A Feasibility Study on New Tourism Management Company

1. 1.1 Introduction
Gujarat is one of the most industrialized states in the country. There are many Indian and
global companies located in Gujarat and the area has seen double digit GDP growth in past
decade. It is also known as "Growth Engine of India".
We are going to new business in tourism that provide services like, industrial visit, holiday
packages etc. which specific focus on students those who study in Primary, Secondary and
college across in Gujarat. Now a day, practical exposure is play a crucial role to enrich
knowledge.
Further, we plan to provide online platform facilities to schools and college through which
they can registration for travel with affordable price as well as better services. In which
students can registration their name with particular school or college where they study.
The other proposed details of our business plan are listed below.
1.2 Name of the Company
Our company name will be “PUPIL TOURISM MANAGEMENT COMPANY”.
Our company offers the travelling Services to all types of tour packages (holiday package,
family packages etc.).
1.3 Date of Incorporation
We are going to incorporate our “PUPIL TOURISM MANAGEMENT COMPANY”
from 27th
September 2016.
1.4 Address
Dhaval, Plazza,
Opp Bhagyoday Hospital,
Station Rd, Kadi
Taluka: Kadi
District:Mahesana
State: Gujarat
Website: www. pupiltmcguj.com
Email: pupiltmc@gmail.com
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2. 1.5 Proposed Directors
• Mr. Kamlesh Gajjar
• Mr. Namankit Prajapati
• Mr. Lakbirsingh Lehal
• Ms. Arati Patel
• Ms. Jinal Nayak
1.6 Cost of Project
Our business is providing the export related service, for that initially we require the
following things.
Particular Amount
Office Building Rs.24000
Licensing fees Rs.360
Computers [3] & Laptop[2] Rs.95000
Printers & Scanner& Fax Machine Rs.13000
Internet modem Rs.2000
A.C. Rs.15000
Lighting Expenses Rs.4000
Website Expenses Rs.4000
Telephone [landline connections with internet facility] Rs.2500
Printing Expenses[Boards & Visiting cards ] Rs.4000
Newspapers & Magazines [5] Subscriptions [annually] Rs.8000
Miscellaneous Expenses Rs.15000
Employee salary [2] Rs.28000
Total Rs.214860
2.1 About the main Promoters
We are the Five promoters for the our Pupil Tourism Management Company, which
provides
the Traveling related services (industrial visit, holiday packages with students etc.) to
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3. Students those who study in primary, secondary and college in across Gujarat
Each promoter’s haves the knowledge regarding the tourism management and each are
qualified specialisation in the MBA.
The company is being promoted by Kamlesh Gajjar, Namankit Prajapati, Lakhbirsingh
Lehal, Arati Patel, Jinal Nayak.
Mr. x :
A graduate student in Business Administration Stream. He is always ready to accept
challenging job. Having experience in banking and insurance sector. He is having good
analytical skill and able to manage and co-ordinate people.
Mr. y:
A cheerful & pleasant personality person with an excellent communication skill. He
possesses sound interpersonal skill and believes in teamwork. He believes in simple living &
high thinking with complete dedication to assigned job.
Mr z :
This Bachelor of Business Administration believes in smart work with perfection. He
believes in team work and possesses good interpersonal skills. He likes to work with
ambitious organization which can provide learning value.
Ms. b:
A Management graduate having sound knowledge of Marketing. She is ready to take every
challenge as an opportunity to develop herself. She is eager to work in dynamic field with
her best efforts to reap benefits for the company.
Ms. e:
A Confidence and commitment is her worthwhile possessions. With her optimistic &
creative nature, she is intense to work in dynamic environment with her best efforts to get
benefit to his company.
Our form of business is partnership firm, so all the expenses are incurred by the each
promoter is equal. And all have the same responsibility for our company.
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4. 3.1 Project Concept
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5. Nowadays lots of the company are going to expand their market share besides their nations.
We are going to new business in tourism that provide services like, industrial visit, holiday
packages etc. which specific focus on students those who study in Primary, Secondary and
college across in Gujarat. Now a day, practical exposure is play a crucial role to enrich
knowledge.
Further, we plan to provide online platform facilities to schools and college through which
they can registration for travel with affordable price as well as better services. In which
students can registration their name with particular school or college where they study.
Our project concept is to provide the travel related various services to the students in
Gujarat. As per the above details we will provides the following services to the travel
business
Industrial visit
Fair and festival
So thus after establishing the office we will provides such type of the services to students.
