Voluntrip Business Plan

Executive Summary

Business Opportunity

Voluntrip will take effort this year and provide adventure, tourism, and travel packages to residents of the United States and the wider North America region. Voluntrip’s success is possible since the national tourism and travel sector is expanding at a 4% annual rate, while adventure travel is rising at a 10% yearly rate. Additionally, the adventure travel industry is increasing at a rate of at least 12% per year. There are no suppliers in the larger North American region specializing only in adventure travel. With an experienced team, a great location, and efficient management and marketing, Voluntrip is well-positioned to capitalize on this expansion and lack of competition.

Business Formation

Voluntrip will be a Limited Liability Company in Atkins Grove, California, owned and managed by Ari, Luiz, and Sarita. Voluntrip’s founder and staff are seasoned travel industry experts enthusiastic about the experiences Voluntrip will promote and provide. Voluntrip’s overall start-up capital requirements are in the neighbourhood of $35,000. The start-up will be funded by the owner’s investment and a long-term loan obtained from Bank of America Corp. for $20,000.

Competition

The travel agency industry is competitive, and technological advancements, particularly the Internet and Computerized Reservation Systems (CRS), have altered how travel companies work. According to Drosos et al. (2017), the Internet enables travel companies and individuals to do travel-related research. Discount airfare brokers have used the Internet to sell inexpensive airline tickets online. This has increased pricing competitiveness. Computerized Reservation Systems have improved the agency-to-customer transaction’s speed and efficiency. Additionally, they have raised the start-up expenses for travel companies seeking to remain competitive. According to Wu, Jiang, and Yang (2018), increased deregulation is one noteworthy development in tourism. Deregulation heightened the demand for distinction and, in many instances, reduced airline and other travel-related service costs. Additionally, many major airlines have capped agency commissions, increased adventurous travel, and reduced profit margins.

Voluntrip is classified as a Travel Agency and operates in the Travel & Tourism sector, which already numbers over 20,000 companies and generates more than $7 trillion in yearly revenue. The industry’s leading companies have transitioned from conventional brick-and-mortar stores to entirely online offerings. Priceline and Expedia are the primary internet rivals, while AAA and more petite travel planners dominate the local market. Notwithstanding the competition, the Voluntrip founders think their business will provide a unique service and address market gaps by targeting presently unserved groups. The proprietors want to study further to ascertain their service’s specific target market, market worth, and growth.

Goals

The company’s goals for the next three years are to reach $650,000 in sales by year three, to maintain 10% margins on all tourism and travel, to generate 15% of sales via the Internet, and to form strategic alliances with service providers nationally and globally, and in the North America region. Voluntrip must focus on three critical areas to accomplish these goals: Effective segmentation and targeting of travel enthusiasts within the broader travel market; Successful positioning as adventure travel specialists; and Communicating the differentiation and effectiveness of our offering through direct contact media and regional marketing. Additionally, the company will work to develop a recurring client base to generate adequate revenue. Due to the fact that over 200,000 agents currently serve the tourism and travel sector, brokers, and agencies, Ari, Luiz, and Sarita would want to ensure that Voluntrip offers better travel goods and services at an accessible price point for their specific clientele.

Mission

Voluntrip is an adventurous tourism and travel business specializing in adventurous tourism and travel. It will provide consultancy services as well as customized travel plans and packages. Voluntrip’s goal is to become North America’s leading supplier of adventure travel. Employees and the owner of Voluntrip are outdoor adventure and travel lovers and seasoned travel industry experts. Voluntrip connects adventure travellers new to the sport and seasoned veterans to service providers, outdoor adventures, and lodgings that meet the client’s preferences, budget, and experience level.

Keys to Success

• Segment and target adventure tourists effectively within the broader travel market.
• Position ourselves successfully as adventure-travel experts.
• Through personal contact and media, communicate the uniqueness and excellence of our service.
• Develop a recurring client base.

Financing Strategy

Voluntrip requires $35,000 in total start-up funding. The start-up will be funded by the owner’s investment and a long-term loan from the Orient Commercial Joint Stock Bank. Each of the three owners contributes $5,000 towards the investment for a 33.3% share of the business. The remaining $20,000 will be acquired through a ten-year bank loan from the Bank of America Corp. with an 11% interest rate paid annually. Table 1 contains information on the start-up.

Table I: Start Up Requirements

Start-up Assets

Start Up Funding

References

Drosos, D., Chalikias, M., Skordoulis, M., Kalantonis, P., & Papagrigoriou, A. (2017). The strategic role of information technology in tourism: The case of global distribution systems. In Tourism, culture, and heritage in an innovative economy (pp. 207-219). Springer, Cham.

Wu, C., Jiang, Q., & Yang, H. (2018). Changes in cross-strait aviation policies and their impact on tourism flow since 2009. Transport Policy, 63, 61-72.