A Business Plan on SATKAR TOURISM AGENCY

A Guide For TRAVELLING Around Your Local Area

Pratyusha Bhattarai
Roll no: 18033060
PU – Registration no: 2017-0-03-3002
Submission Date: 20 Feb, 2022

A project submitted to Victoria International college.

Submitted for the degree of Bachlors of Business Administration(BBA)
Executive summary
Tourism refers to the act of traveling for business or leisure purposes to a location away
from your hometown or usual area and a tourism agency is a private retailer or public
service that provides tourism related services to the public on behalf of suppliers such
as airlines, car rentals, cruise lines, hotels, railways, and package tours.
'Satkar tourism agency' is a service oriented organization located at Rabbe Dang, -15 near
Vingreli Villa. This tourism agency will begin its operations this year and provide
adventure based entertainment with different travel packaging services to local Nepalese
people. An opportunity for success exists with the increase in National travel
industry .Mostly domestic tourism is rapidly growing after the covid -19.
Satkar Tourism Agency is researching the market to identify potential opportunities for
future scope in this rapidly changing environment. Its long term goal is to establish itself
as an internationally recognized service provider of top of the line adventure travel.
Going through this long term vision this agency doesn’t prohibit itself from participating
in additional aspects(segments). However, it provide corporate focus and a differentiated
offerings.
It has established relationship with various transportation provider, various investors have
incorporated with us and we have make some arrangement with the owner of the lodges
and travel guide, which will surely going to make it easy for us in upcoming operational
days.
Satkar Tourism Agency will start as a small organization and its employees will
distributed in management duties and decision making. It will be important for each
members of team to be capable in all aspects of business. Pre-requisities/expenses for all
employees include at least three years travel industry experience, knowledge and ability
in the types of activities that Satkar will promote.
Prices will be competitive with the remainder of market. The company's estimated sales
for the first year of operation are approximately 50 lakhs increasing 10% annually for
next 2 years.
Satkar Tourism Agency will begin operations with full time positions. The positions are
as follows:
 General Manager and president
 Marketing and advertising direct
 Accountant and travel agent
SECTION A

1. Introduction
Satkar Tourism Agency is sole ownership organization is going to establish in 2022
whose main office is located near Vingrelli Villa Rabbe-15 Ghorahi Dang.
The owner of Satkar Tourism Agency is Pratyusha Bhattarai, a BBA graduate from PU
with the initial is approximate 6000000(60 lakhs). The main motto of establishing Satkar
Tourism Agency is to promote the local area in national level, provide employment to the
local people, make the easy access and guidance of travelling package to the customer,
conduct research, training and development of marketing of tourism, analyze the
relevance of CSR.
Travel agents and tour operators play a major role in boosting tourism across the globe.
They are today accepted as crucial component of travel and tourism industry. They
contribute to revenue generation through travel trade operations by bringing together
clients and suppliers.
Since this business is based on service providing and is mainly targeting to promote the
local place in whole country and even for international tourists. If these place are
appropriate for local people then why not others?
Why this organization?
1.1 Vision:
Our vision is to build a world class travel agency business in Nepal, and earn our place
amongst the first top ten tourism agency.

1.2 Mission:
Specialize in adventure tourism and travel in district level. It will provide and
consulting and custom travel arrangement and packages.
.
1.3 Objectives
To serve customer beyond expectations
 (hiking,
 great adventure experience on paragliding,
 better family lodging environment ,
  entertainment with various cultural people,
 greater view of city from top of the valley)
To become one of the most visited destination in the region.
To create solid awareness scheme to inform our community and city about our service .
Security, healthcare and insurance during the travel and adventure.

1.4 Goal:
 Provide the highest travel experience possible.
 To make the customers experience new exciting feature each time they visit.
 Retain clients to generate repeat service
 Consistent improve on productivity.
What we offer?
 Provide qualitative and excellent hiking experience in the valley.
 Heart thrilling paragliding with the proper security.
• Affordable packages:
Religious temple
Boating
Night camping in the top of hill

1.5 Size of the business: This organization will start as a small organization with a
funding of approximate 50 lakhs with full time position i.e. general manager and
president, marketing and advertising direct, accountant and travel agent.

