Submitted By: Muhammad Ibraheem

Submitted To: Muhammad Amir Khan

Roll Number: MS20211

Subject: Entrepreneurship

Section: 4A Morning

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Business Idea: Opening an international Tourism Company

“JINNAH ADVENTURE CLUB”

Initial Business Plan

TABLE OF CONTENT

Sr. No Content Pg. No

1 Executive Summary 03
2 Industry Analysis 06

3 Company Description 08

4 Market Analysis 11

5 The Economics of the Business 13

6 Marketing Plan 14

7 Design and Development Plan 16

8 Operation Plan 16

9 Management Team and Company Structure 17

10 Overall Schedule 18

11 Financial projections 19

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1- Executive Summary
Jinnah Adventure Club (JAC) will begin operations this year and provide adventure and
sport/travel packages to international tourists specifically the European tourists. An opportunity
for JAC’s success exists because the national tourism and travel industry is growing at 4%.
Further, the international tourism is growing at least 12% annually. JAC 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 Rs 10 million by year three.

 Achieve 15% of sales from the Internet.
 Develop strategic alliances with service providers nationally and internationally.

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

 Effective segmentation and targeting of international tourists.

 Successfully position ourselves as adventure travel specialists.
 Communicate the differentiation and quality of our offering through personal interaction,
media, and international marketing.
 Develop a repeat-business base of loyal customers in order to create sufficient sales.

JAC will be a sole proprietorship owned and operated in the capital of Pakistan. The founder and
employees of JAC are experienced travel industry professionals and are passionate about the
activities JAC will promote and offer.

JAC’s total start-up capital requirement is approximately RS 10 million. Start-up will be

financed through the owner’s personal investment and Bank loans.

JAC is researching the market to identify potential opportunities for future opportunity in this
rapidly changing environment. JAC’s long-term goal is to establish itself as an internationally
recognized provider of top-of-the-line adventure travel. This goal does not prohibit JaC from

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participating in additional segments. It does, however, provide a corporate focus and a
differentiated offering.

ATI’s target customers are international tourists who want to visit Pakistan and want to see its
beauty, culture and history.

JAC has established relationships with providers of travel-related products and services. Two
major airlines have been selected as our primary ticket providers in part because they do not cap
the agent’s profit on tickets. This allows us to capture the 10% margin on ticket sales that was for
many years the industry standard. Market research has enabled us to identify and establish
working relationships with service providers around the world. JAC has been able to identify
opportunities to capture margins of up to 25% from certain parties. Sourcing will be
continuously evaluated. JAC will take advantage of trade shows, travel industry publications,
and other sources of industry-related information to monitor the quality of its offering.

JAC has a number of major competitors that the company will seek to acquire market share
from. They are:

 XX
 YY
 ZZ

None of these competitors have the combination of price, scope, or local focus that JAC will be
able to offer.

JAC’s pricing strategy will be a major consideration. Much of it will be determined by market
standards. JAC will attempt to maintain margins of 10% on all airline travel. Margins on all other
products and services vary depending upon the provider but are expected to average 20%. JAC
will make every effort to maintain a competitive pricing policy. However, as JAC builds its
reputation as the premier provider of adventure travel, it expects to earn the ability to charge a
premium for its services.

The company will also pursue an aggressive marketing campaign. During JAC’s first year of
operation it will hold a grand opening and will organize and sponsor several tourism related
events.

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JAC will be a small organization and its employees will share in management duties and
decision making. Muhammad Ibraheem will act as the General Manager, but it will be important
for each member of the team to be capable in all aspects of the business. Prerequisites for all
JAC employees include at least five years travel industry experience, knowledge and ability in
the types of activities JAC will promote, and Certified Travel Counselor (CTC) certification for
applicable positions. The CTC designation can be obtained through the Pakistan Tourism
Development Corporation (PTDC).

Prices will be competitive with the remainder of the market. The company’s estimated earnings
will be Rs 2.5 million increasing 10% annually for the next two years.

JAC will begin operations with four full-time positions. The positions are as follows; general
manager and president: Muhammad Ibraheem; marketing and advertising director: Fahiq Farhad;
accountant: Amir Khatam; and Mujtahid Ali Asjad travel agent.

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.

1.1- Objectives
 Earning of Rs 10 million 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 and internationally.

