The United States is a beautiful country and has lots of attractive sceneries and landmarks. These numerous natural sites and also many entertainment spots provide attractive locations where individuals can visit for a weekend out or holiday. My business idea is establishing a tourism service company. In this service, I will be managing tours and trips for my customers. My target customers will be individuals seeking adventures such as rock climbing, deep sea diving, skiing, hot air balloon rides, and nature walk. I will also offer services to groups and individuals willing to visit various entertainment joints, hotels, restaurants and game parks in the country. Among the things that I will provide will include pre-booking of accommodation and entertainment facility, organizing of tourist guides, developing activities, and organizing transport for my clients.
Customer Needs To Be Satisfied
Most individuals in the country are always seeking to visit a new place, an entertainment joint, or to go on a safari once in a while. My tourism service will provide my clients with the opportunity to relax and enjoy themselves. Due to the broad spectrum of customers that we intend to serve, the company will have various packages including three weeks holiday packages and a weekend out safari.
Are the Customer Needs Already Satisfied?
Currently, various companies offer tourism services, and therefore customers can access these services from other provided. Nevertheless, this market is mainly unexploited since most providers have limited their services to the upper echelons of the market by only focusing on the wealthy individuals in the society. Additionally, these providers have not fully embraced the use of social media and digital ways of marketing to reach their customers. In this regard, there is a huge underserved market that my company will exploit.
How my Company Will be Better and More Cost Effective
My company will be better in reaching most of the underserved individuals in the tourism industry by providing affordable tourism packages. In addition, the company will embrace digital platforms such as social media such as Facebook and Twitter, website, and the use of a mobile application to enable its customers to know of any scheduled event and to make bookings. The use of technology will make the company reduce its operating and marketing costs. The vast array of services provided by the company such as a weekend-out trip, skiing, rock climbing, deep sea diving, and safaris, will ensure that all customers can find a package that they love. Finally, the company will allow installment payments to attract more customers.
Size of the Market
According to Statista (2018), the tourism industry is one of the largest in the United States. As of 2015, the industry was making a contribution of $1.5 trillion to the country’s GDP, which was projected to increase to $2.6 trillion in 2027. In 2015, there were 75 million non-resident visitors in the country. When compared to the domestic travel spending, international travel spending was just 20 percent of the entire travel expenditure in the country in 2016.
Number of Customers and Revenue Per Customer
Give the large tourism market; the business is expected to serve 30 thousand customers annually. Each customer is expected to spend $3,500 per trip. However, about 70 percent of this cash will be used for the payment of the customer’s expenses. An additional 10 percent will be given to different sales agents as a commission. Five percent of the customers’ cash will cater for miscellaneous expenses. Accordingly, the business will have actual earnings of only 15 percent from each client.
Number of Times Customers Would Use the Company’s Services
On average, each customer will use the company’s services once a year. Usually, individuals make annual plans for a holiday, and accordingly, the business will anticipate only once a year travel by its clients.
Chart Showing How the Company Will Serve its Customer’s Needs
Statista. (2018). Travel and tourism industry in the U.S. –Statistics & facts. Retrieved from https://www.statista.com/topics/1987/travel-and-tourism-industry-in-the-us/