BSB61015 - Strategic Business Plan for Royal Cruise Travels

This assignment presents a strategic business plan for Royal Cruise Travels International, a travel agency specializing in adventure travel. The plan outlines the company's goals, including revenue targets and market share objectives. It includes a detailed market analysis, examining market size, customer demographics, and the 4Ps of marketing. The plan also covers performance objectives, resource requirements, and permit/license needs for expansion. Furthermore, it incorporates PESTLE and SWOT analyses to evaluate the internal and external environments, along with communication strategies and stakeholder feedback. The plan also includes financial projections and strategies for achieving long-term growth and profitability. The document also includes an email seeking approval from the director on the environmental analysis.

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Strategic Business Plan
Company Name
Prepared by:
Position:
Date:
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EXECUTIVE SUMMARY
Communication Pitch on organisational strategy review:
The Royal Cruiser Travels International is engaged in full time travel agency services
which specialises in adventure travel and is engaged in providing professional services as
well as consultation to the recreational travellers and business travellers This Company has
aimed to become the specialist in the field of adventure travelling in Australia.
Analysis of growth strategy and expansion:
The company is determined to achieve its goals within the next three years and these
goals include-
• To earn revenue of amount $650,000 by next three years
• Maintaining a sales margin of 10% on airline travels
• To achieve 10% of sales from internet
• To develop strategic alliances with the national as well as international service
providers
Three new organisational values relevant to the strategy and expansion:
In order to achieve success The Royal Cruise Travels International has to focus on certain key
areas and these key areas are-
• There should be an effective segmentation and targeting of the adventure travellers
within the market
• Successfully positioning themselves as an adventure travel specialists
• Proper business communication with the help of media and personal interaction.
• Development of a repeat business base of the loyal customers for increasing the sales
Stakeholder feedback and support (you must take some advice from any of the stakeholders):
All the stakeholders which include the shareholders, employees and the customers will be
delighted and obliged to become a part of the Royal Cruiser Travels International.
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TABLE OF CONTENTS
CONTENT PAGES
APPENDIX 1 (presentation slides)
APPENDIX 2 (references and external resources)
The learner is required to update and adjust the page numbers and topics based on the amount of their content
and the responses made to each task.
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1. INTRODUCTION & BUSINESS PLAN
The Royal Cruise Travels International will begin its operations in the next financial years and
it will be engaged in providing attractive packages for travel and adventure sports in the
countries of Australia like Tasmania, Queensland and New South Wales. There is an
opportunity for success of Royal Cruise because the travel industry is expected to grow in the
next few years by 4 percent as well as the adventure travel by 10 percent. This industry
experiences lower competition and it can take the advantage of the growth and the lack of
competition with excellent location, experienced business staff and an effective management
and marketing. The company is determined to achieve its goals within the next three years and
these goals include-
• To earn revenue of amount $650,000 by next three years
• Maintaining a sales margin of 10% on airline travels
• To achieve 10% of sales from internet
• To develop strategic alliances with the national as well as international service
providers
Therefore, in order to do that The Royal Cruise Travels International has to focus on certain
key areas and these key areas are-
• There should be an effective segmentation and targeting of the adventure travellers
within the market
• Successfully positioning themselves as an adventure travel specialists
• Proper business communication with the help of media and personal interaction.
• Development of a repeat business base of the loyal customers for increasing the sales
The Royal Cruise Travel International is to be owned and operated by William Robert as a sole
proprietorship in the towns of Brisbane in Queensland. However, the owner is looking out for
the possibilities to establish Royal Cruise as a Limited Liability Company (LLC) or a
Partnership Firm (LLP). This will need a time period of about seventeen months of operation.
2. REVIEW MARKET REQUIREMENTS IN THE NEW LOCATION
Market size & requirements for your business
The plan of The Royal Cruise Travel International is to focus on the adventure travel market during
the initial times in the greater Brisbane area. The adventure travels fall under the category of leisure
travel and it has been anticipated that the revenues earned by the leisure travel category will exceed
by $50 billion annually in Australia.
4Ps Analysis Template
PRODUCT PRICE PLACE PROMOTION
The products of the tourism
industry is a mixture of tangible
and intangible elements
The pricing of tourism has been
considered a complex process.
The package of tourism
includes prices of services like
Railways, Air travel, Bus,
Hotels and others.
There are different
distribution strategies for
Tourism marketing.
Advertising:The
advertisement helps to
provide information to the
actual as well as the
potential tourists.
Advertisement is done
with an aim to create
awareness about the
available offers of
traveling.
The products have been
considered as a composite
combination of product which
include facilities, transportation
and attraction.
