Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $0 |
Stationery etc. | $50 |
Brochures | $100 |
Consultants | $0 |
Insurance | $500 |
Rent | $450 |
Research and Development | $400 |
Website Development | $500 |
Office Equipment | $400 |
Expensed Equipment | $0 |
Other | $0 |
Total Start-up Expenses | $2,400 |
Start-up Assets | |
Cash Required | $44,600 |
Other Current Assets | $0 |
Long-term Assets | $13,000 |
Total Assets | $57,600 |
Total Requirements | $60,000 |
AEU will position itself as a niche service provider within the hard-adventure market. It will offer high-quality travel packages for extreme sporting trips. To begin AEU will offer six trips: helicopter-skiing trips to Canada, India, and New Zealand, white-water rafting trips to New Zealand and Costa Rica, and a mountain biking trip along the Great Divide from Montana to New Mexico.
The target market will be made up of young professionals who work and play hard. These people can afford to play expensively, and are willing to buy time in the form of our services. AEU will serve the hard-adventure niche market as a top quality, full-service provider. AEU defines quality by the unique aspects of the services offered. Those aspects include booking group or custom trips, assistance with passports, providing top-of-the-line equipment and supplies, and a superior service offering with access to better terrain, luxury accommodations, entertainment, celebrity exposure, and gourmet food.
The tours to be offered are as follows:
A comprehensive map system has been created by Adventure Cycling and is currently available for purchase. The map clearly indicates the route, places to camp, stores for food and laundromats. Leadership training for the guides will be developed in-house using some outside material. There are many similar organizations that will be good sources of information. The products needed for this trip are for the most part already manufactured. One item that needs to be designed and built is a privacy compartment for the solar shower. This will be designed by Jordan and manufactured in-house. A cookbook collection of simple recipes, including some personal favorites, will also be assembled. Professional cooks will be provided, and flown in if necessary.
AEU will not send clients to places we ourselves would not go. All service providers will be top-notch professionals with accomplished backgrounds. They will be medically trained, and evaluated for knowledge and ability to ensure safety and high-quality service. If they fail, at any time, to meet our rigid standards of quality, they will not be used. If quality falls, another provider will replace them. These activities take place outside of the United States and therefore we will hire local guides to accompany our professional guides and service providers.
Travel industry is an upward growth industry. There are several reasons for this increase. First, a relative healthy domestic economy over the last several years and the devaluation of currency in other regions has made travel less expensive for U.S. residents. Pleasure travel has increased by 3.2% in 1999 and is predicted to grow 2.0% in 2000. Second, the healthy economy has increased business, which in turn boosted domestic business travel 4.8% in 1999 with an estimated increase of 3.6% in 2000.
Adventure travel is a growing segment of the travel industry. One theory of the recent increase in extreme sports has to do with the strong competitive nature of younger Americans. Statistics show that 8,000 U.S. companies (that offer adventure packages) generated $7 billion in 1999. There also has been a 66% increase in executive participation between 1996 and 2000 (or an increase of 2,000 participants)(La Franco, Robert. Forbes, Feb 9, 1998 v161 n3 p168(3)).
Some quick facts:
AEU’s target customers are high income (min. $75,000 for single person), health-conscious individuals interested in popular hard-adventure sports such as skiing, white-water sports and mountain biking. The major purchasers are located in urban areas within these United States cities.
Customer Location (within the United States):
Hard-adventure travelers are more likely to be men. Therefore, AEU’s primary target market for hard-adventure sports is 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 hard-adventure market). Men, on average, spend more than women on their adventure travels.
Customers will be reached through traditional marketing communication methods. Information has been located relating to specific 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. As such, the Internet will serve as an appropriate and effective medium of communication. Many adventure travelers purchase over the Internet or buy through travel agents. Purchase decisions are influenced by the amount of disposable income held, family issues, and the economy of a given year.
AEU will be targeting two specific groups:
The common elements between these two groups are money and a love for adventures. Group one has a lot of money from income that they earn. Group two has a lot of disposable income because the money was given to them, typically by members of their family. The second group, the trustafarians, is a very small group relative to the first group.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
High-income Health-conscious Individuals | 12% | 1,300,000 | 1,456,000 | 1,630,720 | 1,826,406 | 2,045,575 | 12.00% |
Young, Active Trustafarians | 5% | 500,000 | 525,000 | 551,250 | 578,813 | 607,754 | 5.00% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 10.19% | 1,800,000 | 1,981,000 | 2,181,970 | 2,405,219 | 2,653,329 | 10.19% |
AEU will promote/position itself as a differentiated provider of luxury hard-adventure travel, and will price accordingly within the chosen service niche.
AEU is targeting this special population for several reasons:
Methods of communication will include direct mail, magazine advertising, personal selling and WWW presence. Continuous magazine advertising will be costly. Initially the use of direct mail, and personal selling will be employed. These methods of communication will be tailored to reach our target segment.
As operations progress, AEU will continue to measure our progress relative to competitors and to the growth of the market(s) in which we operate. Though the primary target market has been defined, there may be new possibilities to serve additional segments. As the product is defined, and the strategy differentiation is defined based on competitive strengths, AEU will be better able to determine whether adjustments in positioning are necessary. Access to important information concerning the market, competitors, etc., is available. However it is not free. For the purposes of this project, we feel it is unnecessary to incur additional expense.
