Travel project report

TABLE OF CONTENTS

1.0 Executive Summary 31.1 Objectives 4

1.2 Mission 4

1.3 Keys to Success 4

2.0 Company Summary 52.1 Company Ownership 5

2.2 Start-up Summary 5

2.3 Company Locations and Facilities 82.4 Company Values 8

3.0 Products 93.1 Product Description 9

3.2 Competitive Comparison 9

3.3 Future Prospects 9

3.4 Fulfillment 9

4.0 SWOT Analysis 104.1 Strengths 10

4.2 Weaknesses 10

4.3 Opportunities 10

4.4 Threats 11

5.0 Market Analysis Summary 125.1 Market Segmentation 13

5.2 Target Market Segment Strategy 13

5.2.1 Market Needs 13

5.2.2 Market Trends 14

5.2.3 Market Growth 14

6.0 Strategy and Implementation Summary 156.1 Value Proposition 15

6.2 Competitive Edge 166.3 Marketing Strategy 16

6.3.1 Product Marketing 16

6.3.2 Price Strategy 16

6.3.3 Promotion Strategy 17

6.3.4 Distribution channel 196.4 Sales Strategy 20 6.4.1 Sales Forecast 206.5 Corporate Social Responsibility 21

7.0 Human Resources Summary 227.1 Management Team 22

7.2 Personnel Plan 22

7.3 Training 23

7.4 Feedback and Control 24

8.0 Financial Plan 258.1 Important Assumptions 25

8.2 Break-even Analysis 26

8.3 Key Financial Indicators 27

8.4 Expense Forecast 27

8.5 Projected Profit and Loss 288.6 Projected Cash Flow 29

8.7 Projected Balance sheet 32

8.8 Business Ratios 33

9.0 Controls 369.1 Contingency Planning 36

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1. Executive summary

Travel Solution will be a company that will provide the most suitably designed as well

as the customized travel packages to its customers. Today's extremely stressful work

environment dictates that individuals requires some joyful holiday, this presents an

opportunity that we may exploit, and provide them stress-free joyful refreshing holidays with

cost competitive and customized packages according to their needs.

This project plan is developed to get the required finance for the project. There

financing will be required to purchase busses, cars, the working capital and to cover the

expenses for operation for first year. The finance available today with the company is about

Rs. XXXXXX

Travel Solutions will be incorporated as LLC. This will shield the owner Mr. Amit M.

Rampure and it will find investors for additional financing to make the company stable. The

investors are treated as shareholders.

The financing ,in additional to the capital contributed from the owner, shareholders

and bank will allow the Travel Solutions to successfully start and maintain the operations

through one year. A unique, upscale innovative idea of the travel packages will help Travel

Solutions to become successful in first year of its operations. Company will market its

products through aggressive marketing, innovative concepts, participating in trade shows,

newspaper ads etc. Successful operation in year one will provide Travel solutions a base for

its market to move forward with high growth rate.

1.1 Objective

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Travel Solution’s objectives for the first three years of operation include:

The creation of a unique, upscale, innovative and customized tour Packages

that will differentiate from other companies

The formation of a company’s image that will bring people with diverse

interests and backgrounds together in a common forum.

To serve its customers with best possible quality and provide them more

things in price on one.

1.2 Mission

We want to serve our customers with best possible service and provide them the kind

of comfort they want. We would also want to customize our tours as per our customers need

without reducing joy or quality of tour. People of all ages and backgrounds will come to enjoy

the unique, upscale, joyful, and refreshing environment that Travel Solutions provides.

1.3 Keys to Success

Serving with best possible quality.

Customized and attentive approach to its individual customers

Making tour packages more interesting with innovative ideas.

Make Tour packages more attractive as well as cost effective.

The establishment of Travel Solutions as hub for socialization and

entertainment.

Marketing of products with new ideas.

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2. Company Summary

Travel solutions will be a company which will organize tours to different parts of country. The

company will start its operations from Pune and provide service to customers targeting

Maharashtra area as the first destination. It will subsequently launce its service to other parts

of country. It will focus initially on providing and satisfying two kinds of tours:

Yatra: Different religious places

Heritage sites: This will undertakes site tours like Ajanta-Ellora, Forts etc.

As it grows it will take on people and expand into related markets. It will also look for

additional leverage by establishing relationships and representations with appropriate

strategic allies.

2.1 Company Ownership

The company named ‘Travel Solutions’ will be registered under companies act with

legal formalities. Its fiscal year is the calendar year. The company will realize the potential

market and opportunity for growth from given implementation of the appropriate strategies,

aided by the necessary finances from next year.

2.2 Start-up Summary

Total start-up capital and expenses (including legal costs, logo design, stationery and

related expenses) came to approximately Rs. XXXXXXX. Start-up assets required and

utilized included Travel Office, Travel Busses (and/or Busses, cars on rent), Staff, office

furniture, personal computers and other office equipment. This figure comes to Rs XXXXXX.

