Travel and Tours
Travel and Tours
Travel and Tours
Introduction
Horizons Philippines Travel and Tour’s business partner will be the principal shareholder
because all have equal share in the entity with the equity contribution of 25% each,
equivalent to ₱17,500 for a total of ₱70,000 to establish the company. Horizons Philippines
Travel and Tour will be a general partnership wherein all partners will be equally responsible
for the business’ debts and liabilities.
Breakdown of Contribution
Business Partners Share Percentage Equity Contribution
Maritess Alegre 25% ₱17,500
Venus Margarette Tablac 25% ₱17,500
Jacer Ivan Alegre 25% ₱17,500
Val Tablac III 25% ₱17,500
Manager- works in retail travel outlets, which promote and sell holidays and travel-related
products. Offers specialist, professional and competitive travel products to meet the
demands of the travel market, which includes online bookings and tailor-made trips.
Operations- Lead and develop team leaders or travel consultants in delivering travel agency
operational services at agreed service levels consistent with company standards while
optimizing performance. Proactively identify and implement solutions to constantly improve
service levels and performance.
Secretary- makes travel arrangements for her boss and/or other employees. Since
secretaries are usually responsible for keeping the schedule for busy executives, they also
take care of their travel plans and ensure the arrangements are taken care of, including
hotel reservations and car rentals.
Administration- rresponsible for researching, arranging and coordinating travel,
transportation and accommodation for employees and clients according to a specific
organization's business and budget needs. Relevant experience in a related field is usually
necessary to become a travel administrator, and an education in business administration is
oftentimes preferred.
Sales- identifies business opportunities by identifying prospects and evaluating their
position in the industry; researching and analyzing sales options. Maintains relationships
with clients by providing support, information, and guidance; researching and
recommending new opportunities; recommending profit and service improvements.
Reservation and ticketing- arranges reservations and routing for passengers at request of
Ticket Agent. Examines passenger ticket or pass to direct passenger to specified area for
loading. Answers inquiries made to travel agencies or transportation firms, such as airlines,
bus companies, railroad companies, and steamship lines.
Travel.
Travel Councilor- assists clients in planning trips and travel. Advise clients on interesting
vacation destinations and attractions. Handle airline, hotel and rental car bookings and
explain local customs and conditions to their clients.
Account executive- serve as the client’s voice when developing and executing advertising
campaigns. Ensure the efforts of various team members and components (print, web,
broadcast, social, etc.) align with the client's goals. Responsible for developing new client
relationships and maintaining existing ones.
Bookkeeper- creates financial transactions and generates reports from that
information. The creation of financial transactions includes posting information to
accounting journals or accounting software from such source documents as invoices to
customers, cash receipts, and supplier invoices. Reconciles accounts to ensure their
accuracy.
Cashier- Handles all the cash transaction of an organization. Receives payment by cash,
checks, credit card etc. Checks daily cash accounts. Guides and solves queries of
customer. Maintains monthly, weekly and daily report of transactions
Liaison Officer- is in charge of working with different people, organizations or agencies to
help them accomplish a common goal. Oversees communications, and coordinate efforts
between these different entities as well as the general public.
Utility person- keeps buildings in clean and orderly condition. Performs heavy cleaning
duties, such as cleaning floors, shampooing rugs, washing walls and glass, and removing
trash. May include tending furnace and boiler, performing routine maintenance activities,
notifying management of need for repairs, and cleaning snow or debris from sidewalk.
IV. The Target Customers and Main Value Proposition to the Customer
We will be focusing on those foreign tourists seeking leisure travel and excursions whilst on
vacation in the Philippines with the intention of letting them see and appreciate the
numerous attractions in our country. Though we realize that the majority of our tourists
come from South Korea we shall be mainly targeting those from Japan and the Australia
who often do not have transport or adequate knowledge about the country, unlike China
and US who often do. Hence we shall be mainly targeting those who are not that mobile but
wanting to see as many sites as possible. These people often do not want to waste their
money on hiring vehicles to move about by themselves, but instead want to be escorted
around places of interest by a reliable source. Hence the need to professionally market
ourselves and the services we provide, offering a service of uncompromised nature.