The marketing strategy will be to develop long-term relationships with customers. We will keep a database from which to obtain important demographic and psychographic information. As the business becomes profitable, plans will be implemented to expand. There is virtually no limit to the number and variety of trips AEU can provide. Trips can take place on every continent and in most countries. The goal is to establish AEU as an international provider of top-of-the-line hard-adventure travel.
Strengths and weaknesses of the competitors:
Companies that offer higher-priced, more luxurious packages generally provide a “soft” adventure. The activities are more along the lines of sightseeing and low-risk alternatives. The advantages these companies have include established reputations, extensive knowledge of the industry, and key personnel and management. Some have been in operation for more than twenty years. They are familiar with local service providers and have established strategic relationships.
Disadvantages to us:
Closely related competitors:
Abercrombie & Kent: A well-established, international travel provider. Their focus is mainly on “soft” adventure packages such as safaris, river tours (e.g. Amazon), trekking, sightseeing, etc. However they do offer a “Connoisseur” line of packages. These are generally priced starting from $4,000-7,000. Some of their packages include white-water activities and hiking, however most are touring packages.
Competing or substitute products:
There are many activities and types of travel available to people contemplating a vacation. Theme parks, motorhome trips, and cruises are just a few. Substitutes could include less expensive, self-planned trips, trips geared towards soft-travel, adventure trips involving hunting or fishing as primary activities, or exclusive adventure trips such as personal submarine tours of the Titanic or a trip around the world in a Leer Jet. Many activities that take place outside and involve some level of risk could be seen as hard-adventure competition.
Another alternative is to do nothing. Consumers do not have to vacation. They may opt to spend the money they would have otherwise spent on a vacation on something else.
Adventure Excursions Unlimited will be going after the upper-end of the hard-adventure market. This market up until now has been underserved, there are hard-adventure tour companies, but none that are catering to the high-end spectrum. With the adventuring traveling industry steadily increasing, AEU sees a unique opportunity.
AEU’s main objective in its marketing and sales activity is to make the impression on prospective customers that AEU offers a higher level of service relative to any other provider of hard-adventure tours. This will be communicated through all of the different media that we use. If AEU can make the impression that our trips are truly different and superior, then our research indicates that there will be steady demand.
Once AEU has clients signed up and participating on our trips, it will rely on superior customer attention and service to impress and retain clients for future trips. Developing long-term relationships will be the key to steady growth.
The competitive edge in our services is the access we provide to popular “hard” adventure sports without the budget constraint of typical travelers. That is, most travelers are looking to spend less than “hard” adventure sports without the budget constraint of typical travelers. The majority of providers cater to these people. Adventure Excursions Unlimited intends to use the same service providers but provide more exclusive trips. Accommodations will be primarily in small luxury hotels and resorts. Meals will be exceptional, more like gourmet cuisine. In addition, the adventure activities will be better than average because the clients have more money. They won’t get stuck with people they don’t like; they will get access to the best terrain, sections of rivers, etc. AEU’s activities are very popular. AEU’s target market has no problem spending $4,000 per week on heli-skiing. Moreover, they generally make this type of activity an annual event.
The sales strategy is to create long-term relationships with customers through superior service. The intent is to initially target the primary customer group. This group has been defined as persons who have purchased, or are likely to purchase, a “hard-adventure” vacation for over $2,500.
The trips planned are designed with the wealthy adventure traveler in mind. Later marketing efforts may include trips geared towards corporate clients, Eco-tourism or hard-adventure trips for people who want to spend less money. Target customers will be identified through standard research methods. There are a number of publications available that contain profiles of Adventure travelers.
Methods by which we will contact customers will depend on results of marketing/sales research. We will likely use trade or special interest magazines, direct mail, Web-based communication, and personal selling. In addition printed materials will be made available to customers through travel agencies that cater to the adventure target market. Initially, service will be introduced regionally, and possibly nationally. Sales will be extended into the global market within a few years of operation.
Our services are seasonal. Recurring revenue will be dependent upon successful trips involving a variety of activities offered year-round. We hope to promote out of season services through frequent customer contact and our own publication, most likely a magazine of some sort. We will review up-and-coming trips, offer highlights of past trips and try to do other creative articles, giveaways, customer profiles, etc.
Most sales will occur at the retail level. The sales that occur between customers and travel agencies will be discounted appropriately, approximately 15%. Transactions will occur as the result of customer contact in response to communication efforts. In addition, AEU will engage in personal selling.
