 employees), Gleneagles Hotel in Edinburgh and Nobu Hotel in Shoreditch, London. 

The energy price cap is set to fall by about 7% in July, a leading thinktank has said. 

Cornwall Insights said: "For a typical dual fuel household, we predict the July price cap to be £1,574 per annum" - a drop from £1,690.

Looking further ahead, it forecasted the cap to rise again slightly in October, before falling again in January next year. 

Reacting to the news, Uswitch said the predicted drop was "clearly good news". 

"The future still remains uncertain, and with the price cap changing every three months – currently expected to rise in October before falling slightly in January –  it's crucial not to be complacent," Richard Neudegg, director of regulation, said. 

However, "a predicted 7% drop in energy prices in July is clearly good news, with the price cap looking likely to hit its lowest level in over two years", he said. 

He also urged  households who want to lock in rates for price certainty to run a comparison to see what energy tariffs are available to them.

"There are many 12-month fixed tariffs available at rates cheaper than the current price cap, and even some that are 2% below these new predicted July rates," he said. 

Cristiano Ronaldo has topped Forbes' list of highest-paid athletes for the fourth time in his career.

Ronaldo became the world's highest-paid athlete after his move to Saudi Arabian side Al Nassr and Forbes said the 39-year-old's estimated total earnings were around $260m (£205m) - an all-time high for a football player.

His on-field earnings amounted to $200m (£158m) while off-field he earned $60m (£47m) thanks to sponsorship deals where brands make use of his 629 million Instagram followers.

Spanish golfer Jon Rahm took second place following his switch to Saudi-backed LIV Golf.

Rahm earned $218m (£172m) and joins Ronaldo as the only two athletes to earn over $200m.

Third on the list is record eight-time Ballon d'Or winner Lionel Messi, who switched to Major League Soccer team Inter Miami, which helped the Argentine World Cup winner earn $135m (£107m).

The 36-year-old earned $65m (£51m) in on-field earnings but $70m (£55m) off it from deals with major sponsors such as Adidas and Apple.

Los Angeles Lakers forward LeBron James came in fourth at $128m (£101m), while fellow NBA star Giannis Antetokounmpo of the Milwaukee Bucks made fifth with $111m (£88m).

France football captain Kylian Mbappe dropped down to sixth with $110m (£87m).

French striker Karim Benzema, who also moved to Saudi Arabia, is eighth on the list with $106m (£84m), followed by Golden State Warriors guard Stephen Curry with $102m (£80m).

Lamar Jackson is the only NFL player on the list, in 10th place with $101m (£80m), thanks to the signing bonus negotiated into his new Baltimore Ravens contract last year.

The number of new pupils joining private schools has fallen by  2.7% since last year, according to the latest figures.

Data from the Independent Schools Council (ISC) shows families are now paying more than £18,000 a year on average to send their children to private school.

This is an 8% rise in school fees for the 2023-2024 academic year compared with the year before.

But as fees soar, figures show a 2.7% drop in the number of new pupil applications - this is the biggest fall since the ISC started collecting data in 2011.

Every Friday we get an overview of the mortgage market with independent experts from  Moneyfactscompare.co.uk . Today, finance expert Rachel Springall outlines what's been happening within the buy-to-let market…

A handful of lenders moved to tweak the fixed rates they charge on buy-to-let mortgages over the past week. 

Paragon Bank launched some new "portfolio" and "green" fixed mortgages, and Aldermore pulled its limited edition five-year fixed rates, max 65% loan-to-value. 

Buckinghamshire Building Society also launched new deals onto the market, and Claire Askham, head of mortgage sales said: "The decision to increase our BTL lending to 80% represents a positive move for the sector as we continue to see landlords appraising their portfolios through divesting, refinancing and taking advantage of a variety of property-related opportunities as they arise."

Week on week, there has been minor moves to the overall average fixed buy-to-let rates, with the two-year remaining unchanged at 5.62% and the five-year falling by 0.02% to 5.59%.

This week the lowest two-year fix for buy-to-let customers at 75% loan-to-value comes from Metro Bank, priced at 4.19%, which charges a percentage booking fee of 5.00% of the mortgage advance and is available to second-time buyers and remortgage customers borrowing a maximum of £2m. 

There is another option from the same lender which carries an incentive package just for remortgage customers, but it has a lower maximum advance of £1.5m.

If you are looking to borrow more, then Suffolk Building Society has the lowest two-year fix for buy-to-let customers at 80% loan-to-value priced at 4.79% for second-time buyers and remortgage customers. 

The deal charges a percentage completion fee of 3.00% of the mortgage advance as well as a flat £199 booking fee.

Remortgage customers will receive a free valuation and free legal fees incentive.

A five-year fixed buy-to-let mortgage may be more appealing for you to guarantee your monthly repayments for longer. 

If you looking to borrow at 75% loan-to-value, HSBC has a deal for remortgage customers priced at 4.33%, which carries a free valuation and free legal fees incentive package but charges a flat £3,999 product fee.

If you are looking to borrow more, then Furness Building Society has the lowest five-year fixed buy-to-let deal at 80% loan-to-value priced at 5.39% for second-time buyers and remortgage customers. It charges a booking fee of £995 and includes an £250 cashback incentive. 

Remortgage customers will also receive a free valuation. This deal also happens to be a Best Buy for a five-year fixed deal at 80% loan-to-value.

Best Buy alternatives

The lowest buy-to-let rates may carry both a flat product fee and an arrangement fee which is based on a percentage of the mortgage advance, so a Best Buy package may be more suitable if you are looking to save on the upfront cost of any deal. 

You might also want a deal to cover a valuation or legal fees. A Best Buy buy-to-let mortgage could be the most cost-effective choice in this instance, but it's worth seeking advice before entering any arrangement.

This week the top packages on a two-year fixed buy-to-let deal at 75% loan-to-value comes from HSBC, priced at 4.69%, which comes with a free valuation and charges a £3,999 product fee and is available to second-time buyers. 

If you want a loan with a lower upfront fee, then HSBC also has a Best Buy deal priced at 4.94% at 75% loan-to-value, which carries a free valuation and charges a £1,999 product fee and is available to second-time buyers.

