Travel Agency
Essay by review • April 20, 2011 • Research Paper • 8,712 Words (35 Pages) • 8,559 Views
Table of Contents
EXECUTIVE SUMMARY 1
DESCRIPTION OF THE COMPANY 1
MISSION STATEMENT 1
PRODUCTS AND SERVICES 1
FINANCIAL FORECAST 2
FINANCING REQUIREMENTS 2
HISTORY AND POSITION TO DATE 4
THE COMPANY'S MISSION 4
MANAGEMENT TEAM AND KEY PERSONNEL 4
SERVICES 6
TRANSPORTATION 7
COMPANY HISTORY 7
GUARANTEES AND WARRANTIES 8
BUSINESS STRUCTURE 8
MARKET RESEARCH 8
ECONOMIC AND SOCIAL FACTORS 9
COMPETITIVE ENVIRONMENT 9
LONG-TERM OPPORTUNITIES 9
GEOGRAPHIC AREA 10
MARKET DESCRIPTION 10
TARGET CUSTOMERS 10
MARKET DEFINITION 10
MARKET OPPORTUNITIES 11
COMPETITIVE ANALYSIS 12
COMPETITIVE ADVANTAGES 13
COMPETITORS' POSITIONS 14
POTENTIAL FUTURE COMPETITION 14
BUSINESS STRATEGY 15
CUSTOMER INCENTIVES 15
ADVERTISING AND PROMOTION 15
SALES AND MARKETING 16
COMMISSION 17
OPERATIONS 17
PREMISES 17
CHOICE OF LOCATION AND PREMISES 17
HOURS OF OPERATION 17
EQUIPMENT 18
STAFFING 18
FORECASTING 18
SALES FORECAST 18
CASH FLOW PROJECTIONS 20
INCOME STATEMENT 20
BALANCE SHEET 21
PERFORMANCE RATIOS 21
BREAK-EVEN 21
FUNDS REQUIRED AND TIMING 21
FUNDING OPTIONS 22
BUSINESS CONTROLS 23
ACCOUNTING SYSTEM 23
QUALITY CONTROL 23
NEW TOUR OPERATORS 23
CAPACITY 23
LONG-TERM GOALS 24
STEPS FOR ACHIEVING GOALS 24
POSITION 25
RISKS ASSOCIATED WITH GROWTH 25
APPENDIX 1: MARKET RESEARCH 26
APPENDIX 2: FINANCIAL FORECASTS 35
EXECUTIVE SUMMARY
Description of the Company
Northwind Traders, Inc. provides travel-planning services for European adventure vacations to residents of the Greater Seattle area. The service industry, including travel agencies, is one of the fastest growing business sectors of the economy, and Northwind Traders intends to capitalize on the success of this industry by taking advantage of travel planning opportunities in the Pacific Northwest.
President Heather Mitchell and Vice President of Sales and Marketing Jim Kim currently hold the company's stock. Prior to starting the Northwind Traders travel agency, Ms. Mitchell cofounded, co-owned, and operated the Northwind Traders clothing store. She has selected a small team with extensive travel, sales, and computer skills, all of whom will be invaluable to the new venture. Her coworkers bring a combined total of 35 years of travel industry experience to the agency.
Mission Statement
The mission of Northwind Traders is to become the premier provider of adventure vacations for 25- to 35-year-old professionals. Northwind Traders is dedicated to building long-term relationships with customers through quality training and customer support, and wants to be recognized as the leading adventure vacation company in the Greater Seattle area. The company's goal is to grow steadily, becoming profitable by the second year of operations.
Products and Services
Northwind Traders recently became the appointed agents for Margie's Travel, one of the largest and most respected tour operators in the market. With virtually no marketing effort, Northwind Traders has sold some 200 adventure vacations in the past six months, netting $66,800 in commissions. Sales of insurance policies and other services have added to this total and could potentially add much more. Northwind Traders offers a comprehensive range of services to support the adventurous traveler, including pre- and postvacation briefings, travel insurance, and a directory of services specific to each destination and activity.
From desk and field market research carried out on 300 clients, it is clear that there is considerable potential in the adventure travel business. Research indicates that Northwind Traders' target market finds it difficult to obtain reliable and authoritative advice on destinations and activities. Research also suggests that the customers in this market are unlikely to purchase their vacations again from the firm who provided their last vacation due to a lack of informative sales personnel. Northwind Traders will cater to these needs and develop a strong return-customer base.
Because they are currently the only travel agency focused on European adventure vacations that is located in the Seattle area, Northwind Traders has a substantial opportunity to dominate the region. In order to maintain and improve their current position in the region, they will need to invest in a Web site, as well as database software and systems, and in refurbishing the shop premises. Northwind Traders maintains the following advantages over existing competition: ongoing support to clients; extensive knowledge of the European adventure vacation field;
...
...