Investment Needed in Operating Tourism Company in The Caribbean

Transportation and tour company offers ground and air transportation and tours. Funding to purchase equipment, working capital & marketing. Debt or equity funding.

We are a transportation and tour company serving with top quality transportation and tour services using top of the line and newer motor vehicles coupled with quality customer service. Our service covers domestic air charters, limousine service, luxury sedan and SUV charters, hotel and airport transfers, weddings, special events and any and everything as it relates to tourism.

The company is has been in operation for 12 years. We seek to procure US$75,000.00 to facilitate the re-positioning of the company as the premier provider of quality transportation within the tourism market by:

A) The acquisition of three Motor Vehicle
B) Wide scale marketing
C) Proper staff compliment
D) Implementing measures that will allow a more competitive in pricing and quality

These measures will enable the company to provide a more efficient and effective service. The funds will be spent as follows:

Purchase of three Motor Vehicle - $48,000.00

Upgrade & Promotions (Web redevelopment, Marketing Materials & Media Advertising) - $10,000.00

Working Capital (Insurance, Licenses & Fitness) - $ 4,500.00

6 months working capital and Contingency funds - $12,500.00

With such implementations the company will generate US$113,000.00 in net profit by year one.

The company will grow at a reasonable pace, after funds is injected it will take 2 months to fully complete restructuring. Year one sales forecast-ed to reach US$452,000.00 jumping to $542,400.00 by year three net profits will be an estimate US$113,000.00 by year one, with a margin of 15 - 20% yearly increase in sales over the next 2 years to follow.

1. Fleet vehicles must be properly maintained to eliminate downtime as well as to maintain an image consistent with the company's mission statement.

2. Superior telephone skills, stressing quick recognition of clients, are essential in fostering a repeat clientele.

3. Especially true for tour companies with small fleets, the most important key to success is finding a repeat clientele willing to hire a vehicle for a minimum of two hours. It will also be beneficial to find market segments that are brand loyal (less price-sensitive) which result in longer fares of a less-hectic nature.

4. The company will revamp its existing website to include a booking engine, run promotions on popular social media platforms (Facebook, Twitter, Youtube, LinkedIn, Pinterest, etc.), implement e-mail, video and SMS marketing strategies, run promotions, and attend trades shows internationally.

Most of the limousine service competition in the area is concentrated in the corporate, and not much advertising is done on a global scale or for an airport transfer, special occasions, weddings and sightseeing transportation. Many of these companies do not have exclusive contracts with the major resorts, travel agents or wholesalers. While these segments have steady demand for the limousine service, the margins are high allowing enough room to manoeuvre and to penetrate the market.

The market analysis shows that the various market segments are more sensitive. Customers require a reliable, on-time pickup and knowledgeable drivers. At the same time, quality service and quality control departments will ensure that the visitor’s needs are adequately met. Being a small company with the owner having hands-on approach we can gain a competitive advantage by establishing the reputation of being a reliable service provider. This will be achieved by providing premium services to the targeted customer base and relying on customer referrals to generate new leads. Also, we will bolster our efforts by paying a commission to the various customer service agents that refer our services.

Service Business Analysis

Statistics show operating results compiled from over 30 operators nationwide. These comparative statistics are available by area of the country and are broken down by type of services. The sources of revenue of operators were:

• Airport Transfers: 25%
• Tours and excursions: 45%
• Air Charters: 15%
• Limousine and executive sedan: 10%
• Other: 5%

Competition and Buying Patterns

There are numerous shuttles, and taxi cabs available for a wide range of prices. Of the major customer, segments are the corporate clients who choose limousine services with large fleets that will accommodate their varying needs. This customer segment provides longer-term contracts but is more difficult to break into and is more demanding. Tours, Weddings, as well as night-on-the-town customers, usually require mid-sized vehicles to accommodate bigger groups of people. Airports transfer customers usually only require timely pickups and drop-offs and have lower expectations for any additional service features. Growing competition in this segment has made these customers price-conscious.

Sales Forecast

1. Airport Transfers - This segment of the business will increase and become more profitable as we target groups of no less than 2 with an average cost of US$20 per person for a trip. We forecast that the Airport transfer business will consist only of three round trips daily. These trips are daily, totalling 90 trips per month per vehicle and generating revenue of US$80 per trip, which takes one and a half hours.

2. Sight-Seeing Tours - With an addition to our fleet we will be able to facilitate two trips per day at an average of US$200 per trip per vehicle resulting in monthly revenues of US$12,000. The months from September to November will see a decrease in sales and revenues resulting from decreased visitor arrivals during that time of the year, which is customary in the tourism industry. During those months we will concentrate on school

Use of Funds

A) The acquisition of three Motor Vehicle
B) Wide-scale marketing
C) Proper staff compliment
D) Implementing measures that will allow a more competitive pricing and quality

These measures will enable the company to provide a more efficient and effective service. The funds will be spent as follows:

Purchase of three Motor Vehicle - $48,000.00

Upgrade & Promotions (Web redevelopment, Marketing Materials & Media Advertising) - $10,000.00

Working Capital (Insurance, Licences & Fitness) - $ 4,500.00

6 months working capital and Contingency funds - $12,500.00

With such implementations, JCVT will generate US$113,000.00 in net profit by year one.

JCVT will grow at a reasonable pace, after funds are injected it will take 2 months to fully complete restructuring. Year one sales foretasted to reach US$452,000.00 jumping to $542,400.00 by year three net profits will be an estimated US$113,000.00 by year one, with a margin of 15 - 20% yearly increase in sales over the next 2 years to follow.

Type of Loan Options:

A) Debt Finance: 3-5 years at 10-18% interest, silent investor

B) Equity Finance: 30% shares with dividend payments, as per monthly/yearly profit, involvement options are hands-on or silent investor.