Business Plan

WHO

We are a destination resort with full service Online Travel Agent and in country travel support. We offer guided and semi guided road trip styled tours that revolve around our flagship resort Varkala along Kerala’s beautiful southern coast.

* Our network of travel associates (sub contracted from travel schools) will take personal care of our guests as “they need” or every step of the way. While in India we will offer 24 hr phone / text service to help with any questions or issues. we will offer a guest phone with each room that can work as a local phone as well as a hot spot for personal phones. All our drivers and guides will be english speaking for explainng and discussing tour details. Our tech game will be strong and functional. Offering our clients a unique journey with out all the struggle.

All trips are based around around a 3 to 10 day stay at Varkala the rest of the journey will be managed by or team of subcontractors in the cities we travel to: Kumily, Madurai, Munnar, Chennai, Mahaballapuram. We will develop our costs into a daily rate depending on accomadation status outside our main Resort.

Our plan is to develop other micro resort destinations with in our package tour network.

our market is the seasoned traveler looking for that unique educational / spiritual adventure experience. One who understands some of the rigors of traveling in a foreign country but now enjoys a bit of comfort and ease while traveling. Professionals in the film industry willing to pay for certain luxuries, ease, and safe   travel.

WHAT 

We are selling unique personalized package tours based around our flagship beach resort at Varkala.

WHEN

mid august start building

soft opening for the high season bring in friends  and develop our staff and procedures with our friend guests.

Develop our low season plan by bringing in management team building retreats as well as a writers retreat and workshops.  Bring over seasoned Hollywood  professionals to give classes to film school students from around india.

WHY

People will come for our personal service. Comfortable acommaditions  and our knowledge of southern India and its many traditions. 

1. Executive Summary

Making the world a better place by creating and developing unique travel experiences that celebrate our cultural diveristy as humans in an ever shrinking world

Our flagship 9 room resort at Varkala a destination and launch pad for our guests to explore south India. future development of other  resorts that utilize our unique tour packages.

Adventure Excursions Unlimited (AEU) was formed January 2001 to provide hard adventure sport/travel packages with upscale accommodations, gourmet food, and celebrity service providers to wealthy clients. AEU Hard adventures include Helicopter-skiing, kayaking, white water rafting, and mountain biking. The founders of AEU are Jordan Stephan, MBA/JD, Jillyn Certo, MBA, and Loren Harlo, MBA. In addition to their MBA status, they are passionate about the activities AEU will offer.

An opportunity exists for two reasons:

  1. Tourism is a growing industry (4% annually) and within the industry, adventure travel is growing at 10%.
  2. There are few providers of hard adventure travel to upscale clients.

Virtually all companies that provide “hard” adventure activities appeal to a lower income client. Companies that appeal to a wealthier clientele generally provide “soft” adventure package. Hard adventure activities involve difficult physical requirements. They carry a higher level of risk than do “soft” activities. Soft adventure activities may involve physical exertion, however they involve a low level of risk and can be engaged in by non-athletic people.

The company’s target customers are high income (min. $75,000 for single person), health-conscious individuals interested in popular hard adventure sports. These are lawyers, bankers, executives, doctors, etc. The major purchasers are located in urban areas within major United States cities. Our customers are more likely to be married. 51% are men and 49% are women.

There is rapid growth in the market and increasing demand. In addition, more niche markets are evolving. Initially, it will be difficult to compete with experienced providers, especially the market leaders. However, AEU’s target market is an exploitable niche and our service is differentiated. AEU’s target market members will have similar activity interests, more disposable income and less sensitivity to price.

We will provide a luxury service with prestige value. Our prices will be out of reach for the majority of adventure travelers. Service will be priced based upon luxury competitor prices and the value added of our offering. Providers that offer offering luxury services similar to ours do so at prices similar to ours. We are competitively priced in the luxury market. Because we appeal to luxury and thus a smaller market, volume will be limited. However, we will be able to capture a higher gross profit margin.

 

2. Company Analysis

Launch PAd for beautiful and historic South India

ECO-friendly private resort will be all inclusive  catering to a mid to high level of tourist.

high level only for high season `

 

3. Industry Analysis

Information on the current industry trends and the current state of the market and how this will impact your hotel. This is needed as investors want to be sure you really understand the hotel industry.