The pricing of the tourist
products are composite in
nature and therefore it is
complex. The pricing decision
is often affected by the
geographical location of the
Tourism has been treated as
a product and it is distributed
as travel
Publicity: Publicity is
focused on strengthening
the public relations with
the help of media and it
also helps to build a
positive image about the
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destination. company
All these components have its
own significance in the product
mix and the absence of any of
the product will make the
product mix incomplete.
The complex pricing strategies
of travel and tourism business
has to be operated in two
levels.
Level 1- Corresponding with
the marketing strategy for
product positioning, value for
money, return of the long run
and investments.
There are also small agents
which are placed all over the
town playing the role of a
place
Sales Promotion: Sales
promotion helps to boost
the amount of sales after
measuring the short-term
activities during the period
of peak demands. It also
helps the firm to obtain the
market shares.
Target customers (demographics, characteristics, and their geographic locations
The target customers of The Royal Cruise Travels international are the health conscious
individuals as well as couple with an approximate household income of $50,000. Normally,
these people are interested in popular adventurous activities like mountain biking, skiing, water
sports and the major customers are located in the urban areas of the Australian states like-
• New South Wales
• Tasmania
• Western Australia
• Northern Territory
The primary customers of The Royal Cruise normally ranges between the ages of 18-34 years
and consists of married couples and individuals including children.
3. DEVELOP PERFORMANCE OBJECTIVES FOR THE EXPANSION AND GROWTH
In this section you are required to develop performance objectives and targets to achieve below, in
combination, form a performance scorecard for easily tracking the performance improvements
generated by this plan.
Performance Area Performance Objectives Target to achieve Time Frame
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Financial
Performance
Customer and
Market
Performance
Internal Efficiency
and Effectiveness
Long Term
Development and
Innovation
4. IDENTIFY FINANCIAL, HUMAN AND PHYSICAL RESOURCE REQUIREMENTS
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E
5. PERMITS AND LICENSE REQUIREMENTS FOR EXPANSION
The commercial tourism activity licence guidelines provide information on the requirements of
licence for conducting the commercial tour operations in the reserves of terrestrial
Commonwealth which are established and managed under the Environment Protection and
Biodiversity Conversation Act 1999. The licence agreements for the tour opportunities which
are limited and new is one of the new mechanism which have been introduced in the tourism
industry for developing and facilitating the partnerships. The activities of commercial tourism
in the Common wealth reserves are engaged in managing the high quality visitor services and
minimal impact on the environment. However, the licence agreements offer flexibility to the
tour operators as they aim in the promotion of new and appropriate activities in the reserves.
6. DETERMINE INFORMATION REQUIREMENTS
In the pestle analysis, all the factors are discussed which does have affected the tourism
industry. Upon the political factors there can be certain risk related to the military invasion.
There should be compulsory benefits that should be provided to the employees. In the
economic factors, the growth rate of economy should be considered and also the
infrastructure quality should be taken care of. In the social factor there should be
consideration of skill level of the population and also the demographic. Also in the
environmental factors there are certain laws that are considered upon the environmental
pollution.
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7. INTERNAL AND EXTERNAL ENVIRONMENTAL ANALYSIS
In this section you are required to conduct an environmental analysis using the PESTLE template
provided below. You may wish to add/reduce the bullet points depending on the number of factors
identified for the HR planning of the organisation. Refer to factors listed onhttps://rapidbi.com/pestle-
analysis-hr-department/for analysing your organisation.
PESTLE Analysis template
Political factors:
 There is several level of corruption, in
which there is level of regulations in
service sector.
 There can be risk related to the military
invasion.
 There is a legal framework for the
contract enforcement.
 Pricing regulations as per the services
provided.
 There should be compulsory employee
benefits.
 All the products should be labelled and
the other requirements in the regional
airlines.
Economic factors:
 There is government intervention in
the free market and services that are
related.
 The infrastructure quality is in the
regional airlines industry.
 There is comparative advantage
compared to the host country and the
service sectors in the particular
country.
 Level of education in the country.
 Growth rate of the economy.
 Employment rate.
Social factors:
 Interest on leisure.
 Skill level of population and the
demographics.
 Education standard as well as the
education level of the tourism industry.
 Entrepreneur spirit and the broader
nature of society.
 Structure of the class, power structure
and the hierarchy.
 Culture.
Technical / technological factors:
 All the recent technological
developments that are been done by
the tourism industry.
 Impact of the technology upon the
product that is being offered.
 The rate of technological diffusion.
 Impact upon the cost structure in the
tourism industry.
 There is also impact upon the value
chain structure in the service sector.
Legal factors:
 Employment law.
 Data protection.
 Health and safety law.
 Consumer protection and e-commerce.
 Copyrights, Patents and e-commerce.
Environmental factors:
 Waste management in Services
sectors.
 Endangered species.
 Laws on the regulating environmental
pollution.
