UNIVERZITET U SARAJEVU EKONOMSKI FAKULTET

BIZNIS PLAN TOUR OPERATING COMPANY: TOUR DE DUBLIN

DIPLOMSKI RAD

Predmet: Mentor: Student: Index: Studij: Smjer:

Business Plan prof. dr. Melika Husi-Mehmedovi Damir Filipovi SBS70219 Ekonomija Sarajevo Business School

SARAJEVO, SEPTEMBAR 2013.

Contents
1. 2. Executive Summary ................................................................................................ 2 Company Description ............................................................................................. 6 2.1 Products/Service .................................................................................................. 6 2.2 Background to the Development ......................................................................... 6 2.3 Benefits and Features ........................................................................................... 6 2.4 Unique Selling Points: ......................................................................................... 7 2.5 Advantages to Customers .................................................................................... 7 2.6 Disadvantages to Customers ................................................................................ 7 2.7 Objectives and Mission ........................................................................................ 8 2.8 Critical Success Factors (CSFs) ......................................................................... 8 2.9 Unique Selling Proposition (USP) ....................................................................... 9 2.10 Location ............................................................................................................. 9 Industry and Market Analysis ............................................................................... 10 3.1 Target Market..................................................................................................... 11 3.1.1 Target Market for City Tour ........................................................................... 11 3.1.2 Target Market for Wicklow Tour .................................................................... 11 3.1.3 Target Market for Student night out ............................................................ 12 3.2 Target Company revenue ................................................................................... 12 3.3 Market Trends .................................................................................................... 12 Marketing and Sales Strategy ............................................................................... 14 4.1 Online Marketing ............................................................................................... 14 4.1.1 Web Site .......................................................................................................... 14 4.1.2 Social Networks .............................................................................................. 14 4.2 Marketing Costs Summarized ............................................................................ 16 4.3 Pricing ................................................................................................................ 17 People and Operations .......................................................................................... 19 5.1 Management Organisation Chart ....................................................................... 19 5.2 Staffing ............................................................................................................... 20 5.3 Operations .......................................................................................................... 22 4.3 Staff Training ..................................................................................................... 25 Competitors .......................................................................................................... 28 6.1 Competitor profiles ............................................................................................ 28 6.1.1 City Sightseeing Ltd........................................................................................ 28 6.1.2 Dublin Bus Tours ............................................................................................ 28 6.2. Weaknesses of Competitors .............................................................................. 30

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References .................................................................................................................... 31 Appendices ................................................................................................................... 34 Appendix 1- Observational research 1 ..................................................................... 34 Appendix 2- In-depth Interview............................................................................... 35 Appendix 3- Calculations ........................................................................................ 37

1. Executive Summary
Tour de Dublin Company is a tour operating company. Office of management will be located in Robinhhood Road, Ballymount, Dublin 12, and parking for buses will be located in Royal Liver, Naas Rd, Walkinstown, Dublin 12. Location in city center is not necessary for the first three years of business since the main tool for providing our tour services will be buses which will be driving through Dublin every day, selling tickets for tours and doing the tours. Tour de Dublin has a portfolio of three services offered, namely:

1. City tour: This is the most popular tour provided by the company. It will be operating every day from 9 a.m. in the morning to 7 p.m. in the evening hours, except for public holidays when there is not much demand or streets are blocked (St. Patrick). Passengers who board the buses will be able to see, or visit all the historical and cultural attractions of Dublin. Primary target market for this tour is tourists who are staying in Dublin only for a short period of time, but want to see as much as possible.

2. Wicklow tour: A visit to Wicklow is a great opportunity to explore the beauties of Irelands coast. Many sightseeing attractions are included. Primary target market for this tour is tourists who are staying in Ireland for a longer period, and here we mostly refer to middle aged couples without children and older people. Also in the primary target market we count domestic people of the age 55+ who choose to stay in Ireland and spend their vacation on domestic sightseeing attractions.

3. Student Night Out: Every company has to have that something special for its customers. Student Night Out tour will aim to welcome all those newcomer students to Dublin and show them Dublins nightlife and provide them with an opportunity to get to know other students from all over the world. Primary target market for this tour is students who have just arrived in Dublin and are not yet familiar with everything that Dublins nightlife has to offer.

4. City tour + Wicklow tour: A combination of the two above mentioned tours for a single price.

Findings related to industry analysis:

30% decrease of overseas visits to Ireland in 2012 Many investments and incentives from the Government to boost tourism in Ireland Gathering 2013 Increased air traveling and visa costs are making potential tourists hesitant to visit Ireland In 2011 there were 14.5 thousand international students in Dublin and they were worth 300 million to the economy. In 2012 overseas visitors spend 373 million on sightseeing

Marketing strategies which will be used for attracting and retaining customers are:

Online marketing; including official website and social networks. Flyers Radio stations

Pricing: Prices will be slightly higher than those of competitors since this is a start-up business and has to cut costs. City tour: 21 Wicklow tour: 26 Student Night Out: 25 City + Wicklow tour: 40

Competitors: Two main competitors have been identified; Dublin Bus Sightseeing and Citysightseeing Ltd.

Dublin Bus Sightseeing: Part of Dublin Bus which is a public company with very high income and fleet of 29 buses and office in city center. Citysightseeing Ltd: Private Company, experience in sightseeing industry, fleet of 35 buses. There are present other indirect competitors if Tour de Dublin decides to expand its portfolio of services.

Staffing: Tour de Dublin will hire a total of 27 employees: General Manager Staff Manager Marketing/Sales Manager 21 tour driver, Full-time employed 1 tour driver, Part-time employed 2 night out guides, Part-time employed

This number of employees will remain the same throughout the first three years of business and their salary will also remain the same. Note that General Manager will not receive any salary in the first year for the benefit of the business.

Operations: Among the office and parking rent, it is important to mention that Tour de Dublin will purchase 8 buses for the city tour and 2 buses for the Wicklow tour. These buses will undergo the process of engine conversion from diesel to gas in order to cut costs, the 8 buses for the city tour will undergo retriming, staff will undergo one month training prior to starting the business. For that month they will receive full-time pay.

Finances: The total funding requirements for the business is 300000. The total amount will be covered by a loan, and will be paid back in the period of 3 years at an interest rate of 6.74%.

