STI VALENCIA

TOURISM AND HOSPITALITY MARKETING

Marketing Plan Outline for SMART Travel Agency

SUBMITTED TO:

MA’AM JANET DE LEON

SUBMITTED BY:

VANNESA Q. PARAISO

ROZETTE JUGOS

PHILIP JOHN GARGAR

BSTM 3 – GROUP 1
 SMART TRAVEL AGENCY

This document contains the marketing business plan for SMART Travel Agency. It is a

partnership owned by former travel agents Cherry Rozette Jugos, Vannesa Paraiso and Philip John

Gargar with more than 10 years of professional experience in tour and travel. It is a Valencia Bukidnon

based company that makes an arrangement for travelling both local and international. The SMART

Travel agency also performs quotes fares, rates, makes reservations, arranges travel tickets and

accommodation, arranges travel insurance, foreign currency, documents and accepts payments.
SMART Travel Agency CEO’s and its working station
I. INTRODUCTION

CURRENT SITUATION OF THE COMPANY

These are the existing product lines of SMART Travel Agency:

Flight Reservations

As an IATA accredited SMART Travel Agency offers cost effective flight reservations to all

destinations. Preference for any particular airline in the Philippines is of course taken into consideration

whenever reservations are made.

Accommodation

SMART Travel Agency takes pride in giving the customers a choice of their specific

accommodation needs, no matter where – regionally, nationally, and internationally. Certain corporate

discounts are available, with preferred accommodation establishments (with bill back facilities).

Car Hire

SMART Travel Agency is an agent for a number of internationally recognized car rental

companies. A mutually beneficial relationship exists with Uber and Grab from with special rates which

are passed onto our customers. However, should the customer prefer any other car rental company,

Smart Travel Agency will oblige.

Delivery Service

In Valencia City, SMART Travel Agency delivers airline tickets and itinerary travel documents,

free of charge, to its customers, should they so wish.

Airline Loyalty

Incentives earned through airline programs are passed onto the customers. Smart Travel Agency

would like to ensure that all travelers are in possession of the royalty programs with the airlines. For

business class travels, SMART Travel Agency ensures the usage of airport lounges to make all customers’

trip as comfortable as humanly possible.

Leisure Travel

SMART Travel Agency provides a complete leisure travel section. The main purpose of this is to

highlight our local destinations in the Philippines. Our agency intends to provide travel and adventure

packages to tourists primarily in Surigao Del Norte, Surigao Del Sur, Palawan, Davao Del Norte and

Davao Del Sur. In International we are primarily catering limited book and reservation in limited places

such as Singapore, France, Indonesia, Thailand, Amsterdam, New York, Italy, Maldives and Greece. We

will initially include pre-arranged tours, custom packages according to client’s specifications and travel

consultation.

Specials

Airline packages or any other specials are passed on to our customers. As a common practice at

SMART Travel Agency, SMART Travel Agency communicates the “specials” to the customers whenever

the specials are received from the airlines.

Visas

SMART Travel Agency has a department which offers professional and timeous visa services. The

department also advises clients regarding visa requirements and/or any other information relevant to a

specific destination.
Travel Insurance

SMART Travel Agency provides travel insurance policies provided by Standard Insurance Co., Inc.

and Fortune Life Insurance Company Incorporated.

Emergency Services

SMART Travel Agency provides a 24 hour, 7 day a week emergency service to all customers.

Accounting services

SMART Travel Agency issues an invoice to the customer on receipt of a customer’s instruction

and post the following day. Car hire, tours, hotel, etc., are billed on receipt of the supplier’s invoice.

Statements reflecting full travel particulars are posted on the 2nd day of each month. Statements are

payable within seven (7) days from the date of the issued statement. A customer control account can be

generated whenever requested.

The current promotional strategies implemented by SMART Travel Agency are through online

marketing on every platforms like Facebook, Pinterest, Instagram and SMART Travel Agency website

promoting its tour packages and available for inquiries and contact information.

ENVIRONMENT FACTORS

Bukidnon Airport to Break Ground on May 2018

Construction of the Bukidnon Airport will start as soon as the groundbreaking rites take off on

May 4, 2018 in Maraymaray, Don Carlos town. In an interview, Senator Juan Miguel Zubiri said air travel

for the people of Bukidnon takes longer due to long hours of land travel to and from Laguindingan

Airport or Davao International Airport, depending on what part of Bukidnon you come from. Zubiri said

the construction is projected to be completed between two to three years. “Bukidnon Airport is one of
the flagship programs of President Rodrigo Duterte. Once completed, the airport can serve the people

of Bukidnon, including nearby provinces in north-central Mindanao such as North Cotabato, Davao del

Norte, Maguindanao, Lanao del Sur, and even Davao del Sur.

