Phaeton Tours: An Entrepreneurship Development Report and Analysis

This report analyzes Phaeton Tours, a new online travel agency based in Romania and the United Kingdom, focusing on its entrepreneurship development. It begins with an introduction to the business idea, highlighting its personalized travel offers and focus on experiential travel. The report then delves into the customer value proposition canvas, outlining the products, customer segments (travelers and service providers), and their respective gains, pains, and jobs. Following this, the lean business model canvas is explored, detailing key partners, activities, resources, value proposition, customer relationships, channels, customer segments, cost structure, and revenue streams. The report also includes the contribution of C-level specialists and a financial plan, projecting sales and profit margins for the first three years. The financial plan includes pricing strategies for various tour packages and projected profits. The report concludes by summarizing the key findings and emphasizing the importance of a well-defined business model for success in the online travel market. The report is a comprehensive overview of the business plan.

Entrepreneurship
Development

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Introduction.................................................................................................................................3
Customer value proposition canvas............................................................................................5
Lean business model canvas.......................................................................................................6
The C level specialist contribution..............................................................................................9
Financial and financing plan.....................................................................................................10
Summary...................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
APPENDIX 1.................................................................................................................................13
APPENDIX 2.................................................................................................................................13

INTRODUCTION
Entrepreneurship development refers to the process of developing the skills and
knowledge of an entrepreneurs through facilitating several training and classroom programmes.
The main motive of this term is to increase in the number of entrepreneurs who develop a unique
business idea. For the purpose of attaining the market success, it is very essential for a business
entity to ensure that they are capable to introduce a new and creative products as well as services
in the marketplace. This report is based on the new business idea which is based on the online
travel agency as it will be introduced by the Phaeton Tours. It will be launching in 2020 in
Romania, United Kingdom. Under this report discuss about the several elements that includes
introduction of new product, customer value proposition canvas, lean business model canvas as
well as contribution of C level specialist contribution. In addition, the financial and financing
plan with the specific reason of making investment in lean entrepreneurial opportunities also
studied in detail under this assignment.
MAIN BODY
Introduction.
New business idea of online travel; agency is being defined by the CEO or the founder of
Phaeton Tours. It is a new agency that is based in Romania and it offers a planning resources and
booking capabilities by using an online platform in order to shape personalised offers for
travelers. The company will be focus on their motto which is related to “having stories to tell, not
stuff to show” that means the life of a person is filling with experiences not the things (Leonidou,
2018). Phaeton Tours choose Romania for destination as they want to fulfil the market demand
or needs which is related to the new and undiscovered destination as well as it is not only about
Dracula, nature and ancient ruins. The services of company will be physically possible from A to
Z at a cheaper rate also and along with these facilities a company serve many packages from
medical to nightlife packages. The objectives of a company for upcoming three years that are
prepared by the CEO of the company which as follows:
 Attract a large number of tourism so that maximum profits could be generated.
 To launch a successful business in the market as well as generate huge sales.
 Raise profit by 3% every year for next three years so that more money could be arranged
to perform operational activities and function in future.

Selling determines the cost of tour packages in order to facilitates standard services to its
customers or tourism. Selling price for tour and travel package as well as price per candidate are
calculated as follow:
Particulars Prices for 5 days (in £) Prices for one night (in £)
Accommodation cost 12000 3000
Conveyance cost 7000 1700
Visitor attraction charges 2500 700
Charges of tour guide 1200 300
Food charges (Including
breakfast, lunch, dinner)
15000 4000
Total cost 37700 9700
ADD: Profit margin 12441 3201
Sales price 50141 12901
The above price estimation table shows the different packages which is for individuals
and classified as per the one night and for 5 days charges of a single person. As it clearly shows
that the total prices of selling tour and travel packages should be 50141 for 5 days and 12901 for
one night including food package. Whereas excluding the food package determine the prices of
one night and 5 days are respective 30191 and 7581 only. From which tourist can make their
own judgement after considering all elements and select operators as per the requirement and
price factor of a company.
From the above estimation of sales price a company can calculate profit and loss of next
three years that are as follows:
Particulars First year Second year Third year
Packages sold 200 300 400
Sales for one night 2580200 3870300 5160400