The following charts and table shows AEU’s expected sales forecast.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Heli-skiing | $360,000 | $500,000 | $570,000 |
White-water Rafting | $140,000 | $260,000 | $310,000 |
Mountain Biking | $100,000 | $200,000 | $240,000 |
Other | $0 | $0 | $0 |
Total Sales | $600,000 | $960,000 | $1,120,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Heli-skiing | $0 | $0 | $0 |
White-water Rafting | $40,000 | $70,000 | $78,000 |
Mountain Biking | $28,000 | $50,000 | $64,000 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $68,000 | $120,000 | $142,000 |
Adventure Excursions Unlimited will have several milestones early on:
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business Plan Completion | 1/1/2001 | 1/21/2001 | $0 | Jordan | Marketing |
Office Set-up | 1/1/2001 | 2/1/2001 | $0 | Jillyn | Department |
Develop Leadership Training Program | 2/1/2001 | 3/1/2001 | $0 | Jordan | Department |
Completion of First Trip | 4/1/2001 | 5/1/2001 | $0 | Loren | Department |
Completion of 20th Trip | 4/1/2002 | 5/1/2002 | $0 | Loren | Department |
Totals | $0 |
Jordan Stephan, VP, Corporate Council, Business Development, and Mountain Biking Activity Supervisor : Jordan received his Bachelor of Arts in philosophy from Washington and Jefferson College in Washington, PA. While there, he was president of the Washington and Jefferson Cycling Club and Team for two years. He completed his Master of Business Management/Doctor of Jurisprudence, joint degree program at Willamette University where he has served as the secretary of the Environmental Law Society, and chairperson for the Willamette University Public Interest Law Project (WUPILP). As chairperson, Jordan supervised twenty-five staff members and raised $14,000. Jordan has also managed a bicycle shop for two years. Following graduate school, Jordan worked for Counterclaim.com where Jordan did business development, organizational development, and other management activities. He is responsible for all logistics on the mountain bike trips.
Jordan’s expertise in mountain bike trip logistics comes from years of cycle touring. Jordan has cycled across the country and around the Upper Peninsula of Michigan and Vermont. Jordan has also done a great deal of backpacking, backcountry hiking and snowshoeing. He has served as a consultant on many long-distance bicycle tours in the United States and abroad. In addition to his role as logistical planner, Jordan will be responsible for part-manufacturing for the mountain bike trips as he has manufacturing expertise from several years of design and improvement experience with outdoor gear.
Jordan’s extra curricular activities are based upon his love for the outdoors. He has been a competitive cyclist and runner for the last five years. He competes in cycling road races, endurance mountain bike races, and road/trail running races up to half-marathons. His current favorite activity is the duathlon or run/bike/run events. He would like to combine his experience and education with his love for the outdoors. The AEU business concept is a reflection of this desire.
Jillyn Certo, VP, Human Resource Manager/Corporate Trainer, and Ski-trip Coordinator : Jillyn graduated with two Bachelor of Science Degrees, one in corporate and industrial fitness and the other in occupational safety, from Oregon State University in 1991. Jillyn completed her MBA work at Atkinson Graduate School of Management in 1998. She has six years experience in the field of safety. After Atkinson Jillyn worked at Nike as a human resource specialist. Her interests include scuba diving and downhill skiing. Jillyn has competed in track & field as well as in horse shows and barrel racing. Along with her interest in sports, Jillyn has a variety of experience with business and pleasure travel. Jillyn will supervise the training of our leaders.
Loren Harlo, Marketing Manager and White-water Adventure Coordinator : Loren is twenty-seven years old. He received his Bachelor degree in psychology from Western College and graduated Magna cum Laude. He will complete his Master of Business Administration degree (with an emphasis in marketing) in 1998. Following graduate school, Loren worked for Burley Cooperative as a marketing manager. Loren has been active in athletics for twenty-years. He played football at the grade school, high school and college level, as well as basketball, track and field, and competition karate. He is an avid outdoorsman with a passion for water sports, skiing, hiking, hunting and fishing. He has recently taken up kayaking. Loren gained self-employment and management experience as an independent contractor for the Union Pacific Railroad. He has also managed and operated a small restaurant. He has always planned to own his own business and realized, while working independently, that he needed the knowledge of business management that an MBA program could provide.
Though the founding members intend to take an active role in the operation of AEU, additional management will be sought out. AEU is open to assistance from experienced managers associated with venture capital providers.
The following table shows the personnel plan for AEU.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Jordan Stephan | $30,000 | $30,000 | $30,000 |
Jillyn Certo | $30,000 | $30,000 | $30,000 |
Loren Harlo | $30,000 | $30,000 | $30,000 |
Mountain Bike Trip Personnel | $70,000 | $150,000 | $170,000 |
Heli-skiing Personnel | $120,000 | $170,000 | $200,000 |
White-water Adventure Personnel | $70,000 | $125,000 | $155,000 |
Secretary | $18,000 | $0 | $0 |
Total People | 4 | 19 | 19 |
Total Payroll | $368,000 | $535,000 | $615,000 |
The following subtopics will provide more financial information.
The following chart and table indicates projected cash flow.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $600,000 | $960,000 | $1,120,000 |
Subtotal Cash from Operations | $600,000 | $960,000 | $1,120,000 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $600,000 | $960,000 | $1,120,000 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $368,000 | $535,000 | $615,000 |
Bill Payments | $168,145 | $245,468 | $305,745 |
Subtotal Spent on Operations | $536,145 | $780,468 | $920,745 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $536,145 | $780,468 | $920,745 |
Net Cash Flow | $63,855 | $179,532 | $199,255 |
Cash Balance | $108,455 | $287,987 | $487,243 |
See the following table for general assumptions.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 25.42% | 25.00% | 25.42% |
Other | 0 | 0 | 0 |
This Break-even Analysis table and chart, below, project the figures for monthly sales break even.