SECTION B

2. Industry Analysis:
Tourism concept is not new in our country but in the context of Dang, even though
beautiful places lies here but it couldn’t be fully utilized in terms of tourism sector.
For a place like Dang which is under process of being developed, and though it has
potential to be renowned for some special features but no one seems interested to
promote these areas. It could be highly prominent place as well as this business can be
more profitable if these places will be promoted in a different way.
We have seen many beautiful places all around our countries being modified and
updating the same natural and holy articles without reducing its importance. But our
beautiful place Dang still lacks its importance even though of its natural beauty.
Mainly people are unfortunately deprived from the scenario and views of Dang district.
The concept of tourism agency is not new in other place but in dang its totally new. Since
Satkar Tourism business is totally new in Dang there is little to no extreme competition
within the place. That’s why thus business is going to do better and keep improving on
the future as the local people here are familiarized with the existence of beauty here.

2.1 Future Trend and Outlook:

Every year travel trends come and go, however 2022 is set to be one of the tourism's most
significant years to date. As the world slowly recovers from COVID-19 and borders
gradually start to open , we expect travel to look a little different than it did pre-
pandemic.
Governmental regulations, health awareness and the long lasting attitude effects of a
global pandemic will mean changes for the way our business may operate. However with
this comes an exciting opportunity to adapt and innovative, along with the likelihood of
travelers being willing to pay more to reduce their COVID-19 exposure.
In a post COVID-19 world, travelers will be much more cognizant of the need to travel to
destinations that make it easy to maintain social distancing practices. Tour operators will
need to get creative by designing itineraries that avoid public forms of transportation and
crowded tourist areas, as their customers will expect this more considered approach to
travel design.
Taking the principles of sustainable tourism imto consideration, socially distant travel is
even more important. While promoting safe health practices is, of course, going to be
beneficial for the health of the travelers, it is also for the good of the community.
Subsequently, these practices will allow the tourism to start operating again safetly and
subsequently, producing economic benefits for those involved as well.
In a post CIVID19 world, it will be more important than ever for travelers to stay
connected as they travel. Gone are the days where people can easily go off the grid as
there is now with the latest travel guidelines. We've all seen how quickly situstions can
change when it come to covid-19 So travelers will likely want to be assured that their
expect tour operator will be available to give trustworthy advice at a moments notice
while they are in country.
Opportunities for Tourism Industry:
-keeping up with he latest Tourism Trends why it matter to your business: New
destinations, new technologies and means of transport have caused major shifts in the
industry. Early adoption of new trends is vital .
- General and COVID "Related" Tourism trends:
it is imp to follow current tourism trends in response to increasing consumer actions as a
result of the coronary pandemic.
Tourism trends related with COVID:
 safety and hygiene tourism trend
 increased emphasis on leisure
 growth of contactless payment
 virtual reality tourism trend
 solo travel

2.2 Analysis of competitor:

Competition of tourism industry determines competitors digital presence,
highlighting strengths and weakness.
One of the main challenges for the business is convincing our potential customer
to spend time with our products rather on some other activity that may grab their
attention instead.
Ad-hoc reports and benchmarking with a focus on issues such as investment,
productivity, prices, labor market, key competitors market or branding. Surveys
contribute to measure the quality of tourism services.

Satkar Tourism agency is totally new concept in Dang district, so there is no

extreme competition within the place. This business is going to do better and keep
improving on the future as the local people here are familiarized with the existence
of beauty here.

2.3 Market segmentation:

Tourism industry customers have different have different, background,
preferences, aspirations, habits and of course price sensitivities , even the media
they are exposed to varies . Tourism and marketing professionals thusly must
practice market segmentation strategies to understand the opportunities for
competitive advantage in the marketplace by bringing together consumer groups
according to sets of common features.

First of all, in order to determine our markets segmentation strategy, we should at

minimum be able to answer these five elemental questions:
 Who is your client?
 Where is your client located?
 What is your client interested in?
 How would you introduce your products\services to that client?
 why would certain segments be interested or not interested in your products?
Meanwhile segmenting the market for tourism industry there lies four
fundamental criteria:
 Geographic
 Demographic
 Psychographic
  Behavioral
where Satkar Tourism agency focuses on mainly Geographic, demographic, and
behavioral aspect.