This new Bukidnon airport would lead for SMART Travel Agency to strengthen its connections

for airline sectors and for easier transaction in placing bookings.

COMPETETIVE ANALYSIS

We have identified competing companies, some firmly established travel and tours in Bukidnon

that fill the same needs as SMART Travel Agency. The following are the tour and travel agency in

Bukidnon:

• Boondocks Travel and Tours

• Mt. Kitanglad Travel Service

• Expedition Travel and Tour Agency

1. Boondocks Travel and Tours: Located in Plaza Villahermosa Building, G. Lavina Avenue, Poblacion,

Valencia City, 8709 Bukidnon that offers tailor made local and international tour, makes reservations,

arranges travel tickets and accommodation, arranges travel insurance and etc.

2. Mt. Kitanglad: It is located on the first floor of Alkuino Empurium Building, Valencia City Bukidnon.

Arguably one of the most reputable companies in our intended line of business. They are arranging

travel tickets, local and international tours and a lot of testimony of their continued dedication towards

providing a good service to their clients.

3. Expidition Travel and Tour Agency : Similar to the two (2) competitors. It is well respected in the

tourism market in Bukidnon and they engage a lot of clients through social media posts especially on

Facebook with the use of photos and video marketing on their clients.

We intend to market ourselves in such a way that with time competitor customers will choose

our service over competitors’ on the basis of our higher quality and informative excursions.

MARKETING TRENDS

Personalization

Personalization is a hot travel trends these days, especially in marketing, it is increasingly easy in

today’s data-driven world. It’s also increasingly important. Personalized marketing takes data regarding

a client and uses this to tailor advertising and promotion specifically to that person. A simple example

would be the targeted ads that appear in their web browser when they visit certain sites, which use

information derived from your browsing habits and prior purchases to show you products that might

interest them.

Bleisure Travel

Bleisure travel (also known as a “bizcation”) combines both travel for work or commerce and

leisure activities. While not the newest of travel trends, extending a business trip to enjoy some leisure

time at a destination has been a common practice for as long as business trips have existed, bleisure

travel has been enthusiastically embraced by Millennials. For the frugal under-40 traveller, combining

work and leisure travel is the most effective way to visit locations that they might otherwise not be able

to afford. The most extreme version of bleisure travel is the “digital nomad” phenomenon, where online

workers travel the globe with a laptop.

Artificial intelligence (AI)

 AI systems are becoming one of the top travel trends. Many types of AI are now used all across

the tourism industry. There are the aforementioned chatbots which use artificial intelligence to

automate and streamline many sales and customer service tasks. As customers require faster response

times and more interaction, chatbots bridge the gap when human operators are not available. Although

limited in their functionality, chatbots can provide a wealth of useful information for customers.

Machine learning allows these systems to learn from every interaction and continually improve. AI is

also widely used now in data collection and analysis, important tools for boosting efficiency, security

and customer satisfaction.

Virtual Reality

Virtual reality has made the jump from a leisure activity to a useful tool for travellers. As well as

providing fun and immersive gaming experiences, using VR makes it easier to plan trips and explore

destinations before setting out. Virtual reality can be used to enrich visits to historic sites by recreating

ancient monuments and other structures as they might have appeared. Virtual reality can also be used

for “City marketing” to persuade potential travellers to choose for a certain destination.

Augmented Reality

Closely related to virtual reality is augmented reality (AR). Augmented reality combines virtual

elements with real-world experiences. AR travel trends include museum exhibits where visitors can view

objects and structures in the real world, then see them overlaid with a reconstruction of their original

appearance; for instance, Greek marbles with a virtual overlay of their original colours. Augmented

reality can also be used to provide information about the location that a visitor is exploring, cultural or

historical data or listings for entertainment and travel. Augmented reality is easily realized using

common devices such as smartphones, further driving these travel trends.

Local Experience

The days when travellers expected to be cloistered in a resort, consuming the same food they

ate at home and interacting chiefly with people from their own country, are drawing to a close. Instead

of peering out from a hotel balcony with only the climate to distinguish home from abroad, today’s

travellers now crave engagement with the people, cultures and landscapes of the countries they visit.

Local food is a key feature of many trips, with people keen to try new things. Cultural experiences are a

high point of many journeys and modern travellers are eager to witness and participate in local

traditions.

Customer Experience

Enriching the customer’s experience is vital in the modern travel and tourism industry.

