Traveler's Choice: Business Report and Market Analysis

This business report examines the Australian travel and tourism industry, with a specific focus on the start-up organization Traveler's Choice. The report includes an introduction to the industry's significance, company profile, vision, and mission. A detailed market analysis is provided, encompassing the target customers, market trends, and the competitive landscape. A SWOT analysis identifies the strengths, weaknesses, opportunities, and threats within the industry. The financial plan includes start-up costs, profit and loss forecasts, cash flow projections, and a balance sheet. The report concludes with a summary of key findings and recommendations for Traveler's Choice, emphasizing the need for collaboration and a professional approach to enhance the traveler's experience. References support the analysis.

Running head: BUSINESS REPORT
Business Report
Name of the Student
Name of the University
Author Note

1
BUSINESS REPORT
Table of Contents
Introduction................................................................................................................................2
Company profile.....................................................................................................................2
Vision.....................................................................................................................................2
Mission...................................................................................................................................3
Customers...............................................................................................................................3
Market Analysis:........................................................................................................................3
SWOT analysis...........................................................................................................................4
Strength..................................................................................................................................4
Weakness................................................................................................................................4
Opportunity............................................................................................................................4
Threats....................................................................................................................................5
Financial Plan.............................................................................................................................5
Conclusion:..............................................................................................................................12
Reference list............................................................................................................................13

2
BUSINESS REPORT
Introduction
Travel and tourism is one of the most significant industries in Australia with the
generation of around $32 billion on an annual basis. Even though on a global basis Australia
has faced different challenges in last few decades, however within last five years, several
global tourists have arrived in Australia. Their arrival in Australia has increased at a
particular growth rate, around 1% on an annual basis (Chen, 2015). This has encouraged
many start-up organizations to enter the Australian travel and tourism sector. Traveler’s
Choice is an organization that targets the young couples or the university students for bag-
packing and travelling in Australia. Several major markets for the inbound travel markets of
Australia such as USA, UK, and Korea have significantly witnessed a declination in the
numbers of travelers which has increased the numbers of visitors in other countries such as
India, and Indonesia etc. There are several factors responsible for this such as higher costs,
poor economic condition etc. However, the Australian bag-packing industry is still going
strong for the young travelers (Sosnowska, 2016). This business report will discuss the
market analysis of the Australian travel and tourism industry with the financial report of the
chosen organization, Traveler’s Choice.
Company profile
Travelers’ Choice is a start up organization in Australia. The organization offers best
quality travelling experience for the young travelers who are interested in bag-packing
through Australia. No other country can offer such experience for bag-packers like Australia.
The organization takes care of all the travel and tour responsibilities for the travelers.
Vision
The vision of the company is to provide high quality travel experience for the
travelers so that they can trust the organization for travelling again in future.

3
BUSINESS REPORT
Mission
The mission of the organization is to make sure the travelers get high quality travel
experience while staying with the organization along with good food and a peaceful stay.
Customers
The focus customers of the organization is the young couples and the university
students whose age is between 22-35 years with interest in bag-packing and have the
capability of paying the necessary fees of the organization.
Market Analysis:
It has been expected that within the end of 2017, the international backpackers in
Australia will increase to around 40 percent of the entire expenditure. The key responsible
factor for the significant increase is that it offers good prospects to the backpackers. The
government also provides sufficient support of the companies as these organizations have
occupied a crucial section of the tourism industry (Fellman, 2015). Even if New Zealand has
been considered as a competitor to the Australian market, it does not have many destinations
like Australia. Australia offers exotic destinations which encouraged several new companies
to enter this market. There are more than 258,000 backpackers who have visited Australia in
the last financial year.

4
BUSINESS REPORT
Backpackers key indicators for Australia
Source: Fellman, 2015
SWOT analysis
Strength
The most significant strength of this industry is that the country offers diverse and
huge natural attractions for the travelers such as Phillip island, Great ocean road etc. The
geographic location of the country plays a major factor here. There are exotic events all round
the year at different parts of the country (Dayour, Adongo & Taale, 2016). The government
is also supportive for the organizations as it generates higher revenue. The standard of the
backpacking experience is improving as well.
Weakness
There are many destinations in Australia which are still unexplored. Along with that,
there are seasonal issues for backpacking therefore the organization does not get sufficient
travelers all round the year (Sosnowska, 2016). There is less awareness for the work
opportunities in the industry as well.
Opportunity
There are new opportunities in the marketing opportunities in the industry. The
business is being commercialized as the government is taking sufficient efforts for that. The
recent media coverage on the industry has offered more opportunities for the country
(Dayour, Adongo & Taale, 2016).
Threats
The travelers put a lot of influence on the climate changing issues; therefore it can
affect the backpacking industry to a great extent (Chen, 2015). Also in terms of attracting