Start up expenses

Sr. No. Description Amount reqd.

1 Legal 10,000

2 Stationery etc. 5,000

3 Brochures 0

4Insurance

0

5

5Rent

0

6Research and Development

0

7Expensed Equipment

5,000

Total Start-up Expenses20,000

Start-up Assets

Sr. No. Description Amount reqd.

1 Cash Required 10,000,00

2Start-up Inventory

10000

3Other Current Assets

0

4Long-term Assets

0

5Total Assets

10,10,000

Sr. No. Description Amount reqd.

Start-up Funding

1Start-up Expenses to Fund

20,000

2Start-up Assets to Fund

10,10,000

Total Funding Required10,30,000

Sr. No. Description Amount reqd.

Liabilities

1Current Borrowing

2Long-term Liabilities

0

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3Accounts Payable (Outstanding Bills)

0

4Other Current Liabilities (interest-free)

0

Total Liabilities

Sr. No. Description Amount reqd.

Assets

1Non-cash Assets from Start-up

0

2Cash Requirements from Start-up

20000

3Additional Cash Raised

0

4Cash Balance on Starting Date

0

5Total Assets

20000

Sr. No. Description Amount reqd.

Capital

1Planned Investment

2Investor 1

3Investor 2

4Investor 3

5Investor 4

6Additional Investment Requirement

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Total Planned Investment

Sr. No. Description Amount

Loss at Start-up (Start-up Expenses)

Total Capital

Total Capital and Liabilities

Total Funding

Start-up

Click to Enlarge

2.3 Company Locations and Facilities

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At present the company plans to set up its office at Pune with intentions of

establishing additional centers in other parts of Maharashtra, largely depending on the

dictates of the market. Our current facilities provide offices, Bus, office equipment and so on.

2.4 Company Values

Travel Solutions is committed towards an open governance system whereby its

activities are managed and undertaken ethically, transparently, and in the interests of all

concerned stakeholders.

This shall be undertaken through implementation of the following company values:

We intend to conduct our business ethically and transparently, respecting all

applicable laws.

We intend to be a responsible corporate citizen fulfilling our obligations as an integral

member of society. Hence our business decisions shall give appropriate weight and

consideration to social and environmental impacts.

We intend to provide products of uncompromising quality to meet the needs of our

customers.

We intend to seek mutually beneficial and enduring relationships in all the

commitments that we make, ensuring that they are straightforward and honest.

Hence our communication shall be open and accurate, internally and externally.

We intend to optimize the creation of wealth to provide fair reward and recognition for

the contributions of our stakeholders.

Ultimately we intend to uphold all the above company values, promoting our

employees and respective third parties engaged by us to do likewise.

Through promotion and implementation of the above stated company values we believe

that we will be able to attain our corporate and stakeholders' goals and objectives for the

benefit of all concerned, in particular the communities in which we will operate.

3.0 Products

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Travel Solutions will provide all kind of travel and tour services to its customers.

Some of the Tours designed by the company are AshtaVinayak yatra, Shakti, Sai, Ajanta etc.

Please see the concerned leaflets for details.

We also provide customers the customized travel solutions depending on their

suggestions and requirements.

3.1 Product Description

Travel solutions will provide the transportation through its busses. According to its

tour packages it will provide the facilities to customers. It may vary from customer to customer

and packages.

3.2 Competitive Comparison

Identifying competition in terms of companies that fill the same needs that we do, our

competitors are few in our main tour business, though dominant in the market. Hence there

will be a need to strongly differentiate ourselves from these other businesses. However on a

broader scale our competition comes in several forms.

3.3 Future Prospects

Travel solutions trough its best service and aggressive marketing will try to capture

the market. We will treat our customers as their friends will best possible and cost effective

packages. We will grow other parts of Maharashtra and subsequently in other parts of

country. We will try to develop a model for tourism so that we can attract the schools clubs

and other socio-groups etc.

3.4 Fulfillment

1. The key fulfillment and delivery will be provided by the principals and values of the

business. The real core value will be the provision of a quality based service. Hence

we intend to ensure that tours we provide to customers of high quality and service.

2. We will try to build our travel image by mouth to mouth publicity, advertising, and

taking part in social functions.

4.0 SWOT Analysis

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We are in a highly lucrative market in a rapidly growing economy. We foresee our strengths as

the ability to respond quickly to what the market dictates and to provide quality service in a growing

market. In addition, through aggressive marketing and quality management we intend to become a well-

respected and known entity in our respective industry. Our key personnel have a wide and thorough

knowledge of the local market and expertise, which will go towards penetrating the market. However we

acknowledge our weakness of a small-sized company without a lot of experience, and the threat of new

competition taking aim at our niche. Below are the summarized strengths, weaknesses, opportunities

and threats.

4.1 Strengths

Strategic market segmentation and implementation strategies.

Diversified market segments: ensuring the lack of dependency on one particular

market.

