Starting investments579 000 - 1 931 000 ₽
Revenue100 000 - 1 100 000 ₽
Net profit17 months
Conducting excursions is one of the most popular types of business in the tourism sector, which can bring substantial profits. Consider how to organize a company specializing in bus excursions.
1. SUMMARY OF THE PROJECT
The purpose of the project is the organization of a tour desk in the city of Rostov-on-Don (trademark "Don tourist"). Specialization - the provision of excursion services, adults and children, in Rostov-on-Don and the region. Customers can be both private individuals and organizations, travel agencies.
The basis for the implementation of the project is the growing popularity of domestic tourism in Russia amid a decline in the general well-being of citizens and the blocking of popular international tourist routes. The project is unlimited in time, the investment period is calculated for five years. The decision on investment is made on the basis of the integral indicators of the project (Table 1).
Table 1. Integrated project performance indicators
Discount rate, %
Discount rate, months %
Payback period (PP), months
Discount payback period (DPP), months
Net present value (NPV), rub.
16 928 489
Return on Investment (ARR), %
Internal rate of return (IRR), %
Profitability Index (PI)
2. COMPANY DESCRIPTION AND INDUSTRY
The location and implementation of the project is the city of Rostov-on-Don. The city is the capital of the Southern Federal District and the largest city in the South of Russia. The population of the city is 1.1 million; the population of the Rostov agglomeration is 2.16 million people. Rostov-on-Don was founded in 1749 and has rich cultural traditions; Rostov region - the center of the Cossacks; the capital of the Don Cossacks is the city of Novocherkassk. In addition, various cultural and historical centers are located in the region: Taganrog, Azov, Starocherkassk, Veshenskaya and others.
The principle of the enterprise is the provision of excursion services in the territory of Rostov-on-Don and the Rostov Region.
Figure 1. Dynamics of key industry indicators in 2008-2014
As can be seen from Figure 1, despite fluctuations in the number of travel companies, showing a tendency to decrease from the number since 2011, the industry's revenue is growing steadily. This is due to the development of domestic tourism in the whole country, and in the Rostov region in particular.
The state program of the Rostov Region “Development of Culture and Tourism” provides for the following forms of direct financial support for tourism industry entities:
subsidizing part of the costs (up to 80%) for the acquisition of fixed assets for the provision of services in the field of outbound and domestic tourism;
subsidizing part of the costs (up to 80%) for the classification of hotels and other accommodation facilities in the Rostov Region;
subsidizing part of the costs (up to 70%) on advertising and informational promotion of a regional tourism product.
Thus, all the conditions for the development of the project are legally created in the region.
At the same time, no more than 15% of the total volume of travel companies specialize in domestic tourism. Given that the company provides services directly for the organization of excursions, and, in fact, is not a travel agency, these enterprises can not be attributed to direct competitors.
"Don tourist" accepts orders from travel agencies for organizing excursions, which they then conduct on their own. Agencies receive a commission of 10% of the cost of the tour. The fixed assets of the enterprise include a sightseeing bus with 50 seats, equipped with TVs, a refrigerator, etc. The staff has two guides with work experience and knowledge of the region. Guides work simultaneously with two small groups, which provides a higher level of comfort for tourists compared to the usual scheme, when one bus is serviced by one guide. Tours are conducted on the cultural and historical attractions of the city and region.
3. DESCRIPTION OF SERVICES
“Don tourist” provides services for the organization and conduct of excursions in Rostov-on-Don and the Rostov region using its own transport and maintenance staff. Three main types of excursions are offered, varying in time. For each time type, several excursion programs have been developed. The list of programs is given in Table. 2.
Table 2. The list of excursion programs
Sightseeing tour of the avenue and squares of Rostov-on-Don
Sightseeing tour of the parks of Rostov-on-Don
Tour of Christian churches in Rostov-on-Don
Big tour of Rostov-on-Don
Sightseeing tour in Novocherkassk
Excursion to the Botanical Garden
Excursion to Azov
Excursion to Taganrog
Excursion to Novocherkassk
Excursion in x. Pukhlyakovsky
During each excursion program, a professional guide is accompanied. Outside the bus, the tourist group is divided into two small groups, each of which receives its own guide. During the 5-hour programs, a break for a light lunch is provided - 20-25 minutes; during the 10-hour programs - a full lunch in a reserved restaurant of the middle price segment (the cost of lunch is not included in the price of the tour), as well as two short breaks of 20 minutes.
Variable costs for services are formed from the remuneration of guides, the cost of fuel and operation of the bus, as well as from commission agencies. Variable costs and the final cost of services are given in Table. 3.
Table 3. Cost of services and variable costs
GOODS / SERVICES
COSTS FOR FOOD, RUB.
TRADING VALUE, %
UNIT COST, RUB.
3 hours tour
5 hours tour
Tour 10 hours
4. SALES AND MARKETING
Sales of services are carried out by sales managers, they also accept applications from agencies. At the first stage, the most likely partners are determined by a number of criteria:
main focus on domestic tourism;
good reputation in the market;
work experience of at least 1.5 years with active development.
Then, active work is carried out to develop partnerships. Proposals for cooperation are sent, telephone calls are being held. If necessary, the project owner joins the negotiations, goes to meetings.
To place full information on programs, demonstration materials, terms of cooperation and other things, a high-level website is created. It is possible to book excursion seats through the site. It is assumed that by the third year of operation, the Don Don tourist’s dependence on agency orders will be reduced by no less than 30%.
It is assumed that the Don Tourist bureau will participate in various image events of regional significance as a sponsor, provided that it is possible to popularize regional tourist destinations. It is also expected that active work with schools in the city and region with the aim of direct sales of excursion programs.
