JP Overseas Travel Pvt. Ltd

JP Overseas Travel Pvt. Ltd

Background

Tourism is defined as travelling outside the ones own residential environment. These outing in the form of stays are for one-day minimum and maximum one year. There are various motivation behind this tourism like it can be for pleasure purpose, meeting with friends and families, business visit or educational purposes (Beerli and Martin, 2004). There can be various activities in it like sports, recreation, religious ceremonies and for various other purposes. The people who take these visits are known as the tourist. While the one arranging these trips are mostly travel agencies. These travel and tour agencies are responsible for arranging the complete or partial tour (Balalia and Petrescu, 2011). That is they are either responsible for arranging the complete package which involves the tickets and other hotel reservation etc or on the other hand they arrange only the ticket or the hotel reservation. So when these tasks are performed than they are compensated for it.

Tourism Market Opportunity

In the year, 2011 there was an estimated $983 million tourist arrival worldwide. There was a growth of 4.6% as compared to the 2010 figures of $940 million. The receipt that they generated for the year 2011 was $1.03 trillion. This was an increase of 3.8% as compared to the last year. In India the tourism accounts for $ 121 million which is 6.4% of the GDP. The GDP growth related to the tourism has increased by 229% between the year 1990 and 2011. Therefore seeing the past growth and the future trend we see that there are great chances for growth in this sector (Buckley, 2010). This is the reason we are trying to enter this market and achieve success.

Purpose of the study

The purpose of the study is that we are setting up a travel and tourism company. The name of the company will be JP overseas Travel agency. The company will be set up in the Jalandhar area of Punjab, India. As we know that setting up of a new business requires a lot of hard work and risk. The hard work pays of many a time, but with that there is risk (Erdogan, 2012). The higher the risk of the project the more the investment required rate of return there would be. Therefore, it is very important that we analyse the business and the industry in which it is operating (Gartner, 1989). We will look in to the project from both the qualitative and quantitative aspect.

We will be doing a financial analysis of the project. In that, various financial analysis techniques will be used (Apachai and Waryszak, 2000). This will be very beneficial for us as it will let us know the future profitability of the project. On the qualitative aspect, we will look into the favourability of the business from the non-financial aspect (Hannam and Diekmann, 2011). This would be the main purpose of our study and would be very beneficial for us in analyzing the prospect of ...