Combination of skills in directorship. The directors intend to jointly develop business

strategy and long-term plans, having wide experience in product and business know-

how.

Establishment and maintenance of strong capital base.

An aggressive and focused marketing campaign with clear goals and strategies.

4.2 Weaknesses

Lack of a reputation in comparison to our competitors.

The introduction of new organizational practices and personnel who have not

previously worked together presents a challenge to the company.

A limited financial base compared to the major players in the industry.

Lack of clear-cut channels of distribution.

Establishment on the Internet will produce technological challenges.

4.3 Opportunities

Specific niche: we will design special and customized packages for our customers.

The new generation of individuals and families has a far greater appreciation of

attractive packaging (image conscious).

Internet marketing and sales--though still in its infancy.

4.4 Threats

The present growth in the market may result in market saturation, through competition.

This competition could emerge from a variety of given sources including:

1. Established mass-market companies.

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2. New marketing strategies and tactics by established products and companies.

3. Existing competition.

4. Other start-up companies generated by healthy economic growth nationwide.

5.0 Market Analysis Summary

The number of outbound travellers from India grew by 15% to 6.2 million in 2005. This

was almost twice the number of arrivals witnessed by the country. A booming economy, with

GDP growth of more than 7%, rising disposable incomes, higher aspirations, cheaper air

travel to countries such as Malaysia, Thailand and Singapore and better products from the

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industry enticed Indian travellers. This has prompted a number of global tour operators to

enter the Indian tourism market either directly or through strategic alliances.

The travel industry is facing an increasingly competitive marketplace – travel

professionals want to adopt new results-driven strategic marketing approaches to meet their

unique challenges. Improving the efficiency and results of direct marketing programs,

reducing marketing costs, and building more strategic promotional and sales relationships are

all key initiatives for success. With Claritas' segmentation solutions, you'll discover how to

effectively identify and target your most profitable customers and prospects.

Critical issues in the travel industry include:

impact of downturn in travel

acquisition of customers

maximizing customer value

Multi-channel marketing

customer retention

Claritas' customer segmentation systems are an important element of any marketing

program for the travel industry. Gain a better understanding of your existing customer base

and learn how to more expertly target new customers. Analyze the composition and behavior

of your segments to uncover a wealth of information to help guide all aspects of your

marketing campaign.

Focus your efforts on reaching your most profitable segments – target direct mail and

optimize advertising and promotional activities. By linking travel behaviors with consumer

media preferences for newspapers, magazines, television, radio, and the Internet, you can

penetrate the relevant media channels to reach your most likely consumers.

We appreciate that entering such a market is not a bed of roses, particularly as it is

monopolistic. Hence we intend to implement an aggressive marketing strategy, well supported by the

other business functions. The above prognosis influenced our decision to enter the brewing industry.

5.1 Market Segmentation

Travel Solutions will be focusing on the corporate and working class who appreciate

good quality travel service. The working class will range from the miners who constitute a

large portion of the market, to administrative personnel appreciative of good quality service.

The corporate or managerial segment will constitute those managers who though aware of

their image and reputation, want to put aside their ties and jackets after hours and/or on

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weekends to ride on adventures and enjoys life. Our most important group of potential

customers is those in the rural areas who often converge after hours to socialize and update

one another on local news. These are potential customers who want to have an enjoyable

time and also some religious tour at reasonable price.

We also intend to appeal to the foreign tourists who would be looking at experiencing

a great time.

5.2 Target Market Segment Strategy

Our marketing strategy will be based mainly on making the right kind of customized

product available to the right target customer. We will ensure that our products prices take

into consideration peoples budgets and that these people appreciate the product and know

that it exists, including where to find it. The marketing will convey the sense of quality in every

picture, every promotion, and every publication. There is already a sense of segment strategy

in the way we define our target market. We are choosing to compete in areas that lend

themselves to local competition, service and channel areas that match our strengths, and

avoid our weaknesses.

5.2.1 Market Needs

The major customers require a service which will be cost effective and also

enjoyable. The customer wants the more things in the price on one. They want to add their

knowledge, have a picnic, and meet the god (religious place) in one package.

We will provide them all what they want. We will give them a good attention right from

choosing a package to the end of tour. We will provide the all necessary information to them.

We will also arrange some packages gifts for them

5.2.2 Market Trends

Our target markets are increasingly growing towards recognizing the difference

between poor quality tours and those of high quality. This development is an important trend

for us as it represents our target market. We now are having an increasing number of people

who appreciate the traditional tours whilst living in the urban areas. With this in mind we

intend to ensure that our packages are respectable and attractive.

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Today's extremely stressful work environment dictates that individuals requires some joyful

holiday, this presents an opportunity that we may exploit, marketing the health aspect of our tours.

5.2.3 Market Growth

Import statistics provide a reliable guide as to the size of the tourism industry.