 

4. Customer Analysis

n-depth information on your target market, including geographic, demographic, socio-economic, psycho-graphic, behavioral segmentation details. Which are the types of guests who will mostly stay at your hotel? Explain how your hotel will meet the needs of these main segments in terms of location, amenities and services. Basically, how will consumers answer this question ‘Why my hotel?’

5. Competitive Analysis

A study of your local competition or global concept competitors, with each of their strengths, weaknesses, occupancy rates and market share (SWOT analysis). And don’t forget the most important part; what differentiates you from them. What makes you stand-out?

 

6. Strategic Plan

This exists of 3 parts:

  • Marketing: How exactly will you attract customers / guests? How will you position yourself? What will your message be to the different segments of your business mix? How will your direct marketing work? What will is the plan for your hotel website, SEO, SEM and SMM? Will you do offline promotion?
  • Distribution: Which 3rd party channels will you use and how will you manage availability? What technology will you need?
  • Revenue Management: What pricing and yield techniques will you use? What will your payment and cancellation policies be?

AEU will use several different forms of communication for their marketing strategy.  The first effort will revolve around their Internet site.  AEU’s demographic relies heavily on the Internet for information.  While AEU currently has a website, they recognize that resources are required to maintain the site as well as continually improve it.  The website will constantly tested to determine that it is coming up as one of the top results when key words are entered into a search engine.

Another form of communication is magazine advertising.  The advertising will occur in magazines whose readership has similar demographics as AEU. The magazine advertisements will be used to increase visibility of AEU and position it as the top service provider in the high-end hard adventure market.

As time progresses and a loyal customer base is established, AEU will rely on email newsletters and direct mail to the customers that are on the mailing list.  The newsletters will share specials (both trips as well as special deals) to this select group of customers.  The goal of the newsletters is to incentivize the past customers to join AEU for another trip with a special deal.

As operations progress, the AEU will continue to measure our progress relative to competitors and to the growth of the market(s) in which we operate. Though the primary target market has been defined, there may be new possibilities to serve additional segments. As the product is defined and the strategy differentiation is defined based on competitive strengths, AEU will be better able to determine whether adjustments in positioning are necessary. Access to important information concerning the market, competitors, etc., is available. However it is not free. For the purposes of this project, we feel it is unnecessary to incur additional expense.

The marketing strategy will be to develop long-term relationships with customers. AEU will keep a database from which to obtain important demographic & psychographic information. As the business becomes profitable, plans will be implemented to expand. There is virtually no limit to the number and variety of trips AEU can provide. Trips can take place on every continent and in most countries. The goal is to establish AEU as an international provider of top of the line hard-adventure travel.

Marketing Objectives

  1. Maintain positive, steady growth each quarter.
  2. Experience a growth in new customers who are turned into long-term customers.
  3. To be recognized as the premier high-end hard adventure trip provider.

Financial Objectives

  1. A double digit growth rate for each future year.
  2. A reduction of fixed overhead through disciplined growth.
  3. Continue to decrease the variable costs associated with the production of trips.

Target Marketing

AEU will target two different groups:

  • High income, health conscious individuals: this group  of people are typically professionals, with an average income over $75,000.  This group works hard, but when they have time off, they play hard with active vacations.  They are willing to spend more money on a vacation to get more personalized attention.
  • Young, active “trustafarians:” this group of people tend to be younger than the other target segment.  This group has a lot of disposable income, but not because they earn it, but because they have wealthy parents.  This group tends to live in cities such as Boulder, CO, Bend, OR, Bellingham, WA or Taos, NM.  They choose these cities because these are “active cities.”  All of them have many outdoor activities within minutes of the city.  This group makes up a much smaller population relative to the other targeted group.  This group loves to play in the outdoors, pushing themselves physically, and have their parent’s money to do so.

We are targeting these special populations for several reasons:

  • This segment up until now has been underserved.
  • This market segment traditionally spends a fair amount of money on adventure trips.
  • This target segment seems to be willing to pay a premium for a top-shelf adventure excursion.

Positioning

AEU will promote/position itself as a differentiated provider of luxury hard adventure travel, and will price themselves accordingly within the chosen service niche.

AEU positioning will leverage their competitive edge:

  •  The competitive edge in our services is the access we provide to popular “hard” adventure sports without the budget constraint of typical travelers.
  • The majority of providers cater to these people.  Adventure Excursions Unlimited intends to use the same service providers but provide more exclusive trips.  Accommodations will be primarily in small luxury hotels and resorts.  Meals will be exceptional, more like gourmet cuisine.
  • The adventure activities will be better than average because the clients have more disposable income.  They won’t get stuck with people they don’t like; they will get access to the best terrain, sections of rivers, etc.  AEU’s activities are very popular.  People have no problem spending $4,000 per week on heli-skiing.  Moreover, they generally make this type of activity an annual event.

