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g. An analysis of the result of the survey.

IV. Service Description

Name of the Service
The proponents came up with “Safe and Sound Travel Agency” as the name of
the business. The phrase "safe and sound" is usually used when people talk about the end
of a trip e.g. “We arrived home safe and sound.” In the phrase "safe and sound" sound is
an adjective and it means: "healthy, in good condition, free from injury, no damage, no
accidents." The proponents came up with this name with the intention that clients would
feel secured and the company would be perceived as trustworthy and dependable. By
using a phrase that is commonly used in daily conversations, it would be easier for
prospective clients to recall the name of the business, thus easier market penetration.

Location Site
The travel agency is located at the 5/F Gateway Tower, Gen. Roxas Avenue cor. Gen.
Aguinaldo Avenue, Araneta Center, Cubao, Quezon City, Philippines. The proponents elected

the business to be at Cubao, Quezon City since it is known for its commercial area and at
its heart is the well-known Araneta Center. The Araneta Center is already a major
transport hub, with almost a million of people passing by the area every day. The
proponents perceive it as an advantage that the building itself is situated at a known
avenue where it is also identified as one of the financial and business core in the
Metropolitan area.
Department stores and retail centers can also be found in Araneta Center, , Plaza
Fair, Rustan's, Shopwise Supercenter, SM Cubao, Ali Mall, and Farmer's Plaza. At the
center is Smart Araneta Coliseum, often called the Big Dome. Many musical concerts, ice
shows, circus shows, religious crusades, wrestling, cockfighting, and basketball games
are held in this 20,000-capacity coliseum. In the outskirts of Araneta Center is the Cubao
Expo, an artists' colony and site of weekend flea markets. It is also a home to call centers
like APAC, Telus, and Stellar.

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Service Features
The safe and sound travel agency provides well-rounded, reliable, and trusted
services to ensure you the domestic travel experience that you deserve. With our help and
services, you can have the convenient and fun trip that you’ve always wanted. Our services
are limited to domestic travels.







hotel bookings (local)
domestic flights
land transfers (including car & coach rentals)
packaged tours and roundtrips
sightseeing
multi-lingual tour guides
study tours
Company Excursion Arrangement

Uses of the Service
The service is directed to help arrange for transport means of everywhere –
bound tourists and provide tour packages for discriminating travellers.

Major Users of the Service
Our target market would include:
1. Corporate Clients;
2. Group Travellers;
3. Individual Travellers

Target Market
Age

15 and above

Gender

Male and Female

Occupation

Student, Employee, and Self-employed

Socio-Economic Status

Class A to E

Location

Araneta Center, Cubao, Quezon City

Description

Corporate Clients
For seminars, conference/ meetings and banquet
reservations, they would incur less cost for travelling
expenses with the help of travel agent.
Group Travellers
For group bookings that involve coordinating travel for
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. If a prospective client is booking a getaway for leisure. For these reasons. It is patterned from the survey questionnaire answered by the respondents. demand analysis helps the business in order to measure the current demand as well as to project the future demand. Demand Situation The target market discussed in the previous section comes from the population of domestic travellers in Metro Manila. V. the proponents obtained 99. Before a survey is conducted. To develop Safe and Sound Travel Agency targeting strategies and marketing efforts. but the destination is still a question mark.multiple people. The number of the respondents in the survey is computed through Slovin’s Formula: Where: n = number of respondents N = population e = margin of error set at 10% Using Slovin’s formula. 8 . Survey Result The results of the survey are presented below.99 or 100 respondents as sample population. vacation etc. it’s usually easier to use a travel agent. an experienced travel agent can help steer him toward what he is looking for. a sample of respondents is derived from the total population of 2.890 domestic travellers in Metro Manila. Individual Travellers Reading online reviews of a specific resort or city can take lots of time and effort. the proponents conducted a survey which includes some companies and organizations as their respondents.560.

