Comprehensive Business Plan: Online Ticket Booking on Commission Basis

This report outlines a comprehensive business plan for 'Online Ticketers,' a company focused on online airline ticket booking on a commission basis, primarily targeting the UAE market. The plan includes a detailed market analysis, identifying target customers (frequent travelers and travel agencies) and potential rivals. It explores the 'market pull' and 'technology push' aspects, addressing challenges like airline policy changes limiting ticket purchases. The report proposes solutions, analyzes revenue models (commission, cancellation fees, and overbooking), and discusses the company's mission, team structure, and next steps, including marketing campaigns and initial pricing strategies. The plan also incorporates Teece’s model to position the company as an innovator in the market.

Running head: BUSINESS PLAN
Business plan
Name of the Student
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Author note

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Introduction
In today’s globalized world, the significant increase in tourism is gaining the attention of
many small and medium scale business leaders to invest in businesses where they are going to
book airlines tickets online for the passengers on commission basis. The recent boom in the
tourism industry is gaining the attraction of the business leaders and they are venturing in this
field. This paper shows a proper plan to start a business regarding air ticket booking on
commission basis. Online ticketers is such a business organization.
2. Background market pull
The recent boom in the tourism industry has increased the business of airlines companies as
the increased socio-economic conditions of many developed countries made that possible. This
scenario allows the small and medium scale business leaders to get interested to join the business
of airlines ticket booking on commission basis. The market pull for this business is immense as
there are many individuals who do not have enough time to book tickets and there are some
travel agencies who give bulk orders to these companies. On the other hand, some of the airlines
companies are restraining the organizations to book tickets in a bulk size as they want the
customers to directly book tickets to eradicate the trend of commissions from their trade.
2.1 6 stage framework
The six step framework for the market pull includes knowledge, comprehension, analysis,
application, synthesis and lastly taking actions. In this section of this report gives a vrief idea of
these steps of this framework of market pull.

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To solve every problem having a clear vision is required to show the right way. Thus
knowledge on the relevant field is a very important factor for the market pull. After identifying
the problem the next step will be to achieve an accurate understanding of the various resources
needed to solve the issues by linking the resources with the information. After associating the
resources with the information, analyzing the situation by going through the information to
identify the exact situation, the weaknesses and the strengths of the business organization; not
only that, it identifies the possible solutions to fight the existing oddities. After that in the
framework a synthesis is performed where a decision is taken to solve the existing issue and it
discloses t routes to follow in order to solve the issue. After a proper synthesis of the problem,
the next and the final step is to take necessary actions to solve the issue that exist in the market.
2.1.1Identification of the problem
The main problem in this situation is that various airlines companies are amending their
company policies and stating that no organization or individual can buy more than 3 to 5 air-
tickets. They are taking these actions to eliminate the trend of commission from their trade and in
this way they can maximize their profitability. This is the major problem that an organization
who books ticket for the individuals are facing nowadays.
2.1.2 Definition of the problem
In this context it can be said that the airlines companies’ wish to monopolize the ticket
booking sector is the major problem.
2.1.3 Proposed solution
Only if the small and mid level business leaders who are operating in the online ticket
booking business can convince the management of the airlines companies to amend their

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company policies, the problem will get solved. Otherwise there are no other permanent solutions
of issues of this sort.
2.2 Technology push
The business of online booking of air tickets for the customers do not require any superior
technologies, or it dies not requires to device a unique technology. In this regard, it can be said
that the managements of such organizations can stress on the customer relationship tools to
increase the customer base as that can give a boost to the profitability of the organization. Thus it
can be said that that improving the customer relation is the only tool that the business
organization can utilize to enhance their productivity along with the profitability.
3 How to work on this business idea
3.1 In this section a brief of the business idea and the journey of the customers are
provided to give a general idea of the situation.
The management of the business organization intends to help in online airlines ticket booking
and their target customers are the individuals who frequently travel and due to busy schedule,
booing tickets are hazardous job for them (Bezirgiannidis, Caini and Tsaoussidis 2016). Apart
from them another target customer of the organization is the travel and tourism companies.
These organizations give huge orders for ticketing to the company and they are the major
customers of the organization.

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Name: Charles Andrews
Profession: director of a tourism company
Statement: I am in the tourism business for last 7 years and what I
believe is that the organizations like us gets overburdened with
the orders in the pick season. In that period of time we tend to
outsource the ticketing tasks to the organizations like Online
Ticketers. These organizations have huge contribution towards the
success of our businesses. Online Ticketers is one such company
that takes only a short percentage of the costing and they do all
the necessary works for the ticket booking procedure.
Name: Christopher Collins
Profession: Marketing Head of H&M
Statement: As I am working as a marketing head of a reputed
organization and due to work I need to travel frequently. Above all I
do not get ample time to spend for ticketing and that is why I majorly
rely on the organizations like Online Ticketers. I provide them with
the information regarding my travel and the management of the
organization takes care of my ticketing issues. For individuals like me
the organizations like Online Ticketers are a great help.