We will also provide the services to the students only like those who study in schools and
college in Gujarat.So by doing this we will generate the demand of our services and for that
we will charge the fees.
3.2 Key success factors
Improved service quality
Increase in usage of those services
Boosting employee morale
4.1 Demand Forecasting
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6. Gujarat is the 7th
largest state, located in the Western part of India, with the longest coast line
of 1,600km
The government spent nearly USD13 million for the ‘Khusbhoo Gujarat Ki’ campaign,
which featured Amitabh Bachchan, brand ambassador of the state; the campaign was a huge
success The campaign led to an increase in the number of visitors to 5.4 million in the last
two years
The government plans to focus on the state's 1,600km coast line to promote maritime,
coastal and ecotourism
Contribution of tourism to Gujarat's GDP
(Source: World Travel & Tourism Council’s Economic Impact 2013, Techs Research Note: E –Estimates)
Initially it takes time to build the reputation in the market regarding our services. But the
tourism is one type of the business which is never stop. And by providing the accurate and
clear services to our clients we will increase the demand in the market.
We forecast that in the coming day’s lots of the travels company will enters into the national
market and after three years we will also increase our service portfolio so the customers are
completely satisfied with us.
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7. So thus by proving the services to the some small and large organization we will have the
great demand in the future.
4.2 Service Strengths
Service strengths are the most important for the every successful business organization. Our
service strengths are listed as below. With the support of our qualified promoters, we offer
reliable tourism Services.
All the information related to transportation documentations and billing is clear and accurate.
Each promoter is graduate in the management degree so it provides the very reliable and
updates details as per the ministry of Industries and Mines Department Government of
Gujarat
24X7 Customer Support services through our website.
4.3 Marketing Strategy
Initially we will provide the some basic travel related a service which is listed in former
part. Then after some period we will increase our service portfolio. Increase following
services which we will not providing initially.
We also distribute the Pamphlets and Brochures to the school and colleges to inform about
the new business as well as marketing through social media websites.
So thus by this way we increase the range of our services and our patrons can get all the
required assistance only from our tourism management company by contacting to us they
can feel the relief for such tourism procedure. These all the services are provided on the fee
basis.
4.4 Marketing Mix
Marketing mix is consists of the all the four elements Product, Price, Place and Promotion.
Product
Product is the combination of tangible and intangible elements. The tourism product, which
is mainly the destination, can only be experienced.
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8. Here our product is providing the services to students are as below.
Industrial tour packages
Fair and festivals
Price
Pricing also depends on the geographic location of the destination. To match demand and
supply tourist managers try to get either discount although we will charge the fees according
to the service.
Fairs Place
Bhavnath Fair Junagadh
Dang Darbar Dang
Chitra-Vichitra Fair Khedbrahma,Sabarkantha
Kavant Fair ChhotaUdeipur
Tarnetar Fair Surendranagar
Bhadrapad Ambaji Fair Ambaji, Banaskantha
Shamlaji Fair Shamlaji, Sabarkantha
Vautha Fair Dholka, Ahmedabad
Festivals
International Kite Festival (Uttarayan) Ahmedabad
Modhera Dance Festival Modhera, Mehsana
Navratri Festival Across the State
Tanariri Festival Vadnagar, Mehsana
RannUtsav White Rann of Kutch,
Adalaj Water Festival Adalaj, Ahmedabad
Monsoon Festival Saputara, Dang
Other Events
Paragliding Festival Saputara, Dang
Polo Cycle Race Polo Forest,Sabarkantha
Run the Rann Kutch
Place
It indicates the place where the service is available. All the services are provided by us from
our office at Kadi.
Promotion
Essence of a starting business is its promotion & marketing strategies; we are well
aware of this fact and have chosen following marketing strategies.
Creation of awareness has a far-reaching impact.
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9. Advertising
Publicity
Sales promotions
World-of-mouth promotion
Personal selling
Digital Marketing
Exhibitions
4.5 STP Analysis
Segmentation analysis:
Demand: Primary, Secondary and Opportunity.
Demography: Age, Sex and Religion.
Psychology: Lifestyle, Personal Motive and Knowledge.
Geography: Domestic, According to Regions, etc.
Socio-Economic: Rich, Poor, Rural, Urban and Literate.
Purpose: Business Travel, Cultural Tourism, and Common Interest Convention.