If you are looking to borrow more, then Furness Building Society has a Best Buy two-year fixed buy-to-let deal priced at 5.73% at 80% loan-to-value for second-time buyers and remortgage customers. It charges a fee of £995 and includes a £250 cashback incentive. Remortgage customers will also receive a free valuation.

A five-year fixed buy-to-let mortgage may be more appealing for you to guarantee your monthly repayments for longer. If you looking to borrow at 75% loan-to-value, HSBC has a Best Buy deal priced at 4.39%, which carries a free valuation and charges a £3,999 product fee. 

If you want a loan with a lower upfront fee, then HSBC also has a Best Buy deal priced at 4.64% at 75% loan-to-value, which carries a free valuation and charges a £1,999 product fee.

If you are looking to borrow more, then Furness Building Society has a Best Buy five-year fixed buy-to-let deal priced at 5.39% at 80% loan-to-value for second-time buyers and remortgage customers. 

It charges a booking fee of £995 and includes an £250 cashback incentive. Remortgage customers will also receive a free valuation. This deal also happens to be the lowest rate on a five-year fixed deal at 80% loan-to-value.

By James Sillars , business reporter

A lack of strong corporate updates did for the FTSE 100 on Thursday.

A flat end to the day has been followed by a flat end to the week, with the index falling almost 0.1% to 8,433 in early deals on Friday.

Very little around for investors to ponder.

Developments this morning included pharmaceutical firm GSK saying it had raised £1.25bn from selling its entire remaining stake in Haleon.

The consumer healthcare firm was spun out of GSK almost two years ago.

One other announcement of note came from Sainsbury's.

It revealed a five-year strategic partnership with Microsoft that will see generative AI used to boost personalised shopping experiences for consumers, improve search functions and make staff working practices more efficient.

The financial terms were not disclosed. Its shares were 0.4% higher.

Away from the equity markets, it's worth taking a quick look at how oil is finishing the week.

Brent crude is trading above $83 a barrel on evidence of rising demand.

Prices at these levels should not have an impact at the fuel pumps but small recent declines in average costs could be reversed if the upwards oil price trend continues.

Greggs will open eight stores in the next few weeks, as the company continues its expansion plans 

The bakery said it would open a total of 180 new branches before the end of this year. 

We were told earlier this year that the famous sausage roll-seller would open new stores in London, Cambridge and Sale, but Greggs has now revealed where its next eight new branches will be. 

Here are the locations of the eight new sights, revealed by the bakery to The Sun:

• Saffron Walden, Market Place, England
• Bangor, Carnarfon Road, Wales
• Birmingham Prime Park, England
• Brierley Hill, Merryhill, England
• Consett Delves Lane Drive Thru, County Durham, England
• Edinburgh, 60-61 Seafield Road, Scotland
• Glasgow, Argyle St, Scotland
• Porth, U3C Geilligron IE, Wales

Drivers are suffering from "unfairly high margins" on fuel sales, Energy Secretary Claire Coutinho has been warned.

In a letter to the cabinet minister, the RAC said the Competition and Markets Authority (CMA) must be given the power to take "meaningful action" against companies charging too much for petrol and diesel.

The average retailer margin - the difference between the amount they pay for fuel and the pump price - has been above 18p per litre for diesel since 7 May and is nearly 12p per litre for petrol, RAC head of policy Simon Williams wrote.

The long-term average for both fuels is 8p.

The RAC believes if retailers charged "fairer" margins, the average price of a litre of petrol and diesel would be around 145p, down from the current prices of 150p per litre for petrol and 157p per litre for diesel.

Mr Williams said the current margins being charged by larger retailers in particular were "extremely unfair on drivers struggling to get by in the cost of living crisis". 

"It's very concerning to see fuel margins at such high levels, particularly as this is happening under the close eye of the CMA and while retailers are voluntarily sharing their forecourt prices with the intention of increasing competition," he said.

The RAC spokesman added that the situation would only be improved in the long-term if the CMA took "meaningful action against retailers whose margins are deemed not to be mirroring significant reductions in the cost of wholesale fuel".

It can be hard to balance the demands of eating well without spending a lot.

In this series, we try to find the healthiest options in the supermarket for the best value - and have enlisted the help of  Sunna Van Kampen , founder of Tonic Health, who went viral on social media for reviewing food in the search of healthier choices.

In this series we don't try to find the outright healthiest option, but help you get better nutritional value for as little money as possible.

This time we're looking at meat. 

"When it comes to which type of meat you buy, there's a common misconception the more expensive the cut the healthier it is," Sunna says.

"But fatty meat stores more nutrients than their lean counterparts - vitamins like A, D, E, and K are fat-soluble and stored in animal fat - so, a fillet steak may contain less nutrients than its fatty cousin," he adds. 

The science

We typically turn towards leaner cuts of meat due to the common belief that saturated fat from animals is something to be avoided. 

"Yet, the latest science suggests that saturated fat and cholesterol may not be as harmful as researchers once thought they were," Sunna says.

He points to a  2020 review  in the National Library of Medicine that looked at several studies on saturated fat and heart disease - and found that the association between the two appeared to be weak.

That being said, a large amount of fat in your diet is in no way advisable - but don't be afraid to introduce fattier cuts. 

Sunna swears by mincemeat - preferring it to steak if choosing the fattier kind. 

Most supermarkets sell somewhere between 5-20% versions - and Sunna urges shoppers to put the higher percentages in their baskets. 

"Mince beef with higher fat content isn’t just about the added fat-soluble vitamins; it's also about what comes with it," he says.

"The added tendons, ligaments and connective tissue in mince beef provides collagen."

Collagen is a protein - full of amino acids that supports the structure of your skin, hair, and nails. 

It also plays a vital role in maintaining the integrity of your joints and connective tissues. 

"By choosing mince beef with 20% fat, you're getting a broader nutritional profile, including those collagen benefits," he says. 

Using prices from major supermarkets, Sunna compares his the money and the health for major beef products... 

• Fillet steak: Around £35/kg, it's the most expensive cut and doesn't provide as many health upsides as other, cheaper options
• Ribeye steak : Around £24/kg, with added fat that offers more fat-soluble vitamins.
• Rump steak: Around £15/kg, it’s one of the most economical ways to steak and that nice rind of fat will give you the added nutrition.
• Steak mince beef 5% fat: Around £7/ kg, it's premium mince but at over half the price of steak, making a great affordable option, but the lower fat content is only really good for reducing the calories.
• Mince beef 20% fat: Priced at about £5/kg, it's one of the most affordable options that gives you the most health upside - with all the added fat-soluble vitamins, omega 3s and collagen. 