Additionally, AEU’s competitive edge is customer attention and customer service.  AEU has a very low client to employee ratio, allowing AEU to provide close personal attention to the clients.  This is the level of service expected at this price point and AEU intends to exceed the customers expectations.

Strategy Pyramids

The single objective is to position AEU as the premier, high-end, hard adventure service provider, commanding a majority of market share within seven years.  The marketing strategy will seek to first create customer awareness regarding their services offered, develop that customer base, and work toward building customer loyalty and referrals.

The message that AEU will seek to communicate is that AEU offers the highest level of service for their high-end hard adventure trips.  The message will be communicated through a variety of methods.  The first will be their website.  The second method will be magazine advertisements, the third method is a direct mail (snail mail and email) campaign.

Marketing Mix

AEU’s marketing mix is comprised of the following pricing, distribution, advertising and promotion, and customer service.

  • Pricing: AEU does not compete on price, they compete on service.  Additionally, the target market is not price sensitive.  To a large degree price is irrelevant as long as it is reasonably proportional to the services offered.
  • Distribution: AEU’s services will be distributed throughout the United States and the world, depending on the location of the trip.
  • Advertising and Promotion: The most successful advertising will be the magazine advertisements as well as the direct mail.
  • Customer service: Obsessive customer attention is the mantra.  AEU’s philosophy that is established throughout the organization is whatever needs to be done to make the customer happy must occur, even at the expense of short-term profits.  In the long run, this investment will pay off with a fiercly loyal customer base who is extremely vocal to their friends regarding referrals.

Marketing Research

During the initial phases of the marketing plan development, several focus groups were held to gain insight into the customers needs and desires for a high-end hard adventure trip.  These focus groups provided useful insight into the decisions and the decision making process of target consumers.

An additional source of dynamic marketing research is a feedback mechanism based on a suggestion card system.  The suggestion card has several statements customers are asked to rate in terms of a given scale.  There are also several open ended questions that allow the customer to freely offer constructive criticism or praise.  AEU will work hard to implement reasonable suggestions in order to improve their service offerings as well as show their commitment to the customer that their suggestions are valued.

The last source of market research is competitive analysis.  AEU will be constantly observing the competitors to look for any changes in service offerings or business model changes.

Page   1   2   3   4   5

 

Getting ready to create a marketing plan?

Get practical ideas and good models with dozens
of examples of successful marketing plans

 
 
 
 
 
 
 
 

7. Operations Plan
How will you run the hotel? How much staff and supervisors will you need? What are their job descriptions / responsibilities? What background and experience should they have? When should they start? What are your service standards? Will you develop manuals? Which supplier will you use? How will you manage inventory?

8. Management Team

Include the bios of your team. Focus on what uniquely qualifies you to make your hotel such a success.

9. Financial Plan

Provide the start-up costs of the hotel (capital investment), the ingoing business costs, operational expenses and revenue projections for the next five years. Include KPI like expected occupancy, ADR (average daily rate) and REVPAR (revenue per available room).

If you are raising money, outline how much funding will be needed and when. Explain how you will generate a return on investment for investors, or when lenders will be paid back.


10. Key Milestones
These are the most important achievement which once they have been completed, will make your hotel more likely to succeed. Think off:

  1. Location selection
  2. Permits & Licenses
  3. Build-out / Construction of the Hotel
  4. Staffing and Training
  5. Opening
  6. GOP Break-even
  7. NOI Break-even
  8. 10% Ebitda

Each time one of the key milestones is achieved, the risk of lenders or investor decreases. And once your last key milestone is reached, chance of success is more or less guaranteed.


11. Appendix
Provide any other relevant information here. Don’t clutter the main sections of your hotel business plan with too many details. Rather support them with attachments in this part.

Many people have great business ideas. But that really doesn’t matter. The difference between dreamers and entrepreneurs is the action mindset. Are you ready to ship your idea to the market? 

The first step is to put your ideas on paper. I hope this free sample will help you write a persuasive hotel business plan. Because no investor or lender will be interested if you cannot present a clear plan.

Follow your dreams and go for it!