Table 1: Loan amount for the first three years of business ()

Years Loan repayment amount outstanding 1 2 3 Interest rate (6.74%) Loan repayment

300000 200000 100000

20220 13480 6740

100000 100000 100000

Table 2: Target Company Revenue ()

Year 1 2 3 Jan 126 132 139 Feb 122 127 132 Mar 126 132 139 Apr 190 199 208 May 200 209 218 Jun 200 209 218 Jul 200 209 218 Aug 200 209 218 Sep 186 194 203 Oct 114 119 124 Nov 114 119 124 Dec 114 119 124

Table 3: Projected sales and COGS for the first three years ()
Projected sales COGS VAT Year 1 1883805 34950 219908 Year 2 1977995 36698 230903 Year 3 2076895 38532 242448

Table 4: The projected Profit and Loss ()

Total sales Total sales less VAT COGS COGS less VAT Gross Margin Overheads Gross Profit Tax Payable Net Profit Year 1 1883885 1659740 34950 30793 1628947 1452344 176603 22075 154527 Year 2 1977995 1742727 36698 32333 1710394 1475862 234533 29317 205216 Year 3 2076895 1829863 38532 33949 1795914 1470039 325875 40734 285141

Taking into account the month time needed for tour drivers to complete training provided by Failte Ireland, The business will start operating on the 3rd January 2014.

2. Company Description
2.1 Products/Service Tour de Dublin is a tour operating company. The main service of the tour operator company Tour de Dublin is a bus sightseeing tour of the city, including all important cultural and historical monuments of the city which have shaped it through the centuries. The company will also offer a tour outside Dublin to Wicklow and something special for international students coming to Dublin, the so called Student night out tour. The city tour will be a hop-on hop-off tour with tickets which will be valid for three days making it possible for tourists who are in Dublin only for a few days, or maybe for the weekend (and they are our main customer group) to be able to see as much as possible from the variety of Dublins historical, cultural and other monuments. 2.2 Background to the Development There are many things to see in Dublin; the National Gallery Museum, Guinness Storehouse, Old Jameson distillery, St. Patricks Cathedral, Trinity College and many more. But if you are in town only for a couple of days, it will be very hard for you to see everything you wish, and to learn about this city. The best solution is a bus tour around the city. Having done these tours myself, I was astonished when I realized how much you can learn about the Irish history in just 90 minutes. Having done interviews with staff members of other tour operating companies and interviews with my friends and colleagues, the bus tour around Dublin emerges as a very interesting and useful way of getting to know a new country. 2.3 Benefits and Features Tour de Dublin will be operating in a market which does not have many direct competitors, but therefore two well-established and experienced companies when it comes to bus city tours (more details in the competitor section). Because of this my company will have to provide that something extra, something special to customers in order to differentiate it. A lot of effort will be put into the marketing strategy and a lot of creative and innovative skills will be needed to create and offer a service which the 6

competition does not have. Therefore besides the city tour and a tour out of town to Wicklow, Tour de Dublin will provide a Student night out tour for international students. In this offer, students who are new to Dublin will have the opportunity to buy a ticket to go with a guide via bus to experience the night life of Dublin. The ticket itself will be valid for two days so that it can be used for a whole weekend. Groups will be formed with 15-25 students maximum. The disadvantage of this offer is that the demand for it will be high only in September and October and somewhere February and beginning of March when new international students will be coming into the country, because the international students who are already present in Dublin will probably already be familiar with the nightlife. Also a big emphasize will be on our tour guides whose knowledge about the city and their communication skills will be of big importance for the overall experience of customers. 2.4 Unique Selling Points: Friendly and adventurous atmosphere High quality service Committed staff

2.5 Advantages to Customers The fact that Tour de Dublin is a new company entering a highly competitive market means that we have to take care of our customers and their needs if we want them to trust their touristic ambitions to a new company. Therefore they will enjoy high quality service, a committed staff and friendly atmosphere. Also an advantage will be tickets which will last for three days instead two days in the competitor companies, and they will be only slightly expensive.

2.6 Disadvantages to Customers One of the disadvantages is definitely the fact that this is a startup company with new staff who probably will need some time to get the routine in the everyday routes as well as the Wicklow tour, although they will go through training by then. Also since Tour de Dublin Company will not have such a big fleet as the two main competitors that could influence the waiting time between buses arriving at stops. 7

2.7 Objectives and Mission The major objective of Tour de Dublin over the next three years is to establish the company amongst its competitors and to create awareness of its existence amongst potential customers. Another objective is to expand the range of services offered to potential customers and of course to be able to pay off in time the loan with which the company is financed. The mission of Tour de Dublin is to make its customers familiar with the cultural and historical heritage of Dublin and Ireland itself while creating a friendly and adventurous atmosphere. 2.8 Critical Success Factors (CSFs) For Tour de Dublin to start in the next 6-12 months, these three factors must be taken in consideration:

Effective marketing and advertising

Since the company is a new one and competes with well-established companies, marketing and advertising have to be very successful. Since the company has limited financial resources, they have to be used wisely in marketing and advertising. Social media networks such as Facebook and Twitter will be used to get in contact with the younger tourists and students coming to Dublin. Flyers with our offer will be distributed on our tour buses.

Having a well trained staff

Our drivers and tour guides are the ones who will be communicating our offer directly to customers and reflecting the company image, therefore it is crucial for our business that they are well trained, which means that they have to be well educated regarding history and cultural facts of Dublin and Ireland. They will be also required to create a friendly atmosphere amongst customers. Buses must also be on time present at stations to pick up a customer which is also an obligation of our staff, although it can be affected by traffic conditions. Our drivers also have to be familiar with city streets and cannot have any previous offenses in traffic. 8

Premises

Buses are a crucial asset for our company. Without them our business cannot function. Doing my primary research, interviewing drivers from both main competitors, I have found out that one company has 20 and the other one has 35 buses used for city tours and tours to Wicklow. Obtaining these buses will be the most important star-up cost since they are essential to our business.

2.9 Unique Selling Proposition (USP) Join us in an adventure through Irish history and culture

2.10 Location City tour customers will be able to purchase tickets online and in the buses. For the Wicklow tour and the Student night out customers will have to buy tickets online. Therefore our company will not have an office in the city center in the first year. The biggest issue is of course storage of buses. Royal Liver, Naas Rd, Walkinstown, Dublin 12 is a good location to get parking spaces for our buses. In the future, if all objectives are met within the first three years and the expansion of offered services starts, then the company will allocate an office in Dublin city center. Although the company will not have an office in the city center in the first year, and probably in the next year or two, I have decided to rent a small office in Robinhood Road, Ballymount, Dublin 12 for the needs of the companys management. This office is close to the parking space of buses so management and staff are close to each other.