"Swapping a fillet steak a week to 20% mince could save you £182.52 a year and you'd be increasing your nutrition intake considerably," Sunna says.

"Not only does mince beef save you money, but it also provides a versatile base for countless dishes - burgers, meatballs, bolognese, tacos -the possibilities are endless."

Organics and grass-feds

"Whilst all unprocessed meat is healthy, there are benefits to the quality of your meat," Sunna continues. 

"Typically, a local grass-fed cut of meat has higher omega-3 fatty acids which are beneficial for heart and brain health - up to 6x more  in fact than feed-lot cattle," he adds. 

These can often be far more expensive, however. 

"Choosing between fillet steak and mince beef doesn't have to be a battle of indulgence versus health - both have their unique nutritional benefits, but when it comes to a cost-effective, nutritious option, mince beef with 20% fat takes the win," he says.

The nutritionist's view, from Dr Claire Shortt, lead scientist at  FoodMarble ...

While it's fine to consider cheaper cuts of beef over say filet mignon, it's best to moderate red meat intake given potential links to certain cancers. 

Processed meats are more problematic again, especially from a bowel or stomach cancer perspective. In fact, the World Health Organisation classifies them as a Class I carcinogen (i.e. "known to cause cancer"). 

Read more from this series... 

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IEG: The Board of Directors approves the consolidated interim report as of March 31, 2024 – Revenues at 88.9m. euros

Revenues are+15.4% compared to first quarter 202; Adjusted EBITDA at 34.3 million, Adjusted EBITDA margin at 38.6%, +6,5 pts compared to March 31, 2023.

RIMINI – The Board of Directors of Italian Exhibition Group S.p.A. a leading company in Italy in the organization of International trade fair events and a listed company at Euronext Milan of Borsa Italiana S.p.A., approved its Quarterly Financial Report as at 31 March 2024.

IEG Group CEO Corrado Arturo Peraboni commented: “The results of the first quarter of 2024 are extremely positive in terms of both revenue and, above all, profitability. The performance exceeded expectations in a key quarter for the IEG Group, during which main events in the portfolio, including ‘SIGEP’, ‘VicenzaOro January’, and ‘KEY’, boosted volumes in related service sectors as well. Additionally, the first edition of ‘A&T Torino’ held under IEG’s management contributed to the success. The results achieved so far confirm the IEG Group’s ability to pursue the goals set for the current year in the 2023-2028 Strategic Plan and have reinforced the awareness that achieving the ambitious targets we have set for the coming years requires a more complex managerial structure. The Group has introduced the role of a Chief Business Officer to oversee the growth of our products and a Chief Corporate Officer to support all corporate activities. Both job figures will report to the CEO.”

Group Revenues in the first quarter 2024 were 88.9 million euros, increasing by 11.9 million euros compared to 77.0 million recorded in the same period of the previous year. The Group grew as a result of the organic component generated by the higher volumes achieved through the development of the organized events business line, which has positively influenced the captive activity of the related services business line, while the results recorded in the two periods from the congresses business line are substantially the same.

Adjusted EBITDA amounted to 34.3 million euros, an improvement of 9.6 million euros compared to 31 March 2023, when the Gross Operating Margin was 24.7 million euros. This confirms the Group’s ability to generate value for the communities of the respective industrial sectors. EBITDA margin stands at 38.6%, an improvement of 6.5 percentage points compared to 31 March 2023, attributable to higher volumes, particularly from the organized events business line, and a smaller increase in operating costs. Adjusted EBIT amounts to 30.0 million euros, an increase of 9.6 million Euros compared to the first quarter 2023, achieving the highest operating profitability reached by the Group, with an incidence equal to 33.8% of revenues, compared to 26.6% as of 31 March 2023.

Group’s net profit equal to 23.3 million euros, an increase of 9.4 million euros compared to the same period of last year, when it amounted to 13.9 million euros.

With reference to the Group’s sole operating segment namely “Hosting of trade fairs, events and related services” , revenues breakdown by line of business as of 31 March 2024 is shown below:

Revenues from Organized Events, which represents 73% of the Group’s revenues as of 31 March 2024, were 64.8 million euros with an increase of 12.0 million euros compared to the same period last year. The incremental change in turnover has mainly been driven by the “Organic” component, which was equal to 10.9 million euros (20.7%), while the combine effect from the changes in the scope of consolidation with the first edition of ‘A&T Torino’ and the ‘Calendar’ effect due to the absence of the biennial show Koinè and the postponement of ‘JGTD’ to the fourth quarter.Hosted Events recorded total revenues of 0.5 million Euros, with an organic increase compared to the first quarter 2023 (0.4 million euro sas of 31 March 2023) of 0.1 million euros.

Revenues from Conferences were generated by the operation of the Rimini Convention Centre and the Vicenza Convention Centre (VICC). In the first quarter of 2024 a total of 27 conferences were held in the two locations, with revenues of 2.9 million Euros, while as of 31 March 2023 there were 25 conferences held, generating revenues of 3.8 million Euros. The decrease in turnover in the first quarter 2024 is attributed to the absence of two main quadrennial conferences, which were held in 2023 at the Rimini Convention Centre, and despite their absence, revenues from the business line would have grown by 0.8 million Euros.

Revenues from Services as of 31 March 2024 amounted to 20.0 million euros (19.3 million euros as of 31 March 2023), an increase of 0.7 million ruros compared to the same period last year. The increase includes 1.5 million euros from ‘Organic’ growht and a decrease of 0.7 million Euros from the postponement of two events set up by FB International Inc. to the second quarter.

Publishing, Sports Events and Other Activities, through the publishing activities carried out for tourism sector ( TTG Italia, Turismo d’Italia and HotelMag ) and for the gold sector (VO+ and Trendivision), the sports events and other residual revenues, have developed total revenues for 0.7 million euros, which remains consistent with the result recorded at 31 March 2023.

