Travel and Tourism Business Plan: A Case Study Approach

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TRAVEL AND TOURISM
ENTREPRENEUR
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Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................4
(A)Discuss the entrepreneurial traits and skills required to be a successful travel
and tourism entrepreneur...........................................................................................................4
B) Using an appropriate format, produce a self-appraisal (self-assessment) of
entrepreneurial traits (characteristics) and skills that you may possess and identify
the strengths and weaknesses for development benchmark to be a successful.........5
TASK 2.................................................................................................................................................7
A) Select a successful travel & tourism entrepreneur and analyse his or her
business development strategy................................................................................................7
TASK 3.................................................................................................................................................8
A) Evaluate and discuss the sources of finance and support available to you for the
proposed project..........................................................................................................................8
B) Develop a business plan with a market assessment, business analysis and cash-
flow analysis and justify the potential for success of the proposed Travel and
Tourism business.........................................................................................................................9
C) Present a persuasive business plan for the Travel and Tourism start-up project.
.........................................................................................................................................................11
CONCLUSION..................................................................................................................................13
REFERENCES..................................................................................................................................14
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INTRODUCTION
An entrepreneur is an individual who begins a new business with a particular idea. Benefits
of entrepreneurship are it increases the chance of developing own ideas and helps in
utilizing time for own purpose. Case study of Topdeck is selected for this assignment. It is a
UK based organization deals in travelling and tourism sector. It was established in 1973. In
beginning only Double Decker buses and vans are available. Now the company has turnover
of 1 million. Double Decker is providing tourism services in 65 countries and is offering 339
tours. Case study will help in understanding the skills required for becoming an
entrepreneur. The steps required for making entrepreneurship successful is also discussed
in this case study. In the last section of the case study, the planning required for travelling
and tourism entrepreneurship is also discussed. There should be goals and objectives of the
entrepreneur for this purpose.
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TASK 1
(A)Discuss the entrepreneurial traits and skills required to be a
successful travel and tourism entrepreneur.
Skills and knowledge are very important for becoming successful entrepreneur. (Surugiu and
Surugiu, 2015.). These skills and knowledge make the business easy to run and also helps
in achieving a suitable outcome. For entrepreneurship in different sectors, there are different
skills required. In entrepreneurship in travel and tourism, the skills and knowledge required
are –
 Opportunity recognition – Opportunity recognition is the way in which
entrepreneurs identifies the way of introducing new services or products to
customers (Sepúlveda, and Bonilla, 2014.). Opportunity recognition if done properly
proves very beneficial for entrepreneurship. In travel and tourism passengers mainly
expects safe and comfortable travelling in an economical way. For achieving this
organization should increase the vehicles provided and make the price of travelling
more economic then other travellers are provided.
 Strategy Development – For starting any business sufficient strategy is a very
important factor. Entrepreneurs should set a strategy to make their business more
effective and leads to develop more with time. In tourism and travelling competition
is increasing very rapidly. Thus, it is very important to identify the competition and
make a strategy accordingly. Savings should also be done as during staring phase
of business money is required for a long period of time. New services should also
be introduced so that more passengers can be attracted (Solvoll, et. al., 2015).
 Assembly of Resource and Financing – It is very important for an organization to
have knowledge of available resources and financial condition. Travelling and
tourism is a sector which involves a large number of resources and money. If an
entrepreneur has knowledge of available resources and ideas then it becomes easy
for the organization to arrange more resources and money if required.
 Strong People Skills – It is very important to have strong people skills in order to
communicate with more people and to motivate employees. This skill is very
important because it helps in motivation of employees. Successful entrepreneurs
generally have this skill. As motivated employees can work more efficiently thus
entrepreneurs should be able to motivate their employees.
These traits and skills are required for entrepreneurship in travelling and tourism. Also, it is
very important to implement these skills accordingly. Implementing is also very important
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because without proper implementation there is not any benefit of any skill and knowledge.
These skills are generally with time and experience (Laeis and Lemke, 2016).
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B) Using an appropriate format, produce a self-appraisal (self-
assessment) of entrepreneurial traits (characteristics) and skills that you
may possess and identify the strengths and weaknesses for
development benchmark to be a successful.