3. Industry and Market Analysis

Tour de Dublin company is obviously situated in the tourism industry. In 2012 there was a decrease of 30% in overseas visits to Ireland. This is partially due to the political situation in Northern Ireland which threatens to damage the overall touristic image of the Island. Another factor is the visa issue which affects potential tourist when coming to Ireland. However, there are many investments from the government to increase overseas visitors to Republic of Ireland, such as The Gathering in Republic of Ireland. Tour de Dublin company has its customers in tourists who are staying only for a short period in Dublin (few days), tourists who are staying 5 or more days in Dublin and will take the Wicklow tour (middle aged couples without children and older people) and students with the student night out tour. The major goal of our company is to show our customers things worth seeing, such as museums, parks, art galleries, places of worship, heritage and visitor centers, zoos, etc. And on the other side, to present Dublin nightlife which is among the best in Europe. Therefore our company is based around sightseeing. Tourism boards in Republic of Ireland have made strong investment in the last few years to sustain the sightseeing market although the recession. The internet is still the strongest channel to promote sightseeing; also as already mentioned there are many things worth seeing in Republic of Ireland, Guinness Storehouse was the top sightseeing attraction in 2011 in Republic of Ireland. There are some factors which could have a negative impact on the sightseeing market. First of all we have increased cost of air travel. These costs are likely to prevent overseas visitors to come to Republic of Ireland and spend money on sightseeing. Another thing which we have to take in account is the weather conditions. The wet climate in Ireland makes many potential overseas visitors hesitant to visit outdoor attractions, and spending on food and accommodation leaves fewer financial resources to be spent on sightseeing. According to Mintel, in 2012 overseas visitors spend around 335 million, which is 6% of their total spending in Republic of Ireland.

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3.1 Target Market 3.1.1 Target Market for City Tour

Primary research for this target market was done by interviewing staff members of both main competitors, and by observation, that is taking part in tours operated by the competition and taking notes regarding age and gender of tourists going on tours as well. The primary research has shown us that a specific target market regarding age and gender for this service cannot be identified. On these tours with me were other international students, families with children, middle aged couples without children and older people. Also doing the interview with the two drivers, they have confirmed that these tours are visited by tourists of all age and gender. Therefore the main target market for this service are tourist who are staying in Dublin only for a couple of days, do not have enough time to see everything they want and the city tour is a perfect service to see the most important cultural and historical aspects of Dublin. Coming to overall tourist figures, according to the Central Statistics Office in 2011 there were around 6, 5 million overseas visits to Ireland, and although these numbers have decreased in 2012 for 30%, I believe that this target market is sufficient enough for our company. Especially in the period from March to the end of October which, stated by the two interviewed staff members, is the time of year when there are most tourists using this service.

3.1.2

Target Market for Wicklow Tour

Primary research for this tour was also done by interviewing staff members from the two main competitors. The target market for this service is different than the one for the city tour. This service targets tourists who are staying 5 or more days in Dublin. Target markets are middle aged couples without children and older people. According to Mintel, the number of Irish residents who are of age 55+ is going to rise in the next 5-10 years, making 26% of the total number of residents in Republic of Ireland. These residents prefer to go on holidays in their own country rather than going abroad, and will be definitely a boost for sightseeing industry in Republic of Ireland. Therefore I believe that they are to a respectable target market for our Wicklow tour in the near future.

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3.1.3

Target Market for Student night out

Target markets for this service are international students, mostly those arriving in Dublin from September to October, and those arriving in Dublin from February to March since they are just arriving in Dublin and are not familiar with the nightlife. Coming to numbers, according to Irishtimes.com, last year around 14, 5 thousand international students were studying in Dublin, and this year they are approximately worth 300 million to Dublins economy. According to Mintel, and reports from other web sites, in the last 2-3 years there have been many incentives to increase the number of international students in Dublin, and these incentives where successful, because the number of students who attended English language lessons in this year has increased for 22% from 2010

3.2 Target Company revenue Based on primary research, which was conducted by interviewing staff, supervisors and one general manager of my two main competitors, and also doing observatory research I have come across these figures for the targeted company revenue for the first three years of the business. (Figures in table are shown in 000)

Table 5: Target Company Revenue for the first three years Year Jan 1 2 3 126 132 139 Feb 122 127 132 Mar 126 132 139 Apr 190 199 208 May Jun 200 209 218 200 209 218 Jul 200 209 218 Aug 200 209 218 Sep 186 194 203 Oct 114 119 124 Nov 114 119 124 Dec 114 119 124

3.3 Market Trends Regarding the tourism industry, as I previously mentioned, there was a 30% decrease of overseas visitors to Republic of Ireland in 2012. Reasons for that are increases in airline tickets, visa requirements which generally in Republic of Ireland and Northern Ireland have a bad effect on potential visitors. Another restricting factor is climate. The wet Irish weather has a negative impact on visitors who wish to visit outdoor sightseeing attractions, and since sightseeing is of biggest importance to our targeted customers, it is our priority. Also according to Mintel, 35% (2 billion) of spent money from overseas 12

visitors in 2012 went on food and drinks, and another 28% ( 1.6 billion) went on accommodation expenses. Compared to that, only 6% ( 373 million) is spent on sightseeing. There are however positive indications. The government is investing a lot in tourism in the Republic of Ireland because of the downturn in 2012; a good example is The Gathering 2013. Further on, Republic of Ireland has many sights eeing attractions to offer, among the Guinness Storehouse was the most popular in 2011. Another very important upcoming trend is the fact that the number of domestic Irish residents of age 55+ is growing and is estimated to make up 26% of Republic of Ireland population in the next 5-10 years, and more important is the fact that they are more willing to spend their holiday in domestic environment and explore sightseeing attractions in Ireland rather than going overseas. This is a big opportunity for our Wicklow tour.

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4. Marketing and Sales Strategy

Since Tour de Dublin company is a new one in the city tour and sightseeing business, and it has to compete with two well-established companies in the business, our marketing strategy must be precise and target exactly those customers which we want. Although the company will not have an office in the city center during the first three years of operating, the buses used for city tours and the tour to Wicklow will be something like moving offices of the company since customers will be able to purchase tickets for the tours directly from the drivers, take flyers from them with our offered services described in detail, and of course take part in the tours. Our main tool of marketing strategy will be the buses which will carry the logo and name of the company.

