1. Opportunity Evaluation
The live style of people changed and they have more leisure time than before. They are aware that group vcation are avilable at good price. The industry is less than 10 years old and the market penetration has barely begun. There are unlimited groups available who are looking for group travel. TTG will provide deluxe tours to prime groups. fancy hotels and air transportations. TTG will market its group tours to travel agents. There are positive cashflow in this business. It will allow for expansion without additional financing. The “back to back” will allow a substantial saving on air fare and also a better price to the hotels because the rooms are utilized all the time.TTG can sell vacations at savings of 35% or more. Steven is offering to sell 25% of the company, and he got an offer from the bank that they will match every dollar of equity he reaised with one dollar of debt.
2. Business and Marketing Strategy
The business is to offer cheaper vacations to groups by using “back to back” concept. The key risk are the competition and there is no assets for the company to sell in case they loss. Other companies conentrate on a few destinations and there are a lot of different distinations with limited competition among operators in providing packages. There are new untouched distinations which the company can focus on too. They have the experiance and the best salesmen to acheive thier targets. There are unlimited groups available and TTG will focus on the prime groups who are known to be extremely responsive to group travel. The primary source of sales will be through direct sales. TTG will market its group tours to travel agents. It will comprise less than 10% of the sales in the 1st 2 years but will produce 25% of the sales volume. The projection is very conservative. The first year projection is less than 7,000 passengers while the 4 salesman that managment offer positions currently move more than 18,000 passenger per year. TTG...
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