1.2-Mission
Jinnah Adventure Club (JAC) is a travel agency that specializes in international tourism and
travel. It will provide consulting and custom travel arrangements and packages. JAC’s mission is
to become the foremost provider of travel to the people of the Europe. JAC’s employees and

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owner are outdoor adventure and travel enthusiasts as well as seasoned travel industry
professionals. JAC seeks to connect adventure travel newcomers and veterans with service
providers, adventure activities, and accommodations that fit the client’s demands.

2-Industry Analysis:
2.1-Industry size and Growth Rate:
in 2020, the World Travel and Tourism Council (WTTC) reported that the travel and tourism
industry in 2019 continued to maintain a growth rate of 3.5%, surpassing the growth of the
global economy (2.5%) for nine consecutive years. Tourism is the third-largest category of
international exports, second only to chemicals and fuels, and worth US$1.6 billion. Over the
past five years, the sector has created a quarter of jobs and contributed approximately US$8.9
trillion (10.4%) to the global economy.

According to data from the World Tourism Organization, in 2018, inbound tourism in the Asia-
Pacific region grew the fastest. Reaching 7%, accounting for up to US$435 billion in total
tourism revenue. It leads to the growth rate of all other regions, second only to other regions,
European tourism revenue.

At first glance, Pakistan currently accounts for only 0.1% of international tourism revenue of
US$352 million (2017). Which seems to be a disappointing proposition, but when examining the
complex dynamics of tourism. It also shows that this is only part of a broader prospect. If global
tourism expenditures are separated, international tourism expenditures only account for 28.7% of
total expenditures. while domestic expenditures are the main expenditures, accounting for
71.3%. When international tourism represents tourists to other countries, domestic tourism is
defined as tourists travelling in their home country. This is the ideal starting point for Pakistan.
Because, Pakistan has a large population and the middle class is eager to travel, but it is not easy
to travel to international destinations. Pakistan’s population is 212 million approximately. With a

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growth rate of up to 2.1% and the growth of the middle class is estimated to account for about
38% of the population.

2.2-Industry Trends
The Pakistan tourism market was valued nearly at USD 20 Billion in 2020, and the market is
expected to witness a CAGR of 3% by 2026.

Amidst the current COVID-19 pandemic, Pakistan's tourism and hospitality industries are at
great risk, as people are unable to visit Pakistan amidst safety measures and various lockdowns
imposed by the government. Tourism contributed nearly 7.1% to the gross domestic product
(GDP) of Pakistan in 2019. However, owing to the pandemic, the market is witnessing severe
losses.

However, in the long to medium term, the market is expected to gain momentum. Pakistan has
emerged as one of the most sought-after tourist destinations over the past few years.
Furthermore, the South Asian nation has also topped several international travel lists, making it
an attractive tourist destination amongst travelers. The Pakistan government's tourism campaign
has also helped raise the country’s profile in the global market. Increased investments are being
made in the country in roads, airports, and other infrastructure, which have helped ease travel.

Pakistan is also emerging as an important investment destination for new hotel development. The
hotels in Pakistan are witnessing a substantial increase in growth, both in terms of occupancy and
average rate, and this trend is expected to continue further in the upcoming years. However,
amidst the COVID-19 pandemic, the hotels in the country have witnessed severe losses, and 3
out of 7 big hotels in Karachi have closed since March 2020 due to the pandemic.

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3-Company Description:
3.1-Company History:
The basic idea behind this company is the creation of an international standard tourism company.
It is created to provide services to the international tourists and generating maximum revenue.
The basic intention is to boost Pakistan’s economy by boosting its’s tourism sector. Thus,
keeping all this in mind the idea of JAC came into being.

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 3.2-Company Logo

3.3- Mission Statement:

JAC’s mission is to provide best services to international tourists. In order to achieve our
mission, JAC commits to the following philosophies:

· It’s all about the services.

· Our clients are our employers.
· Don’t be greedy.
· Keep our clients happy.

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3.4-Ownership
The JAC would be a government recognized Private Company and would be solely owned by its
founders.

3.5- Services
JAC will provide tourism services to international clients from all over the world specially
European countries. It will provide all the necessary arrangements as per client's demands. A
fleet of luxury cars and coasters will be available for clients which will provide tourism services
all across Pakistan. The clients will also be provided with special offers according to their
budget. Special offers for adventure activities such as Skiing, Mountaineering, Hiking and
Paratrooping will be provided which will attract more energetic and young clients.

