Happy Travels Business Plan: EMI-Based Tour Packages

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BUSINESS PLAN OF HAPPY TRAVELS: INTRODUCING EMI-BASED TOUR
PACKAGES
Name of Student:
Name of University:
Learner's Note:

BUSINESS PLAN OF HAPPY TRAVELS
Table of Contents
Introduction......................................................................................................................................3
Task 3 (LO3)....................................................................................................................................4
3.1 Sources of Finance and Support for a Travel and Tourism Entrepreneur.............................4
3.2 Justifications of a Unique Business Idea in Travel and Tourism Sector...............................4
3.3 Start-up Business Plan for Happy Travels.............................................................................5
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
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BUSINESS PLAN OF HAPPY TRAVELS
Introduction
In the modern business environment, evaluating the feasibility of a business is essential before
launching it, as it ensures its profitability. This report will evaluate the financial sources of
tourism entrepreneurships, and formulate a business plan for Happy Travels, a proposed tourism
start-up introducing EMI-based tour packages in the UK.
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BUSINESS PLAN OF HAPPY TRAVELS
Task 3 (LO3)
3.1 Sources of Finance and Support for a Travel and Tourism Entrepreneur
The financial support for the travel and tourism sector can come from various sources. Some of
them are:
 Personal savings: Entrepreneur can fund their start-up business with their own money.
However, Crawford (2018) opined that even though this may seem the easiest way, the
risk of business loss becomes the highest in this.
 Bank loan: This requires a permanent asset, against which the bank lends the loan to the
entrepreneur. However, Hallak, Assaker and Lee (2015) argued that entrepreneurs have
to pay the interest as well, and failing to pay the loan back may get the entrepreneur to be
declared as bankrupt.
 Venture investors: This is the easiest way, as it allows an entrepreneur to sell the shares
of the start-up company to the investors against money, which forms the capital of the
business. However, Deale (2016) opined that to attract willing investors, the entrepreneur
has to present a business plan in a persuasive manner.
3.2 Justifications of a Unique Business Idea in Travel and Tourism Sector
The proposed company named 'Happy Travels' is a private limited organisation that will provide
travel and tourism service to their customers. The deliverables of the company will be tour and
travel packages for various domestic locations of the UK as destinations. Moreover, the company
will also provide tour packages to other international destinations such as Switzerland, Germany,
Russia, New Zealand, India and South Africa.
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BUSINESS PLAN OF HAPPY TRAVELS
However, the unique business idea will be that Happy Travels will offer EMI options for the
payment of their tour packages to those customers who cannot afford high amount of one-time
payments. The availability of the EMI option will be determined based on the total price of the
tour package and the monthly income of the interested customer and these EMIs will have to be
completed before the commencement of the tour. Moreover, high discounts will also be provided
for group travels, which will enhance the attractiveness of the tour packages among the target
customers. According to Fu et al. (2019), as many tour packages are quite costly and are not
affordable to the middle-class customers, this will allow Happy Travels to attract the middle-
class customer segment and gain business profitability in the UK travel and tourism market.
3.3 Start-up Business Plan for Happy Travels
The mission and vision of Happy Travels is as follows:
 Mission statement: The mission of the company is to deliver the best travel and tour
experience to its customers in both the domestic locations of the UK, and other
international locations.
 Vision and objective of the company: The objective of the company is to surpass the
satisfaction of the customers alongside grabbing the target market segment to ensure the
sustainability of the organisation, while aiming for a 30% rate of return within the first 3
years.
 Value proposition: The company aims to allow their clients to pay the cost of tour
packages in EMIs, which reduces their financial burden.
Industry Analysis:
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BUSINESS PLAN OF HAPPY TRAVELS
In the modern travel and tourism sector, the trend of international travel is increasing
consistently due to the globalisation and reduction of social barriers. Moreover, with the increase
in automobile technologies, the cost of travelling has also been significantly reduced from even
20 years earlier. However, expenses of international travels are still not easily affordable for the
middle-class customers, so the low-cost EMI tour packages of Happy Travels is expected to
become popular among them.