Self- Assessment of Entrepreneurial Traits
Being an entrepreneur, I have the ability to motivate others. I certainly have the ability to
induce others to work for me. My attitude towards work is positive and not judgemental. I
perceive the difficult situations in an optimistic way. Although, I am competitive but I am
ready to learn and make improvements as per the feedbacks I receive. I am filled with the
ability to power and monitor things, hence, I am able to monitor and coordinate acts and
organize the resources. I always look for the better opportunities and find ways to work on
the difficult projects. I have the perseverance and determination to solve issues related to
functions and performance. I am aware of self-value and I have an optimistic approach
towards achieving my goals. Moreover, I have the ability to tolerate and overcome ambiguity
by handling the stress with my innovative and creative ideas. I have the ability to analyse the
situation and foresee the probable outcomes. Lastly, I am action-oriented individual who is
not hesitant to take a spontaneous action wherever required.
Skills and Strengths
The strengths which I possess for becoming successful entrepreneur are -
 Business Focus – It is very important to have a focus on the business and identifies
different needs for business and fulfils them.
 Confidence – Confidence is the key used for successfully running the business. It is
because a confident person can take an effective decision for the company.
 Creative Thinker – With the help of a creative mind it becomes easy to take different
and innovative decisions for the organization.
 Determination – This helps in focusing on the particular goal and to achieve it.
 Knowledge Gainer – For starting and running the business it is very important to
have knowledge. This knowledge can be gained from different sources. Thus, it is
very important to have the ability to gain knowledge.
Weakness that can affect from becoming a successful entrepreneur is –
 Bad Time Management – Time management is very important for making effective
business. But if time management is not done then the outcome cannot be achieved
and time is wasted.
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 Biased Perspective – Due to regular working on a particular business sometimes it
has been observed that the wrong decision takes place. Hence it results in loss of
business.
 Multiple ideas – Having ideas is important for entrepreneurs. But multiple ideas
create confusion sometimes. Hence it is very important to focus on a particular idea.
Strategies for becoming successful entrepreneurs –
1.Identifying the Competition – It is very important to identify the competition. By knowing the
competition, it becomes easy to work accordingly. The strategy should be made in order to
give more impact than other competitors (Pădurean, et. al., 2015). It becomes possible for
the organization to work efficiently and to achieve an outcome for an organization by
identifying the competition.
2.Innovations in Services – As entrepreneurs are beginners in the business thus it is very
important for the organization to provide better service to their customers (Vanevenhoven,
2013). It makes the customers attract for the particular organization. Hence entrepreneurs
should have the ability to give better and innovative service to achieve an outcome.
3 Listening to Customers Feedback – It is very important to be aware of the reactions of
customers with the service and products of the organization. It can be achieved by taking
feedbacks from the customers. Then service or product should be modified according to
feedbacks and reactions of customers. It makes the positive impact of the organization
(Galdon, et. al., 2013).
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TASK 2
A) Select a successful travel & tourism entrepreneur and analyse his or
her business development strategy
Case study of Scott Keyes is selected for this purpose. Scott Key is founder of Scott’s
cheap flights. Main function of Scott Keyes is email newsletter. Online as well as offline
subscriptions are provided for this particular purpose. His organization makes the cheap
flight deals for the organization. Scott Keyes has pursued journalism in graduation. He
began his business with the objective of having cheap flight tickets. For this purpose, he
began to watch video tutorials. In 2013 he finally achieved some success when he got best
deal. In that deal the rate of New York to Milan was just $130. At that time, he did not
achieved success but in 2015 his email services became enough successful that large
number of people became its member. For getting profit Scott Keyes prepared a strategy.
This strategy was to provide service in low rates then other organization. He set the price of
his service $2 in the beginning. This did not give outcome but it he became successful in
attracting large number of people. After some time, he increased his rate also like $30 for six
months, $60 in nine months. It proved very beneficial for him and is able to attract number of
people and also able to achieve outcomes for himself.
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-
TASK 3
A) Evaluate and discuss the sources of finance and support available to
you for the proposed project.
