Business Plan “Enjoyable Travel Agency” based in Dubai, UAE
Business plan
Table of Contents
Tables:
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EXECUTIVE SUMMARY
“Enjoyable Travel Agency” will be a full service travel agency located in Dubai suburbs in UAE. In order to launch the operations of this business successfully, the founders estimates that they will require a total of $119,250. The pioneers will invest $19,250 in the project and seek additional funding amounting to $100,000 from (insert the name of a suitable bank or other funding agency).
1.1 The company
“Enjoyable Travel Agency” is going to be a private, limited liability company organized in Dubai by its founders. The founders do not have prior experience in travel agency business but they have (state your qualifications that suite the posts you are going to take, example, in management) and general knowledge on tour business that will support him in operating the business. They also plan to enrol in tour and travel training course in order to obtain formal qualifications that will be vital in operating the business.
1.2 Services
Enjoyable Travel Agency is going to sell inbound and outbound retail travel services and is going to specialize in adventure travel, targeting both recreational and business travellers. A variety of services will be offered including destination packages, custom packages, car rentals, rail passage, airfares, reservations for lodgings, pre-arranged tours and consultations among others.
1.3 Business/Market strategy
Our market analysis confirms that the strategy of the proposed business will be successful. The elements of the organization’s strategy include advertisement of our products and services through various types of media, offering sales discounts and giving promotions to our clients.
1.4 Financial projections
The business projects $500,000 and $144,000 revenue and gross margin during the first year respectively, which are expected to achieve a positive growth during the next three years of operation. These figures are expected to give an annual gross profit of $57,485 and a positive cash flow of $57,485.
BUSINESS INFORMATION
2.1 Name of the BusinessThe name of the business plays an important role for marketing purposes (Brown 2010, p. 12). Enjoyable Travel Agency will offer our customers superior customer service, travel selection and value for their travel dollar. In order to build and maintain strong relationships with our suppliers, we can secure the best rates on destination packages, car rentals, airfares and more. Thus, after careful consideration of this, the retail travel agency is will be known as “Enjoyable Travel Agency”.
2.2 Ownership of the BusinessThe business will be established as a private, limited liability Company fully owned by the founders. This structure may later be replaced with alternative legal corporate structures once the investment funding is secured. The stocks of the company will be apportioned as follows:
60% owned by Enjoyable travel agency founders
(name of Founder 1) 60%
(name of Founder 2) 40%
2.3 Vision Statement
Enjoyable Travel Agency is dedicated to become one of the leading travel agencies in providing travel related products and services in UAE.
Mission Statement
The mission of Enjoyable Travel Agency is to provide quality travel related products and services to its clients. The main aim of the company is to provide all basic needs of leisure/recreational as well as corporate travel markets.
2.5 Products and Services
Enjoyable Travel Agency is going to sell both inbound and outbound retail travel services and is going to specialize in adventure travel, targeting both recreational and business travellers. The company is going to exploit the opportunity of continued demand by UAE to purchase travel services and will offer professional service and consultation to adventure travellers. The company will offer a variety of products and services including destination packages, custom packages, car rentals, rail passage, airfares, reservations for lodgings, pre-arranged tours and consultations among others.
2.6 Business location and facilities
Enjoyable Travel Agency has identified two locations for office space in the heart of Dubai’s wealthiest suburbs.
The location of the main office will be Collins Street at in Dubai (can add address details that will suite you)
The other office will be located at king street, still in Dubai.
The two offices are fully equipped and staffed.
2.9 Start up summary
The total start-up capital requirement for Enjoyable Travel Agency is approximately $119,250. This will be financed through founders’ personal investment and a long-term note secured from (state specific bank).
Start-up requirements
Start-up expenses Registration and Legal expenses $1000
Stationeries $500
Consultants $1,500
Equipment 17,000
Brochures $1,100
rent $2,500
Insurance $400
Other $550
Total start-up expenses $24,550
Start up assets Cash required $40,000
Other current assets $18,500
Long-term assets $36,200
Total assets $94,700
Total requirements $119,250
Start-up funding
Start-up expenses to be funded $24,550
Start up assets to fund $94,700
Total funding required $119,250
Assets Non-cash assets from start-up $54,700
cash requirements from start-up $40,000
Additional cash raised $0
Cash balance on start-up $40,000
Total assets $94,700
Liabilities and capital liabilities Current borrowing $0
Long-term loan $100,000
Accounts payable $0
Other current liabilities $0
Total liabilities $100,000
Capital Planned investment Founders $19,250
Investor $0
Additional investment required $0
Total planned investment $19,250
Loss at start up (start up expenses ($24,550)
Total capital $ (5,300)
Total capital and liabilities $94,700
Total funding $119,250
2.10 Business loan requirements
The pioneers of Enjoyable Travel Agency will invest $19,250 out of the required capital of $119,250. The founders are therefore seeking additional funding amounting to 100,000 from (state a suitable bank).
MARKET ANALYSIS
3.1 Market opportunity
There has persistent demand for travel products and services by UAE. According to Tourism in UAE, (2010), the tour and travel industry is one of the largest sectors of the economy in UAE. Though the industry has in the recent past been hit by economic downturn, it has recently improved and it now operates well in the global market. There is a huge number of UAE travelling to overseas in the recent past. Currently, approximately 30.2% of UAE population is taking a trip to overseas every year and the trend is expected to remain the same. In this regard, there is need for UAE Tourism industry to recognize this trend and counter it.
As well, there have been conscious and significant efforts by UAE government to support the tourism industry recently. The federal government has established a comprehensive plan aimed at providing support for the industry and to facilitate investment opportunities (UAE government, 2011). This has been done through ensuring that the business environment is conducive to attract capital investment. As well, there have been efforts to provide business development assistance throughout the industry and to facilitate the development of emerging investors in the industry (UAE, 2011). Also, there have been efforts to improve booking information and booking facilities as well as the provision of destination for customers in the tour industry.
3.2 Market segmentation
The target customers of enjoyable travel club are UAE citizens on holiday/recreation travel, attending events for sporting contests, music festivals, arts and cultural performances, or they could be people on business travel or people visiting friends and relatives above the age of 15. The target groups are as follows
UAE residents aged above 15 years
Travel agents and professionals with an already established client base especially in the tourism market
Civic groups, corporations and non-profit making organizations interested in our products and services.
Internet users seeking our products and services.
3.6 Competitive advantages
Enjoyable Travel Agency will have a competitive edge brought about by its focus and passion of founders and employees and in superior products and services that it will offer. The company will offer differentiated services, provide high quality services and offer slightly lower prices than competitors.