Customer Analysis:
The target customer segment of Happy Travels for their EMI-enabled tour packages is the
economically middle-class customers with an annual income of 10,000-15,000 Euros, who are
residing in London and its suburban areas.
Competitive Analysis:
A SWOT analysis of Happy Travels in the UK market will allow it to judge its competitive
position in the market.
Strengths Weaknesses
 Good relationships with business
partners
 Cheaper tour packages with EMI
options
 Highly expert employees
 Lack of experience of employees
 Have no presence outside the UK
market
 Do not have a high amount of working
capital
Opportunities Threats
 Being a start-up, it has rooms for  Have to compete with many large
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BUSINESS PLAN OF HAPPY TRAVELS
growth
 Travel and tourism sector is currently a
booming sector in the UK
 High possibility of gaining a large
number of loyal middle-class customers
tourism organisations like Luxury
Gold, Insight Vacations and others
 EMI schemes may not attract the high-
class premium customers
Table 1: SWOT analysis of Happy Travel
(Source: Learner)
Strategic Marketing Plan:
In order to attract the target customer segment, Happy Travels will publish advertisements
regarding their tour packages in the printer newspaper and digital platform like social media and
YouTube. The advertisements will emphasise the EMI options available for their tour packages,
which will set them apart from the existing tourism organisations.
Organisational Structure and Operations Plan:
In the organisational structure of Happy Travels, the highest authority will be board of directors,
followed by the managing director, general manager and the managers of various departments
like accounts, administration, customer relation, backend team and others. For their business
operations, Happy Travels will have business tie-ups with several transportation companies,
lodging institutions and restaurants in order to deliver complete tour packages to their target
customers.
Budget and Short-term Goals:
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BUSINESS PLAN OF HAPPY TRAVELS
For starting the business, the total business capital of Happy Travel is estimated to be 5,000,000
USD. About 50% of this capital will be collected from the investors, and the rest will be
collected as start-up loan from financial institutions. The budget plan for Happy Travels for the
1st financial year is:
Details of Components Allotted Amount (USD)
Infrastructure 280,000
Physical marketing 20,000
Digital marketing 40,000
Media 30,000
Human resource 80,000
Public relations 30,000
Miscellaneous 20,000
Total 500,000
Table 2: Budget Plan of Happy Travel in 1st Financial Year
(Source: Learner)
The short-term goals for Happy Travels are:
 To ensure a view of 100,000 potential customers in the digital advertisements within the
first financial year
 To gain a customer base with a strength of 1000 customers in the first financial year
 To gain a profit of 150,000 USD in the first financial year
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BUSINESS PLAN OF HAPPY TRAVELS
Conclusion
The above report has formulated a business plan for Happy Travels, a proposed tourism
organisation in the UK market. It has been seen that even though that happy Travels is predicted
to gain a large number of customers for their EMI-based tour packages, which will grant them
profitability and sustainability in the UK market.
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BUSINESS PLAN OF HAPPY TRAVELS
References
Crawford, A., 2018. Application of the EMA Model to Tourism Entrepreneurs: Motivation as a
Mediator. Journal of Hospitality & Tourism Research, 42(8), pp.1254-1273.
Deale, C.S., 2016. Entrepreneurship education in hospitality and tourism: insights from
entrepreneurs. Journal of Teaching in Travel & Tourism, 16(1), pp.20-39.
Fu, H., Okumus, F., Wu, K. and Köseoglu, M.A., 2019. The entrepreneurship research in
hospitality and tourism. International Journal of Hospitality Management, 78, pp.1-12.
Hallak, R., Assaker, G. and Lee, C., 2015. Tourism entrepreneurship performance: The effects of
place identity, self-efficacy, and gender. Journal of Travel Research, 54(1), pp.36-51.
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