Geographic:
In geographic segmentation the market is divide according to geographical areas such as
regions, cities, states, countries, topography, political boundaries etc.
Satkar Tourism agency focuses especially the local people or domestic tourists. The
clients are from local area either from cities or rural areas.
 Geographical segmentation:
 People from cities are especially the targeted group.
 Place for hiking , fun park for kids .
Demographic segmentation:
Demographic segmentation, on the other hand separate tourists by their gender, age, life
cycle, family structure, ethnicity, or socioeconomic background, among other factors.
This tourism business includes the targeted customer from every aged group people.
 Demographic segmentation:
 Age= 16-50
 Gender = male/female both
 Family structure = family group rather than other are preferred

Behavioral segmentation:
Behavioral segmentation distinguishes consumers based on consumption habits such as
frequency or brand loyalty. Other travelers are expected to concentrate their extended
trips during summer, since the vacation period is usually longer.

2.4 Market Forecasts:

Satkar Tourism agency also need to forecast the market to reduce the upcoming risks. For
that we have identified some of the expectations happened in future.
Because of the busy schedule people are much more tired and want some leisure time
from their busy schedule for family time and some peaceful moment which is the positive
aspect for tourism agency.
Similarly, for maintaining work life balance, this agency can also play a vital role.
Promoting culture, religion, tradition through more inflow and outflow of people.
 3. Operational plan:
Operational plan is the process of planning strategic goals and objectives to technical
goals and objectives. It mainly includes description of company's operations, flow of
orders of services and technological utilizations.
As per daily operations of this organization,4 people who are excellent at advertisement
and promotion will work from the office for promoting our services and the objectives of
our business. 3 local people will be hired for marketing and understanding the current
scenario of the places and people with whom we are related.
Flow of orders will be done through website social application of our organization and
through phone calls too.
An IT expert will be involved in creating a website and a application through which the
customer will be aware about our services and can book the service as per their needs.
For this we don’t require huge amount of technology. What we need are some physical
assets like (laptops, scanners, printer, inverter, fan , table chair and others as well) that
can be frequently used.
Overall plan from starting to delivering services are as follows:
 For the physical location we will take a house for rent.
 Arrangement of services : Creating link between lodging, fooding, transporting, and
paragliding agency.
 IT expert will develop application website through which we can make people
known about our agency and promote our organization and keep updating with these
new applications to cope with the future changes.
 Use of social media for promoting through facebook, instagram, youtube, tiktok,
twitter and so many other applications.
 Spreading awareness to the people about the services we provide.
 Advertising and marketing manager will promote our agency, services and our place
through hoarding board, pamphlet, brochure, visiting card and so on.
 Finally dealing with customers, customers place an order for service and we will
provide the service as per their order and affordability and also according to our
packages which they will to choose.

4. Marketing Plan:
Any of the business or services depends upon the marketing strategies, so being the
owner of Satkar Tourism agency we have come up with some of the strategies:
4.1 Pricing:
The service we will provide will be segmented on accordance to pricing. People might
desire high luxury services, some of the people might desires to spend weekend on
average expenses, so we have planned to provide service to customer as per their expense
and will.

4.2 Distribution:
Tourism agency that we have planned to establish will directly deal with the customer. It
will perform or distribute the service as of B2C channel. We will directly deal with the
customers need and demand.

4.3 Promotion:
Various promotion tools television, radio, social application will be used to promote the
service we provide, personnel with excellent marketing skill will be on field for
observation of current scenario, people needs and demands related to tourism and the
observation of the places where we will provide services.

5. Organizational Plan:
Satkar Tourism Agency is a sole proprietorship organization which will run by at least 10
members on it. Where 2 of them will be related to IT sector having well experience on
website and application designing as well as promotion and advertisement.
2 people having well experience and having good communication skill will be hired for
public relation maintenance and for promoting our services.
As being an investor myself, I would handle the operational plan, 2 employees will be on
IT sector handling the application and website as well as promoting the service through
social media.
4 employees with highly well communication skill will be engaged in guiding tourists
and 1 will be handling accounting section.

