Business Description :

The business will guide in planning the customer’s travel trips and specialized itineraries and match personal interests with styles of travel.


Business Overview :

Nowadays, with the presence of so many online travel service providers, it has become a confusing task for tourists to plan their trips in a cost effective manner. This confusion presents an opportunity for a business which will help travelers by connecting them with a suitable travel agent, who can look into their requirements, and arrange their tours accordingly. Such a business is called custom travel business.

The business would play the role of an intermediary. It would require understanding the needs of the traveler(s), like what kind of places they would like to go, how they would want to spend their time, whether they are on a business or a pleasure trip, number of people who would be traveling, the budget and any other special purpose for their trip. Taking all such information into consideration, the custom travel business would need to select a travel or trip advisor, who can effectively help the traveler(s) in fulfilling their requirements.

The key focus of the business should be on finding the right person, who can provide customers with cost effective travel planning.
Though there is no limit to extending your services across various regions, the following areas can yield profitable business :-
1. California
2. Florida
3. New York
4. Texas
5. Illinois
6. Nevada
7. Hawaii
8. New Jersey
9. Pennsylvania
10. Georgia

Product Service Description :

Making customized travel arrangements for passionate travelers. Helping them find the right people for arranging their trip in a cost effective manner.

.Inter-generational Family Travel, Honeymoon or Romantic Adventures, first-time Exploratory Trips, as well as custom travel planning services for individuals, families and private groups.
. Arrangement for conveyance can also be made according to the demands of the traveler.
. The key focus would be on providing the best travel experience to the customers, by helping them decide the location, conveyance etc. This would help them get the best value from their budget for the vacation.

The service will be available through phone, as well as a web based interface.

Market Opportunity

The national tourism and travel industry grew at the rate of 6% last year compared to the usual average of 4%. According to the annual Travel Industry Association (TIA), the U.S. travel industry is expected to post moderate gains in nearly all sectors in 2008. Travel spending by domestic and international visitors in 2008 is forecasted to increase by 5.2% to $778.2 billion, up from the projected full-year 2007, travel spending of $740 billion, which would be a 5.7% increase over 2006.

Around 900 million tourists traveled across the globe last year. Tourism per capita has also increased. International air passenger traffic grew by 9.3% in 2007.

The figures clearly show a growing trend for tourism industry. A start up can leverage on this growth opportunity.

Competitive Analysis

A new entrant may face competition from:

1. www.wildland.com
2. Rollins & Hayes;
3. Sundance Travel;
4. Global Adventure Travel.
The competition in customized travel is not very high, and getting a foothold in the growing tourism market can be rewarding.

Marketing Strategy

A good marketing strategy needs to be developed in order to reach a wider customer base. The following mix can be used initially:-

a) Viral online marketing and mobile marketing.
b) Incentive oriented marketing, such as customer loyalty programs etc.
c) Brochures should be used extensively
d) Direct mail, print ads, sales promotion materials, posting messages in various related communities.
e) Affiliate program can be extensively used.

In a service like this, the main source of advertising is often word-of-mouth advertising, which of course can be attained only through consistent delivery of quality services.

Sales and Distribution Strategy

Reaching the customer: Through marketing campaigns, which would intensively use email-marketing, mobile marketing, etc. The customers would be informed of attractive packages and consultancy options. The customer queries would be managed, both online and over the phone.

Revenue Source: The revenue would primarily come from commission received from the travel agent.

Operations Strategy

This is how the business should work:-

After getting customers, the requirements of the travelers should be addressed by contacting them over phone or requesting them to fill up a travel query form which would contains details about their basic travel requirements like destination, departure spot, date and time, budget , facilities desired etc.

After the required information has been collected, it would be forwarded to an agent, who would be most suitable for addressing the requirements of a customer.

After the information has been forwarded, the concerned agent would contact the customer within 24 hours, to discuss their travel requirements.

Though the travel agent takes over from here onwards, the custom travel business should still contact the customer to enquire whether they have been getting satisfactory services. If the customer is dissatisfied then he/she should be provided with another travel agent.

Financial projections

Category	Year 1	Year 2	Year 3	Comments
Gross profit	$20,000	$30,000	$42000
Expenses : -
Payroll	$5,000	$6,000	$7,200	For 2 part time employees.
Advertising	$1,000	$1,200	$1,500
Telephone	$1,500	$1,800	$2,000
Other expenses	$500	$800	$1,000	legal expenses, conveyance charges etc.
Total Expenses	$8,000	$9,800	$12,500
Net operating Income	$12,000	$20,200	$29,500
Other Income	-	-	-
Net Income / (loss)	$12,000	$20,200	$29,500

Capital Needs Analysis

Asset	Year 1	Year 2	Year 3	Total
Equipment	$2,000	-
Staff	$2,000	$2,500	$3,000
Cash	$1,000	$1,500	$2,000
Consumables
Other	$1,000	$1,200	$1,500
Totals	$6,000	$5,200	$6,500	$17,700

Risks and Challenges

The central challenge in this kind of business is getting customers. It can be done, by implementing an effective marketing strategy.

Established travel planners create increasing competition. Contacting and working with reputed travel planners is also necessary and can serve as a major challenge for the new entrant.

Exit Strategy

The market for custom travel planning offers good prospect for growth and there is good reason to believe that a well planned and worked out start-up, can be successful. It can eventually grow into a vacation agency that has tie-ups with different travel and hotel agencies. In such a scenario, exiting should not be an option.

Tips for Success

• Focus on understanding the requirements of the travelers
  and network with the best travel planners who can provide satisfying
  service.

• Work on maintaining positive relations with existing
  customers.

Books

ISBN NO	Book Title	Author
131701290	Travel and Tourism: An Industry Primer	Paul S. Biederman
9999032826	Discover America 2000: The Implications of Americas Changing Demographics and Attitudes on the Us Travel Indus	Us Travel Data Center
910627924	The Complete Guide to Successful Event Planning	Shannon Kilkenny
761136916	1,000 Places to See in the U.S.A.	Patricia Schultz
393325202	Outside's Wilderness Lodge Vacations	Kimberly Lisagor

Web Resources

Resource URL

http://ezinearticles.com/?Start-a-Home-Based-Historical-Walking-Tour-Business

http://restructuringbusiness.blogspot.com/2006/09/walking-tour-business.html

http://www.chamber.yorkton.sk.ca/voice_of_business/start_your_business/funding/b

http://www.wildland.com/trips/specialtrips/custom_travel.aspx