Customers have more options than ever so ensuring loyalty and satisfaction is increasingly important. All

of the strategies and technologies listed above have their parts to play in creating a positive customer

experience. From the chatbots used to book a trip and the AR applications that help guests navigate

their destinations, it’s all about improving the way the customer feels about their journey or their stay.

II. SWOT ANALYSIS

The strengths, weaknesses, opportunities and threats of SMART Travel Agency:

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

 Niche  Irregular  New Senior  An outbreak of

destination in company center has Covid-19 virus

Bukidnon newsletter inquired about  Direct travel

 Excellent publication group travel agency

 supplier  Small historical  Pent up competitors

relationships emphasis and demand for near the place

 Good location budget for travel after that also offer

 Destination marketing recessions the same

Specialist  Digital services of

designations marketing is SMART Travel

accessible for Agency

wider market

segment

III. OBJECTIVES

These are the following SMART (specific, measurable, attainable, realistic, and time bound)

objectives of SMART Travel Agency:

 To sell 20 tour packages every month.

 To Increase the marketing budget on media platforms of SMART Travel agency starting

December 2020.

 To create more accessible, eye-catching and convenient website by December 2020.

 Quarterly meeting or report of staffs in SMART Travel agency to discuss every new trend of

tourist destinations.

 To create “DIY tour package selection” on SMART Travel agency website starting March 2021.

 To create and hire marketing employees in December 2020 to focus more on marketing in every

promotional mix.

 To produce more positive feedback from our clients starting February 2021.
IV. TARGET MARKET

In demographic market segments clients or customers in any ages and gender. People from

international, local and regional who speaks English, Tagalog or Bisaya. They are younger employees,

young people in their early to mid-twenties, families and retired from work which are in a relatively

good health and in good financial position.

In Psychographic market segments clients or customers who seek for new places for relaxation

to relieve stress and strain of normal life, and to look forward for a place that they can enjoy nature view

or new city to explore. For family oriented clients who wants to enjoy to travel with their family

members and to have a good memories with their loved ones. For Social oriented clients who want to

social interact to other foreign culture and to enjoy travelling with their colleagues to build strong bonds

and to create memories.

V. MARKETING STRATEGIES

PRODUCT STRATEGY

Today buyers expect to receive products or services with greater value and with reasonable

price. In order to do this the product must be, crystal clear trip itinerary, choices from a variety of

destinations, choices of accommodation and transportation, reasonable price range, simple process of

purchasing, credit card protection, comfortable and safe and including insurance services.

PRICING STRATEGY

Mark Up Pricing Strategy

Set the prices of the holidays, tours and activities to ensure that it make a profit on each sale.

Identify all of the costs associated with running the business which includes the time spent developing
and promoting a holiday or experience. The fixed costs include rent, building maintenance, any

machinery and insurances. Variable costs include wages, energy, repairs, petrol, uniforms, bank fees,

promotional and travel costs.

Mark Down Pricing Strategy

A mark down pricing strategy requires tour operators to mark down their prices in order to

remain competitive. It’s ideal during slower months. If the cost for the offering is normally ₱20,000 per

person, then it might mark down the prices to ₱14,999 per person and of course allow it to earn some

profit on each booking, while remaining competitive and keeping the business afloat. It might even

mean it generate more bookings than it would have without this promotional discount and thus earn

more income.

Packages

Tourists are increasingly turning to “packages” to meet all of their holiday needs like hotel,

airfare, transfers, tours and activities all for one inclusive price. Developing packages with

complementary tourism partners is a good way to stimulate demand and add value without having to

discount. Packages can also be used to target niche markets effectively, e.g. golfing holidays, food and

wine tasting, beauty and relaxation etc. It can use “disguised pricing” which hides the exact cost of

individual components and also the extent of discount provided by contributing operators. Or “Visible

pricing” which gives your clients the flexibility to select their preferred package components according

to their travel preferences and budget.

Rack Rate

All tourism businesses should have a rack rate, an official rate before any discounts are applied.

These are the “brochure” prices printed in advance of the coming season. The rack rate for activity and
attraction operators is more likely to remain the same during a peak holiday season without any day to

day discounting. However, accommodation providers will be changing their rack rate almost daily to

reach capacity.

Seasonal Pricing

This is different price levels throughout the year to cover low and high seasons. These are

usually the same date periods each year and apply for school holidays, public holidays or for local events

where the dates vary each year.

Last Minute Pricing

A common pricing strategy for accommodation suppliers and tour operators to fill any last-

minute gaps. It involves discounting prices according to take-up which are then promoted on last

minute booking websites.