3.6-Keys to Success
Our key to success will lie in our ability to execute our business model. In order to achieve
success, we need to focus on the following areas to establish JAC as a successful and profitable
enterprise. They are:

· Recruit an exceptional management and marketing team with extensive domain

experience in the university market.
· Create and maintain a “Grass Roots” marketing campaign.
· Offer innovative and unique products and services.
 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

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4- Market Analysis
JAC plans to focus its initial efforts on the international tourism in Pakistan. Adventure travel
falls primarily under the leisure travel category. Revenues from leisure travel earned by Pakistani
travel agencies exceed $5 billion annually.

4.1 Market Segmentation

JAC’s target customers are international tourists from European countries. They are interested in
popular adventure activities such as rafting, skiing, hiking, sports, and mountain biking.

4.2-Target Market Segment Strategy

JAC will be located in the capital of Pakistan. The natural beauty and abundance of outdoor
activities attract many fitness-oriented individuals. Per capita, the area attracts more people than
who actively participate in mountain and water sports such as skiing, climbing, whitewater
rafting, mountain biking, etc. These are the people in JAC’s target market. JAC will focus on
promotion of international tourism.

4.3 Market Trends

The Government of Pakistan has eased the country's visa policy, which has played a key role in
attracting a large number of foreign tourists. Overall, 60,070 foreigners have visited tourist
attractions in the country during the past six years, especially to the enthralling places located in
the northern parts of the country. Following the policies of the current government and measures
taken to promote domestic and international tourism, the country expects to see a rise in the
number of visitors by nearly 30% until 2030.

In 2019, the international tourism receipts for Pakistan were nearly 948 USD million. Although
Pakistan tourism receipts fluctuated substantially in recent years, they increased through the
2015-2019 period.

4.4-Market Growth
The travel industry is growing. Reasons for this growth include a healthy domestic economy and
the devaluation of currency in other regions which has made travel less expensive for foreigners.

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4.5-Market Needs
Many potential customers are unsure of the location they wish to reach. Part of the value
associated with travel agencies is the knowledge they possess about destinations. Customers look
to the agency to provide them with sound advice for a competitive price. JAC is confident in its
ability to do so. Time is a precious commodity. JAC can save the customer time and money, and
help to ensure that they are satisfied with their vacation.

4.6-Competitor Analysis
As this industry is highly competitive therefore, JAC will have to show extremely unique ideas
to catch the attention of clients. There are number of wonderful platforms that are providing
services like international tourism, ski diving, mountaineering and skiing which we consider our
competitors. These platforms are good. we can get more clients by offering unique services.

4.7-Main Competitors
.1. Askari Travels and Tour Islamabad
Askari Travel and tours is an international transport association IATA accredited travel agency.
This agency was established in 1982. This company provides tourism related services to both
international and domestic destinations. This company is famous for its quality services, and they
also offer economical rates for their customers. Customer satisfaction is their number one
priority. This is among the best tourism companies in Pakistan.

2. Alpine Trekker and Tours Islamabad

Alpine trekkers and travel are among the top 10 tourism companies in Pakistan. This company
was established in 1994 and had a government license. Because of their quality of services, this
company is the top priority for travelers across the country. According to budget and interest,
this tourism company provides services to both national and international tourists. They offer
you 24/7 services and provide you with all information regarding travel, air tickets, tour
packages, and other facilities.

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3. Bestway Travel
Bestway travel is rated among the top travel and tourism agencies in Pakistan. It is an IATA
certified travel agency and providing its services for 30 years. This company offers many reliable
packages to its customer. Their rates are affordable, and you will have a good experience with
them. Their services include travel, hotel bookings, transport. They also offer the best Umrah and
Hajj services with all the facilities, including air travel and accommodation.

4.8-Strategy and Implementation Summary

In order to reach its goal of becoming the country's best travel agency, JAC will adopt the
following strategy:

1. Establish JAC’s reputation as a differentiated, specialty provider of travel. This will be

accomplished through a diverse marketing communications program at JAC’s target
market, utilizing various media.
2. Provide unparalleled service to the clients in order to gain repeat business and build trust.

5-Eonomics of the Business Plan

JAC’s financial plan is detailed. Preliminary estimates suggest that JAC will experience slow
growth in the first two quarters of it's operations.

The company will try to generate maximum revenue in the first two quarters. This revenue will
be used to return loans to the banks.

25% of the revenue will be given to the investors.

The maximum revenue generated will also help in covering the cost of initial expenditure
required for the office such as furniture and other facilities.