Break-even Analysis | |
Monthly Revenue Break-even | $43,114 |
Assumptions: | |
Average Percent Variable Cost | 11% |
Estimated Monthly Fixed Cost | $38,228 |
The following table indicates the projected profit and loss.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $600,000 | $960,000 | $1,120,000 |
Direct Cost of Sales | $68,000 | $120,000 | $142,000 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $68,000 | $120,000 | $142,000 |
Gross Margin | $532,000 | $840,000 | $978,000 |
Gross Margin % | 88.67% | 87.50% | 87.32% |
Expenses | |||
Payroll | $368,000 | $535,000 | $615,000 |
Sales and Marketing and Other Expenses | $21,000 | $0 | $0 |
Depreciation | $4,332 | $4,332 | $4,332 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $0 | $0 | $0 |
Insurance | $4,800 | $4,800 | $4,800 |
Rent | $5,400 | $5,400 | $5,400 |
Payroll Taxes | $55,200 | $80,250 | $92,250 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $458,732 | $629,782 | $721,782 |
Profit Before Interest and Taxes | $73,268 | $210,218 | $256,218 |
EBITDA | $77,600 | $214,550 | $260,550 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $17,825 | $52,555 | $65,122 |
Net Profit | $55,443 | $157,664 | $191,096 |
Net Profit/Sales | 9.24% | 16.42% | 17.06% |
The following table will indicate the projected balance sheet.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $108,455 | $287,987 | $487,243 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $108,455 | $287,987 | $487,243 |
Long-term Assets | |||
Long-term Assets | $13,000 | $13,000 | $13,000 |
Accumulated Depreciation | $4,332 | $8,664 | $12,996 |
Total Long-term Assets | $8,668 | $4,336 | $4 |
Total Assets | $117,123 | $292,323 | $487,247 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $4,080 | $21,617 | $25,444 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $4,080 | $21,617 | $25,444 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $4,080 | $21,617 | $25,444 |
Paid-in Capital | $60,000 | $60,000 | $60,000 |
Retained Earnings | ($2,400) | $53,043 | $210,706 |
Earnings | $55,443 | $157,664 | $191,096 |
Total Capital | $113,043 | $270,706 | $461,802 |
Total Liabilities and Capital | $117,123 | $292,323 | $487,247 |
Net Worth | $113,043 | $270,706 | $461,802 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 4725, Tour Operators, are shown for comparison.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 60.00% | 16.67% | 4.00% |
Percent of Total Assets | ||||
Other Current Assets | 0.00% | 0.00% | 0.00% | 42.80% |
Total Current Assets | 92.60% | 98.52% | 100.00% | 65.80% |
Long-term Assets | 7.40% | 1.48% | 0.00% | 34.20% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 3.48% | 7.39% | 5.22% | 33.10% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 16.40% |
Total Liabilities | 3.48% | 7.39% | 5.22% | 49.50% |
Net Worth | 96.52% | 92.61% | 94.78% | 50.50% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 88.67% | 87.50% | 87.32% | 40.10% |
Selling, General & Administrative Expenses | 79.51% | 71.08% | 70.16% | 30.80% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 0.80% |
Profit Before Interest and Taxes | 12.21% | 21.90% | 22.88% | 1.20% |
Main Ratios | ||||
Current | 26.58 | 13.32 | 19.15 | 1.66 |
Quick | 26.58 | 13.32 | 19.15 | 1.29 |
Total Debt to Total Assets | 3.48% | 7.39% | 5.22% | 49.50% |
Pre-tax Return on Net Worth | 64.81% | 77.66% | 55.48% | 2.70% |
Pre-tax Return on Assets | 62.56% | 71.91% | 52.58% | 5.30% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 9.24% | 16.42% | 17.06% | n.a |
Return on Equity | 49.05% | 58.24% | 41.38% | n.a |
Activity Ratios | ||||
Accounts Payable Turnover | 42.21 | 12.17 | 12.17 | n.a |
Payment Days | 33 | 18 | 28 | n.a |
Total Asset Turnover | 5.12 | 3.28 | 2.30 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.04 | 0.08 | 0.06 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $104,375 | $266,370 | $461,798 | n.a |
Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.20 | 0.30 | 0.44 | n.a |
Current Debt/Total Assets | 3% | 7% | 5% | n.a |
Acid Test | 26.58 | 13.32 | 19.15 | n.a |
Sales/Net Worth | 5.31 | 3.55 | 2.43 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Heli-skiing | 0% | $0 | $0 | $0 | $0 | $0 | $120,000 | $0 | $0 | $120,000 | $120,000 | $0 | $0 |
White-water Rafting | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $70,000 | $0 | $70,000 | $0 | $0 |
Mountain Biking | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $50,000 | $50,000 | $0 | $0 | $0 | $0 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $0 | $0 | $0 | $0 | $0 | $120,000 | $50,000 | $120,000 | $120,000 | $190,000 | $0 | $0 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Heli-skiing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
White-water Rafting | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $20,000 | $0 | $20,000 | $0 | $0 | |
Mountain Biking | $0 | $0 | $0 | $0 | $0 | $0 | $14,000 | $14,000 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $14,000 | $34,000 | $0 | $20,000 | $0 | $0 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Jordan Stephan | 0% | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
