Desirability and Demand
Most people especially celebrities and couples organize for adventures and travels locally and internationally but are always disappointed by their managers and agencies leading to last minute cancels. During holidays, individuals are always overwhelmed with planning for visits to various areas where they have to make arrangements in advance and sometimes forced to travel or send a representative to their planned destinations to arrange for logistics such as accommodation. The business will fill this gap by organizing for all logistics for the clients including travel arrangements, accommodation, guides, and transportation within their destination for an agreed period and back. Consequently, the clients will only be left to one task, which is enjoying their adventure or business. This will save them time and energy thus improving their convenience and adventure experience.
Industry feasibility and Target market
Most people visit various areas in the world as tourists where they arrange for their travel up to their destination where agencies pick them for touring a particular country or a local area. The tours and travel industry comes handy because it bridges the gap between dream and reality. There are few companies in the industry, some of which do not provide comprehensive services. For instance, some companies help customers with traveling services only and those that provide logistics such as accommodation only. This disintegration of services calls for a more comprehensive company to set the trend and satisfy the needs of the customers fully by providing comprehensive services. Industry customers include couples who are dating, engaged, or married, celebrities, company staff going for team building or conferences, families, retreat for government officials, and students’ adventures. The industry is attracting these individuals due to the convenience it offers thus saving them from the hustles involved in traveling and adventure logistics. In this way, the industry benefits from the frequent travels and adventures organized by various groups all year round. The company wants to tap into this profit by providing comprehensive customer services from their residence to destination and back.
The founders of the company are well travelled. He has visited various parts of the world and is aware of the challenges people encounter when planning for and engaging in travel and adventure to multiple destinations. He understands the problems that are specific to certain areas and the steps that should be undertaken to arrange for local and international tours and adventures. Additionally, the founder is a graduate with a bachelor’s degree in leisure management and a master’s degree in tourism and hospitality. Besides, he has worked in five tours and travel companies, where he realized the niche in comprehensive customer services within the industry. Moreover, the company does need to hire vehicles to be used in local tours and travels by its clients because the founder has a fleet of twelve vehicles for the start. It is worth noting that the founder, has been in the industry an extended period has a close connection with friends and colleagues who the company can hire due to their experience. The company has the right to acquire patent rights given that the business idea is new.
The amount required to start up this business depends on the essential resources required for a start. The table below shows a breakdown of the financials:
The industry players are doing well even though the services provided do not provide comprehensive customer services. For instance one of the leading industry players by market share made a profit of $ 30,000 in the last quarter of the financial year ended in 2018.
Introducing a comprehensive service company into the industry will most likely attract more customers into the industry and create loyalty thus receiving high revenue returns.