1 show the segregation of respondents according to age.1 Segregation of Respondents According to Age Age 9% 18% 20 years old and below 21-25 years old 26-30 years old 24% 26% 23% 31-35 years old 36 years old and above Table 2. Much of the respondents are 21-25 years old. while the brackets with the least frequency are 36 years old and above.1. Segregation of Respondents According to Age Age Table 2.1 Segregation of Respondents According to Age Respondents Percentages (%) 20 years old and below 18 18 21-25 years old 26 26 26-30 years old 23 23 31-35 years old 24 24 36 years old and above 9 9 Total 100 100 Chart 2.1 and Chart 2. 9 .

2 show the segregation of respondents according to sex.2. while minority of the respondents are male. Majority of the respondents are female. 10 .2 and Chart 2. Segregation of Respondents According to Sex Sex Table 2.2 Segregation of Respondents According to Sex Sex 43% Male 57% Female Table 2.2 Segregation of Respondents According to Sex Respondents Percentages (%) Male 43 43 Female 57 57 Total 100 100 Chart 2.

3.3 show the segregation of respondents according to occupation.3 Segregation of Respondents According to Occupation Occupation 4% Student 18% 15% Employee Self employed Others 63% Table 2. Segregation of Respondents According to Occupation Table 2. 11 . while the brackets with the least frequency are self-employed and others. Majority of the respondents are employee.3 and Chart 2.3 Segregation of Respondents According to Occupation Occupation Respondents Percentages (%) Student 18 18 Employee 63 63 Self employed 15 15 Others 4 4 Total 100 100 Chart 2.

10.4 Segregation of Respondents According to Monthly Allowance / Income Monthly Allowance/Income 10% 2% 11% 2.000 66% 30.10.001.001.000 10.000 4 4 10.000 50.000.5.001 and above.4 show the segregation of respondents according to monthly allowance/income.4 Segregation of Respondents According to Monthly Allowance / Income Monthly allowance or Respondents Percentages (%) 2. 12 .000 10 10 50.4.001 and above Table 2.000 66 66 30.001.4 and Chart 2.001-30. Much of the respondents have monthly income/allowance of P10.000 and below 7% 4% 2. while the brackets with the least frequency have P50. Segregation of Respondents According to Monthly Allowance / Income Table 2.5.000 and below 11 11 2.001 7 7 5.001 5.001-50.001-30.000 and above 2 2 Total 100 100 income Chart 2.001.00-P30.001-50.

5. Table 2.5 Segregation of respondents whether they avail the services of a traveling agency Whether they avail the services of a Respondents Percentages (%) Yes 34 34 No 66 66 Total 100 100 travel agency Chart 2.5 show the segregation of respondents according to whether they use travelling agency. Majority of the respondents doesn’t use travelling agency. minority of the respondents use travelling agency. 13 .5 and Chart 2.5 Segregation of respondents whether they avail the services of a traveling agency Whether they use travel agency 34% Yes 66% No . Segregation of respondents whether they use travelling agency Table 2.

Table 2..6 show the segregation of respondents according to whether they are from corporate client or non-corporate client.6 Segregation of respondents according to whether they are from corporate client or non-corporate client Client Respondents Percentages (%) Non-corporate Client 37 37 Corporate Client 63 63 Total 100 100 Chart 2. Much of the respondents came from a corporate client while the rest are non-corporate client.6.6 Segregation of respondents according to whether they are from corporate client or non-corporate client Type of client 37% 63% Non-corporate client Corporate Client Table 2. Segregation of respondents according to whether they are from corporate client or noncorporate client.6 and Chart 2. 14 .

7 Segregation of respondents according to how often they travel using the services of travel agency How often they travel Respondents Percentages (%) Once in a year 8 8 Once in 6 months 45 45 Once in 3 months 26 26 Every month 17 17 Every week 4 4 Total 100 100 Chart 2. 15 .7. 45%of the respondents travel once in 6 months.7 Segregation of respondents according to how often they travel using the services of travel agency How often they travel 4% 8% Once in a year 17% 26% Once in 6 months 45% Once in 3 months Every month Every week Table 2. while the bracket with the least frequency travel every week.7 show the segregation of respondents according to how often they travel using the services of travel agency. Segregation of respondents according to how often they travel using the services of travel agency Table 2.7 and Chart 2.