4.1 Online Marketing 4.1.1 Web Site

Tour de Dublin company will have its official website which will be created by a company called website Dublin. We will purchase a premium package web site from this company at a first year cost of 999, and after that an annual maintenance charge of 150. This package includes 10 e-mail accounts, technical support, visitor statistics, photography stock, SEO (search engine optimization), CMS (content management systems) and training. The web site itself will have the company name, logo; it will include contact information, location of the office and place where the buses are held, working hours and working days, and the possibility to purchase tickets for our tours online. Further on, the web site will include pictures and short information about all sightseeing attractions covered in the city tour, Wicklow tour and student night out.

4.1.2

Social Networks

Doing desk research I have found out that both of my main competitors are using Facebook account to market their service. These accounts mostly include pictures of people taking part in tours, sightseeing attractions and flyers. These accounts are not often updated. Tour de Dublin will have its Facebook account which will be 14

maintained and updated by office staff. Also through this website our company will aim to contact student unions from colleges in Dublin, to post information regarding the student night out and other offers with discounts which will be available through the student unions. Tour de Dublin offers three services to three different target markets; therefore the marketing strategy will be divided into three parts:

City tour

This is our most important service with the biggest number of targeted customers and therefore the service which needs to provide the company with the most profits. Here the marketing strategy will target mostly tourists who are staying in Dublin only for a couple of days or the weekend. The service is of course available to everyone who is interested in sightseeing of Dublins monuments, here we refer mostly to students arriving in Dublin for the first time and of course Irish residents of age 55+ who wish to make holiday in their domestic environment and not overseas, but it is mostly for those with very little time to spend in Dublin and with many things to see. Therefore our customers should not waste time in looking for our offers. Here our flyers have a very important role. Flyers with detailed information regarding our services and prices will be distributed on airports, in hotels, and in our tour buses. Tour de Dublin will order 500 flyers at a monthly price of 96 (1152 yearly) from Budget Print Ireland Company. This service will of course be respectively advertised at our official web site and our Facebook site.

Wicklow tour

The main target markets for this service are tourists such as middle aged couples without children and older people. Here we can also add Irish residents of age 55+ who will make 26% of Republic of Ireland population in the next 5-10 years and they are willing to spend their holidays in domestic environment instead of going overseas. They will also be approached with flyers and can see our offers on our official website, but it is doubtful whether they will look at our Facebook page to find out details about the Wicklow tour. Therefore we will also engage the Radio station RTE on which we will be advertising our Wicklow tour for the whole year, one week in each month of the low season ( October to March) and two weeks in each month of the high season ( April to September) at a weekly cost of 2250. The total cost for the first year of this advertisement will be 40500. 15

Student night out

The main target markets for this service are students, particularly those who have just arrived in Dublin, either from September to November, or January to March. From my personal experience, and talking to other students from my country and other international students, I have concluded that students who have just arrived in Dublin spend the first month or two walking mostly in Grafton Street, O Connell Street and Temple Bar, and this is where our student night out tour will be operating during Thursday, Friday and Saturday night. A very important means of marketing this service will be student unions of Colleges. We will distribute our flyers in offices of student unions, and we will advertise our student night out through Facebook sites of these student unions. Here we do not expect to incur any additional costs. Also from the price of the student night out ticket, 10 will be used to cover the costs of entering one club and having two free drinks for each student. The yearly cost of these student nights out vouchers is expected to be 17950 for the first year, but it will be rising in year 2 and 3. 4.2 Marketing Costs Summarized Here are the marketing costs for the First Year of Tour de Dublin:

Table 6: Marketing costs for Year 1 Marketing costs for 1 Year Activity Website Flyers Radio Student night out vouchers TOTAL 60601 Cost () 999 1152 40500 17500

Also here we have to take in account 150 yearly maintenance charge for the website which will be paid from Year 2 on.

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4.3 Pricing Prices for services of the Tour de Dublin company are calculated according to costs of providing those services and of course in comparison with prices of our two main competitors, Dublin Bus Tours and City Sightseeing Ltd. Since our company is a newcomer in the business and startup costs are higher, the prices of our services will be slightly higher than those of our competitors.

Table 7: Prices for the offered services Tour de Dublin Service City tour Wicklow tour Student night out City + Wicklow tours Days Price() 3 1 1 2 21 26 25 40

City Tour (Price 21)

The city tour is obviously the number one service offered by Tour de Dublin. It is the service from which our company expects the most income. The city tour will be driving every day from 9 a.m. in the morning till 7 p.m. in the evening. Passengers on board will be able to see all historical and cultural monuments of Dublin and they will also be able to get out of the bus at any stop and visit attractions which are of their personal interest. They are also entitled to sit during the whole tour and enjoy in the ride through Irish history. Wicklow Tour (Price 26)

Wicklow tour is the second tour offered by our Company; a trip to Irelands beautiful countryside. This scenic ride includes visits to Avon Ri, Wicklow Gap, Glendalough, and Avoca Village. City tour + Wicklow tour (Price 40)

As the name states, this service provides a combination of the city tour and trip to Wicklow. 17

Student Night Out (Price 25)

The Student Night Out is something special provided by Tour de Dublin. Every year many students arrive in Dublin, whether for the whole year or one semester. For many of them this can be stressful since they are often alone and awaiting their lectures to start. Here comes our student night out offer. Groups of students will gather with our night guides and explore the night life of Temple Bar and other clubs and pubs worth seeing in Dublin. This is a great opportunity for students from different countries to get to know each other, and to have great fun. The price of 25 will be covering a free entrance to one club and two free drinks.

Prices for services offered by competitors (retrieved from their official websites):

Table 8: Prices for Dublin Bus Tours Dublin Bus Tours Service Days Price() City tour 2 18 South Coast 1 24 Ghost Bus 1 28 City + South Coast tour 2 37

Table 9: Prices for City Sightseeing Ltd City Sightseeing Ltd Service Days Price() City tour 2 18 Wicklow tour 1 25 City+Wicklow tour 2 38 Night tour 1 FREE

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5. People and Operations

5.1 Management Organisation Chart Management of Tour de Dublin Company will comprise of General Manager, Marketing/Sales Manager, Staff Manager and Accountant.