V. The Market, Market Justification based on the Industry Dynamics and Macro
Environmental Factors Affecting the Opportunities and Threats in the Market, the Size,
Potential and Realistic Share of the Market
The tourism industry has undergone rapid growth of unsurpassed nature over the last
several decades. This has mainly been due to the advent of a ‘borderless’ world and
increased information dissemination about the majestic sceneries throughout the world,
Philippines being no exception.
The current drive and emphasis by the government on developing and marketing
competitive products and destinations; improving tourism institutional governance and
human resources presents an opportunity for Horizons Philippines Travel and Tour to make
a valuable contribution towards achieving this goal. Having undertaken a thorough and
comprehensive research of the market we realized that there was a need for a tourist
transport company that focuses on providing leisure excursions to tourists. Though there
are mobile operators currently on the market, some of whom have been in existence for a
relatively long period of time, we believe that there is a market need for one that specializes
on providing comfortable and enjoyable transport to tourists and visitors. This, also
considering the fact that, potentially Philippines’ richest natural resource, the tourism
industry is becoming an increasingly important player in the economy and may in the long
term prove even more valuable than mineral resources in earning foreign exchange.
Aware of the fact that operating in such a market is largely dependent on good networking,
Horizons Philippines Travel and Tour intend to establish networks and strategic relationships
with various hotels, lodges and travel agents to ensure a steady stream of clients. However
in so doing we intend to ensure that the service the company provides is of extremely high
quality and comfortable. The initial overall target market share shall be 10% of the market,
mainly focusing on the greater if Northern including NCR area and southern part of the
Philippines.
Horizons Philippines Travel and Tour appreciate that entering such a market is not a 'bed of
roses' and will require establishing strong links with strategic partners as outlined
previously.
Macro Environmental Factors Affecting the Opportunities and Threats in the Market
Economic Factors
Macro Environmental Factors Affecting the Opportunities and Threats in the Income,
employment, balance of payments and investments are all the positive impacts of the tourism
industry. The industry generates income through salary, wages, loan and interest. The amount
spent by tourists though their currency in the accommodation, food and beverage and other
tourism services and products, once they visited in our country, becomes our tourist receipts.
Tourism brings new money into the economy. Tourist money is returned to the local economy
as it is spent over and over again
Technological Trends
Technological advancements are indispensable in the tourism industry as the service providers
have to continuously update themselves with innovations to supply the changing needs and
wants of the travelers. The airline sector has the Global Distribution System (GDS) that provide
alliances with airlines having central airline operations through Amadeus, Galileo and Abacus.
The e-ticket and e-receipt provide convenience of passengers in efficiency of ticketing services.
Political Factors
The warmed-up relations between the Philippines and China has begun to reap benefits to the
national economy. Compare that to the huge volume of investments we will be getting this year
and the next more years from China. The way I look at it, the country’s foreign direct
investments could reach 6 billion this year, and more in the coming years, and at least 75
percent of these would come from only three economies: China, Japan and Taiwan. We had
close to 6 million visitor arrivals in 2016. There were more visitors from tiny Taiwan than huge
China. Hence this was interpreted as having a good politics will become a boost to our tourism.
Social Environment
Tourism represents a unique opportunity for unlocking opportunities for social impact because
of the wide range services and sectors that it requires, In the Philippines, tourism generated
direct and indirect employment for 4,232,000 people or 11.1% of total Philippine employment in
2014, based on the World Travel and Tourism Council’s (WTTC) Economic Impact 2015 study.
Ecological l Environment
Eco Tours in the Philippines - Sustainable Tourism & Conservation Laws. There have been a few
legal steps toward preservation and conservation initiatives around the country that are of some
note.