Less: cost ( 4500 per
Package )
900000 1350000 1800000
Profit: 1680200 3780300 3360400
Profit margin:
Profit / sales * 100
1680200 / 2580200
*100
3780300 / 3870300 *
100
3360400 / 5160400 *
100
65.11% 65.11% 65.11%
Form the above estimated data it has been evaluated that a company will estimated to sell
200 packages in first year which gives 1680200 pounds profits and second year a company sell
300 packages and earn profits 1350000 as well as in the next or third year a company estimated
to sell 400 packages that will give profit of 1800000. The profit margin for all the three years is
equal because sales increment for the same period is equal. Therefore the percentage of profit
margin for the organisation is 65.11%.
Customer value proposition canvas.
Value proposition canvas: This is defined as a tool that is used by the many companies
for analysing and evaluating the link between key aspects services and the demands of
consumers. Through which a company can ensure that the quality of products and services are
best meet the target customers expectations and requirements (Mitra, 2019). Several elements are
includes in customer value proposition canvas model all these are considered below within the
context of Phaeton Tours company:
Products: It includes mainly three kinds of components such as Health tourism,
countryside and nightlife tourism as well as online travel platform which deals in three categories
such as services or products, gain creator and pain relievers. In health tourism, there will be
several products and services such as salt therapy, thermal spa, dental practices and physio-
kinetic therapy that customers can enjoy and like it for a long time in future. These services can
consider as a gain creator which results in stress, pain relieve, save time and money, natural and
health procedures etc. Whereas, the pain relievers will includes trusted service providers, modern
technology, cheaper services as well as better health better life experience to their customers.
Secondly in the countryside and nightlife tourism sector, a company decides to serve many
packages which includes city escapes, nightlife or countryside services that will also facilitates

the same kind of gain creators and pain relievers but one new thing will be added in this kind of
package which is modern environment pain reliever (Li, 2018). Lastly, online travel platform
sector provides advertising and online platform accessibility products and services which creates
some new kind of gain such as new customers, discoverability as well as platform to provide
services. It pain relievers plan includes trusted platform and access to new customers experience.
Customers (Travelers and service providers): The key components of customers includes
gain, pain and customer jobs which is divided in three kind of sectors. In Health tourism,
customers will be targeted of 22-65 years or over and the products and services of this will give
gainful results such as trusted agency, cheep services, full information, promotion as well as
trusted health care providers by the Phaeton Tours while tourism travel at Romania destination.
Where the major fear or painful results will be shown in market suspicions, joint pains, stress, as
well as inefficient processes. In this, customers will work for identify medical services, choose
environment, when and relax while they are searching for a tour and travel packages. In the
countryside and nightlife packages customers will be targeted of 18-65 years or above that can
gain the trusted accommodation along with the full information and trusted agencies. In this,
mainly painful thing will be related to the lack of information as well as lack of all in offers and
customer job will be related to the several factors such as service identification, chose how many
days, when, entertainment etc. In the online travel platform, a company Phaeton Tours will target
service providers as on the basis of their gain, pain and job roles. In the customer job will
includes subscribes, clear and full information as well as provide operations hours and the gain
factor will be includes trust, profit, new customer, discoverable and sales (Aizpurietis, 2018).
Along with its fear or painful factors involves market suspicious, lack of information as well as
no advertised elements that will creates negative impacts on the company's growth and success.
Lean business model canvas.
Business canvas model: This is considered as a strategic management tool that is
basically in used by the companies for keeping brief information towards the business concept.
This contains many informations regarding the different items are related to the business
execution. In this model, mainly 9 elements are discussed such as key partners, activities,
resources, value proposition, customer relationship, channels, customer segment, cost structure
as well as revenue systems (Business canvas model, 2019). As a new online travel agency will be
introduced in the marketplace by Phaeton Tours that situated in Romania, UK. The business