Adjusted EBITDA amounted to 34.3 million euros, an improvement of 9.6 million euros compared to the same period of 2023, when it was 24.7 million euros. Adjusted EBITDA Margin stood at 38.6% of revenue as of 31 March 2024, compared to 32.1% recorded in the first quarter 2023. The profitability improved by 6.5 percentage points attributed to the reasons previously explained.

Adjusted EBIT amounted to 30.0 million euros as of 31 March 2024 and marks an improvement of 9.6 million euros compared to the first quarter of 2023. The expressed profitability is of 33.8% of revenue, the best of all time, with an increase of 7.2 percentage points compared to 31 March 2023.

Strategic Plan 2023-2028

On January 25, 2024, the Board of Directors of Italian Exhibition Group S.p.A., given the significant results achieved by the Group during 2023, which show an acceleration in the Company’s post-pandemic recovery process compared to sector forecasts, approved the new Strategic Plan 2023-2028. This document updates the previous Strategic Plan 2022-2027, which was developed in a context of deep uncertainty due to the post-pandemic scenario. The strategic lines in the new Strategic Plan do not diverge from those in the previous Plan and focus on the growth of the product portfolio, the consolidation of international expansion, investments in exhibition facilities, and the creation of value for stakeholders.

Based on the performance of the first three months of 2024 and the progress of the confirmed portfolio for the Group’s main events, the Company is confident in achieving the targets set in the Strategic Plan 2023-2028 for the fiscal year 2024. It expects to confirm a revenue between 234 and 239 million euros and an operating margin between 56 and 58 million euros.

Theodore Koumelis

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

• Theodore Koumelis https://www.traveldailynews.com/author/theodore-koumelis/ Landal GreenParks UK sees big growth in inbound holiday market
• Theodore Koumelis https://www.traveldailynews.com/author/theodore-koumelis/ RDB Hospitality expands luxury services with addition of Lenox VIP Global
• Theodore Koumelis https://www.traveldailynews.com/author/theodore-koumelis/ Ronald Leitch appointed Chief Operating Officer of AGS Airports
• Theodore Koumelis https://www.traveldailynews.com/author/theodore-koumelis/ Deepak Chopra aboard SH Diana in New York as Swan Hellenic announces two new “Explore & Restore” cruises in Brazil

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International Travel Agency Business Plan

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Adventure Travel International

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Adventure Travel International (ATI) will begin operations this year and provide adventure and sport/travel packages to people in the Pacific Northwest, specifically the greater Woodville area. An opportunity for ATI’s success exists because the national tourism and travel industry is growing at 4%, and adventure travel at 10% annually. Further, the Woodville adventure travel market is growing at least 12% annually and there are no providers who specialize solely in adventure travel in the greater Woodville area. ATI is poised to take advantage of this growth and lack of competition with an experienced staff, excellent location, and effective management and marketing.

The company’s goals over the next three years are:

• Sales of $650,000 by year three.
• Maintain margins of 10% on all airline travel.
• Achieve 15% of sales from the Internet.
• Develop strategic alliances with service providers nationally, internationally, and in the Woodville area.

In order to achieve these goals ATI needs to focus on the three key areas of:

• Effective segmentation and targeting of adventure travelers within the larger travel market.
• Successfully position ourselves as adventure travel specialists.
• Communicate the differentiation and quality of our offering through personal interaction, media, and regional marketing.
• Develop a repeat-business base of loyal customers in order to create sufficient sales.

ATI will be a sole proprietorship owned and operated by Shea Delaney in the town of Atkins Grove, California. The founder and employees of ATI are experienced travel industry professionals and are passionate about the activities ATI will promote and offer.

ATI’s total start-up capital requirement is approximately $102,500. Start-up will be financed through the owner’s personal investment and a long-term note of $85,000 secured from the Woodville First National Bank.

The travel agency market is competitive, and technology, namely the Internet and Computerized Reservation Systems (CRS), has changed the way travel agencies operate. The Internet gives agencies and individuals the ability to perform travel related research. Discount airfare brokers have taken advantage of the Internet by offering tickets online at discounted rates. This has increased price competition. Computerized Reservation Systems have increased the speed and efficiency of the agency-to-customer transaction. They have also increased the start-up costs for travel agencies who wish to be competitive. One notable trend in the travel industry is increased deregulation. Deregulation has increased the need for differentiation and has, in many cases, lowered the prices of airfare and other travel-related services. Additional trends include caps on agency commissions by many of the larger airlines, increases in adventure travel, and reduction of profit margins.

The travel industry is highly fragmented. There are large national chains, small home-based businesses, consolidators on the Internet, etc. Membership numbers in some of the travel-related associations give some indication of the number of participants in this market. The American Society of Travel Agents (ASTA) reports 25,000 members in 135 countries, most of whom are small businesses. ATI has approximately 30 immediate competitors in the greater Woodville area, including two agencies that are branches of national travel agency chains.

ATI is researching the market to identify potential opportunities for future sales in this rapidly changing environment. ATI’s long-term goal is to establish itself as an internationally recognized provider of top-of-the-line adventure travel. This goal does not prohibit ATI from participating in additional segments. It does, however, provide a corporate focus and a differentiated offering.

ATI’s target customers are health-conscious couples and individuals, with median household incomes of approximately $50,000. They are interested in popular adventure activities such as skiing, whitewater sports, and mountain biking. ATI’s most important target customers, however, will be married couples, ages 25-35, with children and household incomes over $50,000.

The Woodville area, like much of the Pacific Northwest, has a large concentration of outdoor recreation enthusiasts. These health-conscious individuals, couples, and groups interested in popular adventure sports, such as skiing, kayaking, trekking, etc., are ATI’s primary customers. ATI’s target market is an exploitable niche, and ATI will provide a specialized and thus differentiated service.

ATI has established relationships with providers of travel-related products and services. Two major airlines have been selected as our primary ticket providers in part because they do not cap the agent’s profit on tickets. This allows us to capture the 10% margin on ticket sales that was for many years the industry standard. Market research has enabled us to identify and establish working relationships with service providers around the world. ATI has been able to identify opportunities to capture margins of up to 25% from certain parties. Sourcing will be continuously evaluated. ATI will take advantage of trade shows, travel industry publications, and other sources of industry-related information to monitor the quality of its offering.