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The salaries of employees will also be deducted by 10% on the first two quarters which will be
used as security of the employees and returned to them when they intend to resign.

This security will also be available for employees at the time of their need. JAC will have
sufficient cash to endure the negative cash flow situation that it may encounter initially.

JAC will also anticipate an increase in gross margin and sales volume.

Thus, the overall financial plan presents a conservative but realistic depiction of JAC’s financial
position.

6-Marketing Plan
Our consultants will design admirable marketing policies which assist us to understand the
requirements of our targeted customers. We are all set to attain our traveling agency business
plan and so we’ve created facilities for glaring publicity and advertisements.

 We will introduce travel advertisement in both forms- in print and on electronic media.
 We will also sponsor pertinent communal based events/ functions/ programs.
 You will make various travel related videos online where we will show our presence in
tourism related activities time to time.
 Distribution of our fliers as well as handbills will associate us with myriad of our
customers. This way we have influenced and captured the entire target areas.
 We will also install Bill Boards on calculated sites across several parts of the USA, UK
and Canada.
 Our presence will be explicitly seen on social media apps such as Fb, YouTube, Twitter,
and Instagram etc. Our brand will get huge limelight this way.
 Travel agency Company logo can will be seen on all our various labors branded shirts
and their vehicle.

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6.1-Pricing Strategy
Much of JAC’s pricing is determined .Margins on all services vary depending upon the provider
but are expected to average 20%. JAC will make every effort to maintain a competitive pricing
policy. However, as JAC builds its reputation as the premier provider of international travel, it
expects to earn the ability to charge a premium for its services.

.2-Sales Strategy
JAC will sell the benefits of the services it offers and the activities it promotes. People need to be
reminded occasionally that there is more to life than building bigger barns. JAC can provide
clients with all of the arrangements they can think of and likely many they would not have
thought of. Our concern is not to maximize profits on any individual sale but to satisfy the
customer. Doing so will reduce costs and increase profits in the long run. It is less expensive to
maintain a relationship than it is to develop a new one. At JAC we believe in the benefits of the
activities we promote, and we are confident that we can satisfy the desires of the seasoned
adventure traveler and the newcomer alike.

6.3-Promotional Strategies
We will advertise our services on Facebook and Instagram. Now-a-days loads of people rely on
social media for information. Secondly, we will create our company's website where clients can
visit and take a thorough look of our services. Thirdly, we will make a YouTube channel that
will cover our activities and attract the YouTube audience. We can also pick some Juicy content
from our platform and share on our website and social media to catch the attention. We must
review our platform from some good bloggers because; they have a huge influence on the
masses. We will give discounts to clients coming in form of groups.

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6.4-Technology
JAC will rely on a Computerized Reservation System (CRS) for all client reservations. The CRS
enables travel agencies to identify what the customer is looking for and make that information
available quickly. It also increases the speed and efficiency with which JAC can communicate
with suppliers. In addition, the CRS makes customer data storage and retrieval relatively simple.
JAC will also make use of the Internet for market research and communications.

6.5-Future Services
JAC may in the future open agencies at additional locations. In addition, as the travel market
reaches maturity, JAC may participate in additional segments of the travel market. JAC is
researching the market to identify potential opportunities for future sales. JAC’s long-term goal
is to establish itself as an internationally recognized provider of top-of-the-line adventure travel.
This goal does not prohibit JAC from participating in additional segments. It does, however,
provide a corporate focus and a differentiated offering.

7-Design and Development Plan:

7.1-Strengths
JAC’s strengths are those aspects of business that give it a distinct market advantage and upon
which we will capitalize our marketing plan. The category of Strengths goes to those qualities
internal to your travel practice, not to external factors like the economy.

7.2-Challenges and Risks

As mentioned earlier there are number of emerging and established players in this industry and
they are doing very good work. In such an environment to hold the grounds is literally a
herculean task. We will have to be creative and unique so that we can distinct from others.
Otherwise, this can become our biggest liability.

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8-Operational Plan
JAC will focus on providing qualified and reliable travels and tours services to assist people,
business people and organizations in preparing and consolidating all of their travels. This part of
the business plan will outline the regular operations for the company to succeed, such as
schedule, staff, training, services and fees, among many others.

For the smooth running of the Company, management will take keen steps. A team will be hired
for the smooth processing which will promote the Company’s services on social media and other
platforms. This team will update and inform the technical team about any bugs rising in the
industry.