canvas model is essential for the management of a company through which the company's
stakeholders like service providers, travelers etc. will be able to evaluate the key components
related to the business. These element are considered as follows: Key partners: For executing the operational activities of a business entity it is significant
for the company like Phaeton Tours to make a better relationships with their key partners.
The key partners of the company includes accommodation and service providers,
bloggers, UK outbound holiday seeker as well as flight agencies. Through which a
company will be successfully execute the operational activities. Key activities: It is considered as a set of operational activities that a company Phaeton
Tours will be considered while launching a online travel agency in the market. The
management of a company have to pay attention on the key activities such as service
development, marketing and customer acquisition etc. that helps in achieving the goals
and successfully operates in the market. Value proposition: Every products and services that are sold by the companies in order to
meet the customers expectations are considered as valuable elements. In the context of
Phaeton Tours the value proposition elements will be trusted platform and service
providers, time and money saving, new experience for travelers and for service providers
gain trust, high profit and sales, discoverable and new customers that will help the
business to attract a large base of customers as well as establish business in a successful
manner. Customer relationship: For the sustainability and survivability in the market it is required
for all businesses to develop and maintaining better relationships with customers. For
Phaeton Tours can create relationships with customers through the help of social media,
customer support, travel blogs, review and rating system etc. to develop a good image in
the marketplace (Tolvanen, 2018). Customer segment: This is targeted by the companies for selling their products and
services to earn profit. In the context of Phaeton Tours two types of people will be
targeted such as young people on the basis of music, pubs, dance etc. factors and all
categories that are interested in healthcare services and countryside experience. Key resources: To perform the operational activities of a business organisation it is
necessary to arrange required resources. For Phaeton Tours resources will be required

like technological platform, mobile app and website developers which will be able to
perform the business operations effectively and efficiently. Channels: The value proposition factor can be developed through the help of providing
right kind of services to the required people or tourism. For Phaeton Tours several
channels will be used for promoting more and attract large number of customers which
includes websites, mobile app, flayers, news paper, word of mouth etc. Cost structure: This includes the estimation of all kind of cost that occurs during
executing business activities as the company Phaeton Tours will take place for launching
their online travel agency idea are technological set up cost, operating cost and
employees salary (Butler and Szromek, 2019).
 Revenue stream: This is considered while carry out business operations in order to
generate revenue so that funds could be acquired to execute operations. For Phaeton
Tours online transaction, website advertisement as well as mobile app advertisement will
be considered as a revenue stream.
Key partners
 UK
outbound
holiday
seekers.
 Accommo
dation
providers.
 Service
providers.
 Flight
agencies.
 Bloggers.
Key activities
 Service
developm
ent.
 Marketing
activities.
 Customer
acquisitio
n.
Value
proposition
For travelers:
 Trusted
platform.
 Trusted
service
providers.
 Time and
money
saving.
 New
experienc
e.
For service
providers:
 Promote
Customer
relationships
 Social
media.
 Customer
support.
 Review
and rating
system.
 Travel
blogs.
 Support
systems.
Customer
segment
Young people:
 Music.
 Dance.
 Pubs.
 Interested
in
festivals.
All categories:
 Interested
in
healthcare
services.
 Countrysi
de
experience
Key resources
 Technolog
ical
platform.
Channels
 Websites.
 Mobile

 Mobile
app.
 Web
developer.
profession
al.
 Profit.
 New
customers.
 Discovera
ble.
 Increased
profit and
sales.
 Gain trust.
app.
 News
paper.
 Flayers.
 Word of
mouth.
.
Cost structure
 Technological set up cost.
 Operating cost.
 Permanent workforce salary.
 Promotional cost.
Revenue stream
 Online transaction.
 Website advertisement.
 Mobile app advertisement.
The C level specialist contribution.
The CEO of a business entity is developed an innovative idea of online travel agency that
will be facilitate in the market by Phaeton Tours company. There is a great chances of success
because it facilitates many unique services and focused on different target markets along with the
attractive packages. It deals with the healthcare tourism, countryside and nightlife as well as
online travel platform products and services which will help in satisfying the different customers
needs such as young age as well as all categories (Millán Lara, 2019). As it will focus on having
stories to tell, not stuff to show for which it will choose several technologies to better serve their
travelers as well as attract many customers by using channels. The estimated cost of per package
for one night is 4500 per package and the company decides the selling price is 12901 pounds.
The profit margin of a company from this service is 8401 that will kept by the Phaeton Tours.
New innovative idea regarding online travel agency will gives several benefits for
travelers as well as service providers. Travelers will get benefits of trusted platform, trusted

