BS Plan

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MATTHIAS ERTL, CARLOS ORTEGA                                                   LETHBRIDGE, 26.10.2015

 BUSINESS PLAN – ALPHA|OMEGA TRAVEL

ALPHA|OMEGA– A TRAVEL ONE-STOP-SHOW                

1. Executive Summary
2. Business Objectives – prospective one year |three years |five years

1. Year one (Business size, Production level, Performance)
2. Three years (Business size, Production level, Performance)
3. Five years (Business size, Production level, Performance)

1. The Marketing Approach

1. Local knowledge as a key component
2. Target market
3. External constraints
4. Service characteristics
5. Distribution and Process
6. Promotion
7. Price
8. People

1. The Management Team

1. Carlos Ortega – c.ortegacarrillo@gmail.com
2. Matthias Ertl – Matthias.Ertl@uleth.ca

1. Location
2. Physical facilities
3. Financing
4. Personnel Planning
5. Legal Requirements
6. Risk assessment
7. Reference List
8. Appendix

1. Executive Summary (general understanding of the Business model)

Everyone knows how relaxing vacations can be. But Mr. everyone also knows how stressful organizing and filling the time in a two weeks’ vacation trip can be. Here ALPHA|OMEGA travel comes to play. Our customers are people who are really busy, work a lot and want to experience physical and mental recreation in their vacation and who do not want to experience further pressure by organizing their vacation. So ALPHA|OMEGA is a one-stop-show travel model that provides the complete organization of the travel – from the scratch. This combines the service a traditional travel office provides as well as different activity planners do on site. And this is actually the difference to former travel agencies: WE will organize everything. ALPHA|OMEGA will also only provide locations the owners have travelled on their own and which the owners can fill with ten day trips. Travel locations in the beginning will be Vancouver – Munich –Granada and their surroundings, which means our demand as well as our offer will be generated through these locations. Furthermore we want our customers to select between a few key component questions\conditions in order to find their perfect travel match. Therefore we offer certain categories which are “Action”, “Sightseeing” and “Comfy” in all of our locations for the beginning. And the best is: Our customers will only have to fill out an online-form which ALPHA|OMEGA assesses and finds out which is the most suitable program for them. Another advantage is: The customer pays one fee which covers all expenses during the travel, which includes the flight, the hotel, the bus transfer, the reservation in the hotel, the Whale Watching in Vancouver, the double decker Bus sightseeing trip in Munich as well as the guided trip to the Alhambra. This is the main advantage we offer as the customer gets everything from one hand. Through business relationships ALPHA|OMEGA will be able to negotiate better conditions for activities on site which saves money for our clients and providers on site will not take our customers into taking unnecessary, uninteresting things. The main advantage is that we can achieve economies of scale easily as we do not provide the service itself but work as an intermediary.

Core demand will be generated through word of mouth in our travel locations and through our online portal.

1. Business Objectives

1. Period 1 - Year One

ALPHA|OMEGA travel will be a small sized company launched in the End of 2016 which employs only the two owners in the beginning because we will have a limited time horizon until studies are finished. The company starts as a Home Office led online portal so we do not have further expenses for renting business facilities. In period 1 we do not take up on a loan and provide start-up costs for licenses, insurance, technical facilities and web site programming services from personal savings. The estimated expenses will be about 5000-6000 Euro.  In the first year we will operate on a small level with pilot-projects in order to receive feedback and enhance quality. The Business will be run part-time in the first year which will be possible as we only offer E-mail contact and terminated callbacks in case of requests. In the first year we will offer 10-day trips for three destinations (plus surrounding): Granada, Munich and Vancouver. We will offer three categories for each of these destinations. These are “action”, “Sightseeing” and “recreation”. So we will have nine service-based products in total. The customer fills out an online- form in order to find out their preferences, then the ALPHA|OMEGA agent suggests one of our three categories. The preference category combined with the preference location is the final package. This package includes a priced offer for the whole trip, which includes flight dates, hotel, scheduled activities etc. So you might say, that a customer does not want to be determined by planning his vacation. Because of that customers will be able to agree or change certain activities so the individual will of the customer remains. The customers get a payback for the rejected activity and have to organize this part then on their own.

Due to more than 9829 travel agencies, alone in Germany (drv.de.2015) it is impossible to predict solid gross sales on the basis of a potential market share but theoretically we look upon to an unlimited market as we run an Online-Business. In the first year we want to focus on word of mouth customers in our trip destinations. According to a Business study every German for example spent 958 Euro on traveling in 2014 (statista.com, 2015) which means there is lots of money spent on the tourism sector in a rich province like Bavaria with an estimated population of twelve million inhabitants. Even if we will not make big sales in the first year, we want to get prominence with our tailored offers and special services via word of mouth on a regional basis. If a customer agrees our offer we charge 12% for total travel costs under 1500 Euro and 9% for total travel costs over 1500 Euro at a minimum commission of 100 EURO. Our predicted gross sales for the first year are 10687 Euro. (Appendix a)

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