India’s travel and tourism market was valued at US$42 billion in 2005, and is growing

rapidly. India emerged as the fifth most preferred destination by the world’s Travellers in a

survey conducted across 134 countries. India also figures in the Annual Readers’ Travel

Awards 2005, which were announced by the prestigious magazine Conde Nast Travellers UK

in its September 2005 edition. A 5,000 year history, culture, religion and alternative medicine

fascinate both budget and luxury travelers alike.

The Department of Tourism’s resolve in promoting Indian tourism has strengthened as it

recognizes it’s potential. Tourism in India is the third largest foreign exchange earner,

accounting for 2.5% of GDP. It also makes a direct contribution to economy with significant

linkages with agriculture, horticulture, handicrafts and construction. The outlay on tourism

development rose to Rs7, 860 million in 2005/2006, from Rs3, 500 million in 2003/2004, and

continued to focus on the “Atithi Devo Bhavan” campaign, targeted at the inbound foreign

tourists in the country. Translated literally this means “Guest is God”.

With 390 million Indians on the move in 2005, it is little wonder that it is domestic

Travellers that sustain the travel and tourism business. Domestic business travel and visiting

family/friends, as well as pilgrimages, contributed to the 13% growth in number of trips within

the country that year.

6. Strategy and Implementation Summary

Our marketing strategy emphasizes focus. This will be the key. We are a relatively new

company and hence must focus on certain kinds of customized service with certain kinds of

consumers. Initially Travel solutions will focus on the local market in Pune. Hence the form of

growth that shall be initially pursued will be that of organic growth mainly due to limited

resources and the need to instill confidence in our company and packages. The target

customers will include key decision-makers in the different organizations who often order or

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recommend on behalf of the whole organization, the aim being to obtain an initial order and

fully satisfy the customer from then on.

We are currently building image and awareness through consistency and

distinctiveness in our package provision.

We intend to focus on delivering quality products that in turn produce good referrals,

which can then generate revenue. We intend to always have a relatively heavy

personal selling component to our marketing strategy as previously discussed. Hence

we intend to always be active in personal relationships with clients and strategic allies

keeping abreast of their needs and wants.

We are focusing advertising on several key media.

We intend to achieve growth by creating a more enthusiastic customer culture than that of our

competitors. All criteria from price competitiveness to staff attitudes are to be initially measured six-

monthly, and then on a more regular basis as time goes on. The results will go down to depot level and

be compared with the overall target. This form of consistent measurement of strategic goals will ensure

that the organization remains focused on its goals and objectives, making any necessary adjustments

where need be.

6.1 Value Proposition

Our value proposition is offering our customers refreshness and enjoyment at reasonable

prices ensuring peace of both body and mind. Hence we intend to:

1. Market the benefit, not the product.

2. Ensure customer satisfaction.

3. Develop long relationships.

4. Market the company.

This value proposition shall be communicated through advertisements, personal selling, sales

literature and catalogues, and referrals that emphasize how the company is able to provide refreshment,

enjoyment and fulfillment to the customers.

6.2 Competitive Edge

Our competitive edge will be our dominance of access to previously remote areas, customer

orientation and traditional Yatra tours through customized service.

Though we shall be serving different market segments we intend to focus on each and every customer

as single entity and serve them best as possible.

6.3 Marketing Strategy

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One core element of our marketing strategy will be that of differentiation from our competitors.

In terms of promotion, we intend to sell our company as a differentiated strategic ally, not just our

products. In price, we intend to offer extremely reasonable prices in comparison to the competition and

we need to be able to sustain that. Market penetration through lower prices shall be undertaken where

need be, while premium pricing will be the case of the upper-end of the market.

6.3.1 Product Marketing

Our product marketing will emphasize the benefits of our products, including

refreshment and enjoyment of top-quality service. We intend to sell the opportunity to enjoy

oneself amongst friends, family and/or colleagues. This will come out in our advertising,

delivery and collateral such as sales literature and business cards. Our product marketing's

most important challenge will be the problem of being accepted and appreciated on the

market as a provider of quality products. Hence we intend to not only meet customers'

expectations but to exceed them.

We intend to focus on the individual or group who want to enjoy themselves through

their requirements of tours. However, not wanting to limit our horizons in the initial period, we

intend to be continually looking out for opportunities that we may exploit. In all cases we

intend to provide a thorough understanding and appreciation of the products to the customer

and the benefits of them.

6.3.2 Pricing Strategy

Initially our prices will not be under our control but dictated by the market conditions

prevailing at the particular time. This is particularly so in the case of products which are also

produced by our competitors, as they are often representing a scale for consumers. However

we realize that we must charge appropriately for the quality and work we shall be providing, in

addition to the distribution of the products. Hence we intend the price will accommodate the

mark ups prevailing in the industry, as well as our own costs. To be competitive in the market

we intend to offer discounts to customers making bulk orders, which are in competition with

the industry. This will also assist in the establishment of customer loyalty. Hence our prices

shall be as follows: (discussion removed for confidentiality).