General Manager

General Manager is in charge of the business. He monitors the work of the marketing/sales manager, staff manager and financial manager. He makes all the final decisions which are crucial for the business, makes the long term goals of the company, strategies, etc. He will also get assistance from the financial manager when needed. General Manager will also be responsible for contacting suppliers. Since I am starting up the business and will be taking on the responsibility of the General Manager, I will not have any earnings for the first year of the business in order to cut costs. Since Marketing/Sales and Staff Manager will not be working during weekends, I will be present on Saturday and Sunday morning for two hours when the Company starts working and in the evening for the last two hours of operations. Practically I will be working 6 days a week and I will be opening and closing the business every day.

Marketing and Sales Manager

As his title suggest, the marketing/sales manager will be in charge for these two sections in the company. He will be in charge of marketing activities of the company, such as advertisement through flyers, newspapers, radio, etc. He will be in charge of the companies official website and Facebook webpage. He will also be in charge of promoting sales, creating new offers, torus, etc. Marketing/Sales manager will be working 5 days a week, 8 hours every day with a yearly salary of 40000 Euros. Information obtained from Irishjobs.ie.

Staff Manager

Staff Manager will be responsible for monitoring companies staff. Here I am referring to drivers, tour guides, mechanics, and maintenance. He will be responsible

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for overseeing if all staff members are punctual, do their obligations properly. Staff manager will be working 5 days a week, 8 hours every day with a yearly salary of 40000 Euros. Information obtained from Payscale Ireland.

Accountant

Accountant is responsible for financial, administrative and clerical services to insure the effectiveness of these operations. He will also create financial reports, and together with the General Manager he will be working on future investments and, strategies and long-term goals of the company. Other financial things such as profit and loss statements, balance sheet reconciliations, are all in his responsibility. Since this is a startup business and there will be no need for the Accountant to be present in the office all the time, and this function will therefore be outsourced. Accountant will be working 1 day a week, 4 hours per day with an hourly wage of 50 Euros, which is a yearly expense of 9600 Euros. Information received from RecruitIreland.com.

General Manager

Staff Manager

Outsourced staff

Marketing and Sales Manager

Tour drivers Night tour guides

5.2 Staffing Staff of Tour de Dublin Company will be comprised of: Tour Drivers Guides Mechanics Maintenance

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Tour Drivers

Tour drivers are the most important staff personnel of the Company, they are the backbone of the business. Tour de Dublin Company has two bus tours: City tour and Wicklow tour. City tour will be operating every day, while the Wicklow tour will be operating during the weekend. For the first tour Tour de Dublin is going to have 8 buses, and for the other tour we will have 2 buses. All drivers will be driving both tours. The company will have a total of 22 drivers, 21 working full time and one driver working part time in order to cover tours, vacation, sick leave, public holidays, etc. Tour drivers will be earning 3000 per month each, which is a yearly expense of 36000 per driver. For the part time driver, he will be earning half of this wage. Information obtained from PayscaleIreland.com.

Guides

Two Guides will be used for the Student night out tour and since this offer will not be present all year long, guides will be employed on a part-time basis. They will be working from September to November and February till April when new students are arriving in Dublin. This means that they will be operating six months (September, October, November, January February and March), each Thursday, Friday and Saturday from 11pm to 3 am. During these four hours both of these guides will earn 15 per hour, which is a yearly expense of 7200 for both of them, plus Night time pay which will be shown in more detail in the financials section.

Mechanics

Since Tour de Dublin is a startup company and has to keep costs as low as possible, mechanics will be also outsourced. Northside Test Centre will be doing annual tests and mechanical repairs of buses when needed. This will all be done at an annual cost of 180 euro per bus.

Maintenance

Cleaning and maintenance of office space and buses will be outsourced. This service will be provided by the agency called City Helpers. The annual cost of this service will be 10000.

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5.3 Operations Premises and rent:

As previously mentioned, there are two locations important for the company. First and most important is the location where the buses will be held. The location is Royal Liver, Naas Rd, Walkinstown, Dublin12. This location has a static security guard on site 24x7, and CCTV in operation. The daily rent for one vehicle is 4 Euro. Since the company will be parking its buses on this location for the whole year, and since most of the time these buses will be in the city center being used for the tours, an arrangement has been made to pay 3 Euros per day. Since the company will start its business with ten buses, this means that for each bus the company will have to pay 90 Euros monthly, or 1080 Euros per year. This means that the total amount paid for parking the buses at this location for the first year of the business will be 10800 Euros. The second location is for the management of the company. The office is located in Robinhood Road, Ballymount, Dublin 12. The monthly rent for this office is 1200 Euros, which means that the company will have to pay 14400 Euros annually for renting this office. Both locations have been found on Daft.ie website. Other important premises are of course the buses, which are crucial for starting the business. Tour de Dublin company needs 10 buses all together, 8 buses for the city tour and 2 buses for the Wicklow tour. The eight buses used for the city tour will be bought at a unit price of 13000 Euros, and since the Company has bought eight such buses we have received a small discount getting 8 buses for 100000 Euros. The other two buses which are being used for the Wicklow tour will be bought at a single price of 19500 Euros. Information and contact about these buses was established through DoneDeal.ie. Further on, it is important to say that fuel costs of these buses will be very big and could potentially have a negative impact on this business. Both petrol and diesel engines consume very high amounts of fuel. In this years report prepared by Compecon for the Coach Tourism and Transport Council it was argued that a fuel rebate of 15c/l should be accepted for bus and coach operators. Although my engines are diesel ones and a rebate of 15c/l would decrease costs from approximately 1,56c/l to 1,41 c/l, this would still be a very big cost for my business, and since the private bus and coach industry in Republic of Ireland is VAT exempt, I have decided to go from diesel engines to gas ones. In an interview with a staff member of Auto Gas Ireland, I have found out that the price of gas is 0.79 c/l, which is a substantial 22

decrease in my fuel costs. The cost of engine conversion would be 1600 Euros per engine, which is a total of 16000 Euros for my fleet. Further refurbishment, retriming and other operations of preparing buses for tours will be done by Ardee Coach Trim Ltd with a price per bus of 5000 Euros which is a total cost of 50000 Euros. The costs of engine conversion and bus preparation for tours are non-depreciable start-up costs.

Picture of Parking spaces in Royal Liver, Naas Rd, Walkinstown, Dublin 12

Picture of Office for management in Robinhood Road, Ballymount, Dublin 12 23

Picture of Double Decker bus which will be used in City tour

Picture of Coach used for Wicklow tour.