5
BUSINESS REPORT
international tourists, the organization has to face the international competitors as well. The
high fuel price is also acting as a threat to the industry.
Financial Plan
Setting up the business Amount (AUS$)
Accountant's fees $500
Solicitor's fees $500
Business Registration Fee $200
Domain name registration $200
Insurance Premiums $350
Licences $400
Workers compensation $2,000
Setting up the premises
Lease deposit and advance rent $20,000
Fitout $1,000
Utility bonds and connection $1,000
Stationery and office supplies $5,000
Plant and equipment
Equipment $5,000
Vehicles $2,000
Telecommunications $2,000
Computers and software $10,000
Total Start Up Cost 50150

6
BUSINESS REPORT
Start-up Cost
Table 1: Start Up Cost
(Source: Created by the Author)
Profit and Loss Forecast
Jan Feb Ma
r
Apr Ma
y
Jun Jul Au
g
Sep Oct Nov Dec
Sales
Revenue $25,
000
$30,
000
$35,
000
$40
,00
0
$50
,00
0
$60
,00
0
$70
,00
0
$75
,00
0
$78
,00
0
$80,
000
$95
,00
0
$100
,000
Cost of
goods sold
$7,0
00
$7,0
00
$8,0
00
$8,
500
$10
,00
0
$11
,00
0
$15
,00
0
$16
,00
0
$18
,00
0
$22,
000
$28
,00
0
$30,
000
Gross profit 180
00
230
00
270
00
315
00
400
00
490
00
550
00
590
00
600
00
580
00
670
00
7000
0
Expenses
Accounting
fees
$50
0
$50
0
$50
0
$50
0
$50
0
$50
0
$50
0
$50
0
$50
0
$50
0
$50
0
$500
Advertising $5,0
00
$5,0
00
$5,0
00
$3,
000
$3,
000
$2,
000
$2,
000
$1,
000
$1,
000
$1,0
00
$50
0
$500
Bank
charges
$1,0
00
$1,0
00
$1,0
00
$1,
000
$1,
200
$1,
200
$1,
200
$1,
200
$1,
500
$1,5
00
$1,
500
$1,5
00
Bank $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $800

7
BUSINESS REPORT
interest 0 0 0 0 0 0 0 0 0 0 0
Depreciation $2,0
00
$2,0
00
$2,0
00
$2,
000
$2,
000
$2,
000
$2,
000
$2,
000
$2,
000
$2,0
00
$2,
000
$2,0
00
Electricity
and gas
$1,5
00
$1,8
00
$2,0
00
$2,
300
$2,
500
$2,
800
$3,
000
$3,
100
$3,
400
$3,6
00
$3,
600
$3,8
00
Equipment
hire/lease
$10,
000
$10,
000
$10,
000
$10
,00
0
$10
,00
0
$10
,00
0
$10
,00
0
$10
,00
0
$10
,00
0
$10,
000
$10
,00
0
$10,
000
Insurance $75
0
$75
0
$75
0
$75
0
$75
0
$75
0
$75
0
$75
0
$75
0
$75
0
$75
0
$750
Legal fees $80
0
$80
0
$80
0
$80
0
$80
0
$80
0
$80
0
$80
0
$80
0
$80
0
$80
0
$800
Motor
vehicle
expenses
$2,0
00
$2,0
00
$2,0
00
$2,
000
$2,
000
$2,
000
$2,
200
$2,
200
$2,
200
$2,2
00
$2,
200
$2,2
00
Postage,
telephone
and fax
$2,0
00
$2,2
00
$2,5
00
$2,
800
$3,
200
$3,
500
$3,
700
$4,
000
$4,
000
$4,6
00
$4,
750
$5,0
00
Stationery $50
0
$50
0
$50
0
$50
0
$50
0
$50
0
$50
0
$50
0
$50
0
$50
0
$50
0
$500
Rent $7,0
00
$7,0
00
$7,0
00
$7,
000
$7,
000
$7,
000
$7,
000
$7,
000
$7,
000
$7,0
00
$7,
000
$7,0
00
Repairs and
maintenance
$90
0
$90
0
$90
0
$90
0
$90
0
$90
0
$90
0
$90
0
$90
0
$90
0
$90
0
$900
Security $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $500