It is very important to have a source of finance for starting any business. It is due to the
reason in the starting phase of business availability of money is very less. Hence financers
are required for funding (Glavas and Mathews, 2014). These financers differ according to
business and its demand. In case of the travel and tourism sector generally, the Financers
are –
1. Government – Tourism is a department that gives benefit to the government of county on
a large scale. When a tourist from other countries came to the country then it proves an
economic benefit for the country. Hence, government finance for tourism and travelling
sector to achieve a profit for the country.
2. Loans – Loans are the major source of getting financial help nowadays. Entrepreneurs are
mainly using loans for starting their business. Various reasons are responsible for it. The
main factor, due to which its entrepreneurs are preferring loan is its easy availability. Loans
are given easily to entrepreneurs for their business. Barclays and HSBC are generally the
banks that provide loans to entrepreneurs in UK (Garud and Giuliani, 2013.).
3. External Financing – Entrepreneurs can get external financing for starting their business.
It is the method in which finance from external investors is done. Examples of external
financing are venture capital, crowd funding etc. Entrepreneurs can get funding from these
external financers.
4. Institutions – There are some institutions set by the government which provides loan for
travelling and tourism purpose only. In different countries, there are different institutions
decided for this particular purpose. These institutions are generally government institutes.
Only a few institutes are private that are providing loans for entrepreneurship in Travelling
and tourism (Pădurean, et. al., 2015). For example, in UK Microfinance Institution (MFI) is
the institution set by the government.
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B) Develop a business plan with a market assessment, business
analysis and cash-flow analysis and justify the potential for success of
the proposed Travel and Tourism business.
MARKET ASSESMENT- Market assessment is generally evaluation of new product or idea
for getting suitable output for the organization. For example, in case of Topdeck organization
the company deals with travelling and tourism sector. Hence the demand of people will be
that best service is provided to them in cheap prices (Halkias, et. al., 2014). Value added
offers should be provided. Also, the value and services should be such that they should be
different and more effective than other organizations. Competitors should be identified and
organization should work in such way that better performance can be achieved.
For the success of travel and tourism enterprise, various potential components required are
–
1. Spending time on business – It is very important to spend time on the business. The
time spent should produce an effective result. Spending time helps in creating new business
plans and making effective changes if required. It increases the knowledge related to a
particular business.
2. Entrepreneurial Knowledge – Having knowledge of entrepreneurship helps in
understanding the business easily. Sufficient entrepreneurial knowledge leads to an increase
in the potential of the business and helps in achieving business.
3. The ability for Teamwork – Any task could not be achieved individually. Employees and
a team are required for this purpose. Having a team makes the functioning of the business
easy and achieves a better outcome (Glavas and Mathews, 2014). Teamwork can be
achieved with proper coordination among the employees.
4. Taking Calculated Risk-Taking risk is important but the risk should be calculated. As
entrepreneurship is starting phase of the business thus it very important that risk should be
taken accordingly. It is done to protect the organization from the negative impact of the
business.
5. Correct Actions and Decisions – It is very important to take actions and decisions very
carefully. It is because of these decisions impact the organization and the business.
Decisions should be taken accordingly and also it is important that these decisions impact
positively on the organization (Halkias, et. al., 2014).).
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Cash flows statement of Topdeck for the year ended 30 June 2019.
Particular Amount ($) Amount ($)
A) Cash flow from operating activity
Net cash at bank 40
Cash sales 4763
Cash received 17649
Cash received 22412 22412
Income tax paid 52
Cash paid 9635
Rent paid 520
Wages 364
Long services leave paid 25
Payment of other expenses 371
GST paid 184
Cash paid 11151 11151
Cash inflow from operating activity 11301
B) Cash flow from Investing activity
Purchased of assets 4934
Purchased of investment 250
Cash paid 5184 5184
Cash received from tourist practices 77
Dividend received 128
Interest received 63
Cash received 268 268
Cash outflow from investing activity 4916
C) Cash flow from financing activity
Loan given to other 84
Interim dividend paid 12
Redemption of debentures 200
Dividend payable 256
Interest Payable 21
Cash Paid 573 573
Cash received on loan 45
Issue of share 600
Acquired borrowings 500
Cash received 1145 1145
Cash inflow from financing activity 572
Net cash inflow or outflow 6957
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