Aventure Voyage International: Service Management Business Plan Report

This report details a business plan for Aventure Voyage International, a sole proprietorship focused on adventure and tourism services in Australia, targeting couples and individuals. It includes an executive summary, background information, market segmentation analysis (demographic, geographic, behavioral, and psychographic), and identification of the target market. The report also addresses current and future challenges in the Australian tourism industry, such as increasing oil prices, competition, labor costs, political uncertainty, climate change, and digital development. The service concept emphasizes custom packages, reservations, and travel consultation to differentiate the company. The plan aims for significant sales growth within three years and outlines strategies to achieve its objectives. The report concludes by highlighting the potential of Aventure Voyage International to become a leading tourism business.

[sERVICE MANAGEMENT]
2019
Aventure Voyage

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Executive Summary
A business plan is considered to be very important to present a business idea as it supports in
presenting a blue print incorporating different strategies and risk that needs to be considered
by a business before and after establishing the business in the market. In addition to this, a
business plan works as a navigator that supports the managers of the business to reach the
objective and goal of the company. This paper has discussed regarding a business idea of
Aventure Voyage International which is sole proprietorship tourism and adventure business
focused towards offering different services of group, individual and couples. The objective of
the business is to be established as the leading organization in the tourism industry of
Australia by targeting domestic as well as international customers. The paper has identified
that the company is planning to target middle class leisure seeker customers. However, the
analysis has highlighted some of the current and future issues that can impact the operations
of the business. Some of the issues discussed in the file are increasing oil prices, increasing
labour prices, increasing competition etc.

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Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Background of Business.........................................................................................................3
Target Market segment..........................................................................................................4
Market Segmentation.........................................................................................................4
Target Market.....................................................................................................................5
Current and Future Implications............................................................................................6
Current Issues in the Australian Tourism Industry............................................................6
Future Issues in the Australian Tourism Industry..............................................................7
Service concept......................................................................................................................8
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Introduction
The intent of this report is to present a new business plan of a travel company that is involved
in offering adventure and sport/travel packages to the customers in Australia. The report is
comprised of detailed analysis of the target market and the strategies that is going to be used
to market the services. Further, the report is presenting the discussion related to the current
and future issues that business has to deal with in the Australian tourism industry. The service
concept of the business is also being presented in the report.
Background of Business
The Aventure Voyage International will start its operations in next year and offer sport/travel
and adventure packages to the people of Australia especially in the Hobart, Tasmania. The
Aventure Voyage International has growth opportunity in the Australian tourism industry
because presently the travel and tourism industry is developing and it is anticipated that in the
coming five years it will grow at 3.5% annual growth and will reach to $134.3 billion. The
country’s domestic tourism contributes 70% in the revenue of the industry. Besides this,
Hobart, Tasmania is presently emerged as the trendiest southernmost hotspots. The place not
so famous among the tourist but has faring and dynamic art scene, rugged mountains, world-
class festivals, picturesque waterways, and gourmet experience. Aventure Voyage
International is being established to take the advantage of the industry’s growth and limited
competition with the skilled workforce, effective marketing, management, and excellent
location. The objectives of Aventure Voyage International for the three years are to increase
the sales of around $650,000 by the end of third year and to maintain the sales of over 15%
through internet.

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The organization structure of the Aventure Voyage International is sole proprietorship which
will be managed and owned by James Richard. The business owner and employees are highly
experienced professionals of tourism industry and are passionate regarding the activities that
business will offer and promote. The business will provide reasonable prices travel packages
to the middle class people who love adventures and travelling. In order to successful operate
the business in the Australian Tourism industry Aventure Voyage International has
established strong relationships with the providers of the services and products related to
tourism and travel industry. The company has selected two airlines as its primary ticket
providers because they do not ask for the agent commission on the tickets. This will enable
company to cover 10% of the margin on the sales of the ticket. As per the research of the
market, it has been identified that it is important to establish relationship with the providers of
the services all over the world. However, in order to successfully deal in the industry
company has to deal with some of the main existing players of the market that are Intro
Travel, Cosmos, Intrepid Travel, Ultimate Travel, etc.
Target Market segment
Market Segmentation
Market segmentation is said to be a term of marketing which means dividing the customers
into different divisions that portray common demands and act similarly to the marketing
efforts of the company (Menzly and Ozbas, 2010). This marketing technique allows
businesses to target different type of customers who can perceive the complete product or
service value differently from one another. The market segmentation is done by the
businesses based on four segmentation categories that are demographic, geographic,
behavioural, and psychographic segmentation (Koh, Jung-Eun Yoo and Boger, 2010). The
segments that will be targeted by Aventure Voyage International are presented below:

