Professional Documents
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Feasibility Travel Agency
Feasibility Travel Agency
Feasibility Travel Agency
International
Manpower Agency
Feasibility Study
The Business Profile
Service Description
Offers ticketing on international and domestic airline
companies, passport processing, and visa assistance.
The service is directed to bringing together the airline
company and the prospective client for the benefit of all
parties.
Target market is market is would be travellers who are:
o Traveling with a group;
o Not sure where to go;
o Traveling internationally.
Market Study
Demand Situation
Historical Demand
Market Frequency
Annual
Year Population Acceptability of Availing
Demand
Rate Annually
2010 919,169 34% 1 312,517
2011 934,795 34% 1 317,830
2012 950,686 34% 1 323,233
2013 966,848 34% 1 328,728
2014 983,284 34% 1 334,317
Market Study
To compute for the estimated projected demand, least square method was
used. The formula for the least square method is shown below:
Least Square Method:
Formula : Yc = a + Yi -1
a = (Yn-Yc)/(N-1)
Where:
Yc = initial value (1st year)
Yn = final value (last year)
N = number of years
Yi = value for the year past
Market Study
Demand Situation
Projected Demand
Year A Yi-1 Yc
2015 5,450 334,317 339,767
2016 5,450 339,767 345,217
2017 5,450 345,217 350,667
2018 5,450 350,667 356,117
2019 5,450 356,117 361,567
Market Study
Supply Situation
Historical Supply
Supply Situation
Projected Supply
Supply
Year Demand Annual Supply
Situation Rate
Demand-Supply Situation
Service Process
Operations
The business must submit a letter of application to the airline
companies that they are dealing with.
The business can now be able to get the tickets that will be issued
depending on the reservation and the quantity of customers.
Instead of going to an airline company to apply for an agent, the
business will just have to fax it.
For reservation purposes, the client can transact through phones or
the use of the computer rather than going to the agency.
Technical Study
Automated Reservation
The airlines have developed computer software system called
Computerized Reservation System (CRS).
This software provides instant information of flights schedules, class
for service and pricing in addition to hotel accommodations and
other services.
Technical Study
Office Layout
Technical Study
Utility Requirements
Electricity-for purposes of estimating expenses, we
separate this cost into a variable component and a fixed
component.
Water-consumption- is less than 10 cubic meters per
month.
Telecommunication- PLDT Subscription Plan, Postpaid-
Globe, Postpaid-Smart
Technical Study
Costs Amount
Leasehold Improvements
Materials 200,000.00
Labor 150,000.00
Overhead 80,000.00 P430,000.00
Office Equipment 206,600.00
Furniture and Fixtures 118,400.00
Office Supplies 12,680.00
Initial Operating Expense
Business Registration 20,365.00
Prepaid Rent (2 months) 77,600.00
Project Cost
Marketing and Advertising 45,000.00
Hiring and Training 5,000.00
Total 147,965.00
Total Initial Cost P915,645.00
Cash Reserved for Operations 100,000.00
Total Project Cost P1,015,645.00
Management and Legal Study
Organizational Chart
PARTNERS
MANAGER
RESERVATION
ACCOUNTANT LIAISON
OFFICER
Management and Legal Study
Service Policies
The store will be opened at 8:00 am and will be close at 4:00 pm.
Cleanliness inside the company should be maintained.
All information critical to the operation of the business are
adequately protected and secured.
Collection Policies
The payments made by the customers are non-refundable for the
unconsumed/unused tickets.
Credits are not allowed.
Management and Legal Study
Financial Policies
Loans will be acquired if the company needs additional cash either for operations
expense or purchase of additional equipment.
Payment of interest will be made at the end of each month. It assumed that a legal
per annum rate of 12% is the interest rate and the principal is payable in one year.
Equipment Policies
Equipment that is not working will be subject to repair immediately
New equipment will be acquired 6 months before the old asset/s are obsolete or
fully-depreciated.
New equipment will be acquired when the old equipment are damaged or cannot be
repaired.
Old equipment will be disposed when the equipment is obsolete or fully-depreciated.
Old equipment will be disposed when the equipment is damaged and cannot be
repaired.
Management and Legal Study
Operating Expenses
Net Income, 2015 (22,179) (22,179) (22,179) (22,179) (22,179) (22,179) (133,073)
Net Income, 2016 (1,751) (1,751) (1,751) (1,751) (1,751) (1,751) (10,508)
Net Income, 2017 18,229 18,229 18,229 18,229 18,229 18,229 109,372
Net Income, 2018 40,520 40,520 40,520 40,520 40,520 40,520 243,117
Net Income, 2019 65,388 65,388 65,388 65,388 65,388 65,388 392,330
Assets
Current Assets
Cash CF 878,718 1,005,750 1,332,527 1,859,405 2,541,310
10.2
Office Supplies 634 589 598 610 622
Noncurrent Assets
8.0
Advances to Lessor 77,600 77,600 77,600 77,600 77,600
9.1
Equipment, net 169,412 132,224 95,036 57,848 20,660
9.2
Furniture and Fixtures, net 97,088 75,776 54,464 33,152 11,840
-
9.3
Leasehold Improvements, net 344,000 258,000 172,000 86,000
- -
17
Income Tax Benefit 88,715 95,721 22,806
Noncurrent Liabilities
Shareholder's Equity
Liquidity Ratio
A.Working Capital= Current Assets-Current Liabilities 790111.68 917098.60 1243884.70 1654308.27 2191138.22
B. Current Asset Ratio=Current Assets/Current Liabilities 9.85 11.28 14.94 9.04 7.25
C. Acid Test Ratio=Quick Assets/Current Liabilities 9.85 11.27 14.93 9.04 7.24
Profitability Ratio
A. Net Profit Margin = Net Income / Sales -9% -1% 6% 11% 16%
B. Return on Investment = Net Income / Capital -12% -1% 9% 17% 22%
C. Return on Asset = Net Income / Total Assets -8% -1% 6% 11% 15%
Total Assets Turnover = Sales / Total Assets 0.93 1.05 1.10 1.02 0.91