ATI has a number of major competitors that the company will seek to acquire market share from. They are:

• Rollins & Hayes;
• Sundance Travel;
• Global Adventure Travel.

None of these competitors have the combination of price, scope, or local focus that ATI will be able to offer.

ATI’s pricing strategy will be a major consideration. Much of it will be determined by market standards. ATI will attempt to maintain margins of 10% on all airline travel. Margins on all other products and services vary depending upon the provider but are expected to average 20%. ATI will make every effort to maintain a competitive pricing policy. However, as ATI builds its reputation as the premier provider of adventure travel, it expects to earn the ability to charge a premium for its services.

The company will also pursue an aggressive marketing campaign. During ATI’s first year of operation it will hold a grand opening and will organize and sponsor several athletic events. All ATI employees promote ATI’s services to local athletic clubs. Negotiations with area health clubs have begun and additional promotions will likely occur through these strategic alliances. Specialty, rather than large national publications, will serve as media vehicles for ATI advertising. Local radio stations will also be used. Personal selling will occur, though phone solicitation will be limited. ATI plans to occasionally station sales personnel in locations around Woodville such as shopping malls. ATI’s goal is to develop personal familiarity between its employees and the community.

ATI will be a small organization and its employees will share in management duties and decision making. Shea Delaney will act as the General Manager, but it will be important for each member of the team to be capable in all aspects of the business. Prerequisites for all ATI employees include at least five years travel industry experience, knowledge and ability in the types of activities ATI will promote, and Certified Travel Counselor (CTC) certification for applicable positions. The CTC designation can be obtained through the Institute of Certified Travel Agents (ICTA).

Prices will be competitive with the remainder of the market. The company’s estimated sales for the first year of operations are approximately $534,000, increasing 10% annually for the next two years.

ATI will begin operations with four full-time positions. The positions are as follows; general manager and president: Shea Delaney; marketing and advertising director: Jordan Barnes; accountant: Paul Mclellan; and one travel agent.

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1.1 Objectives

1.2 mission.

Adventure Travel International (ATI) is a travel agency that specializes in adventure tourism and travel. It will provide consulting and custom travel arrangements and packages. ATI’s mission is to become the foremost provider of adventure travel to the people of the Pacific Northwest. ATI’s employees and owner are outdoor adventure and travel enthusiasts as well as seasoned travel industry professionals. ATI seeks to connect adventure travel newcomers and veterans with service providers, adventure activities, and accommodations that fit the client’s desires, budget, and skill level.

1.3 Keys to Success

• Effectively segment and target adventure travelers within the larger travel market.
• Communicate the differentiation and quality of our offering through personal interaction and media.
• Develop a repeat-business base of loyal customers.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

ATI is a full service travel agency that specializes in adventure travel and provides recreational and business travelers with professional service and consultation. ATI will position itself as a specialist in the field of adventure travel and will generate the majority of its income from this segment.

2.1 Start-up Summary

ATI’s total start-up capital requirement is approximately $103,000. Start-up will be financed through the owner’s personal investment and a long-term note secured from the Woodville First National Bank. Start-up details are located in Table 1.

• ASSETS: Primarily cash and computers.
• INVESTMENT: The bulk of the investment will come from a loan from Shea Delaney’s personal savings.
• LOANS: An $85,000 loan has been secured from Woodville First National Bank.

2.2 Company Ownership

ATI is a sole proprietorship owned and operated by Shea Delaney in the town of Atkins Grove, California. ATI’s owner is researching the possibility of establishing ATI as a Limited Liability Company (LLC) or Partnership (LLP). This may occur within eighteen months of operation.

2.3 Company Locations and Facilities

ATI has identified three potential locations for office space. All potential locations are in the town of Atkins Grove, California, and are between 800 and 1000 sq. ft. Once successfully established, ATI will be one of approximately 30 travel agencies in the greater Woodville area, population 325,000. ATI will be the only adventure travel specialist in the immediate area.

ATI provides individual and group travel to leisure and corporate clients. Services and products provided by ATI include travel consultation, pre-arranged tours, custom packages, reservations for lodging, rental cars, rail passage, etc. ATI seeks to differentiate itself as the premier adventure travel agency in the greater Woodville area.

3.1 Service Description

ATI is a full service agency and sells standard travel agency goods and services, including airfare and travel packages. Additional services include assistance with passports, providing access to top-of-the-line equipment and supplies, and a superior offering that includes access to better than average terrain and activities, accommodations, and entertainment. The value added of ATI’s offering is its knowledge and expertise, competitive rates, and specialty focus on adventure travel, which translates into increased satisfaction for the customer.

Adventure travel is divided into two categories, hard and soft adventure. Both hard and soft adventures involve active and athletic activities. Hard adventure activities, as the name suggests, generally consist of activities that involve risk and athletic competence. Soft adventure activities are less physically demanding and more passive than their hard adventure counterparts. Economic indicators suggest that an increased demand for adventure travel services exists. ATI can position itself as a niche service provider within the travel and tourism market and offer high quality travel packages for various sporting trips. ATI will serve the adventure travel market as a top quality, full service provider. All suppliers with whom ATI will deal will be top-notch professionals with accomplished backgrounds. If suppliers fail, at any time, to meet our rigid standards of quality, they will not be used.

3.2 Competitive Comparison

The travel agency market is competitive, and technology, namely the Internet and Computerized Reservation Systems (CRS), has changed the way travel agencies operate. The Internet gives agencies and individuals the ability to perform travel related research. Discount air fare brokers have taken advantage of the Internet by offering tickets on line at discounted rates. This has increased price competition. Computerized Reservation Systems have increased the speed and efficiency of the agency to customer transaction. They have also increased the start-up costs for travel agencies who wish to be competitive. Moreover, industry competition and the increased number of travel options available have made it necessary for smaller travel agencies to establish themselves as specialists in one or more types of travel. ATI has done this by positioning itself as an adventure travel specialist. ATI has not identified a direct competitor in the greater Woodville area. However, a travel agency does not have to be an adventure travel specialist to book an adventure travel trip. Therefore, ATI will compete with other Woodville area travel agencies as they offer alternatives to adventure travel, have the ability to arrange adventure travel themselves, and have the advantage of established relationships with clients.