Equipment: Most important is office equipment for management in the office at Robinhood Road, Ballymount, Dublin 12. For this office we will purchase one photocopier, three cellular phones and three laptops. The three laptops will be ACER C7 Chromebooks, 249 Euros each, LOGIK L2DTAM11 Digital Cordless Telephone with Answering Machine - Twin Pack, two such phones, 31.99 Euros each, and all-in-one CANON Pixma MX435 Wireless All-in-One Inkjet Printer for 59.99 Euros. All this equipment will be bought on PCworld.ie.

Suppliers: The only major supplier will be Dublin Auto Gas, the company which will do the engine conversion of our buses will also be providing our Company with fuel. Their price of one liter of gas fuel is 0,79 c/l. Tanks of our buses can carry up to 250 liters of fuel. The yearly cost of this fuel will be 237000 for all our buses. 24

COGS: Cost of Goods Sold is very low for Tour de Dublin Company. This is primarily because the only cost here is the printing of tickets, and this amounts to 0, 5 per ticket.

Table 10: Cost of Goods Sold

Opening hours: Opening hours of the office will be from 8 am in the morning until 8 pm in the evening. Therefore the office will be open one hour before the city tours start and one hour after they finish. Since the staff manager and marketing/sales manager will be present every working day for 8 hours, the last four hours will be covered by the General Manager who will make sure that all buses have safely returned to their parking space and he will close the office. During the weekend the staff manager and marketing/sales manager will not be present in the office, only the general manager will be there two hours both in the morning when the tours start, and in the evening when the tours end.

4.3 Staff Training All staff training will be done prior to starting the business. As for the management staff, they will not go under any particular training. The General Manager will have a separate meeting with both the staff manager and marketing/sales manager to make them aware of their responsibilities. Mechanics, Accountant and Cleaners will be outsourced; therefore there is no need to have any training for them. Now we come to the most important staff, which is our tour driver. They will both do the driving and the talking, so they have to be well trained in order to provide a good service when it comes to the touristic, cultural aspect of the tour, but they also have to be able to keep themselves, the bus, and most important, tourists safe while on tour. Staff training will be done by Failte Ireland. Drivers will undergo a one month training which will be ended by an exam. All drivers, when successfully passed the exam, will be granted to 25

drive the city tour buses and Wicklow tours. The cost of this training is 1100 per driver, and since this company will have a total of 22 drivers, this cost will amount to 24200. Drivers will be paid the full monthly amount of their pay for this month of training.

Tour driver rotation

Tour de Dublin will employ 22 drivers for the two tours. 21 drivers will be working full time, out of which one will be covering for those going on vacation and one will be working part time.

City tour: 8 buses x 2 drivers = 16 drivers Wicklow tour: 2 buses x 1 driver = 2 drivers 3 substituting drivers full time, and 1substituting driver part time Timetables of the two tours would go as follows:

City tour: First driver: 9 a.m. 2 p.m. Second driver: 2 p.m. 7 p.m. First driver: 9 a.m. 1 p.m. Second driver: 11 a.m. 3 p.m.

Wicklow tour:

Every driver will have one free day during the week when a substituting driver is driving for him. Also during the working days there are two more drivers which can be substitutes, which gives us a number of 4 substituting drivers from Monday to Friday. From Monday to Thursday 4 drivers have a day off, which gives us a day of for all 16 tour drivers during one week. Substituting drivers have a day of on Friday; therefore all drivers have a day of during one full week. Since all drivers are entitled to 20 working days of vacation during one year, and taking in account that there will be sick leave of drivers, our company will have two more drivers, one working full time and one working part time in order to cover for this.

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Annual leave

According to the Organization of Working Time Act (1997) workers are entitled to 4 weeks of annual leave. Workers will be entitled to take 2 weeks leave at a time. For this period of time they will get 8% of their total annual pay. Sunday Pay

Tour drivers will be operating also on Sunday, both the city tour and Wicklow tour. Drivers will also be working 5 hours each, and they will get paid for their Sunday work. They will get 1/3 extra of their daily wage.

Night time Pay

Night time pay will be present because of night tour guides who will be operating the Student Night Out tour. They will be working on Thursday, Friday and Saturday evening from 11 pm to 3 am in the morning, 6 months, namely January, February, March, September, October, and November. Night tour guides will get 25% extra on their hourly wage for hours they are working.

Sick leave

Workers will be entitled to sick leave; however the company will not cover the costs of workers going to sick leave.

Public Holidays

There are nine public holidays in Ireland, namely: New Years Day ( 1st January) St. Patricks Day ( 17th March) Easter Monday First Monday in May, June, August Last Monday in October Christmas Day ( 25th December) St. Stephens Day ( 26th December)

Because of the fact that there are not many tourists around these days in Dublin, and also because on some holidays, St. Patricks for example, the streets are blocked, there is no need for Tour de Dublin to operate on these days 27

6. Competitors

6.1 Competitor profiles The main service of our company is the city tour and the tour to Wicklow. Therefore our main competitors are companies whose main service is also providing tours around Dublin and to Wicklow. We are talking about two companies:

6.1.1

City Sightseeing Ltd

This is a privately owned company with franchises in about 100 cities in the world and around 80 countries according to their official website. This company was established in 1999 in Seville, Spain and that tour is still the back bone of their business. Starting with just four tours in 2000, and having around 100 tours today is an incredible accomplishment. Obviously one of their strengths is the huge experience in doing city sightseeing tours and well trained staff which makes them a wellestablished company in this industry. They can be easily identified by the red buses they use for tours around the city, and from the interview with the staff member of this company, in Dublin they operate around 35 of these buses. Sales and marketing department of this company is located in Warwickshire, Great Britain. Buses for the tours of this company are stored in Rathcool. This company is ranked 30 of 130 activities to do in Dublin according to Tripadvisor.com. This company was also proud winner of the Top open operator of the year 2011.