Jillyn Certo | 0% | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
Loren Harlo | 0% | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
Mountain Bike Trip Personnel | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $35,000 | $35,000 | $0 | $0 | $0 | $0 |
Heli-skiing Personnel | 0% | $0 | $0 | $0 | $0 | $0 | $40,000 | $0 | $0 | $40,000 | $40,000 | $0 | $0 |
White-water Adventure Personnel | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $35,000 | $0 | $35,000 | $0 | $0 |
Secretary | 0% | $0 | $0 | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Total People | 3 | 3 | 3 | 4 | 4 | 9 | 9 | 14 | 9 | 14 | 4 | 4 | |
Total Payroll | $7,500 | $7,500 | $7,500 | $9,500 | $9,500 | $49,500 | $44,500 | $79,500 | $49,500 | $84,500 | $9,500 | $9,500 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $0 | $0 | $0 | $0 | $0 | $120,000 | $50,000 | $120,000 | $120,000 | $190,000 | $0 | $0 | |
Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $14,000 | $34,000 | $0 | $20,000 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $14,000 | $34,000 | $0 | $20,000 | $0 | $0 | |
Gross Margin | $0 | $0 | $0 | $0 | $0 | $120,000 | $36,000 | $86,000 | $120,000 | $170,000 | $0 | $0 | |
Gross Margin % | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 100.00% | 72.00% | 71.67% | 100.00% | 89.47% | 0.00% | 0.00% | |
Expenses | |||||||||||||
Payroll | $7,500 | $7,500 | $7,500 | $9,500 | $9,500 | $49,500 | $44,500 | $79,500 | $49,500 | $84,500 | $9,500 | $9,500 | |
Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $5,000 | $1,500 | $3,000 | $5,000 | $6,500 | $0 | $0 | |
Depreciation | $361 | $361 | $361 | $361 | $361 | $361 | $361 | $361 | $361 | $361 | $361 | $361 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Insurance | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
Rent | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | $450 | |
Payroll Taxes | 15% | $1,125 | $1,125 | $1,125 | $1,425 | $1,425 | $7,425 | $6,675 | $11,925 | $7,425 | $12,675 | $1,425 | $1,425 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $9,836 | $9,836 | $9,836 | $12,136 | $12,136 | $63,136 | $53,886 | $95,636 | $63,136 | $104,886 | $12,136 | $12,136 | |
Profit Before Interest and Taxes | ($9,836) | ($9,836) | ($9,836) | ($12,136) | ($12,136) | $56,864 | ($17,886) | ($9,636) | $56,864 | $65,114 | ($12,136) | ($12,136) | |
EBITDA | ($9,475) | ($9,475) | ($9,475) | ($11,775) | ($11,775) | $57,225 | ($17,525) | ($9,275) | $57,225 | $65,475 | ($11,775) | ($11,775) | |
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Taxes Incurred | ($2,951) | ($2,459) | ($2,459) | ($3,034) | ($3,034) | $14,216 | ($4,472) | ($2,409) | $14,216 | $16,279 | ($3,034) | ($3,034) | |
Net Profit | ($6,885) | ($7,377) | ($7,377) | ($9,102) | ($9,102) | $42,648 | ($13,415) | ($7,227) | $42,648 | $48,836 | ($9,102) | ($9,102) | |
Net Profit/Sales | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 35.54% | -26.83% | -6.02% | 35.54% | 25.70% | 0.00% | 0.00% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $0 | $0 | $0 | $0 | $120,000 | $50,000 | $120,000 | $120,000 | $190,000 | $0 | $0 | |
Subtotal Cash from Operations | $0 | $0 | $0 | $0 | $0 | $120,000 | $50,000 | $120,000 | $120,000 | $190,000 | $0 | $0 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $0 | $0 | $0 | $0 | $0 | $120,000 | $50,000 | $120,000 | $120,000 | $190,000 | $0 | $0 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $7,500 | $7,500 | $7,500 | $9,500 | $9,500 | $49,500 | $44,500 | $79,500 | $49,500 | $84,500 | $9,500 | $9,500 | |
Bill Payments | ($976) | ($1,427) | ($952) | ($1,227) | ($1,493) | $183 | $27,193 | $19,514 | $46,704 | $28,451 | $53,668 | ($1,493) | |
Subtotal Spent on Operations | $6,524 | $6,073 | $6,548 | $8,273 | $8,007 | $49,683 | $71,693 | $99,014 | $96,204 | $112,951 | $63,168 | $8,007 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $6,524 | $6,073 | $6,548 | $8,273 | $8,007 | $49,683 | $71,693 | $99,014 | $96,204 | $112,951 | $63,168 | $8,007 | |
Net Cash Flow | ($6,524) | ($6,073) | ($6,548) | ($8,273) | ($8,007) | $70,317 | ($21,693) | $20,986 | $23,797 | $77,049 | ($63,168) | ($8,007) | |
Cash Balance | $38,076 | $32,003 | $25,455 | $17,182 | $9,175 | $79,492 | $57,799 | $78,785 | $102,581 | $179,630 | $116,462 | $108,455 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $44,600 | $38,076 | $32,003 | $25,455 | $17,182 | $9,175 | $79,492 | $57,799 | $78,785 | $102,581 | $179,630 | $116,462 | $108,455 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $44,600 | $38,076 | $32,003 | $25,455 | $17,182 | $9,175 | $79,492 | $57,799 | $78,785 | $102,581 | $179,630 | $116,462 | $108,455 |
Long-term Assets | |||||||||||||
Long-term Assets | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 | $13,000 |
Accumulated Depreciation | $0 | $361 | $722 | $1,083 | $1,444 | $1,805 | $2,166 | $2,527 | $2,888 | $3,249 | $3,610 | $3,971 | $4,332 |
