PURPOSE: This tour company provides accommodation, entertainment, and transport services to individuals or groups that plan for trips. It advises on destinations, organizes travels, and makes arrangements for the client’s trip. And it’s a new internet-connected company
1. Description of the business
1.1.1.Masters is a travel company based in Beijing, China, providing services to individuals and businesses around the world. The package that Masters provides includes transport services, trips to various sites, sports and relaxation activities, and any service related to the traveler’s need after getting to their destination. This company works closely with the hotel and hospitality industries necessary to provide accommodation for travelers.
1.1.2. First of all, I want to reiterate that I want to create an online and offline travel e-commerce business for the global market, different from traditional travel agencies. Our company prefers an online travel agency or OTA. With the emergence of OTA in the Internet era, the original conventional travel agency sales model has been put on the network platform, and the route information is more widely transmitted. Interactive communication is more convenient for customers to consult and order.
The difference between traditional travel agencies and OTA mainly lies in the cost of information acquisition and circulation. The purpose of the emergence and development of the OTA model is to give full play to the advantages of the Internet, break the information asymmetry, effectively reduce the cost of information exchange in the tourism industry, and improve the tourism industry. The efficiency of information exchange provides users with accurate and personalized services. Deeply integrate the Internet with traditional tourism and comprehensively improve the development level of tourism.
For our competitors, the advantage is that we have not abandoned the traditional travel industry, but cooperated with them. We will continue to send a lot of advertisements to attract customers.
2. Location analysis
I only set up my office in Beijing. Beijing, the capital of China, is a city with a solid cultural tolerance and relatively complete resources in all aspects. As a global travel e-commerce company, Beijing is a good choice for traffic, safety, and livability. I believe that the potential hidden danger is the terrible rent because the housing price in Beijing is famous in the world.
3. Management analysis
3.1.The mission of Masters Travel Company is to offer a lifetime experience on travels, splendid site visitation, and explicit relaxation activities that will rejuvenate their clients.
3.2 Specifically, the hotel business department, the air ticket business department, the wireless business department, the tourism and vacation business department, and the business travel management business department.
3.2.1 The hotel division is responsible for hotel reservations, hotel experiences, hotel classification, etc. Because each hotel has different characteristics and the styles that customers like are also different, the hotel business department is to screen and recommend according to the types customers want.
3.2.2 The Air Ticket Division is responsible for providing customers with a series of services such as pick-up and drop-off. If there are special needs, we can also report to the airport department if children or teachers or people with disabilities need special care. And during peak times or special international affairs, we can also carry out charter flights to transport passengers back to China.
3.2.3 The wireless division is only responsible for the technical aspects. Technology is the lifeblood that supports our company, so it is also the most important. It does not belong to the primary market and does not need to communicate directly with customers. What needs to be done is software development and software completion, which will make our system more perfect. If there are technical problems, they can be repaired in time.
3.2.4 The tourism and vacation business department is mainly responsible for the travel of customers and the needs of customers. Providing customized services, including contacting and introducing local customs, such as a music festival in a particular place, etc, all conditions to be inspected in advance to help customers have a better travel experience.
3.2.5 The Business Travel Management Division is mainly responsible for company management, coordinating various departments, and marketing. The management department is to synthesize the problems reported by different departments and then deal with them. Business travel is responsible for advertising in the primary and secondary markets and business cooperation with some traditional travel agencies.
3.3 As travelers have different preferences for different days, the company operates on a daily basis. And because we are a global operation, 24-hour operation is also to cater to all the world’s giants. No matter in which place or which time zone, let tourists rest assured.
4. Market analysis
4.1 Marketing strategy
4.1.1 The marketing strategy includes direct marketing, sending emails to companies’ websites, and advertisement videos on YouTube.
4.2. Target population
4.2.1 The target group is many middle class and upper society people in China. Data and tourism bureaus show that many people travel in cities, creating favorable market conditions. The middle class in China is one of the most travel loving classes, and it is very attractive to make many programs for them that are suitable for the middle class children and the elderly. The upper class usually want a different experience, which is exactly what Our company is good at. We can make special and luxurious travel plans for the upper class. We can help contact some special local services, which will satisfy the vanity of the upper class.
5. Regulatory and risk analysis
5.1 Companies need to legally purchase employer liability insurance to operate effectively in the marketplace. Insurance companies provide commercial insurance only for common events such as theft and accidents. Secondly, the company should guard against cooperation risks.
5.2. Companies will have to design partnership contracts with other businesses, including hotels and airlines, to protect the association of any model they choose. The association can use either the commodity model or the agency model.
6. FINANCIAL ANALYSIS.
The “traffic model” does not require the website to filter the customer base. The website mainly charges advertising fees by placing advertisements on the page. In this case, the website pursues a greater click-through rate. The higher the click-through rate, the stronger the profitability.
2. Membership mode’
The website must distinguish valid users, and based on a sufficient number of good users, by charging membership fees or becoming an intermediary between members and suppliers, charging intermediary fees to achieve profit goals.
3. Hotel reservation agency fee
This is also the primary source of profit. The agency fees for hotel reservations on our website are earned from the return of profit discounts at the destination hotels.
4. Air ticket booking agency fee
This is obtained from the customer’s airfare, equal to the difference between the customer’s airfare and the airline’s ticket price.
5. The income from the hotel and air ticket booking agency fees in self-guided travel and business travel is the same as the first two.
6. Online Advertising
When there is traffic attention, we will also let other people’s information be placed on our website so that I can also make advertising money.
7.1.The best advice is to offer personalized Tours for something special.I think the biggest advantage is being different from other tour companies and booking companies.
7.1.1. We can maximize luxury features. While our main project is still middle class tourists, we can add an extreme project with enough commission. For example, special services are for the high society, for example, we can package a certain playground, or large yachts for the entertainment of this high society.
7.1.2. We can choose to cooperate with the government. During special periods such as the new crown pneumonia epidemic, many people cannot buy air tickets. Due to aviation management measures, there are no air tickets on major websites. If I have the government as a partner this time, can give us some ticketing rights, only the travel agency booking company. Because I think it’s only then that people realize that luxury isn’t just expensive luxury.
7.2. payment method,
7.2.1 Companies need to offer different payment methods for convenience. Pay in Bitcoin, Cash, Flywire, or you can pay using our own website. This makes the company more global. Smart use of the characteristics of the Internet
Bhatia, A. K., (2012) The Business of Travel Agency and Tour Operations Management, Sterling Publishers Pvt. Ltd.