16 .7 and Chart 2.8. Most of the respondents have experienced being accommodated by a travel agency.8 Segregation of respondents according to their experience of not being accommodated by a travel agency Have experience Respondents Percentages (%) Yes 3 3 No 97 97 Total 100 100 Chart 2.8 Segregation of respondents according to their experience of not being accommodated by a travel agency Have experienced 3% yes no 97% Table 2.7 show the segregation of respondents according to their experience of not being accommodated by a travel agency. Segregation of respondents according to their experience of not being accommodated by a travel agency Table 2.

17 . 23% to Boracay. Segregation of respondents according to preferred travel Philippine destinations Table 2. 5% to Puerto Galera and 3% to Davao. 17% to Baguio.9.9 Segregation of respondents according to preferred travel Philippine destinations Philippines destinations Baguio 5% Bohol 17% 8% 36% Boracay Cebu 23% 8% Davao Palawan Puerto Galera 3% Table 2.9 show the segregation of respondents according to their travel preference.9 Segregation of respondents according to preferred travel Philippine destinations Philippine Destinations Respondents Percentages (%) Baguio 17 17 Bohol 8 8 Boracay 23 23 Cebu 8 8 Davao 3 3 Palawan 36 36 Puerto Galera 5 5 Total 100 100 Chart 2.9 and Chart 2. 36 % of the respondents prefer to travel to Palawan. 8% to Cebu and Bohol.

10 Segregation of respondents according to if they will avail other domestic services Preferred way of travel 9% 4% Car/Bus Rental Multi-lingual tour guides 87% Will not avail Table 2.10 show the segregation of respondents according to if they will avail other domestic services. 18 .10. Segregation of respondents according to if they will avail other domestic services.10 Segregation of respondents according to if they will avail other domestic services Other Domestic Services Respondents Percentages (%) Car/Bus rental 9 9 Multi-lingual tour guides 4 4 Will not avail 87 87 Total 100 100 Chart 2.10 and Chart 2. Table 2. Most of the respondents will not avail while 9% will avail car/bus rentals and 4% will avail multi-lingual tour guides.

19 . Segregation of respondents according to factors considered in choosing travel agency Table 2.11 Segregation of respondents according to factors considered in choosing travel agency Factors considered in Respondents Percentages (%) Price 24 24 Security 27 27 Service 49 49 Total 100 100 choosing travel agency Chart 2.11 show the segregation of respondents according to the factors considered in choosing travel agency. Half of the respondents consider service as main factor in choosing travel agency.11 Segregation of respondents according to factors considered in choosing travel agency Factors considered in choosing travel agency 24% 49% Price 27% Security Service Table 2. while the bracket with the lowest frequency considers service as main factor in choosing travel agency.11 and Chart 2.11.

The proponents assumed a 10% growth rate in the population of the domestic tourist market within Metro Manila which represents the Philippine tourism industry growth rate. 20 . From the survey. Table 2. To compute the annual demand. the total population will be multiplied by the market acceptability rate and frequency of availing.Past Demand There is no available data about the demand of travel agency for domestic travels for the past years. Therefore. the market acceptability rate computed by dividing the number of respondents who would like to avail the services of travel agency is equal to 34% and frequency of availing is four times a year. the proponents used the historical demand data and used the least square method in getting the estimated projected demand. the proponents assumed that the demand determined from the survey is the same as what the demand was for the last five years.12 Historical Demand Population 1749122 1924035 2116438 2328082 2560890 Market Acceptability Rate 34% 34% 34% 34% 34% Frequency of Availing Annually 2 2 2 2 2 Annual Demand 1189403 1308344 1439178 1583096 1741405 Projected Demand In this study.

13 Projected Demand Year 2015 2016 2017 2018 2019 A 138000 138000 138000 138000 138000 Yi-1 1741405 1879405 2017405 2155405 2293405 Yc 1879405 2017405 2155405 2293405 2431405 To compute for the estimated projected demand. After the computation.14 List of Travel Agencies 21 . least square method was used. Computation reveals that every year the demand for travel agency that offers domestic services will increase for at least 138.000 customers. the computed increase every year will be added to the final value.13 shows the projected demand of the proponents’ business for five (5) years. VI.Table 2. The formula for the least square method is shown below: Least Square Method: Formula : Yc = a + Yi -1 a= Where: Yc = initial value (1st year) Yn = final value (last year) N = number of years Yi-1 = value for the year past Table 2. Table 2. The projected demand for year 2015 was computed using the Least Square method in which the initial value was subtracted from the final value then dived by the number of years minus one. Quezon City. Supply Situation Main Competitors The following is the list of travel agencies near Araneta Center.