The largest and most important array of these emerging environmental laws are derived from
the powers set forth in Executive Order 111. In the order, a definite framework for the creation
of a regulated ecotourism state in the Philippines is laid out. Among the major contributions of
this order are the creation of the National Ecotourism Development Council and various national
and local ecotourism steering committees. These bodies are responsible for the design of
sustainable, long-term business practices in Philippine ecotourism. They are also responsible for
the implementation of these plans and the enforcement of the regulations that they put forth.
The largest impact that this has on ecotourists looking to visit the Philippines is that it makes the
country much more accessible. With this greater level of access has come a greater level of
regulation, but the majority of these regulations have to do with the amount of money that
tourism companies must invest into the local economy. The largest negative impact this could
have on ecotourists is that it could drive the price of their trips up slightly. On the other hand,
this also means that it is a little more difficult for over-development to destroy the landscape
that brings tourists here in the first place.
Competition and Buying Patterns
The key element in service utilization decisions made at the company's client level is trust in the
reputation and reliability of the firm. The most important factor in this market will be the quality of the
service and places of excursion. This is particularly so considering the various interests of individuals and
groups as they strive to see as many places as possible. The very nature of our services dictates that the
pricing of our services will vary according to distance traveled, as different customers opt to visit
different areas and within specified time frames.
In our line of business, clients often compare travel companies directly, looking for two, or more,
possible companies. However, they usually follow word of mouth recommendations obtained from
hotels, travel agencies, government departments, car hire companies and other such related companies
Main Competitors
We have identified competing companies, some firmly established, that fill the same needs as Horizons
Philippines Travel and Tours. We intend to market ourselves in such a way that with time competitor
customers will choose our service over competitors' on the basis of our higher quality and informative
excursions. A more thorough outline of our main competitors including their strengths and weaknesses
follows:
1. XXX: Located on the first floor of the G Hotel, Gear Adventures specializes in tailor-made safaris
throughout Philippines and her neighboring countries. Gear Adventures offers Mobile Wilderness
Safaris, Weekend Adventures, One-day explorations and safari operators. Of particular concern to
us are the day tours around Gaborone that it offers to G Hotel guests. Research indicated that Gear
Adventures is the only operator that offers day trips in and around Gaborone. Several of its services
include: [details omitted].
2. YYY: Arguably one of the most reputable companies in our intended line of business. It has a
fleet of nineteen buses comprising two semi-luxury B7 Volvo train-buses, six semi-luxury B7 Volvo,
five M/Benz, four Nissan and two DAF buses. All the Volvo buses have radio facilities, and one of
the train-buses has toilet facilities. With close to twenty years of experience Mr. K supported by his
wife, Mrs. K, are achieving most of what they envisioned when they started their business-to
provide a nation-wide road transport service renowned for its efficiency and reliability. The recent
launch of a new imported South American double-decker luxury bus serves as testimony of their
continued dedication towards providing a good service to their clients.
3. ZZZ: Similar to YYY, Z is well respected in the market with a large fleet of buses. As well as
providing daily transport to Selebi Phikwe and several towns it also provides local and international
trips by hire. However they lack the marketing edge and foreign tourist focus we intend to have.
Marketing Strategy
One core element of our strategy will be that of differentiation from our competitors. In terms of
marketing we intend to ensure that our name and services are marketed on an extensive basis so that
customers are aware of our existence. In price, we intend to offer reasonable and competitive prices in
comparison to competition and we need to be able to sustain that. Our service marketing will strive to
ensure that we establish long relationships with clients.
Marketing Expenses
Initial marketing and training expenses will be relatively high as we seek to become known on the
market and staff get trained in the professional provision of our services. This will be brought about by
the development of sales literature and advertising expenses. As our market share increases and capital
is generated, further marketing programs and the expansion of those in existence at the time will be
undertaken, to ensure market development. However with time these programs will start generating
revenue for the business, which we shall in turn reinvest.