Department Number
Accounting 1
Operational 1
IT 2
Tourist guider 4
Marketing officer 2
IT department:
IT officer will be expert at application website formation and promoting place and
services through online
Marketing officer:
The major activity of marketing officer will be field visit, physical marketing and need
assessment of customer.
Operational manager:
Being operational manager I will be handling the overall operational activities, maintain
public relation , observe day to day operation , maintain linkage agreement etc.

6. Assessment of risk:
This can be quite difficult for people to access in our service through application and
website, because maximum number of people still are not aware about to use it.
As this can be new service for the people here. The assessment of risk indicates the threat
here and weaknesses too. Some of the threats can't be controlled whereas some
weaknesses can be assessed and be controlled. Some major risks are as follows:

 Difficult to access in our service through applications and website.

 Weather forecast
Technical error:
The opportunity of using power of social media can be converted into threat or risk if the
social media apps and internet can't be used properly. It would be great disadvantage if IT
expertise can't be updated along with the advanced use of technologies.
New technologies:
If new and advanced technologies can't be taken as opportunity and can't be used at
appropriate manner then it will turn into a heavy risk for that organization.
Contingency plan:
If this idea of business is about to drop, there must be any backup plan. In some case
this business plan can't goes long lasting then we should be able to extend our visiting
area so that the scope will exist longer than planned.

7. Financial plan:
According to our business plan there includes various expenses and cost while startup
new business. Various physical assets and the way to get service includes costs and
budget.
Salaries and rent are the major expenses and the initial investment for its operation are
the expenses which depreciation and logistics is another significant costs that will
increase at the company develops. And travel in district level of first ana assess to
promote in national level. It will provide consulting and custom travel arrangements and
packages.
I have included some of the startup cost (expenses) estimated to operate this future
business plan. It has included below:

particular Amount
Dr (Rs) Cr(Rs)
Cash at bank 300000
Inventory
Vehicles 3200000
Account receivable 350000
Credit card payable
Alc payabale 340000
Bank loan 2000000
Sales 1600000
Purchase 10000
Advertising cost 20000
Wages 20000
Rent 120000
fuel 25000
Capital 3000000
Registration fee 5000

Interest 20000
Insurance 250000
Technological equipment 350000
Utility expenses 12000

7.1 Income statement of Satkar Tourism Agency

 for year 2022, year 2023, year 2024

particular Year 1 Year 2 Year 3

Sales revenue: 1600000 2000000 2600000
Less: direct
expenses
Wages and bonus 20000 24000 31000
Building rent 360000 380000 410000
R & D expenses 10000 11000 15000
Total direct 1210000 1585000 2144000
expenses
Less: indirect
expenses
Depreciation 30000 30000 30000
Legal fees 5000 0 0
Tax 8000 11000 15000
Insurance 250000 250000 250000
Advertising expenses 20000 25000 32000
Salary 480000 520000 550000
Fuel 100000 130000 160000
utilities 12000 15000 19000
Total indirect 905000 981000 1056000
expenses
Net income 305000 604000 1088000

7.2 Balance sheet for upcoming three years i.e.

year 2022, 2023, 2024
Particular Year 2022 Year 2023 Year 2024
Assets :
Current assets:
Cash in hand 500000 550000 650000
Cash at bank 300000 350000 400000
A/c Receivables 350000 450000 500000
Fixed assets:
Furniture 500000 500000 550000
Vehicles 3200000 3200000 3600000
AC 200000 200000 200000
Computers 150000 300000 400000
Other fixed assets 1125000 1814000 2238000
Total assets 6325000 7364000 8538000
Capital and
liabilities
Capital 3000000 3500000 4000000
Bank loan 2000000 2000000 2000000
Net profit 305000 604000 1088000
A/C payable 340000 440000 500000
Other current 280000 320000 400000
liabilities
Other long term 400000 500000 550000
liabilities
Total capital and 6325000 7364000 8538000
liabilities

Annex: