Pricing Strategies for Tour Operators and Online Travel Agents

The provided assignment is focused on pricing strategies for tour operators and online travel agents. It includes income statements, cash flow statements, and benchmark analyses for Thomas Cook Group. The assignment also emphasizes the importance of mobile apps in the travel industry and provides insights into the tourism sector through various studies and research papers. The document aims to assist students in understanding key concepts related to pricing strategies and their applications in the tour and travel industry.

Business Development
Report
(Part 1)

EXECUTIVE SUMMARY
Mobile apps play a vital role in domain of every business organization and in personal
life of individuals. Travel and tourism industry refers to best example for importance of such
apps because huge part of their success is rely on travel apps. Due to advancement of
technologies, travel agencies gain opportunity for marketing its products and services in large
area of marketplace. As people prefer smartphones to plan their tour, which various activities
like online flight booking, reservation in hotels and restaurants, hire cab and other transport
facilities,etc. Therefore, launching travel apps will aid companies dealing under tourism sector,
to fulfill demand of them by giving best deals. In addition to this, mobile apps are considered as
one-stop solution for people who are going to plan a trip an unknown place in domestic or
international market. Through this app, they can get solutions related to ticket booking, car
rentals, reservation in hotels etc.
In this context, to explore if travel apps aid visitors in obtaining entire information related
to visit a place, Thomas Group is taken in this present report. Here a business proposal is
formulated which entails the effectiveness of mobile apps for increasing sales performance of
this travel agency. This company of UK conduct its business operations in many developed and
under-developed countries as well as serve products or services in entire world. It offers tour and
travel packages, online tickets, high accommodation and transportation facilities etc. to travelers
on different price rates. Therefore, for determining effectiveness of mobile or travel planner
apps, present research is conducted by using secondary research methods. It is helpful in
exploring information related to usage of mobile apps for both users and travel agencies.
Through this research technique, it has evaluated that one of the best advantageous part of
launching mobile apps for Thomas Group is to stay connected with customers and provide time-
to-time solutions.
In this era, concept of feasibility and business is drawn to develop a business plan for
Thomas Group. Business concept reveals targeted market, strategies and policies to gain
competencies. While feasibility plan helps in exploring alternative techniques to achieve set
goals and objectives in suggested period of time. Along with this, researchers has used a unique
model canvas also to develop business plan for Thomas Group. This canvas includes some major

part of this company, which includes- priority customers, superior value propositions, channels
and media partners, value-chain based resources etc. These steps help in outlining the major
activities by which Thomas Group can introduce mobile apps more successfully. For this
assistance, a business plan is prepared by researchers.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
BUSINESS DEVELOPMENT REPORT........................................................................................1
Chapter 1: Introduction....................................................................................................................1
Chapter 2: Business Concept...........................................................................................................5
Chapter 3: Feasibility Research.......................................................................................................8
Chapter 4: The Business Model.....................................................................................................20
Chapter 5: The Business Plan........................................................................................................24
REFERENCES..............................................................................................................................39
Appendix........................................................................................................................................41

BUSINESS DEVELOPMENT REPORT
TOPIC- “To develop mobile app related to travel and tour sector which will provide
necessary information to tourist. Case study on Thomas Cook Group”.
Chapter 1: Introduction
Mobile devices are the most essential part of today's life which is used for connecting the
entire world with each other. People utilize mobile apps for multi-purpose activities like to
explore information about business of a company, purchase commodities through online
applications and more. Therefore, it has become a major part of E-business industries for
growing their businesses. Entrepreneurs can develop official interaction with customers, give
advertisement for employment, create awareness about services and products among consumers
etc. In context with travel sector, companies working under tourism sector get various
opportunities to expand business market with the usage of mobile devices (Kounavis, Kasimati
and Zamani, 2012). As business of such organisations are mainly depended on attention and
retention of loyal customers; Therefore, if travel industries introduce mobile apps then they can
make official interaction with tourists. They can provide time to time information to travellers
about services, destination packages, accommodations, transportation, food and beverages etc.
This would help travel agencies or tour operators to attract tourists towards services and assist
them to buy as well.
In this regard, Thomas Cook Group has been chosen in this report which deals in travel
sector and provides services related to travel and hospitality. This tour operator is headquartered
in London and was established 1841. It has near about 23,000 employees who are giving their
contribution in making holiday journey of tourists more enjoyable. This travel agency is counted
as one of the top industry among others industries that are operating in UK. The main
competitors of Thomas Group are Jet2, TUI and BCD Travel. This firm provides high
accommodations on affordable rates to customers to make their journey memorable.
As Thomas Cook deals in travel sector therefore; by introducing mobile apps, it can
provide information about holiday packages, discounts and other travel related offers to tourists
of domestic and international customers. It will help in attracting tourists towards services of
company which will further aid in enhancing customer base. This would also give opportunity to
Thomas Cook to give a tough competition to rival companies and acquire a good position at
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marketplace. Through launching mobile apps, this travel agency can- provide more value of
business to tourists; create a loyalty program within app; build a stronger brand and make
connection in better manner with customers living at vast places (Van der Wagen and White,
2018). Thus, it will help in boosting profitability of business because when expectation of
customer exceed then its sales performance will also increase.
In order to do design and structure of present report, modern approach is used. This
approach do not concern much on linear processes. But it provides various methodologies or
alternative sources for project management. It includes Critical Path Method (CPM), Lean
methodologies, SCRUM (Agile project management methodologies) and more. In this regard,
CPM is useful in exploring the most critical path of project. It is also helpful in estimating the
time to complete major activities of task. In addition to this, SCRUM methodology is helpful in
developing a team to execute a plan or software products in monthly “scrum sessions” i.e. -
major activities of tasks are broken down into 30-day intervals. Therefore, some of the methods
given by modern approaches are helpful for software development and implementation of IT
technologies in business. While, other methodologies can be implemented in process
improvement, production, product engineering and more.
Furthermore, main structure of report is made in formal style which includes: Executive
summary; Table of Contents; Introduction; Main body; Conclusion and References. For
preparing this business proposal, both primary and secondary methods are used. Primary source
helps in ascertaining the opinion of people about implications of mobile apps. While secondary
source helps in gaining more appropriate knowledge because the information which has been
collected by the researcher is already been carried by authors,scholars and others over set topic
or aim.
Research Aim: “To develop mobile app related to travel and tour sector which will provide
necessary information to tourist. Case study on Thomas Cook Group”
Research Objectives:
 To evaluate the concept of mobile app in travel industries.
 To examine benefits provided by mobile app to Thomas Cook Group.
 To ascertain the strategies for implementation of mobile technologies in business.
Research Questions:
 What is the importance of mobile app in travel industries?
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 What are the benefits provided by mobile app to Thomas Cook Group?
 What are the strategies for implementation of mobile technologies in business?
3