3.3 Sales Literature

Brochures for travel locations, rental car companies, entertainment, etc. are obtained from the wholesale houses and service providers with whom ATI deals. Brochures for ATI are handled by a local graphic arts company and are mailed to potential customers upon request. Additional literature such as direct mail, print ads, and sales promotion materials will be utilized as needed. ATI will maintain a database from which customer/contact information will be drawn.

3.4 Fulfillment

ATI has established relationships with providers of travel related products and services. Two major airlines have been selected as our primary ticket providers in part because they do not cap the agent’s profit on tickets. This allows us to capture the 10% margin on ticket sales that was for many years the industry standard. Market research has enabled us to identify and establish working relationships with service providers around the world. ATI has been able to identify opportunities to capture margins of up to 25% from certain parties. Sourcing will be continuously evaluated. ATI will take advantage of trade shows, travel industry publications, and other sources of industry related information to monitor the quality of its offering.

3.5 Technology

3.6 future services.

ATI may in the future open agencies at additional locations. In addition, as the adventure travel market reaches maturity, ATI may participate in additional segments of the travel market. ATI is researching the market to identify potential opportunities for future sales. ATI’s long-term goal is to establish itself as an internationally recognized provider of top-of-the-line adventure travel. This goal does not prohibit ATI from participating in additional segments. It does, however, provide a corporate focus and a differentiated offering.

Market Analysis Summary how to do a market analysis for your business plan.">

ATI plans to focus its initial efforts on the adventure travel market in the greater Woodville area. Adventure travel falls primarily under the leisure travel category. Revenues from leisure travel earned by U.S. travel agencies exceed $50 billion annually. Adventure travel is a sub-category of leisure travel and can be further broken down into hard and soft adventure travel. Annual expenditures in the U.S. market are estimated to be approximately $40-50 million for soft and $12-15 for hard adventure travelers.

4.1 Market Segmentation

ATI’s target customers are health-conscious couples and individuals, with median household incomes of approximately $50,000. They are interested in popular adventure activities such as skiing, whitewater sports, and mountain biking and major purchasers are located in urban areas within these states:

• Pennsylvania

Adventure travelers are slightly more likely to be men between the ages of 18-34. However an increasing number of hard adventure travelers are women (some statistics suggest that women comprise 49% of the adventure market). Men on average spend more than women on their adventure travels. ATI’s primary customers, however, are married couples, ages 25-35, with children and household incomes over $50,000.

4.2 Target Market Segment Strategy

ATI is located in the heart of the Pacific Northwest. The natural beauty and abundance of outdoor activities attract many fitness oriented individuals. Per capita, the area has more people than any other in the nation who actively participate in mountain and water sports such as skiing, climbing, kayaking, whitewater rafting, mountain biking, etc. These are the people in ATI’s target market. ATI will focus on the sale and promotion of adventure travel primarily to individuals, but also to corporate clients in the Woodville area.

4.2.1 Market Trends

One notable trend in the travel industry is increased deregulation. Deregulation has increased the need for differentiation and has, in many cases, lowered the prices of airfare and other travel related services. Additional trends include caps on agency commissions by many of the larger airlines, increases in adventure travel, and reduction of profit margins. More than 50% of the U.S. adult traveling population, or 147 million people, have taken an adventure trip in their lifetime, 98 million in the past five years. Approximately 31 million adults have engaged in hard adventure activities like whitewater rafting, scuba diving, and mountain biking. An additional 25 million engaged in both a hard and soft adventure activity. Activities most commonly participated in during adventure vacations: camping (85%), hiking (74%), skiing (51%), snorkeling or scuba diving (30%), sailing (26%), kayaking or whitewater rafting (24%), and biking trips (24%). Customers tend to be young and affluent, ages 18-34, and one fourth are from households with annual incomes of $75,000 or more.

4.2.2 Market Growth

The travel industry is growing. Reasons for this growth include a healthy domestic economy and the devaluation of currency in other regions which has made travel less expensive for U.S. residents. Leisure travel has increased by 3.2% in 1997 and is predicted to grow 2.0% in 1998. The healthy economy has increased business which in turn boosted domestic business travel 4.8% in 1997 with an estimated increase of 3.6% in 1998. Adventure travel, which is growing 10% annually, is one of the fastest growing segments of the travel industry. Statistics show that 8,000 U.S. companies offered adventure packages that generated $7 billion in 1997. There also has been a 66% increase in executive participation in adventure travel between 1992 and 1996.

4.2.3 Market Needs

Many potential customers are unsure of the location they wish to reach. Part of the value associated with travel agencies is the knowledge they possess about destinations. Customers look to the agency to provide them with sound advice for a competitive price. ATI is confident in its ability to do so. Time is a precious commodity. ATI can save the customer time and money, and help to ensure that they are satisfied with their vacation.

4.3 Service Business Analysis

The U.S. travel and tourism industry is the nation’s third largest retail industry, and the U.S. Department of Commerce says that it will be number one by the year 2000. Revenues from travel have increased approximately 100% in the last decade. U.S. travel agencies produce over $100 billion in revenues each year. The market is separated into two main categories, business and leisure travel. Each contribute about 45% to total revenues. The remainder of revenues are generated from combined business/leisure trips. The market is further separated into domestic and international travel. Domestic travel accounts for approximately 70% of industry revenues. Business travel can be divided into two categories, the medium to large corporate account and the small independent businessman. Leisure travelers are classified according to the types of trips they take, income, or age.

The four primary leisure travel groups are:

• Adventure, Special-Interest, R&R, Honeymoons, and Sightseeing Trips.
• High-Income Travelers.
• Budget-Conscious Travelers.
• Families, Students and Seniors.

4.3.1 Competition and Buying Patterns

There are many activities and types of travel available to people contemplating an adventure vacation. These substitute products and services are one type of competition. Theme parks, motorhome trips, and cruises are just a few. Other substitutes include less expensive, self-planned, or trips geared towards more traditional types of vacations. In addition, potential customers do not have to vacation. Instead, they may elect to spend elsewhere, or invest the money they would have otherwise spent on a vacation. Direct competition can come from virtually any agency, and there are several agencies who specialize in adventure travel in the United States. Lifestyle, age, and disposable income influence the decision to travel and in which type of travel to participate. Adventure travelers make purchase decisions based upon their desire to combine athletic interests with vacation time. The average adventure traveler engages in one adventure travel vacation every 12-18 months.