Pricing Strategy
Horizons Philippines Travel and Tours will be competitively priced in relation to the dictates of the
market. Due to the introductory nature of our services we intend to implement a penetration pricing
strategy which will ensure that potential customers are not frightened away by our prices, up until our
services are appreciated and fully operational. However this will dictate that our costs are prudently
kept so as to ensure our financial goals come to fruition. This is reflected in our prices as stated in the
services description of this plan charging close to PX per kilometer per person. Each trip will include an
average of eight to ten persons.
We intend our income structure to match our cost structure, so as to ensure that the salaries we pay to
our employees to assure good service are balanced by the cost we charge to the customer.
Promotion Strategy
This strategy will be based primarily on informing potential customers of the existence of our services
and making the right information available to our target customer. The intention will be to highlight the
benefit of utilizing our service(s), which will include:
Access to exclusive travel destinations
Service to fully appreciate destinations through information packages, and not just sight-seeing
Access to special interest travel according to the groups preferences
In such a market we cannot afford to appear in or produce second-rate material with poor labels that
make our services look less than they are. Hence we intend to leverage our presence using quality
brochures and other sales literature, including promotional material such as pens, complimentary slips
and pads. We intend to spread the word about our business through the following:
Advertising: This shall be undertaken through trade and industry publications, which are read by
tourists, as well as the local newspapers. A constant look out will be made of any special editions in
the local newspapers, which may provide an opportunity for us to advertise our services and
business name.
Horizons Philippines Travel and Tours will also be advertised through professionally done
brochures, and other such sales literature, which allow enough detail to be communicated about
the services offered by the company. This literature will be mainly targeted at potential clients and
placed or made available at strategic points, such as travel agencies. With time we also intend to
utilize billboards to advertise ourselves, likewise located at strategic points. Hence we intend to
design and put up posters communicating the services we provide located around hotels, lodges,
airports and other such areas where tourists typically pass by. However in doing so we always
intend to obtain the consent of the respective authority.
Personal Selling: Undoubtedly customer solicitation face-to-face will be a powerful form of
promotion mainly due to the fact that its flexibility will enable us to match the customer's needs to
specific attributes of our services as well as giving concise details of what we have to offer. Another
important determinant in utilizing personal selling is the fact that we are relatively new on the
market. As such, potential customers/clients will, to a certain degree, be skeptical towards the
intended service(s) and how they are able to benefit from them.
In cases where the opportunity of obtaining a large order exists it may be necessary for the top
management to go out personally, especially considering the fact that we are still a relatively new
firm on the market. However this shall be the situation in the majority of cases due to our relative
infancy.
Direct Marketing: This will be used but only to a limited extent in the form of telemarketing and
informing potential customers and obtaining referrals where possible. In the case of telemarketing it
will involve our targeting potential customers of our services and informing them of our existence
and destinations. We may then arrange for an appointment with the respective decision-maker,
with the intention being to lure them into utilizing of our services.
Events: These are increasingly becoming important as more firms establish in the country and
hence the need to be known. The organization aims to promote itself through attending trade
shows and expositions. Not only will these increase awareness of our services and business name,
but also enable us to interact with potential clients who may decide to utilize our service.
VII. The Enterprise Strategy and Enterprise Delivery System: Business Competitiveness
Input Throughput Output Marketing Desired Outcome
Harnessing Conversion of Travel Services Positioning
of human, input into • Conference/Meeting Product • Sales to increase
money and output and the and Banguet Place from more than
physical transformation Reservations People P16,450,000 the first
Resources within • Hotels Reservation Promotion year to more than
mobilized Horizons • Group Incentives - Price P26,155,500 the
Philippines (Free airline tickets to second, and
Money Travel and parties of 15 and P29,610,000 in the
Manpower Tours more) third year.
