Business Report

Business Report

Executive Summary

Adventure Travel InterNational (ATI) will begin operations this year and provide adventure and sport/travel packages to people in the Pacific Northwest, specifically the greater Woodville area. An opportunity for ATI's success exists because the National tourism and travel industry is growing at 4%, and adventure travel at 10% annually. Further, the Woodville adventure travel market is growing at least 12% annually and there are no providers who specialize solely in adventure travel in the greater Woodville area. ATI is poised to take advantage of this Growth and lack of competition with an experienced staff, excellent location, and effective management and Marketing.

The company's goals over the next three years are:

Sales of $650,000 by year three.

Maintain margins of 10% on all airline travel.

Achieve 15% of Sales from the Internet.

Develop strategic alliances with service providers Nationally, internationally, and in the Woodville area.

In order to achieve these goals ATI needs to focus on the three key areas of:

Effective segmentation and targeting of adventure travelers within the larger travel market.

Successfully position ourselves as adventure travel specialists.

Communicate the diffeRentiation and quality of our offering through personal interaction, media, and regional marketing.

Develop a repeat-business base of loyal customers in order to create sufficient Sales. (Crawford 2002)

The company does not expect any problems with expenses or Cash flow within the next three years. Annual cash flow for the first year of operation becomes positive in the second quarter of operation.

Objectives

Sales of $650,000 by year three.

Maintain margins of 10% on all airline travel.

Achieve 15% of sales from the Internet.

Develop strategic alliances with service providers nationally, internationally, and in the Woodville area.

Mission

Adventure Travel International (ATI) is a travel agency that specializes in adventure tourism and travel. It will provide consulting and custom travel arrangements and packages. ATI's mission is to become the foremost provider of adventure travel to the people of the Pacific Northwest. ATI's employees and owner are outdoor adventure and travel enthusiasts as well as seasoned travel industry professionals. ATI seeks to connect adventure travel newcomers and veterans with service providers, adventure activities, and accommodations that fit the client's desires, Budget, and skill level.

Keys to Success

Effectively segment and target adventure travelers within the larger travel market.

Successfully position ourselves as adventure travel specialists.

Communicate the differentiation and quality of our offering through personal interaction and media.

Develop a repeat-business base of loyal customers.

Market Analysis Summary

ATI plans to focus its initial efforts on the adventure travel market in the greater Woodville area. Adventure travel falls primarily under the leisure travel category. Revenues from leisure travel earned by U.S. travel agencies exceed $50 billion annually. Adventure travel is a sub-category of leisure travel and can be further broken down into hard and soft adventure travel. Annual expenditures in the U.S. market are estimated to be approximately $40-50 million for soft and $12-15 for hard adventure travelers. (Pinson 2001)

Market Segmentation

ATI's target customers are health-conscious couples and individuals, with median household incomes of approximately $50,000. They are interested in popular adventure ...