Total Long-term Assets | $13,000 | $12,639 | $12,278 | $11,917 | $11,556 | $11,195 | $10,834 | $10,473 | $10,112 | $9,751 | $9,390 | $9,029 | $8,668 |
Total Assets | $57,600 | $50,715 | $44,281 | $37,372 | $28,738 | $20,370 | $90,326 | $68,272 | $88,897 | $112,332 | $189,020 | $125,491 | $117,123 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $0 | $943 | $1,411 | $1,879 | $2,613 | $29,921 | $21,281 | $49,134 | $29,921 | $57,773 | $3,346 | $4,080 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $0 | $943 | $1,411 | $1,879 | $2,613 | $29,921 | $21,281 | $49,134 | $29,921 | $57,773 | $3,346 | $4,080 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $0 | $0 | $943 | $1,411 | $1,879 | $2,613 | $29,921 | $21,281 | $49,134 | $29,921 | $57,773 | $3,346 | $4,080 |
Paid-in Capital | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 | $60,000 |
Retained Earnings | ($2,400) | ($2,400) | ($2,400) | ($2,400) | ($2,400) | ($2,400) | ($2,400) | ($2,400) | ($2,400) | ($2,400) | ($2,400) | ($2,400) | ($2,400) |
Earnings | $0 | ($6,885) | ($14,262) | ($21,639) | ($30,741) | ($39,843) | $2,805 | ($10,610) | ($17,837) | $24,811 | $73,647 | $64,545 | $55,443 |
Total Capital | $57,600 | $50,715 | $43,338 | $35,961 | $26,859 | $17,757 | $60,405 | $46,990 | $39,763 | $82,411 | $131,247 | $122,145 | $113,043 |
Total Liabilities and Capital | $57,600 | $50,715 | $44,281 | $37,372 | $28,738 | $20,370 | $90,326 | $68,272 | $88,897 | $112,332 | $189,020 | $125,491 | $117,123 |
Net Worth | $57,600 | $50,715 | $43,338 | $35,961 | $26,859 | $17,757 | $60,405 | $46,990 | $39,763 | $82,411 | $131,247 | $122,145 | $113,043 |
Fill-in-the-blanks and automatic financials make it easy.
No thanks, I prefer writing 40-page documents.
Discover the world’s #1 plan building software
Are you a travel enthusiast and want to establish your own travel agency?
Well, if yes, then it’s an exhilarating journey of stepping into a world brimming with adventure and discovery.
But in the midst of this excitement, it’s necessary to lay the groundwork for a successful business out of a hobby. It demands a strategic roadmap – writing a proper travel agency business plan .
So, our travel agency business plan serves as the compass that directs you through all the intricacies of the industry and helps you pay attention to every detail of the business plan.
As you delve into this step-by-step guide, you can explore how to write your own business plan that sets the stage for sustainable growth and leaves a mark on potential investors or readers.
Without further ado; let’s dive into the art of crafting your travel agency business plan.
In reality, every established or emerging business requires a well-written business plan. It is not just a document; it’s a strategic blueprint, offering you a roadmap to make informed business decisions.So, starting your travel agency business greatly benefits from having a well-thought-out business plan like any other business.
Whether you’re looking to secure a loan or attract potential investors, a detailed business plan is truly helpful. It shows your agency’s capital cost & revenue potential and summarizes the profitability for angel investors.
An actionable plan provides a comprehensive view of your travel agency’s goals, offered services, and strategic steps you will take to achieve success. Also, it indicates a thorough understanding of your target audience and top competitors.
Drafting a professional business plan serves as a foundation for a successful business and helps you identify potential risks & challenges in the market. Through careful planning, you can create effective strategies to overcome obstacles.
A well-crafted business plan offers an internal guide that ensures your team understands and aligns with the overarching business objectives, encouraging a cohesive and immersed work environment.
Now, let’s move forward to write a successful business plan for a travel agency.
1. get a business plan template.
Before you start writing a travel agency business plan, it’s highly advisable to get a business plan template first!
It’s like having a valuable toolkit for your business planning endeavors. It not only streamlines the business plan writing but also ensures that you describe all the essential sections.
It offers a structured framework that helps you organize your thoughts effectively to draft a strategically sound business document according to your specific needs and preferences.
Beyond that, a quality business plan template lays the foundation for a comprehensive, professional business plan that highlights your business idea and vision to attract potential investors.
If you’re in search of a polished template, consider Upmetrics’ sample business plan template and ensure that you won’t overlook any essential points in your plan.
Free Business Plan Template
Download our free travel agency business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!
An executive summary is the first and foremost section of any business plan. It offers a quick overview of your entire travel agency business plan.
