- Country: India
- Industry: Tourism, Recreation
- Stage: Start-up
- Investment size: $60,000 / min. $50,000
- Type of investment: Debt, Equity
Our travel company is focusing to corporate and leisure travel with primary focus into theme-based holidays supported by a real time booking portal.
Complete travel company with online and offline support catering to Corporate Travel, Leisure Travel, Theme Holidays, Family Holidays, Adventure and Activity, Experimental Tours in India and selected worldwide locations.
Young working individuals, Corporate Outings and Meeting, Honey Moon Travelers, Family vacations, Group Tours, Top Executives, Celebrities, Top-Level Travelers and Corporate Organizations.
Revenue Generation Model
A travel product, which is built in house, will have a larger margin from 20% to 30% plus revenue generated from ancillary services. Any travel product or service source from suppliers will also be maintained in the same revenue region. As the pricing is more added to the quality of service extended, we do not foresee any seepage in revenue.
We have a sophisticated approach in the travel industry to achieve optimal profitability. This dynamic, automated and flexible approach to revenue management combines pricing and yield management into a more cost-effective, efficient business process.
• Maximize profits and revenue. Through the combination of automation, demand forecasting, price optimization and revenue management, we can gain a competitive advantage and boost revenue-generating opportunities by managing the travel products created in house and adding value to service with a cost without fences or price restrictions.
• Optimize pricing through real-time competitive data. With our integrated price elasticity modelling, customer segmentation and competitive pricing into the core decision-making process, enables us to set the right prices and differentiate customer value in real time across multiple travel products and services.
• Balance supply and demand through real-time visibility. Using price optimization, we can adjust prices based on fluctuations in demand/inquiry on any given day, as well as manage high- and low-demand periods and fare structures.
International tourist arrival in India grew by 13 per cent during the first nine months of 2013, United Nation World Tourism Organization (UNWTO) data showed. Domestic travel, in this sluggish economic condition grew by 22per sent as per Indian tourism Ministry.
Today, everyone have a reason to travel, either to spend his surplus money, to relax and to rejuvenate, to Uncover unknown unique experiences, things that you thought never existed. Travel and tourism is one of largest contributor to India GDP. Travel and Tourism industry has a readily available travel force with a hands on experience in every nitty gritty of tour and travel products.
Progress on the Project:
The lead promoter have more than 14 years in travel field having worked with leading travel companies of the world and handled more than 5000 passengers of different region. We are in the initial stage of designing a mealtime tour booking portal with exotic locations and thrilling programmes, which will enable any one with a sea of choices according to his taste of travel. Also, we would be requiring 3 numbers of transport vehicles to ferry travellers on a frequent basis.
We require US$60000, which will be utilized for infrastructure, portal development, supplier payments for initial tie-ups and registrations, purchase of vehicles. (20% as equity from the investor and 80% as loan).
Offering to the Investor:
20% Shareholding in the company and 10-year repayment period @20% Rate of Interest on the loan part.
There are established companies, but with our existing customers and peculiar product mix and service is an advantage. Our concentration is spread to only few products and regions, so beating the competition is not a hard task. Also, Indian travel market extends opportunity to new age travel companies due to the huge population and the quantity of incoming foreign travellers.
Our advantage is very much sustainable, as we need to get into the market as early as possible with these unique products to make a mark.
Our difference is, we offer a special, unique tried travel programmes to luxury travelers, service tailored at top-level travellers, youngsters in the age group 21 to 35 age group, celebrities and corporate organizations while our competitors target the regular travellers. We plan to cater for about 120 of the travel market in interior South India who can pay a higher fare for quality service.
Rationale for the deal
Our opportunity are enormous provided we give alternate travel programmes and see repeat customers. Demands will always exist as today; travel is only recreation left in this faster lifestyle, where one can enjoy quality time with near and dear ones.
Money making opportunity is high as we have ancillary products to support all along. Other market players are very few in number, who is concentrating into activity, theme and adventure travel with a real time portal.
With more than 14 years in travel trade, i am well aware of the changing trends in this business.
Use of financing
Funding is needed for office infrastructure, portal development, software and purchase of 3 cars for the car rental aspect of the business.
This is a much profitable and dream project of mine. Since I do not have much savings, I have to look for investors to realise it.
Only one round of finance is required currently, in future, depending on the growth and demand, we could go for further funding.
Opportunity for the investor
Overall equity/loan amount is US$ 60000. Payback Period is 10 years at 20% interest rate.
Investor will hold 20% shares of the business while 80% will be the loan portion repayable in 10 years at 18% annual interest.
Looking for similar investment opportunities