4.3.2 Main Competitors

• Rollins & Hayes: Based on the east coast, Rollins & Hayes are the most well known and respected adventure travel agency in the world. They have been providing adventure travel packages for over twenty years. Rollins & Hayes have successfully integrated travel agency services and adventure travel activities. This offers them complete control over the entire vacation. They have the advantage of an established reputation, high-quality trips, economies of scale, and strategic alliances. However, their packages are expensive and appeal primarily to a high-income clientele.
• Sundance Travel: Based in Colorado, Sundance is a traditional agency and has been in business for 10 years. They have gradually made the move towards adventure travel specialists and are now recognized as such. Their strengths are experience, reputation, and financial solvency. Weaknesses may include high personnel and management turnover and the lack of a clear plan for future growth.
• Global Adventure Travel: Global was established in 1995 and they have successfully established themselves as adventure travel specialists. They are based in the Los Angeles area. Global has done a good job positioning themselves through successful marketing communications and management. The Los Angeles area contains a large adventure travel market. It is, however, a very competitive area.

4.3.3 Business Participants

4.3.4 distributing a service.

The primary distribution pattern in the travel industry is from supplier to agent to consumer. Distribution between supplier and agency is regulated by a conference system. The two conferences through which agencies gain access to air travel providers are the Airline Reporting Corporation (ARC) and the International Airlines Travel Agents Network (IATAN). These suppliers can be contacted through Computerized Reservation System (CRS). Travel agencies receive a supply of blank airline ticket vouchers from the ARC. The agency is responsible for proper storage of and collecting payments for the vouchers. One notable change in the distribution channel has occurred. Wholesale houses have started buying large quantities of airline tickets and selling online for reduced prices.

Strategy and Implementation Summary

In order to reach its goal of becoming the Pacific Northwest’s premiere adventure travel agency, ATI will adopt the following strategy:

• Establish ATI’s reputation as a differentiated, specialty provider of adventure travel. This will be accomplished through a diverse marketing communications program at ATI’s target market, utilizing various media.
• Provide unparalleled service to the people of Woodville in order to gain repeat business and build trust. This will include providing superior service in all phases of the transaction, including timely follow-through.
• Aggressively promote adventure sports as healthy and exciting activities and those who participate in them as pioneers, heroes, and true Pacific Northwesterners.

5.1 Value Proposition

The value proposition of ATI’s services comes from ATI’s experience with and love of adventure sports. ATI’s employees are confident in their ability to meet the needs of their customers because they share the customers’ enthusiasm for the activities ATI offers. ATI’s confidence and ability translates into confidence for the consumer and a starting point towards developing long-term relationships and trust.

5.2 Competitive Edge

ATI’s competitive edge is its focus, passion, and experience. ATI seeks to promote and provide access to adventure sports and travel. ATI provides a differentiated offering with the management experience, capital, and commitment to make it work.

5.3 Marketing Strategy

ATI adheres to the theory that the goal of business is to create and keep customers. Its marketing strategy will reflect this goal as it builds its reputation in the Woodville area. Though ATI operates in the travel industry, it provides much more than travel. ATI provides adventure and freedom. Many of ATI’s customers spend 50 weeks of the year in an office. ATI offers people the ability to get away and remember how much they love the challenge and excitement of an athletic endeavor. ATI will promote the benefits of adventure travel. These benefits include better health, excitement, personal growth, ear-to-ear grins, and a whole lot of fun.

5.3.1 Promotion Strategy

During ATI’s first year of operation it will hold a grand opening and will organize and sponsor several athletic events. Events will include an off-road triathlon, 10k race and 5k fun run, and a mountain bike race. ATI will provide various travel packages and other items as prizes. All ATI employees belong to local athletic clubs and will, through interaction with other members, promote ATI’s services. During the grand opening and other events, ATI will provide literature with information about the trips and activities. Negotiations with area health clubs have begun and additional promotions will likely occur through these strategic alliances. Specialty, rather than large national publications, will serve as media vehicles for ATI advertising. Local radio stations will also be used. Personal selling will also occur, though phone solicitation will be limited. ATI plans to occasionally station sales personnel in locations around Woodville such as shopping malls. ATI’s goal is to develop personal familiarity between its employees and the community.

5.3.2 Distribution Strategy

ATI’s distribution strategy will focus on the target market in the Woodville area to whom it will sell directly. Secondarily, ATI seeks to establish distribution capability on the World Wide Web. Doing so will improve ATI’s ability to establish a national reputation.

5.3.3 Marketing Programs

Customers will be reached through traditional marketing communication methods. Information has been located detailing profiles of both hard and soft adventure travelers, where they live, work, what they do, etc. Research suggests that many of our target customers, and travelers in general, are Internet savvy and many adventure travelers purchase over the Internet or buy through travel agents. As such, the Internet will serve as an appropriate and effective medium of communication. ATI will target the primary customer group initially. This group has been defined as persons who have purchased or are likely to purchase an adventure vacation. In addition to the Internet, methods by which we will communicate with customers will depend on the results of our marketing research. ATI will likely use trade or special interest magazines, mailing lists and direct mail, and personal selling. Initially, service will be introduced regionally. Sales will be extended into the national and global markets within a few years of operation. We hope to promote out of season services through frequent customer contact and through our own publication, most likely a monthly newsletter.

5.3.4 Positioning Statement

For individual and corporate clients who wish to participate in adventure travel, ATI is the premier adventure travel agency in the Pacific Northwest. ATI’s experience with and enthusiasm for adventure travel is displayed in the exceptional service, value, and advice it provides for the customer.

5.3.5 Pricing Strategy

Much of ATI’s pricing is determined by market standards. ATI will attempt to maintain margins of 10% on all airline travel. Margins on all other products and services vary depending upon the provider but are expected to average 20%. ATI will make every effort to maintain a competitive pricing policy. However, as ATI builds its reputation as the premier provider of adventure travel, it expects to earn the ability to charge a premium for its services.