9-Management Team and Company:

9.1-Organizational Structure
ATI will begin operations with 4 full-time positions. The positions are as follows.

General Manager and President: Muhammad Ibraheem, age 22, BS Tourism and
Hospitality Hazara University Mansehra. He has 4 years experience in the travel industry,
including 1 year experience as manager of the Pakistan Paradise Tours. He has attended various
national and international programs and seminars for promotion of international tourism in
Pakistan.

Marketing and Advertising Director: Fahiq Farhad, age 21, BS Mass Com LUMS. Fahiq
Farhad spent three years as an adventure travel and freelance writer and has been a marketing
consultant specializing in tourism for the past three years. Fahiq has an extensive mountaineering
background and has summited three Nanga Parbat. In addition to mountaineering, Fahiq is an
avid climber and has skied since the age of five.

Accountant: Amir Khatam, age 21, B.S. Accounting, University of Peshawar, KP. Amir is a
professional accountant. His ability with numbers has helped keep his mind occupied during

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competition in the marathons, and mountaineering expeditions. Amir worked as an auditor for
the Pakistan for two years after college and then as an accounting department manager for a non-
profit organization for another two years.

Travel Agent: Mujtahid Ali Asjad, Certified Travel Counselor. Mujtahid has eight years'
experience as a travel counselor. He is an avid cyclist, runner and calligrapher. In addition,
Mujtahid has traveled extensively and has first-hand knowledge of many of the destinations our
clients wish to reach.

10-Overall Schedule:
The Company logo and location has already been decided. An event will be
arranged in the first week of April for the inauguration ceremony to the interested
parties and investors which will explain the working methodology of the
Company. This recorded video presentation along with the business plan shall be
mailed out to the investing firms in the last week of March. The management team
will gather investors till first week of February and soon the hiring process for the
team members will start.

In the month of March, all the background and backend process will be checked
for issues. The advertisement and promotional process will start from the first
week of March and will keep on running till the end of April Some of the ads on
social media would not stop even after the launch of the application.

The company will be fully operational after the first week of April. A complete
setup of office and staff will be made fully functional. The service will be offered

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and entertained at international level. A full time tourism company will be made
functional.

11-Financial Projections:
The following are the summarized points from JAC’s financial plan.

The JAC will require an initial investment in capital to finance the marketing campaign and
launch strategy.

The JAC will require additional investment to fund additional Web development, sales and
marketing efforts and general operating expenses.

The JAC will generate revenues by the end of year one.

The JAC will start reporting sustained profits during the 4th month of the 1st year.

Sales and profits by year three will top 1.5x that of year one.

Investment contacts have already been approached and their expressions of satisfaction and
encouragement are numerous.

We intend to continue our advances with more unique and effective business solutions for the
tourism industry. Based on the attached financial projections, we believe that this venture
represents a sound business investment.

11.1-Start-up Funding

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In order to implement JAC’s marketing campaign and launch strategy, we are seeking an initial
seed investment of Rs.500,000. An additional investment of Rs.200,000 will be required for
operational expenses, continuing marketing campaigns, additional website enhancements,
maintenance and support as necessary to establish and maintain JAC.

11.2-Use of Funds

Initial funding proceeds will be used primarily for marketing, additional website development
and maintenance. All the equipment needed will be leased or purchased, and included in the
operational expenses. The rest of the funds will be used as working capital to maintain the
operations until revenues generated by JAC will be at the point where we can sustain operational
expenses.

12-Appendices:
Please find the resumes of the management team attached alongside this document.

13-Reference List:
1. https://cmsbeginners.com/10-best-tourism-companies-in-pakistan/
2. https://tourism.gov.pk/
3. https://tourism.gov.pk/packages_promotion.html
4. https://www.travel-culture.com/ptdc/index.shtml
5. https://www.marketresearch.com/MarketLine-v3883/Travel-Tourism-Pakistan-
14192984/
6. https://www.researchgate.net/publication/342233168_Analysis_of_Pakistani_Tourism_In
dustry
7. https://journals.sagepub.com/doi/full/10.1177/2158244020932525
8. https://tribune.com.pk/article/96791/the-future-of-tourism-in-pakistan WRITTEN BY:
Saad Rashid

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 9. https://www.hilal.gov.pk/eng-article/detail/MzY1NA==.html written by Abdullah khan:
The writer is Managing Director at Pakistan Institute for Conflict and Security Studies.
10. https://data.worldbank.org/indicator/ST.INT.ARVL?locations=PK

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