The competitive environment is represented by five direct competitors - organizers of excursions for similar programs. Pricing policy - from budget to medium. The quality of transport and services offered is below average and average. As a rule, companies use outdated vehicles in poor condition, which not only reduces the comfort of the trip, but also makes the probability of breakdowns on the road high. In addition, only one guide per bus is used, which makes the excursion not always comfortable due to the fact that not all excursionists can come close enough to the object of the excursion or hear a guide. The pricing policy of competitors is mainly at the “standard” level with the above disadvantages.
Thus, the competitive advantages of the Donskoy Turist bureau are as follows:
the transport is in good condition - despite the fact that the bus is purchased second-hand, its residual value is much higher than that of competing vehicles; the technical condition is checked upon purchase in order to minimize the risk of breakdowns on the road;
Highly qualified driver - professionalism allows him to use the most convenient routes, navigate the traffic of public transport, avoid accidents and make the trip as comfortable as possible;
- two guides - allow you to split a large group into two small ones, which provides more comfortable conditions for the excursion, more attention to each excursionist and his questions, accessibility of excursion objects, etc .;
- High communicative skills of guides allow you to avoid the dryness of the presentation of the material and make the tour more interesting and memorable.
5. PRODUCTION PLAN
The fixed assets of the enterprise include a sightseeing bus of foreign manufacture, used, in good condition. The capacity of the bus is 50 people. Estimated average occupancy - 45 people. The bus has all the necessary equipment for excursions lasting less than 12 hours. The plan of excursions is compiled by the owner of the enterprise together with professional guides included in the staff of the enterprise.
Demand for excursion services is seasonal. The maximum level falls on the period from May to September; in winter there is a decline. However, given that most programs are not seasonal in nature, a certain level of demand remains even in winter. Seasonal fluctuations in demand and revenue figures are given in Appendix 1 of this business plan.
The maximum monthly sales volume is calculated based on a realistic scenario and is shown in Table. 4 of this business plan.
Table 4. Monthly estimated sales of services
GOODS / SERVICES
AVERAGE PLANNED VOLUME OF SALES, UNIT / MONTH.
PRICE FOR UNIT., RUB.
VARIABLE COSTS, RUB.
3 hours tour
5 hours tour
Tour 10 hours
1 931 560
The main assets in terms of labor resources are, of course, professional guides who have high requirements, which include not only extensive knowledge of the history and culture of the Don region, but also the ability to actively work with the audience, high communication skills designed to ensure not only informativeness of the trip, but also the interest of the excursionists. The guides' wages are piece-rate, with a rate of 1000 rubles. per hour of work. Guides are paid for variable costs and are not reflected in the payroll table.
The professionalism of the bus driver is also of great importance for the comfort and safety of passengers. For this reason, high requirements are also imposed on driver qualifications - accident-free experience in driving a sightseeing bus for at least 10 years, knowledge of the basics of car making, and the absence of bad habits. The driver has a combined wage - a fixed salary of 30, 000 rubles per month and 300 rubles per hour of excursion.
Sales professionals must have at least 3 years of experience in the tourism industry.
All employees are subordinated directly to the project owner. The owner has experience in entrepreneurial activity, knowledge of labor law and industry regulations of the tourism industry.
Table 5. Staffing and payroll
Number of persons
Social Security contributions:
6. FINANCIAL PLAN
The financial plan is drawn up for a five-year perspective. Moreover, the project is unlimited in time. Fixed and variable costs are calculated, monthly revenues are determined taking into account seasonality, cash flow is calculated.
The investment cost of the project is 5.85 million rubles, of which 2.0 million is the own funds of the project initiator. The remaining amount is attracted using a bank loan for a period of 48 months and at 20% per annum. The payment of loan obligations is carried out by annuity payments, credit holidays - three months. The bulk of the investment is used to purchase a bus. Depreciation is calculated on a straight-line basis over a five-year period.
A cash flow statement is provided in Appendix 2 of this business plan.
Table 6. Investment costs
4 800 000
5 850 000
2, 000, 000
Required borrowed funds:
3 850 000
Table 7. Fixed costs
Amount in months, rub.
7. ESTIMATION OF EFFICIENCY
Based on the financial plan, integral indicators of project efficiency are calculated (Table 1). Since the financial plan is calculated for a relatively long period, to account for the value of money over time, a discount rate of 5% is introduced. The size of the rate is determined by the developed technology of work, the proposal is not innovative, the competition is relatively low, the market is formed and researched.
The payback period of the project is 17 months, the discounted payback period is 18 months. With such a fairly substantial capital investment - this is a short time.
Net present value (NPV) is 16.93 million rubles, which significantly exceeds the initial investment. The internal rate of return (IRR) is 6.0%, which is higher than the discount rate, and this indicates the investment attractiveness of the project. Profitability Index (PI)> 1, which also suggests that the project is largely profitable.
8. RISKS AND WARRANTIES
The following risks associated with the implementation of the project can be identified:
market entry of a new competitor of a similar level - the market capacity is currently large enough to accommodate several similar offers; at the same time, it is necessary to establish strong partnerships with key agencies;
modernization of fixed assets by competitors - the probability is low, because according to known data, competitors are experiencing a shortage of free cash;
worsening of the general economic situation in the country - at relatively low prices for domestic tourism, a decrease in the solvency of the population can potentially attract customers from more expensive market segments;
Failure to fulfill the sales plan is unlikely, since only experienced managers are accepted into the staff, and the pricing policy is formed in the most competitive form.
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