If your first few pages are compelling enough, potential investors or loan officers will find the document intriguing and delve further into your plan.
Your executive summary should be clear, concise, and engaging if you’re looking for investors or loan sanctions, as it will grab their attention and make a strong impression.
To draft an effective summary, start with a concise description of your travel agency business, covering its name, concept, location, objectives, and unique aspects. Refer to the below example:
Next, explain what sets you apart and share insights about your service offerings, target market, and ideal customer base. Also, highlight marketing materials, current trends, and potential growth opportunities.
Lastly, give a summary of critical financial figures in terms of projected revenues, profits, and cash flows for the initial 3-5 years. From that, you can address funding needs and resources.
A business plan is a professional, living document that you should update regularly to reflect changes in your business.
Now, it’s time to draft a company overview section that provides a more detailed description of your travel agency.
It could be commercial travel agencies or online travel agencies. Share your agency’s founding story and the individuals behind its inception.
Try to explain your business legal structure(S-Corp, Limited Liability Company, or sole proprietorship), and describe the physical location of your travel agency.
Subsequently, highlight your vision and mission statement in this section to define your identity and core values. This serves as a brand story that your customers can connect to.
Take reference from the below example describing the mission statement of the travel agency:
Discuss a little bit more about your business background information and how your travel agency works. Try to give answers for when you start your business and how you have set your office space.
In addition, highlight any milestones you have accomplished, such as the number of clients served, positive reviews, new travel agency openings, etc.
An industry and market analysis section is one of the most important ones in your travel agent business plan. It explores your specific niche within the industry and the geographic background where you wish to operate.
So, take some time to go further and find more accurate information, such as who are your target customers & top competitors, what are the current trends, and whether the tourism market is increasing or decreasing.
Conduct a complete market analysis to study the market size and explore growth potential areas for travel agencies. Assess the total revenue generated within the travel industry and identify the emerging trends.
Examine your target market in detail, including demographics, travel behaviors, and customer preferences. Understand your ideal clients and tailor your services to satisfy their specific needs.
Do thorough customer research and understand how your target audience plans and experiences trips. This can help better customize packages and offerings to meet your clients’ needs.
Want help writing a target customer segmentation for your travel agency business? Use Upmetrics AI writing assistant now and easily draft your business plan sections:
As a travel agent, assemble a list of direct and indirect competitors in the travel agency industry. You can consider both classic brick-and-mortar travel agencies and online travel agencies.
Evaluate the strengths and weaknesses of each competitor, including service offerings, tour packages & quality, customer reviews, and marketing strategies.
Understanding these competitor factors will help you determine areas where your travel agency can differentiate itself and stand out in the competitive landscape.
Execute a SWOT analysis to find internal strengths & weaknesses of your travel company and external opportunities & threats in the travel industry.
Take reference from the below example showing a SWOT analysis for an XYZ travel agency business:
Based on SWOT analysis, formulate strategies to capitalize on opportunities and mitigate threats to outline competitive advantage.
Some extra tips for drafting this section of your travel company business plan:
Next, define the scope of your service offerings and clarify how they meet the diverse needs of your clients.
It must be informative, precise, and client-focused, as it is a detailed breakdown of different services that your travel company offers your customers.
As a travel agency, detail your service offerings, such as bookings, accommodations, vacation packages, international/domestic trips, custom-made business trips, or any cruise bookings.
Effectively disseminate your travel services with a detailed description of what it entails, service specifications, precise pricing plans, or any client reviews.
Here, you can take a reference from the below example to illustrate travel agency services:
1 . Guided Tours
Our guided tours are led by knowledgeable local guides who provide valuable insights into the culture and history of each destination.
Price: Varies by destination, starting at [$50] per person
Specifications: Group sizes are limited to 15 people, and tours typically last 2-3 hours.
2. Accommodation Booking
We offer a range of accommodation options, from luxury hotels to charming bed and breakfasts, ensuring our clients have a comfortable stay.
Price: Varies by location and accommodation type, starting at [$100] per night
Specifications: Accommodations are vetted for quality, safety, and comfort.
Not only that, describe any specialized services in your travel agency business plan template that set your travel agency apart so investors can quickly understand your business scope.
In addition to planning & booking, highlight additional services (trip consultations, wedding planning, speaking at industry events, providing training to other travel agents) and mention third-party partners(if any).
Comprehensive sales & marketing efforts can help your business grow by leaps and bounds. Carry out market analysis and develop clear sales and marketing strategies for reaching your target customers.
For travel agency businesses, explain your preliminary approach and promotion tactics to acquiring either local or international customers.
Also, discuss affordable/high-quality travel packages you provide, their prices, and hassle-free transactions at the point of sale. Here are some of the sales and marketing strategies for travel agencies:
Emphasize the agency’s capability to offer personalized customer service, a variety of communication modes, and 24/7 customer support. Present exclusive access to unique destinations, experiences, and special perks.
Implement a flexible and competitive pricing plan that caters to a diverse client base. It allows the agency to adapt to market dynamics, provide value to customers, and uphold a profitable business.
Take reference from the below example written using Upmetrics’ travel agency business plan template:
Create visually appealing brochures and distribute print materials to local businesses, travel agencies, and strategic locations. Implement a referral program and try to provide discounts or exclusive festive offers.