Cubao. Cubao.50 KM away Radio Communications Of 711 E. Metro Manila Mosconi 0. Quezon City. Cubao.87 KM away Pagan Nomads Tour Management and Travel Consultancy San Travel and Tours - Unit 1007 Prince John Condominium. Cubao.03 KM away Approximately 0. EDSA corner New York Street. Delos Santos Avenue.75 KM away Unit 4.94 KM away 7F Gregory Condo. Metro Manila Distance Approximately 0. 12th Avenue.Business Name Quicklines Travel International.052902/lrt-2-araneta- center-cubao-station-general-aguinaldo-avenue-quezon-city-1109-philippines 22 .622799/121. Quezon City. Metro Manila G/F Genesis Transport Building. – Cubao Manila Genesis Charters and Tours Inc Address Ground Floor Shopwise Supermakrte. Quezon City. Main Office 291 P. West Approximately Kamias. Approximately Cubao. Metro Manila Source: Approximately 1. Approximately The Philippines Quezon City. #49 K-9th Street. Metro Manila 0. Metro Manila 0. Tuzaon corner 18th Avenue. Quezon City.00 KM away http://nearbyph. Quezon City. Araneta Center. Inc.com/travel-agencies/all/14.

Table 2. Demand 23 .15 Historical Supply Year Demand 2010 2011 2012 2013 2014 1189403 1308344 1439178 1583096 1741405 Supply Situation Rate 97% 97% 97% 97% 97% Annual Supply 1153721 1269093 1396003 1535603 1689163 Projected Supply The proponents assumed the same supply situation rate of 97% for the next five years. The annual supply for the next five years is as follows. Demand-Supply Situation By using the demand-supply analysis.Past Supply There is no available data on the supply of travel and tour business for the past years. In order to estimate the past supply. unserved demand or demand gap. Table 2. The proponents used the data based on the number of respondents that are not immediately accommodated by a travel agency.16 Projected Supply Year Demand 2015 2016 2017 2018 2019 1879405 2017405 2155405 2293405 2431405 Supply Situation Rate 97% 97% 97% 97% 97% Annual Supply 1823023 1956883 2090743 2224603 2358463 VII. The portion of demand that was met by the supplier in the questionnaire will be considered as the supply rate provided by the travel and tour businesses. the proponents will come up with a difference which will be the unserved market. the proponents used the past annual demand.

24 .gap is computed by subtracting the projected annual supply from the projected annual demand as shown below: Table 2. The proponents assumed a 2% market share from the demand gap.18 Year Demand Gap 2015 2016 2017 2018 2019 56382 60522 64662 68802 72942 Target Market Share Percentage 2% 2.42% 2.17 Demand-Supply Gap for Five Years Annual Annual Supply DemandSupply Gap Year Demand 2015 1879405 1823023 56382 2016 2017405 1956883 60522 2017 2155405 2090743 64662 2018 2293405 2224603 68802 2019 2431405 2358463 72942 Market Share Analysis Every business must determine its market share which will serve as a basis of marketing strategies of the establishment.66% 2. The business’ market share for the next five years is presented below: Table 2. Since the business is on the start of its operations. market share could not be readily determined. The market share is assumed to increase by 10% per year.20% 2.93% Target Annual Market Share 1128 1331 1565 1832 2136 The chart below shows the market share situation of the travel agency business before the introduction of Safe and Sound Travel Agency. It will define the extent of demand the business need to satisfy.