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3.3 Trends and statistics
The trends of this online ticketing business are going somehow downwards due to
amendments of the company policies by the majorly influential airlines companies. In a press
meet, directors of two significant airlines organization stated that they intend to restrain the
operations of some organizations those take commissions and book air tickets for individuals and
take a certain amount as commission (Son and Buyya 2016). In order to maximize the
profitability, the airlines companies are going for tools like discounts in online ticketing and
amended the policy stating that from a particular account, an individual can only book a few air
tickets. These policies are ruining the businesses of the organizations like Online Ticketers. It has
been noticed that after amendments of the company policies by two major airlines organizations,
the profitability percentage of organizations like Online Ticketers got lowered by a massive 23%
within a single financial year, making the situation concerning.
Name: Jemaima Morrison
Profession: Event manager
Statement: As I am a professional in event management services I
have to travel a lot for my work and in general my work schedules
are packed with various events. Thus to spend time for ticketing
for me and my crew is immensely difficult for me. Hence, me and
my crew members depend on the organizations like Online
Ticketers to book the airlines tickets for professionals like us.

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4 Market analyses
4.1 Target customers
The target customers of Online Ticketers are the professionals who have to travel
frequently for the purpose of their job and they do not have enough time to invest for ticketing
purposes. Hence these individuals come to the organizations like Onlinne Ticketers and ask them
to book the tickets on a commission basis. Apart from them, the major clients of these
organizations ae the big travel and tourism companies, they give bulk orders of ticketing to the
companies like Online Tiketers.
4.2 Potential rivals
For the last couple of years there has been an immense increase in the formation of
several companies in the field where Online Ticketers operate. This is bringing in immense
rivalry in the market where Online Ticketers had a monopoly.
4.3 Novelty
The management of Online Ticketers have devised a unique idea and that was getting
collaboration with a reputed travel and tourism company. From the collaboration, the
management of Online Ticketers have noticed significant boost in their profitability.
5 Probable business models
5.1 Mission
The mission of the management of Online Ticketers is to establish the company within
coming couple of years in the market of UAE and eventually to expand the business in the

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market of Europe in coming five years. The management of the organization wants to attain a
profit of 1 million pounds annually in two to three years time. After considering
5.2 Revenue
Booking in an appropriate manner is mandatory and if incase the booking limit is low,
Online Ticketers do not sell tickets to overbook an airbus and on the other hand when the
booking limit is on the higher end, the organization can sell tickets in a discounted price. The
business organization charges 13% on the total amount as cancelation fee and for no show
passengers (Bezirgiannidis, Caini and Tsaoussidis 2016). These are the areas where the
organization needs to work on as in these cases the organization has to bear a huge amount.
Apart from that the business idea is profitable as a regular commission is earned by each
booking. At times, when the management of the organization allows overbooking it generally
generates 1 to 2 % higher revenues (Sierag et al. 2015).
5.3 Operating business model
Online Ticketers will have a definite structure in the workforce where a unit will be
deployed for the marketing. That unit will let the people know about the existence of the
organization and the general workers along with the technical employees will take care of the
operational part.
5.4 application of Teece’s model
According to Teece’s model there are two types of companies, one is innovator and the
other type I imitator. In this case, in the market of UAE, Online Ticketers are the innovator
organization as they are the first organization whoa re solely dedicated to Online ticket booking
and overbooking management business.

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6 Team
6.1 division of the employees
The management of Online Ticketers has divided the workforce in a manner so that the
there are dedicated workers in each segment of the business process. They have recruited
technical employees who take care of the ticket booking, overbooking management and
important factors. On the other hand, there are employees who take care of the marketing works.
There are some employees from the finance background who takes care of the financial
department.
6.2 Experience gap
As the organization is relatively new and wants to build a good reputation, thus the
management of the organization did not take any risks and they have recruited the experienced
people in the technical department to ensure that the clients do not have to face any issues.
6.3 potential partners
The organization has been established recently and thus there are no immediate needs for
partnership.
7 Next steps
The management of the organization initially should start marketing campaigning to let
people know about their business idea and their existence. Then they should lower their initial
profitability to give people service at a lower price to acquire the trust of the target customers.
This should be the immediate steps for the business organization in order to become successful.

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Conclusion
Thus to conclude it can be said that the business model of Online Ticketers are unique in
the market of UAE and they can make the most of the tourism market. As the management has
collaborated with some big tourism companies to generate revenues and thus they have a strong
model of generating revenue.

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