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Demographic Segmentation – Under this type of segmentation, the marketers divide the
customers based on the age, family size, education, language, occupation, gender, religion,
income, etc. Aventure Voyage International will divide its customers in the tourism industry
of Australia on the basis of age, income, gender, etc.
Geographic Segmentation – Geographic segmentation is said to be one of the simplest type of
segmentation. Under this concept, the marketers of the company can divide the market on the
basis of their nation, regions, postal codes, neighbourhoods, cities, countries, etc. (Wedel and
Kamakura, 2012). Aventure Voyage International will establish its office in the Australian
market with major focus on the domestic travel and adventure activities.
Behavioural Segmentation – In this type of segmentation, manager of the business
differentiate the customer group on the basis of attitude, response, knowledge, readiness stage
to a product, usage, loyalty etc. Aventure Voyage International will divide the market on the
basis of knowledge, usage, attitude, etc.
Psychographic Segmentation – This segmentation type defines the characteristics of the
customer. Under this, customers are classified into market segments on the basis of their
personality, values, interests, lifestyle, values, opinions, etc. Under this segmentation,
Aventure Voyage International will target the customer based on their lifestyle, opinion,
interest, personality, etc.
Target Market
A target market is the selected group of consumers to whom business desires to sell its
services and products. This selected group is comprised of particular customers who are
directed by the marketing efforts of the company (Mirgani, 2017). Target market concept is
said to be one of the important portion of the entire marketing for a service or good.

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Customers that make target market have similar characteristics comprising buying power,
incomes, demographics, geography, etc. (Baer, 2013)
The target market of Aventure Voyage International is the couples and individuals who are
health conscious, with median incomes of around $50,000. They take interest in the famous
adventure activities like mountain biking, site seeing, whitewater sports, and skiing. The
primary target market of Aventure Voyage International will be couples, between the age
group of 25-35 with incomes over $50,000.
Current and Future Implications
Current Issues in the Australian Tourism Industry
Increasing Oil Prices – The increasing price of oil in the Australian market is impacting
different companies of different industries to smoothly operate their business in the market.
The increasing oil and petrol prices are also impacting the tourism industry due to
involvement of different vehicles and equipment used while travelling or adventure events
(Scutt, 2019). The increase in price results in increasing the prices of travelling and
adventuring packages for the customer. In order to overcome the challenges raised by the
increasing oil and petrol prices, Aventure Voyage International is recommended to make use
of electric and battery vehicles for traveling of the clients.
Increasing Competition – As discussed above the Australian tourism industry is presently
growing on the yearly rate due to which it is gaining the attention of different businesses to
get involve for gaining the increased market share and profit margin (Holiday In Australia,
2019). In order to deal with this increasing competition in the industry company has to get
involve in aggressive promotion of the business with the use of different promotional mix
tools such as advertisement, direct marketing, digital marketing, etc.