 Attitudes which is towards the
ecological products.
 Climate change.
8. SEEKING ADVICE FROM DIRECTOR ON ENVIRONMENTAL ANALYSIS
Based on the Internal and External Environment analysis that you have prepared in the previous
section, in this section you are required to seek advice from your director who will provide you
approval on your completed internal and external environment analysis.
Email Communication Template
<Organisation name>
<Date>
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Subject:
To:
Dear Director,
In the tourism industry, there are several factors that does matter in continuing the business and
sometimes it affects the business structure. In the economic factors, there is government intervention
in which it can be seen that the government does open some boarders which help the tourism
industry to grow and also it the tourist can visit several places. The government has to take care of the
waste management so that the country looks cleaner and more tourists get attracted.
All the basic factors have been discussed above and hope the factors will be considered. Please give
the views upon the factors that are being listed.
<Insert your name>
<Insert your position>
Approved by Director? Yes No
If no, Suggestions:
9. SWOT ANALYSIS
SWOT Analysis Template
Strengths Weaknesses
 The destination appeal and
uniqueness of Australia
 The global economic recovery is still
progressing and it will assist in the
volume of sales
 There is solid growth in the air capacity
due to the presence of competition in
the aviation sector
 There is healthy competition in digital
marketing and online bookings system
in the recent years which supports the
domestic tourism market
 The below trend of the economic growth
of Australia is expected to last longer and
it will result into unemployment and
discretionary expenditure
 It has been expected that the growth of
the domestic business travel will remain
weak for the next two to three quarters
 There has been strong occupancy rates
in the hotel industry but still it is cutting
their average daily rates
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Strengths Weaknesses
Opportunities Threats
 The limited refurbishment and the
investment in the regional areas will
support the international dispersal
 In the short term the softening
outbound demand is expected to lower
the load factors which will
subsequently lower the airfares
 The depreciating Australian dollar is
expected to increase the economic
value of tourism
 There has been no recovery of the
corporate travels with the economic
growth
 The new tourism law of China is
expected to affect the longer growth of
the market within a short span of time
 There has been decline in the future
growth of the bilateral capacity of the
aviation particularly in traditional and
emerging markets
 There has been an intense competition in
the market of tourist dollars
Plans to address SWOT with organisational capabilities: (You may use bullet points)
 The appeal and uniqueness of Australia
 Growth in the air capacity
 Recovering the growth of corporate travels
 Controlling the occupancy rates of the hotel industry
 Need introduction of modified tourism laws
 Controlling the depreciation of Australian dollar
 Subsequent lowering of the airfares
 Controlling the competition in the market of tourist dollars
Competitor Analysis Template
 In order to complete this template you will need to ask yourself these questions. How do you
rate against your competitors? How can your business improve on what they offer?
 List at least 3 competitors of the organisation in the table below along with other details. You
must put at least one information in each section.Use bullet points in the box if you have more
than one input within a section.
Competitor Established
date
Size Market
share
(%)
Value to
customers
Strengths Weaknesses
Paradise Travel 15.03.2012 150 24 Prices that
they offer are
cheaper than
the
competitors.
The consumers
like as they offer
specific tour
packages.
There are several
competitors that do
have offer same
packages.
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Competitor Established
date
Size Market
share
(%)
Value to
customers
Strengths Weaknesses
Tropical Travel 24.06.2014 120 62 Does offer
several
combo
packages
compared to
others.
They do have a
huge fan base.
The tourist can get
confused with so
many packages.
Mountain Top
Travel Co.
21.08.2019 160 36 It does offer
adventure
tours.
All the
adventure
tourers do love
the organization
as they offer
trips like this.
It may happen that
many consumers
do not like the
adventure offers.
10. PLAN FOR HUMAN RESOURCES/SKILLED WORKFORCE AVAILABILITY AND COSTS
Hobart (or chosen) City Review & Skilled Workforce Availability (maximum of 300 words)
Brisbane is the third largest city in Australia and it is the cultural hub of Queensland. The
CEO’s of the Australian companies have made remarkable progress in addressing the shortages of
skills. Therefore, this needs to have a clear vision of the skills which are required in future and to up
skill the existing workforces. This requires collaboration with the educators and the educational
institutions. There have been emergence of many new technologies like artificial intelligence, data
analysis, automation and each and every person is required to have understanding, awareness and
capabilities to survive in this world of new technologies. The business leaders are looking ways for
solving the problem in order to make Brisbane the best place to work in Australia.
Staffing requirements and forecasted costs
Position/Role No. of staff
required
Year 1 expense Year 2 expense Year 3 expense
Total Staffing costs
Job Advertisement
Modify the whole template according to the organisational requirements. All positions required by the
branch needs to be included in this advertisement. Information within the template is just generic.
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