8
BUSINESS REPORT
0 0 0 0 0 0 0 0 0 0 0
Superannuat
ion
$1,0
00
$1,0
00
$1,0
00
$1,
000
$1,
000
$1,
000
$1,
000
$1,
000
$1,
000
$1,0
00
$1,
000
$1,0
00
Transport/
courier costs
$2,0
00
$2,0
00
$2,0
00
$2,
000
$2,
500
$2,
500
$2,
500
$3,
000
$3,
200
$3,5
00
$3,
800
$4,0
00
Wages $10,
000
$10,
000
$10,
000
$10
,00
0
$10
,00
0
$10
,00
0
$10
,00
0
$10
,00
0
$10
,00
0
$10,
000
$10
,00
0
$10,
000
Workers
compensatio
n
$5,0
00
$5,0
00
$5,0
00
$5,
000
$5,
000
$5,
000
$5,
000
$5,
000
$5,
000
$5,0
00
$5,
000
$5,0
00
Total
Expense
532
50
537
50
542
50
528
50
541
50
537
50
543
50
542
50
550
50
561
50
561
00
5675
0
Net Profit -
352
50
-
307
50
-
272
50
-
213
50
-
141
50
-
475
0
650 475
0
495
0
185
0
109
00
1325
0
Table 2: Profit and Loss Forecast
(Source: Created by the Author)
Jan Fe
b
Ma
r
Ap
r
Ma
y
Ju
n
Jul Au
g
Sep Oct Nov Dec
Starting Cash
Position

9
BUSINESS REPORT
Inflow (Source
of Fund)
$20
,00
0
$25
,00
0
$30
,00
0
$35
,00
0
$40
,00
0
$45
,00
0
$50
,00
0
$55
,00
0
$60
,00
0
$65,
000
$70,
000
$80,
000
Cash Sales $2,
000
$3,
000
$4,
000
$5,
000
$6,
000
$7,
000
$8,
000
$9,
000
$10
,00
0
$11,
000
$12,
000
$13,
000
Collection from
Accounts
Receivable
$1,
500
$2,
500
$3,
000
$4,
500
$5,
500
$6,
500
$7,
000
$8,
000
$9,
500
$10
0,00
0
$11
5,00
0
$12
0,00
0
Other Cash
Receipts
$2,
000
$2,
200
$2,
300
$2,
400
$2,
500
$2,
600
$2,
700
$2,
800
$2,
900
$3,0
00
$3,1
00
$3,2
00
Total Cash
Inflow
255
00
327
00
393
00
469
00
540
00
611
00
677
00
748
00
824
00
179
000
200
100
216
200
Outflow (Use of
Fund)
Fixed Cost $50
,00
0
$50
,00
0
$50
,00
0
$50
,00
0
$50
,00
0
$50
,00
0
$50
,00
0
$50
,00
0
$50
,00
0
$50,
000
$50,
000
$50,
000
Administration $2,
000
$2,
000
$2,
000
$2,
000
$2,
000
$2,
000
$2,
000
$2,
000
$2,
000
$2,0
00
$2,0
00
$2,0
00
Marketing $5,
000
$5,
000
$5,
000
$5,
000
$5,
000
$10
,00
0
$10
,00
0
$10
,00
0
$10
,00
0
$15,
000
$15,
000
$15,
000

10
BUSINESS REPORT
Operations $5,
000
$5,
000
$5,
000
$8,
200
$8,
200
$8,
200
$9,
500
$9,
500
$9,
500
$11,
000
$11,
000
$11,
000
Variable Cost
Administration $20
,00
0
$20
,00
0
$20
,00
0
$35
,00
0
$35
,00
0
$35
,00
0
$50
,00
0
$50
,00
0
$50
,00
0
$60,
000
$60,
000
$60,
000
Marketing $15
,00
0
$15
,00
0
$20
,00
0
$20
,00
0
$35
,00
0
$35
,00
0
$50
,00
0
$50
,00
0
$65
,00
0
$65,
000
$80,
000
$80,
000
Operations $20
,00
0
$25
,00
0
$35
,00
0
$45
,00
0
$55
,00
0
$65
,00
0
$75
,00
0
$85
,00
0
$95
,00
0
$10,
500
$11,
500
$12,
000
Total Cash
Outflow
117
000
122
000
137
000
165
200
190
200
205
200
246
500
256
500
281
500
213
500
229
500
230
000
Closing Cash
Position
-
915
00
-
893
00
-
977
00
-
118
300
-
136
200
-
144
100
-
178
800
-
181
700
-
199
100
-
345
00
-
294
00
-
138
00
Table 3: Cash Flow
(Source: Created by the Author)
Assets
Current assets $2,50,000
Cash $100,000