Discounting

Discounts are often applied in the offseason or to assist with yield management but be selective

in their implementation because it could become a fast route to reducing its profitability. With last

minute price deals, just select those where it really need more takers. Consider adding conditions to a

discounted price like a minimum stay or number of travellers in the booking. Tourists do become used

to discounted prices and therefore run the risk of not only making it harder to charge the normal rates,

but it will also devalue the product.

Common Pricing Types

Per Person pricing is a set price per person, commonly used by activity/attraction and transport

operators, accommodation providers and campsites. Options may include an adult, child and senior
citizen price. Per Unit pricing is a set price for 1 unit of the product, e.g. price per night. Usually, the

advertised price is for 2 adults or 2 + child rate.

PROMOTIONAL MIX

ADVERTISING AND SALES PROMOTION

Create a Monthly Email Newsletter

Developing a short email sent from SMART Travel Agency is an easy, efficient way to keep in

contact with the clients. The newsletter content should focus on the current travel season. Whether it’s

engagement season, summer break, or time to deck the halls, email the clients on a consistent basis to

give them travel ideas and tips for all occasions.

Add Variety to Social Media Posts

Inspire SMART Travel Agency followers with content based on new travel deals, industry news,

packing tips, destination highlights, and holiday posts. Consider setting up a theme for each day to help

with consistency for example, Travel Tip Tuesday. Share eye-catching photos from the own travel or

from supplier websites and include short, attention-grabbing captions. Subscribe to emails from travel

publications like Travel + Leisure and Travel Weekly to share their news articles to SMART Travel Agency

pages. Subscribe to travel agent supplier Facebook pages for shareable contact posted regularly. To Look

on Pinterest for packing must-haves to share on SMART Travel Agency pages, to search suppliers’

YouTube channels and share interesting, informational videos to SMART Travel Agency page, be sure in

using supplier content and not the content of other travel agents, to post about the latest sales by

pairing the content with appropriate graphics or supplier resources and scheduling posts is a great way

to make sure that SMART Travel Agency is consistent.

Set Up a Booth at a Local Trade Show or Fair

 To find the perfect trade show by checking the local chamber of commerce, event center

schedule, fairgrounds, or even call the nearest mall to set up a table or booth during a specific time.

Broadcasting the SMART Travel Agency to potential clientele is the best way to amp up the leads list.

Start a Referral Program

Marketing by word of mouth requires minimum effort and is low-cost. Boost the sales by asking

clients to refer a friend to SMART Travel Agency or to simply keep in mind when someone mentions

travel and add an extra incentive with a referral program. Gift cards are a great way to reward clients for

referrals.

Do a Giveaway

Giving out items with SMART Travel Agency information creates wide, visual exposure for the

business. Think of low-cost giveaways that the clientele would enjoy and possibly use while traveling.

Advertise Locally

From bulletin ads to newspapers to pizza boxes, there are advertising opportunities everywhere.

Putting the SMART Travel Agency business name, logo, and contact information out publicly let others

know that the services are available and can boost the public relations image.

Send Direct Mail to the Clients

Every day the clients come home to a mailbox full of bills, newspapers, and the occasional note

from grandma. SMART Travel Agency should add a little variety and a personal touch to the client

communications by sending them something from their favorite travel agent. For special occasions like

birthdays, holidays, anniversaries, or congratulations for a life event, consider hand-writing a card or

letter.
 PUBLIC RELATIONS

Influences of Bloggers

It’s all about earned media and credibility. A blogger with a smaller following could be more

beneficial for SMART Travel Agency than a major media outlet from a conversion perspective. Take

advantage of every opportunity, and remember that smaller opportunities can lead to bigger

opportunities.

Write and Publish Articles

The marketing team or management team must write an opinion piece on a topic where people

are split down the middle 50/50; it will see traction online. Keep it about the benefits for the readers (9

ways to reduce travel stress, or 7 questions to answer when planning your next family vacation, for

example). In this way it indirectly promotes SMART Travel Agency.

DIRECT MARKETING

Flyers for Local Promotions

Flyers are a great way to promote the SMART Travel Agency. Consider placing flyers strategically

around town and most especially near the new airport; it serves as a wonderful opportunity to be the

first business to market to incoming travelers.

Booklets and Brochures

Booklets and brochure-type print media are absolutely ideal for SMART Travel Agency. To show

the customer what SMART Travel Agency has to offer in a clear, concise and visually appealing manner.

For tourists, a simple handbook that lists interesting locations and sights to see can do wonders to drive

SMART Travel Agency. Decorate the print media with aesthetically pleasing photographs of local
attractions and hot spots. Booklets and brochures are the perfect medium to explain specials, sales or

memberships in detail.