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Chapter 2: Business Concept
This concept in research includes basic information like product or services, targeted area
of market, selling propositions which provide advantage to organisation to gain competition over
competitors and more. In order to formulate a business plan, it is essential for organisations to
must conduct a market survey first. It may help to get an idea about taste and preference of
customers and in deciding which area they have to target. Thus, in context with Thomas Cook
Group, this firm is going to introduce mobile apps which will offer necessary updates and
information to travellers. Therefore, before making conceptual model or business plan, this travel
agency needs to conduct various research first in appropriate manner (Xiang, Magnini and
Fesenmaier, 2015). It will help in better formulating the business plan. In this regard, employers
of Thomas Group need to determine the best method for conducting research in order to get
feedback from respondents about implications of mobile apps. Generally, three main approaches
are used – Nominal Scale; Ordinal Scale and Interval Scale. Under these approaches, nominal
scale provide choice to users i.e. a questionnaire is formulated which includes some options on
each topic. Thus, people can choose best options as per opinion through which Thomas Cook can
determine if introducing mobile applications proves beneficial for enhance customer base or not.
Similarly, ordinal scale assists people to give ranks to each choices. For example: If there are
five options available for a particular questions then assign ranks to each one. Other than this,
with references to interval scale, it gives only two options to respondents i.e. either agree or
disagree on a particular statement. Thus, in this regard, managers of Thomas Group use Nominal
Scale approach for market survey and prepare business plan accordingly.
After making decisions to use appropriate research for market survey, managers of
Thomas Cook are needed to create a plan. This plan is used to deploy survey from targeted
audience. In this context, present company mainly targeted to youngsters and newly married
couples. Therefore, to determine their opinion, this firm has put the survey on its website and
social media platforms like Twitter, LinkedIn and more. This would help in getting opinion of
targeted audience that whether mobile apps are helpful in providing them information about
services, offers, discounts, tour packages and more. Furthermore, through website and social
media, managers of Thomas Cook can ask suggestions for customers to modify its services
which help in developing tour packages more attractive. Thus, after collecting information from
market survey, managers now are required to organise data in proper manner which help in
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addressing issues more appropriately. It includes preference of targeted audience in various
traits, product pricing, supply/demand ratios and more. Therefore, after organising data in a well-
manner, it is essential to put information into charts, graphical representation and other
appropriate way. It will help in making numerically analyse the data, review process and make
adjustment accordingly in business plan by drawing valid conclusion (Edgell Sr, 2016).
Today, the world seems to be at finger tips of mobile users. They can explore information
about product or services anytime, anywhere. It has been evaluated that more than 150 million
tourists prefer apps for getting better accommodations than going personally. It includes hotel
room, flight booking, transportation services and more, by which journey of travellers can
become much comfortable and relax-able. Therefore, introducing mobile app facilities for tour
and travel industries like Thomas Cook will bring various benefits and opportunities. By
providing instant information to travellers about holiday packages and offers through mobile
apps, they can make up minds of customers to purchase services or plan a holiday. According to
business perceptive, entire operations related to – invoicing, bookings, billing and more, is
automated leads to saves time and efforts. Along with this, by collaborating business with
technology, travel agencies can keep into accounts all measures which make journey portal more
safe and secure. They can preserve client's information details safe as well. Mobile technology
also makes managers of Thomas Cook more capable to manage and maintain content on
websites as well as keeping record of clients interest.
By introducing mobile apps, Thomas Group will get many opportunities. It includes –
building brand recognition through a direct marketing channel; giving an all-in-one solution;
gathering user data; mobile marketing automation; collaboration with existing tools and
monetisation. In this regard, customers who are willing to purchase travel packages can figure
out the cheapest way to reach final destination by installing travel apps in their android and
mobile handsets (Buhalis and Foerste, 2015). Utilisation of mobile apps help Thomas Cook
Group and other agencies to make collaboration with tour guides. It will aid in meeting and
exceeding customer satisfaction in more appropriate manner. Travel apps also aid tour operators
to promote its products and offer additional services. For example: Notification alert in mobile
apps, notify information related to discount in hotels and flights bookings.
Some specific features of travel apps are that it can send regular updates to customers
about: Booking details; Hotel availability; Flight boarding times; reservation confirmations;
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Hotel check-ins and check-outs , special offers, discounts and more to targeted audience. Along
with this, mobile apps can also be customisable which allow customers to select type of
notifications they want to receive. It will help in reducing unnecessary alerts for them as well.
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Chapter 3: Feasibility Research
Feasibility study is quite different from business plan which provides an investigation
function. The business plan mainly outlines actions which are required to take proposal from
idea to reality. While in place of this, feasibility plan outlines various alternatives or methods to
achieve framed aims and objectives of research. Thus, it helps investigators to conduct research
in appropriate manner by providing two or three alternatives. This would become a basis for
formulating business plan also. In context with Thomas Group, managers have developed a
feasibility plan in order to determine issues related to business as well as make decisions if
mobile apps has possibility of succeeding or not. In other words, it is helpful in examining the
viability of a proposed service (Page and Hall, 2014). It also provides framework and directions
for development of investigation report. This plan concerns more on analysing, resolving and
clarifying key issues as well as identifying uncertainties in implementation of new strategies in
business.
Managers of Thomas Group conduct feasibility research in order to meet the certain
needs of specific objectives. The main purpose behind this is to address issues which help in
preventing business from being successful at marketplace. In other words, feasibility research is
done by this company- to examine whether business idea (introducing travel apps to give regular
information to customers about tour packages) makes sense or need to create some modifications
in that. In this regard, a feasibility study looks out on three major aspects that are: market issues;
technical/ organisational issues and financial issues. As in travel sector, competition is rise in
much high manner therefore, to gain competitive advantage, it becomes essential for companies
to develop effective strategies. For this assistance, Thomas Group is going to launch mobile apps
to provide regular update and information to tourists (Smith, 2012). It will help in attracting
travellers towards affordable tour packages and holiday destination by giving attractive discounts
and offers.
Primary and secondary data needs:
In order to conduct feasibility research, investigators are needed to gather information
from various sources. It helps in exploring information and giving necessary recommendation for
implementation of a project. With respect to present project, in order to find five major
components of feasibility research that are: Product/Service, Industry, Market, Organisational
and Financial, investigators of Thomas Group are required to gather information about these
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aspects in appropriate manner. With this assistance, they can acquired data from primary and
secondary source on the basis of requirement. In present business proposal, both types of sources
helpful in exploring the effectiveness of idea and determining if it is beneficial for business
expansion or not. Primary data aid to explore opinion of targeted users behind advantages of
travel apps for them (Krizaj, Brodnik and Bukovec, 2014). While secondary data helps in
determining what experts thinks on the same concept. Thus, both sources are necessary to collect
adequate amount of information for conducting activities of market survey.
Research Methodology
Overview
Research methodology refers to a procedure for identification, gathering, processing and
analyzing relevant data on a certain topic. For conducting a research, this methodology allows
project makers to critically investigate information and draw valid conclusion on the same.
Therefore, research methodology is considered as a systematic way for solving a specific
problem. But in this regard, it is essential for investigators to design research methodology by
choosing appropriate methods for selected problem. The methodology section of an investigation
report defines two main aspect which are like- How information has been collected and The way
it has analyzed. So, investigation is done by conducting a proper study, experiment, observation,
comparison, analyzing and reasoning (Soteriades, 2012). Research is generally conducted with
some main purposes such as discover new facts, verify and test acquired data, analyze
phenomena for identify the root cause. More precisely, methodologies undertaken in
investigation report aid researchers to get solution of identification problems. Therefore, by using
this concept, managers of Thomas Group can examine if launching travel or mobile apps aid in
enhancing customer base or not.
Research design
It is necessary for researchers to select appropriate design by which formulated questions
of research can be resolved in given time-frame. The main function of selecting a design is to
ensure that evidence which are obtained during research are useful in addressing research
problems or not. Thus, in this regard, designed plan will act as a blueprint for the selected field
of study. The major purpose behind choosing a design is to reduce error which may happen
during interpreting data. For this assistance, research design gives a right track which are
required to be followed by investigators so that investigation can be conducted in effective
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manner. Therefore, in this regard, research methodologies consists various designs such as
descriptive, exploratory, case study, experimental and more.
In descriptive research design, investigators can evaluate overall insights of issues,
problems and challenges on selected problem. In place of this, exploratory design is used to
explore solutions on framed questions (Sharpley and Telfer, 2015). While the concept of case
study is designed to find a particular issue.
In present research, descriptive design has been chosen by investigator so that deeper
insights of selected topic can be enhanced as well as overall project can also be carried out in
effective manner. On the basis of this, implication of mobile apps in enhancing customer base
can be evaluated. This design is also in getting reviews and opinions of respondents related to
importance of mobile apps.
Research approach:
Discussion of research approach is considered as most vital part of a study with respect to
a particular project. It consists various plan and procedure to conduct a research which includes
certain steps of broad assumptions to detail methods of data collection, analysis and
interpretation. Therefore, it is based on nature of research issues which are being addressed by
investigating the entire report. Generally, research approach is divided into two main categories,
viz. Deductive and inductive research approach.
Hypothesis relevance can be taken as main distinctive point between inductive and
deductive approaches. As inductive approach refers to emergence of new concept and theories.
While in place of this, deductive contributes to test the validity of hypothesis or assumptions. In
terms of usage of data, information collected either by primary or secondary is used to explore
hypothesis under deductive approach (Buhalis and et. al., 2012). On the other hand, in inductive
process, data helps in evaluating a phenomenological or identifying themes and patterns to create
a framework.
Research Methods:
It refers to a tool used to conduct a research on certain topic. It includes various methods
like qualitative, quantitative and mixed where a project maker can choose as per purpose of
research. Research method refer to those methods , techniques or finding application which
reduce research efforts. This research method varies from information to information. This
research pattern is totally depends on the research questions and according to these question an
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individual will research. Research is done before implementation of plan or preparing strategies
in advance, which provides description about the manner to perform. This research method
filters information to related subject goals. This research method provides with two major
approaches, that are: Qualitative and Quantitative, as explained below:-
Qualitative Research: This method deals with individual behaviour, what they pretends
to do, their choices and needs as well (Mortara, et .al 2014). It is a collection or sampling of data
for individual. Sampling is a process which is used by researcher to find out a small sample
from the whole population. It is difficult to conduct the survey on small number of people. In
that case, this technique is more beneficial for an investigator. The current technique has been
applied so that number of respondent can be identified for the current field of study. Once
sample has been extracted then different views and opinions can be evaluated in order to help an
investigator to conduct survey effectively. There are two main approaches of sampling like
probabilistic and non-probabilistic. In probabilistic approach, equal opportunities are assigned to
the peoples who are selected for current investigation. There are some examples such as:
random, systematic, stratified and cluster sampling. On the other hand, another technique has no
equal opportunities which would be assigned to the respondents. Some non-probabilistic
strategies are like convenient, purposive, snowball and quota, to over come their needs. This
method is prejudiced based method, which includes interviews, group interviews, interaction for
data and focus interviews. In general, it does not represent in mathematical or statistical manner,
as it totally based method on subjective form. In this method, proper attention needs to be given
by researchers compare to outside world because fully depend on the requirement of an
individual.
Quantitative Research:- This method deals with quantity of any survey or deals with
large number of people. This methods deals with mathematical or statistical data. if survey is not
under numbers then this is qualitative not quantitative. This method deals with shifting and
relationship between them. This method deals with descriptive survey. No irrelevant information
required as all the information is in figure and graphs (Page, 2014). Through this method
determined information is sampling and their sample design, survey and their designs. This
methods requires observational techniques to solve the problems.
Data collection techniques:
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It is most important section of research which provides methods to investigators to gather
adequate amount of data and critically analysed the same. It includes primary and secondary
methods which is helpful in addressing the set objectives of research. In this regard, primary
research is used to acquire original information which is not published. For this purpose,
investigators are required to conduct some surveys by framing questionnaire, conducting online
and offline interview, etc. Through this process, they can analyse opinion and belief of various
respondents as well as draw valid conclusion also (Mistilis, Buhalis and Gretzel, 2014). In place
of this, secondary method refers to another technique which provide data published by other
authors and writers on various sources. It includes books, journals, newspaper, research papers,
magazines, government policies, internet and more.
In this regard, in current project, secondary method is used to gather specific information
about effectiveness of mobile apps for travel agency. Under this process, managers of Thomas
Group has analysed perceptions of different authors and writers to examine if travel apps
beneficial for enhancing customer base and exceeding their expectancy or not.
Research philosophy:
In this part of research, some assumptions are made at the time of collection, evaluation
and analysing of data. Here, investigators become able to identify the ways by which current
information can be analysed. To carry research further, an investigator has to identify some
pattern through which research objective can be accomplished. There are two types of
philosophical techniques namely: interpretivism and positivism. Under interpretivism, data is
analysed on the basis of qualitative approach where human perceptions are identified. The
present topic of business proposal is launching a travel app therefore, to know how its
effectiveness can be evaluated by getting the views of different people. After reviewing different
theories, it can be determined that how the commitment level of a staff member in an enterprise
can be enhances to some extent. On the other hand, positivism is a philosophy which is based on
the quantitative method research. With this assistance, some mathematical tools and statistical
tools are used by investigator so that they would be able to test their hypothesis. In that case, this
is more suitable in this project where scientific research would be conducted and even which
requires some techniques (Amersdorffer, Bauhuber and Oellrich, 2012). Here, in this current
dissertation, interpretivism philosophy has been chosen by researcher so that perception
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regarding to importance of mobile apps for travellers would be evaluated in an efficient manner.
In this regard, current field of study is based on identifying human views regarding this topic.
Data Sampling:
Sampling is a process which is used by researcher to find out a small sample from the
whole population. It is difficult to conduct the survey on small number of people. in that case,
this technique is more beneficial for an investigator. The current technique has been applied so
that number of respondent can be identified for the current field of study. When the sample has
been extracted, different views and opinions can be evaluated in order to help an investigator to
conduct survey effectively. There are two main approaches of sampling like probabilistic and
non-probabilistic. In the probabilistic approach, equal opportunities are assigned to the peoples
who are selected for current investigation. There are some examples such as: random, systematic,
stratified and cluster sampling. On the other hand, another technique has no equal opportunities
which would be assigned to the respondents. Some non-probabilistic strategies are like
convenient, purposive, snowball and quota.
Data Analysis
It refers to a process by which managers of Thomas Group can collect, organise and
analyse the data in order to come on a valid conclusion (Law, et .al 2015). It is a systematic
process which allows researchers to determine responses and opinion of respondents on the basis
of primary research. Under this process, there are two methods available to analyse a specific
data. It includes qualitative and quantitative techniques. In this regard, under quantitative
research, entire information of project is represented in numerical manner. Furthermore,
investigator uses some mathematical as well as statistical tools so that they can get an effective
outcome. While qualitative method present gathered information in the form of chart, graphs and
other.
Validity and reliability
The term validity refers to authenticity of a particular data to ensure that information is
collected from authenticate sources like journals, books and more. In addition to this,
information is also gathered data from internet websites where different researchers has given
their view point on a specific topic. Therefore, validity and reliability are considered as most
important aspect of a research on which result of entire project is based. Under this segment, it is
responsibility of investigators to use appropriate methodologies so that valid or reliable data can
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be obtained. It also helps in ensuring which whether activities of research is conducted in
effective manner or not. Through this process, investigators get opportunity to explore efficient
outcomes from research which helps in drawing valid conclusion as well. This aspect plays an
important role in the current study as through this investigator will be able to achieve
effectiveness.
Ethics, Values, Referencing and Presentation:
Some ethical issues are taken as most vital part of a research by which overall
investigation can be done in proficient manner. In this regard, it is major responsibility of project
makers to concern on some code of practices as per related with the concept of study. Through
this process, entire activities of research can be conducted in proper way. Ethical considerations
also aid investigator to meet certain aim and objectives of research in given period of time.
Furthermore, on the basis of trustworthy and authenticate sources, reliability and validity of
gathered information can be ensured as well (Schuckert, Liu and Law, 2015). therefore, by
following ethical considerations, managers of Thomas Group can perform overall activities of
research more efficiently. They can identify solutions of framed questions and draw valid
conclusions accordingly. In the present field of study, some practices followed by project makers
of Thomas Group in order to obtain described outcomes are given as below:
• Privacy: It is most essential aspect of a research under which investigators need to keep
personal information of each respondent in ethical manner. They should not disclose any
kind of personal data in front of third party so that privacy can be maintained.
• Given an access: In the present research, data is gathered from various books and
journals. Therefore, access is provided to those individuals whose information is included
into certain field of study. In this regard, set objectives can be achieved as well as ethical
practices also done accordingly.
• Approval: Under this aspect, it is necessary for investigators to follow high ethical norms
and policies. In this regard, respondents are not forced to fill questionnaire or face any
interview section without their approval. Therefore by this process, values and opinion of
different customers can be ensured more ethical.
Key areas of Feasibility Research:
Industry: In travel sector, Thomas Cook Group is considered as a well-known company
which provide best deals to organisations. This travel agency was formed in 2007 after merger of
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Thomas Cook AG, Thomas Cook & Son and My Travel Group Plc. It operates many tour
operators and airlines of UK, Germany and other countries. In addition to this, after merger,
Thomas Group becomes third largest travel company which has 97 aircraft, near about 2,926
stores where more than 32,722 employees are currently working. In terms of sponsorship, this
firm also sponsors football clubs of Manchester City and Peterborough. Currently, over 19.1
million customers are engaged with services of this company as it provides remarkable
experience in terms of transportation, accommodations and comfortable journey. Whether
travellers planning holiday for honeymoon, first time international holidays or multiple times
trip, they mostly prefer services of Thomas Group. The reason behind this, is its affordable and
attractive discount offers which assist to people to prefer its services while planning their
holidays.
Product/Service: This platform is mostly designed to attract customers towards products
of organisation and win competition from other rival companies. In travel sectors, products or
services offered by tour operators are- National and International airline tickets at special rate
and discount; Booking reservation in Hotels as per choice of travellers; Customised travel
itineraries; Travel insurance; Airline and Land Transportation; Travel Insurance, Destination List
etc. In context with Thomas Group, this travel agency help tourists in planning their holiday
plans. In order to make good interaction with customers, this company has given employment to
those individuals who have possessed knowledge of more than three languages, including strong
command on English. Therefore, by developing effective interaction with tourists, employees of
Thomas Group can assist them in choosing their destinations, transportation, lodging and more.
Along with this, they can inform travellers about visa requirement, passport, currency rates,
import duties etc. All these processes, aid customers to plan holiday trip more carefully as per
budget. To win competitive advantage and attract minds of tourists, Thomas Group is going to
launch a brand new app which provide updates and necessary information to travellers. It
provides benefits to targeted audience to know about company's offers, discounts and more. It
also aid customers to have a control on holiday plans which include convenience of switching it
off whenever they need to cover, manage holiday budget and spending, etc.
Market: In this step, organization mainly focuses on finalizing the target market in which
they are going to introduce their new product. In relation with Thomas cook, the company is
introducing its newly formulated application for its users as well as employees through which
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latest services and offers can be shared by all. Top management of Thomas cook is mainly
targeting the youngsters and newly married couples as they are more interested in traveling and
exploring new places in the world. This analysis is beneficial for the Thomas cook as it will help
the firm in enhancing its profitability by reaching to targeted market through online application.
It can be said that after launch of application the travel agency can easily maximize its business
as through the app feedback can be taken from the customers at regular interval. Along with this,
customers can also update themselves about fresh trip plans which are introduced by the
company.
Apart from this, mobile application contributes in enhancing interest of users as they can
explore the new places for their future trips which they might be planning with their belonging
ones. This application is also considered as customer friendly as customers can find out their
travelling places according to their budget and timing. In addition to this, mobile application are
considered as most trendy promoting tool which not only connects company and its user but also
promotes products and services of the company. In relation to Thomas Cook, its mobile
application will be helpful in connecting its customers with company. This application will
include all of the latest packages with prices and offers. It can be said that targeted customers of
travel company that is youngsters will mostly use the app as they prefers to travel new places
and enjoy their life most.
Organizational: This section of feasible plan entails the functional activities of a
company. As present business proposal is based on newly launched mobile apps by Thomas
Group to enhance customer base so, major activities in this regard are based on designing and
developing a tour package, determining itineraries by arranging tour escorts, making travel and
accommodation reservations, quoting holidays and transferring the same to bookings, offering
best customer service, dealing with their complaints, working to sales target etc. To conduct
these operations properly, departments of Thomas Group carry out various activities. In this
context, marketing and sales department cooperate with each other to promote new services in
domestic and international market. The main purpose behind this is to enhance sales performance
by at least 10% and expand business market more in developing countries. For this process,
marketing division formulate strategies and policies in order to advertise its campaign in vast
market area of marketplace. Through platform of social media and own websites, its managers
create awareness among people about travel apps and what kind of services it provides to them.
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Similarly, operation management of Thomas Group introduce physical and fiscal resources
needed to launch new services by conducting a proper market survey. In this regard, for
launching travel planner app which includes following steps: Account Login: It is first stage, where travellers will land on. Under this step, either they
can create new account or use email/social account network credentials to install this
travel apps. Request for holiday package: As per interest, people can choose holiday package by
specifying location and number of days to stay, an ideation about best package will
available to their screen. Avail a deal: It provide details about reservation, accommodation and more, travellers
can avail a deal. Request Customized Package: Users can request for more packages with customized
packages to choose the best one on affordable rates. Accommodation Reservations: People will find here list of hotels within their set budgets
from where they can choose the best one. Find a cab: Travelers can also find a cab within travel app for the planned destination,
which make journey of them more easier. It also give opportunity to explore local areas
of city in much convenient manner. Select a guide: Under this phase of mobile apps within travel sector, users can choose
guides whom they can talk in own language. This app provides names of local or
international guides, contact details, price schedule and more, by which they can book to
discover new places.
 Tracking and Navigation: This feature of travel apps allow travelers to discover the most
optimized path which display direction and landmarks to remain safe and secure from
negative activities.
Managers of operation and human resource department of Thomas Group, need to
introduce resources to meet each and every kind of requirement, which includes technical and
organizational demand. For example- In case of high demand for a particular product or service,
then managers should identify what technical requirements are needed to fulfill the same. While
hiring high skilled employees for providing best customer services are taken as physical
requirement. Thus, for this assistance, managers of Thomas Group are required to assemble new
17

techniques and system at organization which help in launching, processing and managing travel
apps. Along with this, they must hire best employees at workplace as well as provide training to
existing ones, so that entire operations can be carried out in adequate way.
Financial: This platform of feasibility plan is considered as the most important one
which assists employers to examine cost effectiveness of new project. It also provide an
estimation of total cost for a particular project. When this type of document is explored, it helps
managers of company in preparing cost summary which includes an analysis on benefits, return
on investment etc. In order to launch travel app, Thomas Group needs to invest near about 60K
to 100k Euro. Furthermore, for initiating the development, it is essential for managers to hit upon
adequate procedure to craft out best travel app. It includes six major stages that are: Planning;
Analyzing; Designing; Development; Quality Assurance and Launch. If all these stages are
rigorously done then it can reap out the best in other mobile (travel) apps. Therefore, to done
entire activities, Thomas Group needs to make an investment near about 20k Pounds.
Results of the Research in terms of Ambition Vs Ability:
Through feasibility research, it has summarized that Thomas Group has large scope in
terms of launching mobile apps. This firm has made various plan and policies to launch new
product at marketplace more successfully. Its has given recruitment to high skilled and
knowledgeable employees who are able to deal with customer related problems. In addition to
this, managers of Thomas Group has provided adequate training and development programs to
workers. This has made employees able to understand the concept of mobile applications and in
what manner they have to work, so that chance of failure can be reduced (Buckler and Creech,
2014). Thus, this shows that Thomas Group Plc. is highly ambitious in terms of accomplishing
its mentioned targets. Along with this, introducing adequate amount of finance and make proper
budget plan, reflect ability of this travel agency. It shows that this firm will definitely achieve
success in launching mobile app without much interruptions.
In order to increase productivity of workers, Thomas Group has implemented various HR
practices at workplace. It includes employee empowerment, engaging workers in group
activities, providing high appraisals in terms of performance and more. This would help in
getting cooperation and contribution of workers in implementing mobile applications more
successfully. Apart from this, Thomas Group has provided roles and responsibilities to each
employee as per their skills and abilities. In this regard, operational team monitor activities and
18

functions of each department in proper manner. It will help in reducing the chance of error which
might effect process of introduction of travel apps at targeted area. Its finance team concerns
more on keeping record of each transaction properly. This would aid in utilization of budget
appropriately as well as estimating cost used for overall process. Thomas Group has made
effective strategies and plans to stay competitive at marketplace. It includes strategies related to
marketing, sales, customer interaction and more.
19

Chapter 4: The Business Model
Introduction to Business Model:
Introduction to Business Model:
The concept of business model is used to analyse and communicate the business' essence,
in order to predict implication of new project within organisation. The purpose of present
assignment is to propose a framework for business model in conceptual manner. This model will
provide a base for further theory of project and help in conducting a debate as well. The business
model is also defined as an abstract concept having many facets. It provides a description about
implementation of a business concept and entails the process to launch a new project
successfully. Corporations and academics use concept of business model to describe activities
related to operations (Chatterjee and Finger, 2014). Thus, despite vagueness, this model concept
has become a prominent notion in vocabulary part of management.
Therefore, it is necessary for management team of Thomas Group to prepare a business
model adequately. This will provide guidance to project-makers to conduct investigation and
review the procedures as well. In addition to this, the main objectives of a conceptual framework
of business model is based on threefold activities. It includes- To explore existing practices of
business; To prescribe future activities and Define key terms and financial problems. Thus,
conceptual framework will provide a basis for future practice which broadly states key terms and
concepts, used for identifying and debating the issues.
Explanation of each element of business model:
This part reveals the major elements included in framework of business model. It
includes targeted customers, superior value propositions, channels, key activities, value chain
based resources and more (Felix and Hines Jr, 2013). In context with Thomas Group, who is
going to launch a travel app to provide necessary information and updates to travellers, business
model canvas in this regard includes following elements:-
 Priority Customers: This part depicts the priorities of customers in terms of their
preference, demand and purchasing power. With respect to travel industries, travellers
can be classified as cost conscious, domestic and international trips, first time and more.
Therefore, in order to provide information and regular updates to targeted customers,
manager of Thomas Group are required to prepare holiday packages as per their interests.
20

 Superior Value Propositions: In order to attract minds of customers and gain their
retention for longer period, Thomas Group provide its services on lowest price. In
addition to this, it also offer additional services with no-frills i.e. no extra charge will be
taken for supplying basic necessities to travellers while travelling. This travel agency also
give frequent services to leisure and corporate clients in order to exceed level of
satisfaction of them. Products or services provided by Thomas Group include travel
consultation, custom packages, reservations for lodging, pre-arranged tours, rental cars,
rail passage and more. Furthermore, this firm seeks to differentiate itself from other
competitors by launching travel app for customers.
 Channels: In travel industry, the primary distribution pattern is generally considered
from supplier to agent then to customers. Therefore, distribution between agency and
supplier is mostly regulated by conference system. In this regard, two main conferences
by which Thomas Group can gain access from air travel providers are International
Airlines Travel Agents Network (IATAN) and Airline Reporting Corporation (ARC).
Along with this, there are some other distributor channels as well like on-line booking
and telephone booking sales which aid Thomas Group in delivering its services in vast
area of marketplace (Farace and Schöpfel, 2017). In this context, online booking software
keeps business of a company open for 24X7 hours. This will give opportunity to
customers to take services of organisation anytime as per choice. Thus, by using mobile
app, travellers can book their ticket anytime as per own choice.
 Key activities: For promoting features of travel apps and its benefits, managers of
Thomas Group conduct various activities. It includes managing all the requests which are
made by people, advertisement and promotional content on social media etc. Along with
this, all travel agents as well as service providers who are registered with app are
managed in proper manner. Furthermore, solutions which are delivered to customers at
per their request are also recorded safely. The other key activities integrated with mobile
apps by Thomas Group are spot services, currency converter, utility finder, weather
forecasting, world clock and more. All these processes aid to leverage with all demands
of users.
 Value Chain Based Resources: Low-cost airline provided by Thomas Group give
opportunity to those travellers who cannot afford First Class; will enjoy a premium
21

service as well. This travel agency provide air transport services to passengers which
include international, regional, domestic and national (Collins, 2018). It is dedicated to
provide highest quality of customer service and delivered with a sense of friendliness,
warmth and individual pride. For Thomas Group, the main issue of its target customers is
budget constraint i.e. last minute change in reservation or flight booking tickets. This give
negative image of travel companies in their mind and they used to switch such services.
Therefore, to resolve such issues, Thomas Group make ensure that any type of issues will
not arise when people book tickets through mobile apps. Along with this, some other
factors which attract travellers can be described by its value proposition of low cost-
airline, frequent, efficient as well as punctual service.
 Competitive Strategies: In travel sector, there is an intense competition due to
innovation and high technology. It includes Internet and Computerized Reservation
Systems (CRS), which has changed the way of operating business by travel agencies.
Therefore, by launching travel (mobile) apps, Thomas Group give opportunity to
travellers offering tickets on line at discounted rates. This travel agency has introduced
computerized reservation systems which has increased the speed as well as efficiency of
agency in terms of customer transaction. Along with this, its managers have formulated
various plan and strategies to give a tough competition to rivals like TUI Group. Such
strategies can be explored in terms of promotion, pricing, distribution and marketing.
 Key Partnerships: Thomas Cook is considered as one of the leading travel agency
which is supported by near about 22k colleagues. It operates business in more than 17
countries having approximate 100 aircraft, 190 own brand hotels & resorts, 22k
employees and 20 million customers (Tukker and Tischner, 2017). Therefore, all are
taken as partnerships of this travel agency which aid tourists to get a one-stop shopping
and save their precious time.
 Relationship: To launch travel or mobile app successfully and provide high quality of
services to customers, it is essential for employers of Thomas Group to develop an
effective relationship with key partners. It will help in getting cooperation and support of
partners in launching new apps more successfully. Costs & Cost Budget: The main step in creation and development of travel app is to
select best technology which will help in developing mobile application. At present, three
22

main technologies are available at marketplace, viz. Native, Web and App builder. In
native technology, a company can use native coding system to build travel app which
caters to the requirement of smartphones with Android and iOS. While through web
technology, a firm can develop a hybrid app. In place of this, there are many app software
available which need zero effort to create an app. It includes UX which help in designing
an app and give option to choose from a wide range of services. Thus, in this regard,
Thomas Group adopt App builder technology for creation of mobile app. This app
include various features like car rental software, hotel and flight booking engine, guide
selection etc. Therefore, overall £20K is required to develop and launch travel app. It
includes
Particular Amount
Initial Investment 100000
Expenses:
Operational Activities
R&D Activities
Cost to IT Experts
Licensing Fee
Maintenance
22000
28000
16000
6000
8000
Closing Value 20000
 Revenue Stream and Cash Flow: The revenue stream in travel industry is generally
come from selling online air tickets, fees charged for additional food and beverages,
commissions acquired from business partners etc. While cost structure involves airport
charge, aircraft maintenance and staffing as well. Therefore, M&S uses small airports
mostly which are available on low price and less congested.
23

Chapter 5: The Business Plan
In today's world, tourists face many issues and challenges in order to plan a holiday. So,
by launching travel planner app, Thomas Group help tourists in meeting all their requirement.
Through this app, they can discover new destinations, famous dining place, hotels and more,
related with travelling. Therefore, a business plan for Thomas Group is given as below:-
1) Overview of company
Thomas Group deals in tourism sector and founded in 1841 in London, UK. It serves a
wide range of products and services in global market. It includes Charter and Scheduled
passenger airlines, holiday packages, cruise airlines, reservation is hotels and restaurants etc. In
terms of revenue, this firm generate near about 9k million Pound.
1.1) Objectives
The main objectives of Thomas Group behind launching mobile app are:-
 Increase sales performance by near about 650k million in upcoming three service.
 Maintain margins of 10% on all airline travel.
Develop strategic alliances with service providers nationally, internationally, and in
regional areas.
1.2) Mission and Values
TEntrepreneurship and Small Business Managementhomas Group is a travel agency
which specializes in adventure of tourism sector. This company provides tour packages, custom
travel arrangements, solution related to design or plan holiday trip and more (Van Manen,
2016). The main mission of this firm is to develop personal leisure travel experience and become
foremost provider of adventure tourism and travel. Along with this, to enhance values of
business, Thomas Group also seeks to develop connection with small companies operating
business in same field, employers of hotels & restaurants, transporters and more, who are fit in
fulfilment of desires, budget, and skill level of tourists.
1.3) Key to success
In order to accomplish the mention objectives, managers of Thomas Group follow some
keys to success. It includes market segmentation which help in determining demands and desires
of customers on the basis of their demographic, purchasing power, interest level etc. In addition
to this, successfully acquire a position in adventure travel industries, create differentiation in
24

product and services, develop a business base of loyal customers and more, are some another key
factors to achieve present goals of this company.
2) Service Description to accomplish mentioned objectives
Thomas Group is a leading integrated leisure company which provides leisure travels
services, including airline, Visa and Passport. It operates business in more than 21 countries
across 4 continents. Some additional services provide by this travel agency to tourists are access
to top-of-the-line equipment and supplies, assistance with passports, accommodations and
entertainment which make journey of people more comfortable and enjoyable. The value added
of Thomas Group offering is its expertise team who provide best services to customers,
competitive and affordable rates, low airline tickets and more which aid into exceeding
satisfaction of the customers. As per economical data, it has evaluated that today people spend a
lot to travel best destinations of the world in comfortable manner. Therefore, it gives opportunity
to travel agencies to offer them best deals and get their retention for longer period of time. In this
regard, it has estimated that Thomas Group is considered as a niche service provider within the
tourism and travel market which offer high quality of holiday packages for various sporting trips
on affordable rates. This agency also serves adventure and leisure travel market as highest
quality (Chatterjee and Finger, 2014). Thus, more than 5k million of customers are engaged with
its services. People of developed and under-developed countries prefer services of this company
while planning holiday trips for both domestic and international market. All suppliers,
distributors and partners with whom Thomas Group deal belong to top-notch professionals with
accomplished backgrounds.
Concept of new product
In order to provide best services to customers and provide them updated information,
Thomas Group is going to launch mobile apps. It helps travellers in organizing domestic or
international trips by providing a comprehended list of destinations, holiday packages, different
kind of deals, offers and more. As per basis on lifestyle and purchasing power, travel planner app
will provide holiday deals exactly as they are looking for. It also gives details about facilities
accordingly to the mention destinations. In addition to this, trip plan can be categorized on the
basis of seasonal variations also. For example: In summer vacations, travel plans will include
facilities like trekking, skating, resort trip etc. This will enhance travelling and tourism
25

experience as well as save money also. Some top features of travel or mobile apps, introduced by
Thomas Group at international marketplace are mentioned as below:-
 Plan travel and tour requirements: A proficient or efficient travel planning mobile app
will undoubtedly consisting many attributes. In this context, a well featured travel app
provide benefits to tourists in finding perfect destinations, online book airline tickets,
including some additional features like offline access, QR code scanning, navigation and
tracking etc.
 GPS( Geo Location Positioning): The concept of travelling can be defined as exploring
the unknown destinations and places. Therefore, as a tourist, an individual has no idea
about location of such places. Thus, in this regard, one of the most advance features of
mobile app is GPS (Geo Location Positioning) technology. It helps travellers adopt in
navigating the path and finding out destinations by mobile apps which include maps and
navigation tools.
 Maintain and manage a travel diary: The most amazing feature of Thomas Group’s
mobile app is allowing users to share their experiences about visited places. They can
create own blogs too as well as upload photos, video and audio files into mobile planner
app (Welford, 2016). In addition to this, it also shows reviews, feedback and personal
experience of travellers.
Thus, integrating travel app with GPS system will raise its efficiencies. It helps tourists in
making their journey more safe and secure. This system includes tools like Google Maps which
help in tracking down the locations of new place.
3) Steps to ensure arrival
3.1) Market Analysis
Thomas Group plans to expand its market area in more developing countries. For this
process, it targeted such market area where people would like to explore new places, grabs
history of famous dining places and make holiday plans accordingly. Since its travel business
primarily comes under leisure category. Therefore, major portion of revenues are generated from
leisure travel which exceed near about 50 billion Pounds annually. Annual expenditures in the
marketplace of U.K. are estimated as approximately 12-15 million Pound for hard adventure
travellers and 40-50 million Pound for soft ones.
3.2) Market Segmentation
26

Thomas Group mainly target customers belongs to young age, health-conscious or newly
couples and individuals having gross income not exceeding 50k Pounds. Therefore, it offers low-
cost airline which aid travellers who can't afford First Class, can enjoy a premium service. Along
with this, it also targeted those travellers who have interest in popular adventure activities like
white-water sports, skiing and mountain biking. Thus, in this regard, Thomas Group targeted
urban areas lie within states of UK, Australia, Africa, China, Florida, India and more.
3.3) Market Trends
The notable trend in travel and tourism industry is increased deregulation. Through this
aspect, requirement for differentiation is enhanced accordingly. In addition to this, to win
competitive advantages, organisations deal in travel sector, offer airline tickets and other
transportation services at lowest rates (Cardon, 2014). Trends in travel market are rapidly
changing due to increase in airlines facilities, increases demand of leisure and adventure travel,
good economical conditions, per capita income and more. Therefore, introducing travel or
mobile app, will aid Thomas Group to complete demand of tourists on time and exceed their
expectation level.
3.4) Market Growth
Today with changing trends at marketplace, business of travel industry is rapidly
growing. The other reasons for this process are good economy condition, rise in per capita
income, exchange rate of currency and more. Therefore, this would have made tour and travel
services less expensive for people. As per statistical data, it has estimated that leisure travel rise
by 3.2% and predicted to grow by 2.0% more in upcoming years. In this regard, there is a large
scope for Thomas Group to launch travel apps. It will help to enhance sales performance by 10%
annually, which aid this travel agency to become one of the fastest growing in travel industry.
4) To ensure arrival
4 .1) Business analysis
In travel and tourism industry, UK is considered as third most favourite country, which is rich in
terms of adventures place, heritages and destinations. Therefore, enhancement in tourism helps
this country in improving and developing its economy at high rates. In the last decade, revenues
generated from travel and tourism has increased by near about 90%. This market is segmented on
the basis of business class and leisure travel, where each contributes to near about 45% to total
revenues. In addition to this, market of tourism can also be further categorised into international
27

and domestic travel. Here, domestic travel accounts to near about 70% of revenues. As Thomas
Group engages in leisure travel, therefore, it segments market on the basis of trips, taken by
travelers as per income or age. In this regard, four primary leisure travel groups are: Adventure,
Adventure, Interest, Honeymoons, and Sightseeing Trips; Business-class and High-status
Travelers; Budget-conscious Travelers and the last is Families and students who visit for
educational purpose. Therefore, in this regard, by introducing mobile apps, it can give
information to people as per their interest.
4.2) Competitors:
In travel industry, with enhancement in tourism, competition among travel companies also
increased. In UK, many travel agencies are running their businesses with different strategies and
policies in order to gain retention of customers. It includes Rollins & Hayes, Global Adventure
Travel, TUI Group, Travel Finders and more. All these companies offer high quality of services,
tour packages on attractive rates, accommodations and more. Therefore, in contest with Thomas
Group, intense competition at marketplace, affects it profitability in high manner. Thus, to win
competitive advantage, this company is required to develop effective and unique strategies. For
example: By using social media platform, managers of Thomas Group can make good
connection with travelers and give information to them about its new mobile app. Through this
process, they can promote high top features of travel apps and its benefits to tourists. By making
differentiation in products and service, this firm can build trust among loyal customers.
Aggressively promote features of mobile apps like navigation tool, Google Maps, attractive list
of holiday packages on affordable and discounted rates, aid this travel agency in enhancing its
customer base.
4.3) Value proposition
The value proposition of Thomas Group services is generated from experiences gained by
travellers. High satisfaction and exceeding the expectation of tourists shows value of its business
at marketplace. In addition to this, workers are high-skilled and knowledgable which help in
meeting requirements of customers. They provide solutions related to complaints and issues of
travellers and give them satisfaction by making their journey more enjoyable.
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4.4) Marketing Strategy
Marketing activities related to travel and tourism is a tricky task which requires much
attention and strategies for a company. Using digital technologies will provide head start to a
firm over its competitors. The goal of Thomas Group’s business is to develop and keep
customers with products and services. By offering holiday packages as per interest and
purchasing power of people has reflected its efforts to reach mentioned goals. Therefore, to get
more booking via mobile apps, this travel agency can adopt following strategies: Partnerships with luxury hotels and restaurants: By developing relationship with
employers of luxury hotels, Thomas Group can offer leisure services and high
accommodation to travellers on affordable rates. This would also aid in meeting and
increasing expectation of customers as well. Manage online reputation: Before taking services of a company, every person used to
read reviews of other individual who have acquired the same before. This would help in
determining whether such services are beneficial for satisfying their needs or not. In
context with travel sectors, near about 80% tourists when planning national and
international trips, used to look out for summarised feedback and reviews. Thus, in this
regard, it is necessary for Thomas Group while marketing its products at marketplace, to
manage online reputation.
 Go to visitors before they arrive: Companies engage in travel and accommodation,
should develop a good and long relationship with tourists before they visit a place. So, by
providing a mini-campaign to travellers through mobile apps, help in resolving basis
queries of visitors. It includes hotels to stay, transportation facilities and local guide who
help in exploring the new place.
4.5) Sales strategy
Sales refers to an activity which deals selling of good and services in order to earn profit.
Sales strategy are those technique followed by companies to generate revenue from operational
activities. Schemes for sales plays vital role in large organisation. One time planning will not
work under income, step by step plan of action accomplish enterprise goal effectively and
efficiently. Making of strategy will not work, firstly it should be evaluated then implementation
in correct direction will help in achieve targets in effective manner. In context to THOMAS
Group, its main priority is to stay on top of tourists' minds. For this process, developing effective
29

plans on discounted rates especially in off-season period, refers to best sales strategy. In addition,
it is essential to Thomas Group to concern on that customers who used to take services of this
company in repetitive manner, are expected to avail less price rates on next journey. Thus,
fulfilment of their expectancy, will aid this company to get retention of loyal customers and
boost sales performance as well. Some other strategies by which Thomas Group can boost sales
performance are:- Be concerned with advertising strategies: Concept of this strategy can be shown in
different process where hospitality and travel industry needs to thrives on it. By
advertising suite-level rooms for visitors during off-season period on low budget, helps in
convincing them to avail travel packages. Running some special ads in tourism guides,
promotions of club facilities, luxury rooms on affordable rates and more, are considered
as best strategies for developing minds of tourists to avail travel packages.
 Target business travellers: Since majority of leisure visitors are influenced by seasonal
trends, therefore, targeting to business class people consider as best strategy to increase
profitability. People belongs to corporate world, are used to travel for business purpose in
all over the world in regular manner. Thus, by developing holiday packages as per
business travellers will aid Thomas Group in increasing sales performance and enhancing
profitability as well.
4.6) Promotional strategies
Tourism company influences to economical growth and development in the market by
providing better and easy going services. Thomas group will organize several packages that will
be affordable for all kind of people. In today's era everyone use smartphones and laptop or tablet
to gathering informations, ticket booking and other services. Mobile applications are more using
than websites of companies by users. It will assist to booking process, now days no one wants to
go on booking places or wait in public queue, this app will provide better service on time to their
customer. This app saves customer's passport details so at next booking it will consume less
timing and reducing paper work. Also providing rebate information time to time by this app to
attract join these service. Moreover this app customer will aware about the destination views by
watching videos and images.
4.7) Pricing strategy
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Setting price of products and services in travel industries refers to most complicated task.
To set adequate price of tour packages, a firm needs a strong mix of marketing techniques and
financial analysis (Buckler and Creech, 2014). Accommodation, components and people who
are engaged in making holiday experience of travellers and pricing strategies, consider as main
aspects in developing brand and market share. The another factors are uniqueness in business
and flexibility of products, which help in deciding price. Similarly, competitors dealing in same
field, their strategies to attract minds of customers, pricing policies and targeted market are some
another factors which are required to be concern most. In context with Thomas Group, price of
holiday packages are totally dependent on value added services which enhance the travelling
experience. Furthermore, its managers are required to calculate break-even point, occupancy
rates and operational costs. It will help in determining minimum price on which company can
make profit and offer products at low rates as well.
As per The Global Business Travel Association (GBTA), prices in travel sector is
dramatically increases in 20th century, all around the world. Pricing of holiday packages are
much depended on economic stability of a country or region. Along with this, in international
marketplace, price of air travel is also grown by by 3.5% as compared to 2017. The reason
behind this is increasing in demand and rising of fuel price. Moreover, price of hotel and
restaurant accommodation is also considered as rise by 3.7% in 2018 (PRICING STRATEGIES
FOR TOUR OPERATORS AND ONLINE TRAVEL AGENTS, 2018). Thus, in this regard, it is
much difficult for Thomas Group to offer holiday packages on below rates. But, to gain
competitive advantages, its uses some effective sales strategies. It includes-
 Tour packages are used to target niche market like food and wine tasting, golfing, beauty
and relaxation etc.
 Different price level of travel packages are based on seasonal variations which includes
low rates in off season period.
 In off season period, attractive discounts are offered to those customers who are price
conscious. It helps in generating revenue in such period also.
 Thomas Group also prefer some basic price strategies like on the basis of individuals, age
wise and group. Under this process, some discounts are given to senior citizens with
option to choose accommodation and transportation facilities as per interest. While, per
unit pricing set price for 1 unit of service i.e. single package for 2 adults with two kids.
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4.8 Risk Management
Preparing a risk management plan is the most important part of a business plan which
entails process of identifying hazardous situations and developing strategies to overcome from
the same. If project-makers can evaluate potential risks which may come during implementation
of new techniques in business then they can find ways to overcome from such situations. Along
with this, they can minimise impacts of such adverse risks, which will help in recovering from
loss in quick manner if an incident occurs (Bradbury, 2015). The occurrence of risk can be varied
as per business in which a company deals, but preparing a risk management plan, includes a
general procedure. It involves a detail about strategies to handle and deal with risks, by
specifying business operations. Therefore, in context with Thomas Group, its managers has
formulated a risk management plan for launching mobile app without any interruptions
successfully. For this process, they have developed unique strategies in order to cover business
from risk. In addition to this, they have formulated proper budged, resources and more, as per
requirement to prepare a risk management plan with a business impact analysis. This would also
aid Thomas Group in meeting with legal obligations to run business more appropriately.
Furthermore, it also helps in creating a safe workplace by reducing the likelihood of an incident,
which create adverse impact on business.
In this regard, employers of Thomas Group has appointed a highly experienced and
skilled Director of Risk and Audit. By working in collaboration with selected person of
management team, new appointed director give assurance that planned management of risk will
be integrated into strategical and operational process. This point reflects that in Thomas Group,
risk management is considered as a set of actions to run operations in appropriate manner.
5) Expected outcomes
5.1) Financial Plan
When any firm launches new products or services at marketplace, it has estimated that
there will be little growth in the first two quarters of operation. Along with this, expectation yo
cover up operational cost and gain profitability is also seem to be difficult in initial stage (Bourn,
2014). Thus, in this regard, Thomas Group needs to keep enough funds to maintain its initial
performance at market place. With assistance of this, it can easily capture customers' attention by
providing them better services as per their requirement at cheap rates. Keeping adequate amount
of cash also helps in enduring negative cash flow situation which may encounter due to less
32

generation of revenues. This would also anticipates an increase in sales volume and gross margin
as well. Therefore, overall financial plan of Thomas Group represents a conservative and
realistic depiction of its position at marketplace.
 Key financial indicators
Economical conditions, support of government in enhancement of tourism, increase
demand of customers to avail tour packages etc. are some factors, which forecast the growth of
business in travel market. Therefore, success and growth of business by launching travel app in
upcoming three years, in context with Thomas Group, can be indicated by following chart:-
(Source: Benchmark for Thomas Group, 2018)
 Break-even Analysis: The following table shows description of Thomas Group's break-
even analysis which include monthly sales BEP points. As per key financial indicators,
this analysis assumes near about 20% gross margin. This estimate will help in improving
and increasing profitability of business at certain point in sales.
33
Illustration 1: Benchmark for Thomas Group

(Source:Break-even analysis, 2018)
Critical Factors for success
There are many factors present which contributes to obtain effective outcomes of a
project. It includes efforts of team-workers, smart planning, open communication, careful risk
management and more (Bonner and et. al., 2012). In context with Thomas Group, some critical
factors which lead to execute project successfully are mentioned as below:-
Team-workers: Without building a right team, any strategy or plan of a project cannot be
executed successfully. Due to this, expert members, core project staff, suppliers, distributors and
all other stakeholders are considered as part of team dynamic. Therefore, to strive overall
success, all members of team should give high commitment as well as share similar visions. Any
type of dispute related to different background and opinion, will create a serious trouble for
project managers. Thus, any out-of-sync team or inept leadership may leads a plan towards
failure. Thus, managers of Thomas Group should introduce right persons in team as well as
assign them roles and responsibilities as per their abilities (Why mobile app is important for
travel industries, 2018). In addition to this, they should provide training and development to
team-members so that they can understand in what manner activities are required to be done.
each aspect of the project and make sure that they are working well together. Additionally, it is
major responsibility of project makers to give timely information to team members and involved
their participation in each decision making process. It will help in obtaining the most successful
outcome after implementation of a project.
34
Illustration 2: Break-even analysis

Smart planning: Comprehensive planning assist a firm to set up activities of a project
carefully. This would help in implementing such a project more successfully. Under this process,
it is necessary that all stakeholders must be on board while planning process. Along with this,
they must always know updated information as well as direction in which project is going on
(Birley and Moreland, 2014). The main important aspect of planning is to aid team-members to
meet deadlines as well as stay organized. Moreover, good planning process not only keeps
project-makers focused towards business objectives, but also make stakeholders aware of project
progress. Thus, in context with Thomas Group, there are various advantages to smart planning. It
includes creation of time-scale in reliable and realistic manner, ensuring accurate time for
delivering outcomes of project, providing documentation of deliverables and milestones which
will help in determining progress of project. In case of any urgency, an efficient plan give details
about alternatives by which serious problems and issues can be handled.
Introducing required technology: It is the most critical factor which meets requirement
of a project successfully. Thomas Group is going to introduce mobile app at marketplace by
which people can avail its services anytime. Therefore, for this process, it requires to replace old
technologies with new one, develop infrastructure and software at organisation. For introducing
mobile app, this firm needs to make modification in organisational and working process. Along
with this, managers should organise training at workplace to develop skills and knowledge of
employees accordingly. By introducing effective technology like cloud technique, they can store
records and personal information of customers in safe and confidential manner. This would aid
employees to easily access data and use it for giving best services to customers. Thus, all these
processes helps in launching mobile apps more successfully.
Careful risk management: Implementing any new project successful without any
interruptions rarely possible. The main reason behind this is execution process which is not done
exactly as planned. As every project includes various type of risks which may leads the same
towards failure (Avermaete, 2012). Therefore, during planning process, it is essential for project-
makers to create a risk log with an action plan. This would give information to associated
members about risks which may arise while conducting planned activities. In this regard, by
developing a risk log or management plan, managers of Thomas Group give details to
stakeholders where complexity can be arise. Thus, in case of urgency, team-member can take
quick actions for resolving the issue. This would raise confidence level among team-members
35

and stakeholders to face any issue more easily. Along with this, if something happen wrong, then
they could find solutions for increasing progress of mentioned projects.
Having a central online database of project information is vital to ensure you don’t lose crucial
project momentum during the project, but also in the event of losing key participants you can
quickly get your new team members up to speed.
Visibility of plan
A powerful and attractive visibility plan is made to ascertain what strategies and
techniques are used for implementation of a specific project (Allweil, 2016). Therefore, to launch
travel or mobile app successfully, main keys for creation and execution of an effective visibility
plan are:-
Have a plan in advance: This part indicates the overall marketing plan which is going to
be conducted for entire year. In this context, managers of Thomas Group update marketing
strategies in order to meet objectives and corporate goals by creating a business plan. With this
assistance, they have made some conference meeting with investors, team-members and all
stakeholders to entail information about how activities of business plan will be going throughout
the year. In addition to this, discussion is also made to determine need of improvement by
focusing on future profitability of business. Thus, it has been evaluated that visibility plan is
necessary to make which shows outcomes of marketing performance, trends of marketplace in
current year and goals that need to be achieved in set period of time.
Make plan more elaborative and visible: Creating a visibility plan is necessary for
exploring tactics like marketing, sales and competitive strategies. It should includes overall
objectives that need to be achieved in given time-frame, targeted group, activities covered in
plan, communication tools for conveying message to employees and team-members and motivate
them to carry out activities effectively. Along with this, most necessary part includes resources
and budget by which whole plan is executed. Thus, in context with present plan of Thomas
Group, the main objective of this travel agency is to increase sales and generate high profitability
by introducing mobile apps. This agency targets youths and middle class people mostly and
create holiday trips as per purchasing power of them (Al-Mubaraki and Busler, 2013). For
boosting sales performance, this firm offer holiday trips in off-season period on attractive
discounts. While, for promoting its mobile apps including features which provide benefits to
36

tourists, marketing team use platform of social media. For this purpose, they have made various
campaign and advertisement to bring awareness in people. Moreover, to gain competitive
advantage, this firm offers flight tickets on lowest rates to gain retention and meet requirement of
middle class people. In addition to this, for implementing business plan successfully, Thomas
Group give employment to high skilled employees having good experience and knowledge in
travel industries. This firm also introduces adequate amount of budget which is near about £20K.
Adopt visibility strategies which march strength of business: There are many
visibility strategies available which shows how effectively a company execute activities of its
business plan and promote services. It includes e-mail, in-person workshops, advertise campaign,
blogs, twitter or other modes of online techniques (Williams, 2014). Therefore, in this regard,
managers of Thomas Group have formulated various strategies for promoting mobile apps in
targeted area. It includes develop interaction with users through social media like Facebook,
Twitter, Instagram and more.
Enlist business partners: A company having expansion of business in many countries,
cannot convey vision and message to entire world alone. With this assistance, such organisations
need to create partnerships and develop relationship with joint venture. Therefore, partnerships is
considered as one of the best visibility tool in business plan. When a firm develop effective
relationship with partners and individuals who are associated with business, then it will help in
promoting and spreading information about new project more successfully. In addition to this, it
also increase abilities of business to reach ideal and loyal customers exponentially. Thus, in this
regard, Thomas Cook which is one of the leading leisure travel group in world, has been running
its business from more than 176 years. It has served near about 19 million travellers till now,
which shows effectiveness of services. Its main partners who help in making holiday trips of
tourists more enjoyable and comfortable are- SENTIDO (Hotels & Resorts), Smartline,
SunConnect Resorts, SunPrime Hotels, Sunwing, Casa Cook and more.
Activate Persistent and Consistent Action (PCA): This is the most important part
which shows difference between successful and non-successful plan. In this regard, Consistent
Action assists managers of Thomas Group to monitor and track record to ensure how activities of
business plan is conducted (Adekola and Sergi, 2016). While Persistent Action states to follow
up every instruction and strategies which help in reducing error in executing a project
adequately.
37

Visibility of budget and investment:
The most concern part of any project is evaluation of finance required to conduct entire
activities. As shown in business model, for launching mobile app, Thomas Group has made
investment which is near about £20K. To optimise this cost effectively, managers have
formulated a proper budget plan and distribute it in proper manner. It includes 22k Pounds for
operational activities, 28K Pounds for R&D operations, 16k Pounds to IT development, 6k
Pounds for licensing and 8k Pounds in maintenance the entire project.
38

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Appendix
Income statement of Thomas Cook
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Cash Flow Statement of Thomas Cook
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