Machines • Philippine Flights – • Thousand Affiliates in
Materials (Free ticket delivery to the Philippines;
Methods any Philippine address • A pathway of
Managemen • Meet and Greet accessibility
t Assistance- (additional nationwide;
cost may apply) • Strong connection
• Airport Transfers – and partnership in
(Land and Sea round Global Ticketing
trip) Companies (GDS);
• Cars Rental with • Continuously provide
Driver enjoyable quality
• Itinerary Planning excursion/tips on time
• Visa Assistance and and on budget;
Consultations • Develop
• Excursions such as: enthusiastically
Sightseeing Tours, satisfied customers all
Packaged Tours, of the time;
Trekking Packages, • Establish a market
Diving, Water sports, presence that assures
Cruises and Golfing long-term profitability,
growth and success;
Tour Packages • We are fully
(enumerate the committed to
packages) supporting growth and
Ilocos Tour Package development in the
₱2,500.00 tourism and overall
economy of the
Philippines;
• Contribute positively
to our communities
and our environment;
• Sell 100 ticketing and
package tours sold
(domestic and
international) on its
first year of business
operation
Our marketing strategy will emphasize focus. We are a relatively new company on the market and hence
must focus on certain kinds of services with certain kinds of clients. Initially the business will focus on
the local market, expanding into the regional market as time progresses, and as we gain the necessary
experience. Therefore the initial aim will be to instill awareness and confidence in our services. In order
to achieve its goal of becoming the premiere mobile operator, the company intends to adopt the
following strategies:
1. Establish Horizons Philippines Travel and Tours reputation as a differentiated, specialty provider
of city/ adventure travel and excursions. This will be accomplished through a diverse marketing
communications programmer directed at the company’s target market, utilizing various media as
well as the establishment of strategic allies.
2. Provide unparalleled service to the tourists in order to gain repeat business and build trust. This
will include providing superior service in all phases of the transaction, including timely follow-
through.
3. Aggressively promote excursions as healthy, eye-opening and exciting activities with those who
participate in them as appreciative of the finer things in life.
4. We intend to build image and awareness through consistency and distinctiveness in our service
provision.
Our strategy is to grow the business by nurturing clients, differentiating the service from our
competitors, particularly through service and staff behavior. All criteria from customer satisfaction,
service provision, price competitiveness to staff attitudes are to be looked at thoroughly in the initial
stages as areas for improvement. Alliances and collaboration with hotels, lodges and travel agencies are
to be adopted as strategies for market penetration. Training will be conducted on a regular basis to
ensure that our staff is fully meeting customer expectations.
Through the implementation of a fair, effective and competitive remuneration policy we intend to
optimize our human resource output and advancement. We need the right people in the right place at
the right time if we are to ensure optimum growth. We intend to develop our team so that our people
can grow as the company grows - a mutually beneficial relationship. We are currently vigorously
searching and recruiting the right people for our organization.
VIII. Financial Plan
The financial plan shall be essential if we are to meet our objectives. The intention is to finance growth
through cash flow and equity.
One of the most important factors will be the payment terms as agreed between the client or customer.
We can't push our customers hard on collection days, because they are extremely sensitive and will
normally judge us on our terms. Therefore there is need to develop a permanent system of receivables
financing systems mutually agreed between both parties. Hence in the financial plan we intend to have
the following:
1. A fundamental respect for giving our customers value, and for maintaining a healthy and
congenial workplace.
2. Cash flow as first priority, growth second, profits third.
3. Respect for realistic forecasts, and conservative cash flow and financial management.
Important Assumptions
The financial plan depends on important assumptions. From the beginning, we recognize that payment
terms and hence collection days are critical, but not a factor we can influence easily. At least we are
planning on the problem, and dealing with it. Interest rates, tax rates, and personnel burden are based
on conservative assumptions.
General Assumptions
Plan Month 1 2 3
Current Interest Rate 10% 10% 10%
Long Term Interest Rate 10% 10% 10%
Tax Rate 18.08% 17% 18.08%
Other 0 0% 0
IX. Environmental and Regulatory Compliance (refer to Streamlined Documentary
Requirements 2017)
X. Appendix
A. Leases or Contracts
B. Floor Plan
C. Price List from suppliers (if there’s any)