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Increasing Labour Cost - The labour cost in the Australian market is high due to which the
businesses has to bear increased operations cost which impacts the business in the industry
and even gives chance to the competitor to gain competitive advantage (Tourism Australia,
2018). In order to deal with this increased cost, the Aventure Voyage International is
recommended to hire employees from the Asian market as this market gives chance to the
businesses to hire cheap labour.
Future Issues in the Australian Tourism Industry
Uncertain Political Environment - The uncertain political environment of the Australian
market can raise challenges for the businesses operating in the market including Aventure
Voyage International. The government of the country has established different laws and acts
that need to be adhered by the organization to survive for longer-time for instance Tourism
Australia Act 2004 (Federal Register of Legislation, 2019).
Climate Change - Climate change is considered to be the major threat for the tourism industry
of Australia which majorly impacts the business due to its nature. But, the Australia’s tourism
industry is least prepared for dealing with the impact of the climate change in spite of the fact
that it has started experiencing its effect (Morton, 2018).
Digital Development - Today, every businesses is planning or getting involved in the digital
business due to increasing trend and growth of the digital business (The World Bank, 2018).
Businesses are making use of social media and different internet mediums to operate the
business due to changing shopping preference of the customer. The digital development
could impact the company therefore company has planned to operate offline as well as online
business.
Increasing industry growth - The tourism industry of Australia is developing at fast rate due
to changing lifestyle and preference of the customers. Besides this, the increasing awareness

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of adventurous and famous destinations is attracting travellers. Hence, the increasing trend
and awareness will allow Aventure Voyage International to take the growth opportunity.
Service concept
Aventure Voyage International is being established in the Australian market to offer group as
well as individual travel services to corporate and leisure clients. Products and services
offered by Aventure Voyage International is comprised of custom packages, rental cars, pre-
arranged tour packages, reservations for hotels, travel consultation, rail passage, etc.
Aventure Voyage International is focused towards differentiating itself from other players in
the market and to be established as the best adventure and travel agency in the Australian
market.
Conclusion
The above report has presented the brief description of a new tourism business with name
Aventure Voyage International to be established in the Australian market. The company has
planned to offer different travel and adventure events to the customers in order to
differentiate itself from the existing players. Hence, it could be concluded that targeting
individual, group, and couples by offering different services like rental cars, lodging facility,
bookings, pre-arrange packages will support it in establishing as the leading business.

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References
Baer, J. (2013) Youtility: Why Smart Marketing Is about Help Not Hype 1st ed. U.S: Penguin.
Federal Register of Legislation (2019) Tourism Australia Act 2004 [Online]. Available from
https://www.legislation.gov.au/Details/C2012C00363 [Accessed 7 August 2019]
Holiday In Australia (2019) Tourism 2020 [Online]. Available from
http://www.tourism.australia.com/en/about/our-organisation/our-performance-and-reporting/
tourism-2020.html [Accessed 7 August 2019]
Koh, S., Jung-Eun Yoo, J. and Boger Jr, C.A. (2010) Importance-performance analysis with
benefit segmentation of spa goers. International Journal of Contemporary Hospitality
Management, 22(5), pp.718-735.
Menzly, L. and Ozbas, O. (2010) Market segmentation and cross‐predictability of returns.
The Journal of Finance, 65(4), pp.1555-1580.
Mirgani, S. (2017) Target Markets - International Terrorism Meets Global Capitalism in the
Mall 2nd ed. Germany: Verlag.
Morton, A. (2018) Tourism is the Australian industry least prepared for climate change,
report says [Online]. Available from
https://www.theguardian.com/environment/2018/feb/08/climate-change-tourism-is-australias-
least-prepared-industry-report-says [Accessed 7 August 2019]
Scutt, D. (2019) Australian petrol prices surge to 6-month highs and there may be more pain
for motorists ahead [Online]. Available from https://www.businessinsider.com.au/australia-
petrol-prices-iran-crude-oil-sanctions-2019-4 [Accessed 7 August 2019]

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The World Bank (2018) Digital Platforms and the Future of Tourism [Online]. Available
from https://www.worldbank.org/en/news/feature/2018/09/25/digital-platforms-and-the-
future-of-tourism-a-world-tourism-celebration [Accessed 7 August 2019]
Tourism Australia (2018) Biggest challenges coming 2018 [Online]. Available from
http://www.tourism.australia.com/content/dam/assets/document/1/7/0/9/o/2006556.pdf
[Accessed 7 August 2019]
Wedel, M., and Kamakura, W.A. (2012) Market Segmentation: Conceptual and
Methodological Foundations 2nd ed. Germany: Springer Science & Business Media.