Business Cards

Business cards represent classic print marketing. It is a good way for tourist guides employed in

SMART Travel Agency who travel frequently and visit the same places and use the same travel brands. A

great business card can say a lot about SMART Travel Agency. The tourist guides of SMART Travel

Agency can secure the client with the most traditional of business practices: a warm smile, a firm

handshake and a great business card.

Magazine or Newspaper Insert

Many magazines have a travel focus, and many newspapers have a travel section. Talk about a

targeted audience. Magazine and newspaper inserts are excellent ways to market SMART Travel Agency.

No matter what marketing materials it print, make sure it print on premium paper stock and get a well-

targeted mailing and/or distribution list so it can maximize the return on investment.

BRANDING
LOGO

This logo shows the different signatures of international places that we are promoting. We

ensure that the customers will enjoy their travel in both local and international travel ventures. SMART

is an acronym that means Special Memories and Romantic Tranquil.

MISSION

Our mission is to serve our clients with enhanced travel experience by providing quality services

that address their travel needs through the most efficient arrangements so that the customer’s loyalty

and satisfaction are highly achieved. Also, expanding the relationship between our supplier and develop

better understanding and cooperation between clients and partners.

VISION

Our vision is to become globally competitive and the best leading travel company in the

Philippines.

VI. TIMETABLE

This is the SMART Travel Agency’s specific activities including our objectives and marketing

strategies charted to their expected time of roll-out and duration.

I Task Dura Ju Ju Aug Septe Octo Nove Dece Janu Febr Ma Ap M Ju

D Name tion ne ly ust mber ber mber mber ary uary rch ril ay ne

2020 2021
1. Situation Analysis
1. Compan 5
1 y
Analysis
1. Custom 2
2 er
Analysis
1. Competi 2
3 tor
Analysis
2. Venture 5
s
3. SWOT 6
4. Market 4
Segmen
tation
5. Deciding Marketing strategies
5. Product 2
1 Strategy
5. Pricing 2
2 Strategy
5. Promoti 4
3 onal Mix
5. Brandin 3
4 g
6. Execute

VII. BUDGET

This table indicates SMART Travel Agency projected cash flow for a year for us to manage the

expense items for each marketing activity, manpower requirements, capital expenditures and other

monetary support.

SMART TRAVEL AGENCY PROJECTED CASH FLOW

Cash Received Year 1

Cash from Operations

Cash Sales ₱2,880,000

Subtotal Cash from Operations ₱2,880,000

Expenditures from Operations

Cash Spending ₱460,000

Bill Payments ₱390,000

Subtotal Spent on Operations ₱850,000

Overall Total Of Yearly Income ₱2,880,000

Subtotal Spent on Operations ₱850,000

Net Income For A Year ₱2,030,000

Monthly Income ₱169,167

As it concluded from the SMART Travel Agency projected cash flow of monthly income which is

₱169,167. Therefore the SMART Travel Agency wants to impart budget of its total income every month

of 25% for marketing strategies which is equivalent to ₱42,291.75 per month. This pie graph will

represent its percentage for every marketing strategies planned by SMART Travel Agency.
 SMART Travel Agency Marketing Budget

Marketing Employees

Social Media Platforms

Website

Printed Materials/Promotional
Items
Paid Advertisement

These are the following budget in every marketing strategy every month:

Marketing Employees – 15% (₱6,343.77)

Social Media Platforms – 25% (₱10,572.94)

Website – 15% (₱6,343.77)

Printed Materials/Promotional Items– 20% (₱8,458.35)

Paid advertisements – 25% (₱10,572.94)

VIII. CONCLUSION

The marketing strategy plans for SMART Travel Agency are the following, in product strategy

these are crystal clear trip itinerary, choices from a variety of destinations, choices of accommodation

and transportation, reasonable price range, simple process of purchasing, credit card protection,
comfortable and safe and including insurance services. In pricing strategy these are markup pricing

strategy, mark down pricing strategy, packages, rack rate, seasonal pricing, last minute pricing,

discounting and common pricing types. In promotional mix, in advertising and sales promotion these are

monthly email newsletter, variety to social media posts, set up a booth at a local trade show or fair, start

a referral program, do a giveaway, advertise locally and send direct emails to the clients. In public

relations these are influences of bloggers and write and publish articles. In direct marketing these are

flyers for local promotions, booklets and brochures, business cards and magazine or newspaper insert.

And in branding, SMART is an acronym that means Special Memories and Romantic Tranquil while the

slogan of SMART Travel Agency is “Your next adventure starts here.”