We intend our income structure to match our cost structure, so as to ensure that the salaries

we pay to assure good workmanship is balanced by the price we charge. We will make sure that we

charge for the product, workmanship and delivery with our aim being to achieve a gross profit margin of

at least 30% in our initial years of operation. All in all we intend our prices to be extremely competitive

on the market.

6.3.3 Promotion Strategy

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Our promotion strategy will be based primarily on informing potential customers of our

existence and making the right information available to our target customer. Since we shall be

targeting different segments, the promotional tools and messages may vary slightly to match

the intended market. However in all cases the marketing will convey the sense of quality,

refreshness and health in every picture, every promotion and every publication. Our

promotional activities shall be focused towards driving the organization's overall strategy

relentlessly, developing internal consistency and prepare it to confront any radical changes

that may arise. In such a market we cannot afford to appear in, or provide, second-rate

service that makes our products look less than they are. We intend to leverage our presence

using quality brochures and other sales literature, including promotional material such as

pens, complimentary slips and stickers. Due to the fact that our products are in the

introductory phase on the market, promotional expenses are high in order to generate

customer attention and knowledge of our products existence.

We intend to spread the word about our business through the following:

Advertising

We intend to undertake extensive advertising of our packages in addition to our brand

name--company name. This is so as to instill awareness and knowledge of our existence in

the market place, which hopefully shall convert into market share. Hence the need to ensure

that our packages are constantly available to our target market, and of consistent high quality.

Whilst we are committed to providing products of uncompromising quality to meet the needs

and expectations, the company believes its products should be advertised and promoted in

an honest and ethical manner that respects the values of our consumers' societies. A

constant look out will also be made of any special editions in the local newspapers, which

may provide an opportunity to advertise.

Events

These are increasingly becoming important as more firms establish in the country and

hence the need to be known. The organization aims to participate in trade shows. Not only

will these increase awareness of the products. The organization will be able to take

advantage of this in all its promotional campaigns, adding leverage to its reputation and

image. Undoubtedly this would add confidence and pride in our staff complement as their

hard work would be recognized often at the highest levels. Communicating such

achievements often gives customers a feeling that they can rely on the product, and this

builds strong customer loyalty

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Public Relations

Recognizing that we are relatively new on the market there will be a need to organize

an event, of grandeur nature, introducing ourselves onto the market. At this we intend to invite

potential customers, senior officials, including the Minister of Industry and Commerce, and

other stakeholders so as to penetrate the market. In collaboration with this we also intend to

place news stories and features in magazines and newspapers to keep stakeholders updated

on the latest developments and to increase awareness. This will assist in the recognition and

appreciation of our company in the surrounding community especially. Our efforts on

community service will show that the company has its community at heart, contributing

towards the establishment of a good and reputable image. Homes for the under privileged will

be also be built in the medium, to long term as we plough back into the society we operate in.

In addition we intend to pursue educational sponsorship for the less advantaged but

promising young individuals in the community. This will constitute some of our corporate

social responsibility details of which are provided in the respective section.

We also intend to experiment with a road show in the various often-neglected remote

areas giving out caps, bags, and other such prizes to individuals who answer questions

correctly. This will also enable our business name and products to be better known by the

respective communities. However we are extremely confident that these road shows if well

planned will be a success as they encourage community participation. Hopefully visitors will

leave impressed and confident in our products, adding to the possibility of positive referrals.

Personal publicity

This shall be undertaken in the form of sales calls whereby a sales person will go out

to potential customers and distributors informing them what products we are able to offer

them. In addition the sales person will listen to client's needs at close hand, so as to ensure

that the product is delivered timely and that it is the right product as demanded by the

surrounding community. Close analysis shall also be undertaken of the respective

communities. This will ensure that our products are customized as much as possible to the

surrounding community's needs and wants. In cases where there is the opportunity of

obtaining a large order it may be necessary for the top management to go out personally,

especially considering the fact that we are still a relatively new firm in the market.

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/distributors of our products and

informing them of our existence and the products we offer. We may then arrange for an

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appointment with the respective decision-maker/order-maker, with the intention being to lure

them into ordering one or more of our product lines.

Internet Marketing

The increasing growth of the Internet as an information source provides an

opportunity that we may exploit. This is particularly so in view of the increasing investment

and global trade amongst countries, as both large and small organizations look at obtaining

the best deal possible. More often than not these organizations will seek out potential clients

over the Internet due to the cost of transport and accommodation, apart from the obvious time

factor, which is increasingly becoming of importance in view of the dynamic environment.

However this will require adequate planning and research so as to establish a professionally

done website. This will mainly serve foreign customers and other stakeholders including

potential investors.

In all the above we intend to communicate our ability to provide good quality service that will

satisfy the customers needs. Hence our messages will influence the buying decision of prospective

customers by emphasizing our unique selling proposition, and persuade prospective buyers that we are

different from our competitors. All the above promotional tools shall be well integrated and utilized in

tandem so as to maximize their effect.

6.3.4 Distribution channel

We believe that through our obsession for improvement, and commitment to a leadership

position in our respective markets, we can overcome the traditionally binding constraints of

resource base, firm size and narrow conceptualization of our business domain. This shall be

undertaken through coordination and logical integration of our distribution operations. We aim

to reduce cycle time for key processes, eliminate rework and waste, and optimize our human

resources utilization.

6.4 Sales Strategy

We intend to focus on improving our implementation, by working on key objectives and better

coordination of marketing efforts. For the short term at least, the selling process will depend on personal

selling and advertising to lure and inform potential clients about the products we offer and the benefits of

consuming our products. Our marketing does not intend to affect the perception of need as much as

knowledge and awareness of the product categories.

6.4.1 Sales Forecast

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The sales forecast monthly summary is included below. The annual sales projections

are included later in the plan. It should be noted that as we become established and known

on the market we project sales to increase at a faster rate than the initial year.

Sales Monthly

Click to Enlarge

Sales Forecast

 Year 2007 2008 2009

Sales      

Yatra

others

Customer customized

Total Sales

6.5 Corporate Social Responsibility

Travel Solutions intends to be involved in a wide range of social responsibility

engagement programs to invest back into the community in which we operate. Through our

social responsibility program we can assist in improving people’s lives. If we contribute to

development in a sustainable way, we need to support projects that communities bring to us,

rather than strictly creating our own solutions for our communities. This is because if we

impose our solution and drive a project it is an artificial response, and the risk is that the

project will then always 'belong' to us. Whenever the project comes up against a new

challenge, we will be expected to fix it, and will be forced to stay in a situation where we have

to look after the same few projects forever. Rather we intend to fund several projects that

belong to, and will be driven by, the community and become sustainable. However, before we

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commit ourselves to projects we intend to ensure that skills will be transferred, communities

are involved and the projects will be able to become self-sustaining. We know that we cannot

address all the development needs of our society. Where we can, we assist and sometimes

may form partnerships so as to increase capacity.

7.0 Human Resources Summary

Travel Solutions shall evaluate the jobs it provides, paying competitive remuneration

packages against market benchmarks to employees for their agreed and set out tasks.

Consonant with its efforts to create added value by employees, Travel Solutions seeks to

negotiate the provision of incentive pay delivery mechanisms against achievement of agreed

targets relating to accomplishment in the areas of productivity enhancement, savings and

other specific successes, that is, the implementation of an effective performance

management system.

Hence our human resources strategy will revolve around:

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Communicating openly and transparently; addressing strong and trusted:

o Internal communication.

o External communication.

o Stakeholder inclusivity.

Responding and promoting human rights issues, such as equity in the workplace and

in community relations.

Adoption of a good remuneration policy aimed at developing our people through

employee benefits, training and group initiatives.

Maintaining preventative health and safety structures for employees and support for

surrounding communities.

7.1 Management Team

The management team, mainly comprising of the shareholders, has wide expertise

and broad knowledge of the products and markets, which if well planned for, will enable the

business to realize its goals and objectives. Daily management will consist of Mr. Amit M.

rampure and Mr. Vijay M. Rampure in the role of technical and operations, and in dealing

with government, corporate bodies, and public relations.

Management style will reflect the participation of the shareholders. The company intends to

respect its community and treat all employees well. We will develop and nurture the company as

community. We do not intend to be overly hierarchical. Management's ongoing initiatives to drive sales,

market share and productivity will provide additional impetus.

7.2 Personnel Plan

We intend to compensate our personnel well, to retain their invaluable expertise and

to ensure job satisfaction and enrichment through delegation of authority. Our compensation

will include health care, generous profit sharing, plus a minimum of three weeks vacation. As

an equal opportunity employer, we respect the diversity and human rights of our people, and

strive to achieve optimal productivity, while realizing the full potential of each employee.

Awards will be given out to outstanding individuals, groups and plants for hard work and

production so as to instill a sense of fun into the work and promote the maintenance of high

standards. Travel Solutions recognizes that our employees contribute fundamentally to the

company's long-term prosperity. We intend to enhance our capacity to attract and retain

people of quality, through benefits such as housing and family education grants.

Employee health shall be of extreme importance. This is because the health of

our people is an integral element of employee well-being at work and at home.

Compliance with relevant legislation is a minimum target in our organization. We

also intend to minimize if not totally eliminate the number of isolated incidents of

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intimidation in the workplace, so as to ensure that production and distribution are not

materially affected and sound relationships are maintained between employee and

employer and between employees as a whole.