Utilize social media platforms(Facebook, Instagram, Twitter) to highlight travel packages, engage with the target audience, and build a community around travel enthusiasts.
Create a content marketing strategy comprising blog posts, travel guides, and visually appealing content to encourage potential customers to consider your agency for their travel needs.
Partner with local businesses, hotels, and travel-related service providers to promote your service offerings. Attend travel fairs, trade shows, or community events to network with potential clients.
The management team section offers an opportunity to showcase your strength as a travel agent. It should include a thorough plan for your travel agency’s key managers, employees, or sub-travel agents.
Mention their roles & responsibilities or relevant experience in the related fields or travel agency industry. Also, highlight their expertise that contributes to your agency’s success.
Try to break down overall payroll expenses, such as how much their compensation, commission split, base salary, or whether you will give any bonuses or benefits to your employees.
If you need to hire employees or a travel agent, emphasize how many individuals you will need and how much you will pay them.
This can provide brief details to the investors and help them understand what exactly you plan to staff your agency and pay your employees.
If applicable, you can also design an organizational chart for your travel agency. This can help you demonstrate who your key members are and what roles they serve in your travel agency.
Now, it’s time to develop an in-depth look into the day-to-day functions of your travel agency. Paint a picture of seamless operations and ensure that your business runs smoothly.
Describe the entire operational cycle of the tour business, including staffing, how bookings are managed, customer service procedures, technology used, and safety measures for handling unforeseen circumstances.
Include the below subsections in your travel agent business plan operations section:
Highlight the number of employees required, and opening hours, and briefly outline the responsibilities of each team member and training programs. Refer to the below example written using Upmetrics AI assistant :
From pre-travel assistance to emergency response, prioritize customer satisfaction, efficient techniques, and effective client communication to ensure a positive and stress-free travel journey.
Explain what kind of equipment & technology you will need to run your travel agency. Include a brief idea of how you will reach some travel agency milestones and look forward as your business grows.
You might consider below things:
Currently, you are in a business planning stage, but dedicating some time to putting together the most realistic financial projections is very crucial.
Having a well-structured and in-depth travel agency financial plan will help you show the tentative spending as well as the revenue forecasts and budgets if your travel company is seeking funding from investors.
In this section, you will need to make a few assumptions that will greatly affect the financial statements of your agency. Take a look at the below table to make important assumptions:
Mention all the below financial aspects in your travel agency business plan:
From the above financial statements, you can identify the startup funding needs and evaluate the funding resources for your agency, such as bank loans, angel investors, crowdfunding, or personal savings.
Well, keeping a realistic financial report in your hand not only helps you demonstrate your agency’s fiscal health but also emphasizes its sustainability.
However, calculating all the financial elements from scratch can be overwhelming. But don’t worry; consider Upmetrics’ financial forecasting tool .
All you have to do is fill in all the details you have and let the tool calculate financial factors, and create visual reports for you. No manual data entry, placing Excel formulas, or designing graphs—nothing.
Here’s an example of a projected balance sheet for the next 3 years using Upmetrics:
Need help writing your travel agency business plan from scratch? Well, here you go; download our free travel agency business plan template now and get started.
This modern, user-friendly business plan template is specifically designed for travel agencies. With a step-by-step guide and example, it helps you write a professional plan without missing any crucial steps.
Simply import data into your preferred editor and start writing!
The Quickest Way to turn a Business Idea into a Business Plan
Fill-in-the-blanks and automatic financials make it easy.
Finally! With the help of our sample business plan template, you know how to write a travel agency business plan. So, you are one step closer to starting your travel agency business confidently- pretty exciting, right?
But you know what else is more exciting? Your business planning process can be even smoother than this. Yes, you heard it right; it’s possible with the help of Upmetrics AI Assistant.
So, don’t wait, and start planning now !
Frequently asked questions, where can i find a free travel agency business plan template.
There are various online platforms where you can find free travel agency business plan templates. Consider a reputable business planning website—Upmetrics, which offers free templates to help you get started.
A comprehensive travel agency business plan should include below key components:
It is advised to regularly update your travel agency business plan to reflect changes in the market, industry trends, and business growth. Review and update your plan at least once a year or more often if there are significant changes in your business.
Make sure that you include the following financial factors in your travel agency business plan:
About the Author
Upmetrics Team
Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more
No Risk – Cancel at Any Time – 15 Day Money Back Guarantee
Streamline your business planning process with Upmetrics .
IMAGES
COMMENTS
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.
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.
I promise we’ve got a super razzly-dazzly one that will help you craft THE BEST travel agency business plan out there. So we’ll have you download your free travel agency business plan template in just a second, and then we’ll walk you through the different pieces of the business plan in the article. Sound like a (business) plan?!
Create a Travel Agency Business Plan: A travel agency business plan is a document that will help you cat herd all your amazing ideas for your business. It helps you define your mission and goals, helping you think through the process on how to get there.
Explore a real-world travel agency business plan example and download a free template with this information to start writing your own business plan.
Key Takeaways. Create a compelling executive summary for your travel agency’s identity, vision, mission statement, and core values. Showcase your business goals, market opportunities, and marketing plan to attract potential investors or partners.