service providers, time and money saving, new experience etc. whereas, in the context of service
providers it will advantages in promote professional, new customers, gain trust, discoverable as
well as increased in profit and sales. All these things will be considered by the company's CEO
after analysing the entire market conditions as well as pay attention towards the innovation that
are taking place in the market (Slávik, 2019). For developing an innovative concept several steps
can be considered by the company which are as follows: Conducting market research: Firstly the founder has conducted market research for
determining the growth opportunities in order to establish a new business. The CEO of
Phaeton Tours company has analysed the market trends and situations as well as latest
technologies in the market that will capturing the interest and attention of customers. Formulating different business ideas: After evaluating the technologies many business
ideas are created by the CEO of Phaeton Tours in order to launch a new concept in the
market. Different ideas are formed for keeping several options and alternatives for
choosing a best one. Ideas screening: In this stage, CEO of Phaeton Tours has analysed and examined the all
ideas and options so that best one could be selected for establishing an innovative
business (Choi, Hickerson and Kerstetter, 2018). Selecting one unique idea: At this level, CEO has selected the idea of introducing online
travel agency in the market which is more suitable in available options. Implementing the best one and perform accordingly: After selecting the best one
concept CEO implemented it and perform the activities accordingly so that business
could be launched in the market successfully.
 Launching idea into market: It is the last stage that is followed by the CEO of Phaeton
Tours in which decisions can be taken to launch innovative idea in the market regarding
the online travel agency will be formulated so that an organisation can attain desired
success and growth.
Financial and financing plan.
Form the Appendix 2 it has been analysed that company will have to bear many cost for
the survivability in a market these are related to the technological set up cost, permanent
employees salary as well as operating cost (Reichstein and Härting, 2018). Revenue streams of
the company could be generated by Phaeton Tours online transaction, website advertisement and

mobile app advertisement. Estimated total cost for first year will be 1900000 and sales will be
2580200 for the same year and profit will be 1680200. The contribution per unit for the first year
is 11901. If an organisation sale packages in the first year then cost could be recovered by it
and possibility of loss will be decreased. Cash flow statement showing that total income for first
year will be 2580200 and closing sales will be 680200. Along with this, there are several sources
of finance that could be used by the CEO of Phaeton Tours for launching online travel agency in
the market which includes personal loans, owner's capital and so on. There are many usage of
funds that will be acquired by a business organisation from the different sources such as online
transaction, website advertisement and mobile app advertisement etc.
Summary.
The opportunity of introducing online travel agency is attractive and investors should also
invest in it because tourism is a growing industry. As this is a unique concept that will attract a
large number of customer base towards the services and attain market growth and success.
Investing in the lean business opportunity of Phaeton Tours because it is a unique idea that
covers the need of health, countryside as well as nightlife tourism. The main reason behind the
making investment in this opportunity is that it will be able to take competitive advantage in the
market because the idea can be turned in services.
CONCLUSION
It has been concluded from the above report that entrepreneurship development is a
process of introducing an innovative ideas as well as established into the market successfully.
Several models, concepts and frameworks are needed to be formulated by a business entity such
as business canvas model, value proposition model etc. Also, developing a business with proper
financing and financial plan is needed that contains several elements like cost structure, BEP,
cash flow analysis, sources and usage of funds as well as revenue stream.

REFERENCES
Books & Journals
Aizpurietis, J., 2018. Creating and Testing a Business Model for Online Travel Package
Comparison Website.
Butler, R. W. and Szromek, A. R., 2019. Incorporating the Value Proposition for Society with
Business Models of Health Tourism Enterprises. Sustainability. 11(23). p.6711.
Choi, Y., Hickerson, B. and Kerstetter, D., 2018. Understanding the sources of online travel
information. Journal of Travel Research. 57(1). pp.116-128.
Leonidou, E. and et. al., 2018. An integrative framework of stakeholder engagement for
innovation management and entrepreneurship development. Journal of Business
Research.
Li, Y., 2018, January. Research on the Business Model Innovation in Online Tourism Services:
A Case Study of Ctrip. In Proceedings of the 2018 2nd International Conference on
Management Engineering, Software Engineering and Service Sciences (pp. 1-5). ACM.
Millán Lara, S. and et. al., 2019. Flamenco Tourism from the Viewpoint of Its Protagonists: A
Sustainable Vision Using Lean Startup Methodology. Sustainability. 11(21). p.6047.
Mitra, J., 2019. Entrepreneurship, innovation and regional development: an introduction.
Routledge.
Reichstein, C. and Härting, R. C., 2018. Potentials of changing customer needs in a digital
world–a conceptual model and recommendations for action in tourism. Procedia
Computer Science. 126. pp.1484-1494.
Slávik, Š., 2019. The Business Model of Start-Up—Structure and Consequences. Administrative
Sciences. 9(3). p.69.
Tolvanen, S., 2018. Planning and facilitating strategy process for an online travel agency.
Online
Business canvas model. 2019. [Online]. Available through:
<https://medium.com/seed-digital/how-to-business-model-canvas-explained-
ad3676b6fe4a>