Personnel Plan

 Year 2007 2008 2009

President and CEO

Operations Manager

Marketing Manager

Office manager

Account officer

Driver-1

Driver-2

Total People

Total Payroll

7.3 Training

In-house training shall be continuous with regular external training being undertaken

particularly following any new developments in the market. This is so as to ensure that we are

continuously able to anticipate our markets needs--a proactive approach, which is so

essential if we are to gain and maintain a competitive advantage. Internal training will not only

include product and technical aspects, but also expand to give much greater knowledge of

customers, market trends, products, new technology aids, and time management amongst

other such variables. We intend to conduct health education sessions for groups and

individuals on health risks in the workplace, balanced with lifestyle education and employee

assistance programs that incorporate rehabilitation and counseling in a range of illnesses and

social or personal problems. This is of particular importance in view of the AIDS epidemic that

has grappled the country and continent as a whole to unparalleled levels.

We acknowledge the fact that successful recruiting, motivation and discipline

procedures are keys to the growth of the organization. Hence we intend to promote

and maintain good labor relations, strong morale and high quality work per employee.

7.4 Feedback and Control

1. We intend to use employee satisfaction surveys to shape the business, making sure

that the employee understands the goals of the firm, is customer focused, proud of

their work and work as a team. This will encourage employees to become

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entrepreneurial and customer responsible, in addition to unifying staff in customer

focus and values.

2. Important notices and developments will be continuously communicated to employers

so as to keep them abreast of developments and promoting a sense of belonging and

oneness in the organization.

3. We will encourage our employees to put forward any suggestions they might have

regarding the improvement of any of the company's functions--an open door

philosophy. Such a culture will enhance innovativeness and creativity in turn leading

to job satisfaction and enrichment.

8.0 Financial Plan

We want to finance growth mainly through cash flow and equity. We recognize that

this means we will have to grow more slowly than we might like.

The most important factor in our case is collection days, particularly with the bulk

order customers. We can't push our customers hard on collection days, because they are

extremely sensitive and will normally judge us on our terms. Hence they tend to have a

certain degree of financial authority. Therefore we need to develop a permanent system of

receivables financing systems, using a well-coordinated accounting department. In turn we

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intend to ensure that our investors are compatible with our growth plan, management style

and vision.

Compatibility in this regard means:

Fundamental respect for giving our customers value, and for maintaining a healthy

and congenial workplace.

Respect for realistic forecasts, and conservative cash flow and financial

management.

Cash flow as first priority, growth second, profits third.

Willingness to follow the company and contribute valuable input to strategy and implementation

decisions.

8.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the

following table as annual assumptions. The monthly assumptions are included in the

appendix. From the beginning, we recognize that collection days are critical, but not a factor

we can influence easily. Interest rates, tax rates, and personnel burden are based on

conservative assumptions.

Some of the more important underlying assumptions are:

We assume a strong economy, without major recession.

We assume, of course, that there are no unforeseen changes in economic policy to

make our products immediately obsolete.

General Assumptions

 Year 2007 2008 2009

Plan Month 1 2 3

Current Interest Rate

Long-term Interest

Rate

Tax Rate

Other 0 0 0

8.2 Break-even Analysis

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Our break-even analysis will be based on running costs that is costs we shall incur in

keeping the business running, including salaries and wages, rent, water and electricity,

insurance amongst others. Hence many fixed costs shall be included in these costs. We will

thus aim to ensure that our sales levels are running comfortably above break-even.

The following chart and table summarize our break-even analysis. With fixed costs of

approximately XXXXX per month at the outset (a bare minimum), we need to bill

approximately XXXXX to cover our costs. We don't really expect to reach break-even until

several months into the business operation.

Break-even Analysis

Click to Enlarge

Break-even Analysis

Monthly Revenue Break-even

Assumptions:  

Average Percent Variable Cost

Estimated Monthly Fixed Cost

8.3 Key Financial Indicators

The following benchmark chart indicates our key financial indicators for the first three

years. We foresee major growth in sales and operating expenses, and a bump in our

collection days as we spread the business during expansion.

Collection days are very important. We do not want to let our average collection days

get above 30 under any circumstances. This could cause a serious problem with cash flow,

because our working capital situation is chronically tight. However, we recognize that we

cannot control this factor easily, because of the relationship with our clients.

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Benchmarks

Click to Enlarge

8.4 Expense Forecast

Initial marketing expenses are relatively high as we seek to become known on the

market. This will be brought about by the development of sales literature, advertising

expenses, and function expenses (including lunches and dinners with interested

stakeholders). 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. Once these programs will start generating revenue for the business,

which we shall in turn reinvest.

8.5 Projected Profit and Loss

Our projected profit and loss is shown on the following table, with sales increasing from more than

XXXXXX the first year to more than XXXXXX the second, and approximately XXXXXX in the third year.

Profits are calculated to be around XXXXX before tax the first year during the start-up phase of this

business. This will be representative of a net profit margin of approximately XX%, which though may not

seem that impressive is relatively good for a start-up firm in our line of business. As with the break-even,

we are projecting very conservatively regarding cost of sales and gross margin. Our cost of sales should

be much lower and gross margin higher, than in this projection.