12 Sales Quicklines Travel International. 25 . – Cubao Manila Genesis Charters and Tours Inc 3% 16% 34% 4% 26% 5% 12% Radio Communications Of The Philippines Pagan Nomads Tour Management and Travel Consultancy San Travel and Tours . Inc.Main Office Mosconi Unsatisfied Demand The next chart below portrays the projected market situation of the travel agency business after the introduction of Safe and Sound.Chart 2.

or on its website.5% 16% 11% Quicklines Travel International.5% Manila Genesis Charters and Tours Inc 12.Main Office 9% 12% 5% Mosconi Unsatisfied Demand Safe and Sound Travel Agency VIII. values and advices with the affordable prices to its clients to show the agency’s experience and passion for travel. we have available and competent employees who will serve and assist them to their travelling needs. Presented on table 2. – Cubao Radio Communications Of The Philippines 34% Pagan Nomads Tour Management and Travel Consultancy San Travel and Tours . to 4 p. Appropriate Marketing Program or Strategy Quality of Service The proponents must assure that our clients will gratify with our utmost services.. Furthermore. They may reach the agency through visiting the office.m.13 Projected Market Share Distribution 6. We also guarantee to our clients that our agency is accredited by the Department of Tourism showing that we followed and passed their standards. Inc. which is open Monday to Saturday from 8 a. Safe and Sound Travel Agency offers quality and exceptional services.21 is a brief SWOT analysis of the service: 26 . Thus.Chart 2.m.

19        SWOT Analysis Strengths Weaknesses Diversified client base:  Difficulty in developing brand Combination of skills in employees awareness Extensive advertising and marketing  Lack of clear strategic allies  A limited financial base compared to the major players in the industry. we have concluded that the following charges are appropriate for services offered:  Average Commision per Domestic Tour Packages* Places Corporate Clients Non-corporate Clients Baguio P 1080 P 1200 Bohol P 830 P 930 Boracay P 840 P 940 Cebu P 1170 P 1300 Davao P 1380 P 1540 Palawan P 890 P 990 Puerto Galera P 860 P 950 *Domestic Tour Packages includes roundtrip flights. hotel accommodations and other excursions activities. Opportunities Threats Current drive by government towards  Potential entry of new competitors encouraging the participation of  Competitors have launched a new indigenous entrepreneurs in tourism advertising campaign current marketing campaigns by both  External factors such as taxes the government and regional tourism  Increase in cost due to inflation body Expansion of the business A market vacated by an ineffective competitor International tourism trends Pricing Based on the research conducted.Table 2.  Average Commission from car/bus rentals – P 150  Average Commission from hiring of tour guides – P 100 27 .

The proponents intend to implement the following promotion tools for the first year of its operations: 1. 2. All the successful businesses are built by heavy advertising techniques such as the following:  Promotional posters. leaflets and the like Printed materials like brochures.00 P 1. flyers will be distributed in front of the establishment and near areas.000. Since the business is at the start of its operations. a detailed promotional strategy should be planned to create product awareness. After the activity.00 .20 Promotional Budget Summarized below is the estimated cost of the promotion plan: Promotional Program Budget Items Quantity Cost/ Unit Total Cost Regular Advertising per Year budget  20 Promotional Posters ( 18X24) 28 P 50. It could also be given to the passer-by near the establishment. tarpaulin. the Department of Tourism. we decided that to reach them directly is one of the most effective ways to promote our business. Opening Day Promotion The company will be conducting ribbon cutting as well as establishment blessing with the partners and staffs. Table 2. Advertisements For the consumer to be aware of our service. Tarpaulins will be strategically placed near the establishment to raise awareness to the potential customers that a new travel agency has just opened. This is composed of different tools like advertisement and sales promotions.  Website This could be help for the easy access of information about our services offer including the prices and tour packages. flyers. the service offered must be publicized to potential clients. and calling cards shall be distributed to the different hotels and resorts.Promotional Strategies For the business to be successful. leaflets. handouts.

000.00 Establishing a Website 1 P 6.00 P 10.00 P 20.00 29 .00 P 6.00  Foldable Fans 2000 P 10.   Tarpaulin (30 sq.000.00 P 9.000.00 TOTAL P51.00  Leaflets (3X8) 5000 P 2.) 10 P 900.00 P 5.000. ft.000.000.00 Calling Cards (2x3 inches) 5000 P 1.000.