5.4 Sales Strategy

ATI will sell the benefits of the services it offers and the activities it promotes. ATI sells the freedom that is part of a healthy and balanced lifestyle. The benefits of that lifestyle are many. People need to be reminded occasionally that there is more to life than building bigger barns. ATI can provide clients with all of the arrangements they can think of and likely many they would not have thought of. Our concern is not to maximize profits on any individual sale but to satisfy the customer. Doing so will reduce costs and increase profits in the long run. It is less expensive to maintain a relationship than it is to develop a new one. At ATI we believe in the benefits of the activities we promote, and we are confident that we can satisfy the desires of the seasoned adventure traveler and the newcomer alike.

Sales projections are detailed in the Yearly Sales Total chart.

5.4.1 Sales Forecast

Detailed projections are located in the Total Sales by Month table in the appendix. ATI expects sales to be slow in the first quarter of operation. Sales growth is estimated at 20% annually through year three of operation.

5.5 Strategic Alliances

Strategic alliances for promotion have been developed with Body Works Health Club, Woodville Whitewater, The Great Wall climbing gym, and several area retailers. Alliances with adventure trip providers in several U.S. states and foreign countries have also been established.

5.6 Milestones

ATI’s important milestones are detailed in the following table. The milestones reflect ATI’s philosophy that it is important for a company to set goals. Goals determine strategy and tactics, and help to maintain corporate focus. The milestones can be seen as progress points and will be used as a way to measure ATI’s success in reaching its goals.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Shea Delaney will act as the General Manager. However, ATI is a small organization and its employees will share in management duties and decision making. It will be important for each member of the team to be capable in all aspects of the business. Prerequisites for all ATI employees include at least five years travel industry experience, knowledge and ability in the types of activities ATI will promote, and Certified Travel Counselor (CTC) certification for applicable positions. The CTC designation can be obtained through the Institute of Certified Travel Agents (ICTA).

6.1 Organizational Structure

ATI will begin operations with 4 full-time positions. The positions are as follows.

General Manager and President: Shea Delaney, age 37, B.A. Marketing Management, University of California Santa Cruz. Shea has 12 years experience in the travel industry, including five years experience as manager of the Transworld travel agency, Southern California branch. As manager at Transworld, Shea increased revenues by $1.5 million and established the adventure travel division which, in its first 18 months, generated an additional $400,00 in revenues. His background in adventure sports includes four years on the U.S. pro kayaking tour, two years as a sponsored cross-country mountain bike racer, 25 years surfing, including three years as an amateur competitor, and participation in many other adventure and organized sports such as snowboarding, beach volleyball, and track and field.

Marketing and Advertising Director: Jordan Barnes, age 31, B.S. Communications, Brigham Young University. Jordan spent five years as an adventure travel and freelance writer and has been a marketing consultant specializing in adventure sports for the past three years. Jordan has an extensive mountaineering background and has summitted three 8,000 meter peaks, including Everest. In addition to mountaineering, Jordan is an avid climber and has skied since the age of five.

Accountant: Paul Mclellan, age 45, B.S. Accounting, University of Alaska, Anchorage. Paul is an accountant and an Alaskan. His ability with numbers has helped keep his mind occupied during competition in the Iditarod, marathons, and mountaineering expeditions. Paul worked as an auditor for the State of Alaska for four years after college and then as an accounting department manager for a non-profit organization for another four years. Before going back to school and earning his degree, Paul was a commercial sport fisherman out of Homer, Alaska. During that time he established connections with many service providers in the state of Alaska. ATI will capitalize on these connections as Alaska is a popular destination amongst adventure travelers.

Travel Agent #1: Sue Taylor, Certified Travel Counselor. Sue has eight years experience as a travel counselor. She is an avid cyclist, runner, and kayaker. In addition, Sue has traveled extensively and has first-hand knowledge of many of the destinations our clients wish to reach. Her trips include a year-long trek in South America, four months in Nepal, and a four-month stint as a ski instructor in Wanaka, New Zealand.

6.2 Personnel Plan

The personnel plan depicts ATI’s anticipated head count for the start up year. The following table provides more detailed information. ATI does not anticipate the need to significantly increase personnel in the first 2-3 years.

Financial Plan investor-ready personnel plan .">

ATI’s financial plan is detailed in following sections. Preliminary estimates suggest that ATI will experience slow growth in the first two quarters of operation. This is partly due to ATI’s status as a start-up company and seasonal factors. Income estimates are based, in part, on anticipated revenues from accounts that were secured by ATI employees prior to their departure from former employers. ATI has sufficient cash to endure the negative cash flow situation that it may encounter initially. ATI also anticipates an increase in gross margin and sales volume. Thus, the overall financial plan presents a conservative but realistic depiction of ATI’s financial position.

7.1 Important Assumptions

ATI assumes the following:

• Market growth projections for the travel industry and for adventure travel are accurate.
• National economic conditions, which are favorable to the travel industry, will not experience significant decline in the next five years.
• International conditions will remain favorable for service providers and ATI will be able to maintain those relationships.

7.2 Key Financial Indicators

The following chart indicates ATI’s key financial indicators for the first three years. ATI anticipates growth in sales with relatively stable operating expenses. Favorable economic conditions and forecasts of continued growth in the adventure travel market support ATI’s planned financial success.

7.3 Break-even Analysis

The following table details ATI’s break-even analysis, including monthly sales break-even points.

Break-even calculations assume a 20% gross margin. This is a conservative estimate, and it will be improved as strategic relationships develop and the benefits of ATI’s offerings are realized by customers.

7.4 Projected Profit and Loss

ATI’s profit picture improves as operations progress into the third quarter of the first year of operation. ATI anticipates improving its gross margin from 22% in year one to 23% in year two. Annual estimates of profit and loss are detailed in the following table.

7.5 Projected Cash Flow

Monthly cash flow is shown in the following illustration. Annual cash flow figures are estimated based on a 60-day collection period. Cash flow for the first year of operation becomes positive mid-year.

7.6 Projected Balance Sheet

The pro forma balance sheet indicates sustained and planned growth. Net worth improves considerably in year two and will provide ATI with a strong financial position. Monthly estimates are included in the appendix.

7.7 Business Ratios

The following table details our primary business ratios. Initial analysis indicates that ATI’s ratios for profitability, risk, and return are financially favorable and will improve greatly in year two of operation. Industry Profile ratios are based on Standard Industry Classification (SIC) Index code 4724.

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