6.1.2

Dublin Bus Tours

This company is part of the main public transport company in Dublin. It is a subsidiary of Coras Iompair Eireann, which is owned by the Irish Government. The company operates with 23 buses for the city tour, 4 coastal buses and 2 ghost buses. Being a public company gives Dublin Bus a big advantage and makes them also a well-established company in this industry. Office of this company is located in 59 Upper O Connell Street, Dublin1. According to Tripadvisor.com, Dublin Bus Tours is ranked 12. From 130 activities to do in Dublin and it has an excellent review. Definitely another big advantage of this company is the friendly and approachable staff which did not hesitate to answer me any questions during interviews, except for 28

those to which they did not know the answers. Another big advantage of this company is the fact that they have more offered tours, such as the Airport express, The North Coast and Castle tour, Walking tours, River tours, Hotel shuttle and the 3-Day Freedom ticket which includes the Hop on Hop off tour, all Dublin Bus commuter services and the Airport Express Service. It is also important to notice that Dublin Bus Sightseeing does not spend its own money on insuring buses, drivers, or tourists. If anything happens, the insurance part is covered from the Dublin Bus revenue. This is a big decrease in costs.

Apart from these two companies which I have identified as our main competitors, there are tour operating companies which now may not be our direct competitor, but because Tour de Dublin will strive to increase its portfolio of services, these companies must be taken into account:

Quicktours.ie

Tour Company operating 1-3 day tours to tourist attractions out of Dublin city.

Bonanza Bus

100% Irish owned company catering for many occasions, such as business occasions, weddings, parties, golf outgoings, etc.

Paddy Wagon

Tour operating company doing 1-10 days tours, Easter tours, Christmas tours, New Years tours, etc.

Information about the main competitors was achieved from their respective official web sites and by doing interviews with staff members. Information about other competitors was achieved from their web sites only.

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6.2. Weaknesses of Competitors Regarding the two main competitors, it is very hard to find their weaknesses since they are well-established companies in this industry. However, by doing desk research I have found out that there are many web sites offering tickets for these two companies at much lower prices than the actual price. I decided to give it a try and I fulfilled the needed information, including my debit card details. After that nothing happened, I did not get any mail to confirm that I have successfully purchased the ticket and I was very afraid that my debit card details were stolen and could be misused. This is a major security failure and should definitely be addressed when my company creates their own web site. Also while doing an interview with one driver from City Sightseeing Ltd (privately owned company), I found out that many of their drivers are being disposed during the period between October and March, since then there are not so many tourists in Dublin and this causes the drivers to be very unhappy.

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References
1. AutoGasIreland. 2012. Engine Conversion. [ONLINE] Available at: http://www.autogasireland.ie/index.htm. [Accessed 22 March 13]. 2. Ardee Coach Ltd. 2012. Bus retriming. [ONLINE] Available at: http://ardeecoachtrim.com/. [Accessed 23 March 13]. 3. BonanzaBus. 2012. BonanzaBus. [ONLINE] Available at: http://bonanzabus.ie/. [Accessed 12 December 12] 4. BudgetPrintIreland. 2013. Flyers. [ONLINE] Available at: http://www.budgetprintireland.com/. [Accessed 16 February 13]. 5. CitizenInformation. 2012. Annual leave. [ONLINE] Available at:http://www.citizensinformation.ie/en/employment/employment_rights_and_con ditions/leave_and_holidays/annual_leave_public_holidays.html. [Accessed 27 March 13]. 6. CitizenInformation. 2012. Public Holidays. [ONLINE] Available at:http://www.citizensinformation.ie/en/employment/employment_rights_and_con ditions/leave_and_holidays/public_holidays_in_ireland.html. [Accessed 27 March 13]. 7. CitizenInformation. 2012. Sunday Pay. [ONLINE] Available at:http://www.citizensinformation.ie/en/employment/employment_rights_and_con ditions/hours_of_work/working_week.html. [Accessed 27 March 13]. 8. CitizenInformation. 2012. Night time Pay. [ONLINE] Available at:http://www.citizensinformation.ie/en/employment/employment_rights_and_con ditions/hours_of_work/working_week.html. [Accessed 28 March 13]. 9. City Helpers. 2012. Maintenance. [ONLINE] Available at: http://www.cityhelpers.com/. [Accessed 18 March 13]. 10. CitySightseeingLtd. 2012. CitySightseeingLtd. [ONLINE] Available at: http://www.citysightseeingdublin.ie/. [Accessed 12 December 12]. 11. Compecon. 2013. Fuel Rebate. [ONLINE] Available at: https://www.google.ie/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved= 0CC8QFjAA&url=http%3A%2F%2Fwww.cttc.ie%2F_fileupload%2FFuel%2520 Rebate%2520Report%2C%2520Final%2C%2520113.doc&ei=VsVbUejbEI2rhAeOiIGoAw&usg=AFQjCNGq6HAhvqlZgGPkjNA DUKj7HsXZyw&bvm=bv.44697112,d.ZG4. [Accessed 22 March 13]. 12. CSO. 2012. Central Statistics Office. [ONLINE] Available at:http://www.cso.ie/Quicktables/GetQuickTables.aspx?FileName=TRDA1.asp& TableName=Overseas%20Visits%20to%20and%20from%20Ireland&StatisticalPr oduct=DB_TM. [Accessed 15 November 12].

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13. Daft. 2012. Royal Liver, Naas Rd, Walkinstown, Dublin 12. [ONLINE] Available at:http://www.daft.ie/searchparking.daft?id=9381. [Accessed 12 December 2012]. 14. Daft. 2012. Robinhood Road, Ballymount, Dublin 12. [ONLINE] Available at:http://www.daft.ie/searchcommercial.daft?id=71703. [Accessed 13 December 12]. 15. DoneDeal. 2013. Coaches. [ONLINE] Available at: http://www.donedeal.ie/forsale/coaches/4734052. [Accessed 20 March 13]. 16. DoneDeal. 2013. Double-decker. [ONLINE] Available at: http://www.donedeal.ie/for-sale/coaches/4685011. [Accessed 20 March 13]. 17. DublinBus. 2012. DublinBusSightseeing. [ONLINE] Available at: http://www.dublinbus.ie/. [Accessed 12 December 12]. 18. Environ. 2012. MotorTax. [ONLINE] Available at:http://www.environ.ie/en/LocalGovernment/MotorTax/MotorTaxRates/Rateof DutyonOtherVehicles/. [Accessed 22 March 13]. 19. Failte Ireland. 2012. Staff Training. [ONLINE] Available at: http://www.failteireland.ie/?gclid=CO7q97ukwrYCFVGV4QodMSkAog. [Accessed 27 March 13]. 20. Goldenpages. 2012. Northside Test Centre. [ONLINE] Available at: http://www.goldenpages.ie/northside-test-centre-cloghran-D17/1/. [Accessed 15 March 13]. 21. Irishjobs. 2012. Marketing/Sales Manager. [ONLINE] Available at: http://www.irishjobs.ie/. [Accessed 13 March 13]. 22. Irishtimes. 2012. Breaking news. [ONLINE] Available at:http://www.irishtimes.com/newspaper/breaking/2012/1026/breaking30.html. [Accessed 15 December 12]. 23. KeyStone. 2012. KeyStone. [ONLINE] Available at: http://www.keystone.ie. [Accessed 20 March 13]. 24. Mintel. 2012. Sightseeing- Ireland. [ONLINE] Available at:http://academic.mintel.com.ezproxy.gcd.ie:2048/display/592316/?highlight=tru e. [Accessed 14 February 13] 25. Mintel. 2013. Domestic vs Overseas Tourism-Ireland. [ONLINE] Available at:http://academic.mintel.com.ezproxy.gcd.ie:2048/display/643213/?highlight=tru e. [Accessed 16 February 13]. 26. MoneyGuideIreland. 2012. Rates. [ONLINE] Available at: http://www.moneyguideireland.com/property-tax-how-much-will-it-be.html. [Accessed 22 March 13].