Age: Kids, Teens, Youth.
Holiday: Mass Market and Individual Market.
Target analysis:
Other Tourism Business are focusing on mostly all classes except students, so that why our
business is targeting mainly students from schools, colleges and universities.
Positioning analysis:
By providing the clear and accurate service we will position the brand of our company
among our clients.
5.1 Ancillary Services and Utilities
Product Quantity
Brochures 150 copies
Templates 1500 copies
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10. Websites 499 Rs.
Packages 150 copies
5.2 7 P’s of Services
1. Product
When thinking about a tourism product, it’s important to differentiate between what the
customers actually preferred and the product mainly a service that they receive after the
purchase.
2. Price
Price is what the business charges for its tourism product as defined by the interacting forces
of supply and demand. In tourism, two prices are often used: rack rates, which are the prices
published in promotional materials – without discounts, and net prices (or net rates), which
is the rack rate less the commission offered to resellers.
3. Place
It refers to providing the product at a place, which is convenient for consumers to access. In
tourism, the product is not distributed to the client, but the clients travel to the product.
4. Promotion
Promotion is the activity of telling your market about your product. Nowadays, promotion is
replaced by communications, which represents a broader focus. Communications can
include advertising, public relations, personal selling, viral advertising, and any form of
communication between the organization and the consumer.
5. People
In tourism, the human component is very important, so the attitude, skills and appearance of
all people involved in the traveler’s experience needs to be first class. Some ways in which
people add value to an experience, as part of the marketing mix, are training and service.
6. Process
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11. If tourism business offers services, the processes of the business can offer specific
advantages. Processes should do more than just make life easier for the business; they must
help customers get what they want.
7. Physical Evidence
Makes the customers perceive how the services would be like. Unlike a physical product, a
service cannot be experienced before it is delivered, which makes it intangible. This,
therefore, means that potential customers could perceive greater risk when deciding whether
or not to use a service.
5.3 Product Mix
5.4 Distribution Channel
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12. 5.5 Location and Site
Location plays an important role in initial industry. They have to select that location
where all the facilities must be available. They have to take right decision about the
selection of location because once a location selected it cannot be changed in the near
future. The following should be taken into consideration.
(1) Availability of Transport facility:
Kadi is the largest town in the Mehsana District, so transport facility in the form of Road
Transport is easily available. So there is no question of difficulty in transportation.
(2) Availability of market:
Kadi is fully an Industrial Area and most of the Industrial Owners are from Kadi so their
Children’s can afford tours to the nearby Tourist Places. So the market is easily available for
our Tourism Business.
5.6 Manpower Requirement
Sr. Particular No. of employees Monthly salary (Rs.) Total salary (Rs.)
1 Tour Operator 1 3000 3000
2 Employees 2 5000 10000
3 Driver 2 5000 10000
4 Travel / Tour guide 1 5000 5000
6.1 Capital Outlay and Means of Finance
Income
Gross profit 250000
Expenses
Office Building 24000
Licensing fees 360
Internet modem 6000
Website Expenses 500
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13. Telephone [landline connections with internet facility] 6000
Printing Expenses[Boards & Visiting cards ] 12000
Luxury Rent 150000
Total 51140
6.2 Capital structure
Equity 114860 0.534581 8.5 4.543936
Debt 100000 0.465419 11.4 5.305781
Total 214860 9.849716
9.85%
6.3 NPV& IRR
The expected growth rate is assuming 10% per year.
NPV = Rs. 38133.26
If the Net Present Value of future cash flow is positive the project is to accept. Here the Net
Present Value of Future cash flow Rs. 38133.26 is positive. So, the project should be
selected.
IRR = 17%
If the Internal Rate of Return is higher than the opportunity cost of capital (r>k) the project is
to accept. Here the IRR is 17% and the cost of capital is 9.85%. It means the IRR is higher
than the cost of capital. So, the project should be selected.
6.4 Assumptions
National Economic conditions which are favorable to the Travel Industry will not experience
significant declining in the next 15 years:
Market growth projections for the travel industry and for luxury travel are accurate.
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Year Cash Flow (Rs.)
0 -214860
1 56254
2 61879.4
3 68067.34
4 74874.074
5 62381.4814

14. BIBLIOGRAPHY
Industries and Mines Department (Government of Gujarat)
ibef.org.in
indiatourism.com
yatra.com
makemytrip.com
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