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Pro Forma Profit and Loss

  2007 2008 2009

Sales

Direct Costs

Other

  ------------ ------------ ------------

Cost of packages Sold

Gross Margin

Gross Margin %

Expenses      

Payroll

Sales and Marketing

and Other Expenses

Depreciation

Leased Equipment

Utilities

Insurance

Rent

Payroll Taxes

Other

  ------------ ------------ ------------

Total Operating

Expenses

Profit Before Interest

and Taxes

EBITDA

Interest Expense

Taxes Incurred

Net Profit

Net Profit/Sales

8.6 Projected Cash Flow

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Cash flow projections are critical to our success. Detailed monthly numbers are included in

the appendix. However it should be noted that they do not take into account the required

capital injection.

Cash

Click to Enlarge

Pro Forma Cash Flow

  2007 2008 2009

Cash Received      

Cash from Operations      

Cash Sales

Cash from

Receivables

Subtotal Cash from

Operations

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Additional Cash

Received

Sales Tax, VAT,

HST/GST Received

New Current

Borrowing

New Other Liabilities

(interest-free)

New Long-term

Liabilities

Sales of Other Current

Assets

Sales of Long-term

Assets

New Investment

Received

Subtotal Cash

Received

Expenditures

Expenditures from

Operations

Cash Spending

Bill Payments

Subtotal Spent on

Operations

Additional Cash Spent

Sales Tax, VAT,

HST/GST Paid Out

Principal Repayment

of Current Borrowing

Other Liabilities

Principal Repayment

Long-term Liabilities

Principal Repayment

Purchase Other

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Current Assets

Purchase Long-term

Assets

Dividends

Subtotal Cash Spent

Net Cash Flow

Cash Balance

8.7 Projected Balance Sheet

The balance sheet shows healthy growth of net worth, and strong financial position. The three-

year estimates are included in the appendix.

Pro Forma Balance Sheet

  2007 2008 2009

Assets      

Current Assets      

Cash

Accounts Receivable

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Inventory

Other Current Assets

Total Current Assets

Long-term Assets

Long-term Assets

Accumulated

Depreciation

Total Long-term

Assets

Total Assets

Liabilities and Capital

Current Liabilities

Accounts Payable

Current Borrowing

Other Current

Liabilities

Subtotal Current

Liabilities

Long-term Liabilities

Total Liabilities

Paid-in Capital

Retained Earnings

Earnings

Total Capital

Total Liabilities and

Capital

Net Worth

8.8 Business Ratios

The table below shows our business ratios.

Ratio Analysis

  2007 2008 2009 Industry Profile

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Sales Growth 0.00% 10.00% 12.00% 4.60%

Percent of Total

Assets

Accounts

Receivable

Inventory

Other Current

Assets

Total Current

Assets

Long-term Assets

Total Assets

Current Liabilities

Long-term

Liabilities

Total Liabilities

Net Worth

Percent of Sales        

Sales 100.00% 100.00% 100.00% 100.00%

Gross Margin

Selling, General

& Administrative

Expenses

Advertising

Expenses

Profit Before

Interest and

Taxes

Main Ratios

Current

Quick

Total Debt to

Total Assets

Pre-tax Return on

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Net Worth

Pre-tax Return on

Assets

Additional Ratios

Net Profit Margin

Return on Equity

Activity Ratios

Accounts

Receivable

Turnover

Collection Days

Inventory

Turnover

Accounts Payable

Turnover

Payment Days

Total Asset

Turnover

Debt Ratios

Debt to Net Worth

Current Liab. to

Liab.

Liquidity Ratios

Net Working

Capital

Interest Coverage

Additional Ratios

Assets to Sales

Current

Debt/Total Assets

Acid Test

Sales/Net Worth

Dividend Payout

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9.0 Controls

The local tourism market has been growing steadily over the last few years due to increases

in people's disposable income and opening of the economy. With this in mind we intend our

marketing programs to expand accordingly. The introduction of quality catalogues and sales

literature will enable travel Solutions to market to potential customers. We project sales to

increase accordingly, though slightly slower as we establish a reputation for ourselves. With

time, a presence on the Internet and participation in regional trade shows will be key

milestones to expanding sales and marketing potentials through the utilization of new

channels and identification of potential customers.

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Throughout the year we intend to undertake regular evaluations of our marketing programs so

as to ensure that we are in-line with our intended objectives.

In summary we intend to undertake the following:

1. Tracking and follow-up: We intend to have the discipline, as an organization, to track

results of the business plan and make sure that we implement.

2. Market segment focus: We intend to have the discipline to maintain the market

segment focus.

3. Saying no: Though difficult initially, we intend to be able to say no to special deals that take us

away from the target focus and are unprofitable.

9.2 Contingency Planning

1. We intend to watch our results very carefully. We may need to re-design our certain

packages if we cannot get the margin up becomes difficult to obtain. We might be

able to avoid the straight competition with the major companies by focusing more on

the previously mentioned products.

2. Another possibility is the introduction of a new company(s) in our niche. Hence the

need to undertake aggressive marketing and networking.

3. We need for commitment in our work and striving of total quality in our organization.

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