TOUR AGENCY

Business Set-up for Tour Agency



Management Accounting

Introduction to Business

Holiday-making is an attractive hobby for U.K. dwellers, who take up 36 million overseas holidays every year. Packaged holidays are the most preferred tour offering where every requirement of the tourist is “bundled” into one price. This poses a highly competitive market with little competition form larger operators and business owners. This business report relates to the start-up analysis of a tour agency, developing essential understanding of key concepts in management accounting. The first section deals with a mention of business and package details, the second section analyzes the cost aspects of the new agency. Lastly, we discuss the role of the business in improving upon environmental sustainability while also reflecting upon our personal learning from the task.

Section A

Proposed Name for Business

The proposed name of our business would be “Pretty Planet”-an expert in travelers' solutions to the world's best destination! The name suggests an association with the entire planet while marveling its beauty. It suggests that the whole “planet” is very beautiful and offers innumerable resorts to visit and explore. The brand of the agency speaks of strong brand image that is a name of reliability and trust. The positioning of the brand is based on strong concern for the tourists' needs, while being remarkable in the services being offered.

Tour Packages Available

There would be three tour packages enabling the tourists to visit London like never before. The packages will be based in the United Kingdom, first, being London based. The second package would be offering a trip within London and the third package would give the tourists to explore any place of their choice, within U.K. Pretty Planet is one of the most memorable and wonderful ways to see London and marvel its beauty. The tour offerings can be availed in times of Olympics, where the world of sports would be under the travelers' feet. From historic sites and spots, to some of finest sights of the world, let Pretty Planet take you where you want to go. The discounted packages on the three tour routes would offer the tourists a golden chance to visit the place of their choice, without having to bother about how much it costs.

Section B:

Comprehensive Cost Analysis

This section would look into various factors that accounts for the cost and pricing of the tour offers, along with seeing the risk factor that needs to be mitigated or reduced to minimal.

Selling Price for Each Tour

The following table shows the charges (selling price) for each tour. The first tour (Tour 1) is based on a trip to London, the second tour (tour 2) relates to a sight-seeing visit anywhere within London, while the last tour package offers a trip to anywhere within the U.K. the rates are divided among adults, children (ages 6 years and below) while family packages are meant for 2 adults and 3 children combined.

Adult

Children

Family

Tour 1

£23.00

£11

£74

Tour 2

£25

£15

£80

Tour 3

£30

£18

£99

Income Statement (for Initial year to year Three for Pretty Planet)

 

Year 1 ...