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27. PaddyWagonTours. 2012. PaddyWagonTours. [ONLINE] Available at: http://www.paddywagontours.com/. [Accessed 12 December 12]. 28. Payscale. 2012. Staff Manager. [ONLINE] Available at:http://www.payscale.com/research/IE/Country=Ireland/Salary. [Accessed 13 March 13]. 29. Payscale. 2012. Tour driver. [ONLINE] Available at:http://www.payscale.com/research/IE/Country=Ireland/Salary. [Accessed 13 March 13]. 30. PC world. 2012. All-In-One Printer. [ONLINE] Available at: http://www.pcworld.ie/Product/CANON-Pixma-MX435-Wireless-AllinOneInkjet-Printer/313314/314. [Accessed 24 March 13]. 31. PC world. 2012. Digital Telephone. [ONLINE] Available at: http://www.pcworld.ie/Product/LOGIK-L2DTAM11-Digital-CordlessTelephone-with-Answering-Machine-Twin-Pack/306614/387.1.2. [Accessed 24 March 13]. 32. PC world. 2012. Acer- Chromebook. [ONLINE] Available at: http://www.pcworld.ie/Product/ACER-C7-Chromebook/314233/301. [Accessed 24 March 13]. 33. quicktours. 2012. Quicktours. [ONLINE] Available at: http://www.quicktours.ie/. [Accessed 12 December 12]. 34. RecruitIreland. 2012. Accountant. [ONLINE] Available at: http://www.recruitireland.com/. [Accessed 13 March 13]. 35. Revenue. 2012. VAT rates. [ONLINE] Available at: http://www.revenue.ie/en/tax/vat/rates/rate-changes-jobs-initiative.html. [Accessed 22 March 13]. 36. RTE. 2013. National Radio Card. [ONLINE] Available at:http://www.rte.ie/radio/advertising/content/pdf/RTE%20Radio%20Rate%20Car d%20Jan-Dec%202012.pdf. [Accessed 17 February 13]. 37. Tourism Ireland. 2012. Tourism. [ONLINE] Available at: http://www.tourismireland.com/. [Accessed 15 December 12].

38. The Gathering. 2012. The Gathering. [ONLINE] Available at: http://www.thegatheringireland.com/. [Accessed 16 December 12]. 39. UPC. 2012. Broadbandphone. [ONLINE] Available at: http://www.upc.ie/deals/Broadbandandphone/. [Accessed 20 March 13]. 40. Website Dublin. 2011. Website Dublin. [ONLINE] Available at: http://www.websitedublin.com/. [Accessed 14 February 13]. 33

Appendices
Appendix 1- Observational research 1 Observational research was done on the 12th December 2012, Wednesday. Observational research included taking part in city tours operated by two main competitors, Dublin Bus, and Citysightseeing Ltd. This observational research has indicated the target market and when the sales of this service would generate the biggest amount of income. Observation showed that target market for this service cannot be allocated according to age, gender, or something similar. This service is enjoyed by students, older people, families, middle aged coupled without children, basically everyone. Therefore target market for this tour are people who are staying in Dublin for a very short period, one weekend for example, and they wish to see as many sightseeing attractions as possible. Further on, I have come to the conclusion that this tour is most attractive in the summer period, not only because than there are the most tourists around, but all tourists who take the city tour wish to sit in the upper, open deck of the buses, and in winter and fall that is very difficult due to the weather conditions.

Observational research 2 This second observational research was done on the 16th March 2013, Saturday. Observational research included a trip to Wicklow onboard the bus of one of two main competitors. This observation showed me all the beauties of Wicklow tour and made me definitely put this tour in my offer. Also I have identified the target market for this tour. The target market includes tourists who are staying in Dublin for a longer period, particularly older people and middle aged couples without children. Also in the target market we can include domestic people of age 55+ who intend to stay in Ireland and spend their holidays here.

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Appendix 2- In-depth Interview Interviews have been done both by phone and direct face to face with drivers of competitors, other people visiting city and Wicklow tours, driver supervisors from two main competitors, one general manager and employees from other companies and government authorities which were important for starting up the business.

Interviews with drivers from competitors

There have been done 6-8 face-to-face interviews with tour drivers of two main competitors. Interviews were done from October to the end of March. Tour drivers have shown a high level of communicative skills, were very outgoing, provided me with answers to various questions regarding the number of employees, number of buses, length of tours, number of hours they spend driving every day who provided them with training for tours. The only information which was hard to receive was the salary which none of the drivers wanted to provide. It is important to note that the drivers have not just provided me with valuable primary source information; their outgoing way of communicating with me has shown me a pattern of positive behavior which will be definitely expected from my tour drivers when operating on tours.

Interviews with supervisors from competitors

Interviews with supervisors, one from Dublin Bus and one from Citysightseeing Ltd were done on the 11th February 2013, Monday. These supervisors have been useful in providing information regarding the rotation system of tour drivers, number of working days in one week, vacation, public holidays, etc. Again they were also very outgoing and communicative.

Interview with General Manager of main competitor

This interview was done on the 3. April 2013, Wednesday at 10 am in the morning. The General Manager has provided me with very useful information regarding financial numbers which has helped me in determining my own financial forecasts, such as company revenue, etc. The General Manager has also provided me with 35

information regarding the costs of licensing the business for the city and Wicklow tours.

Interviews with other participants of city tour and Wicklow tour Interviews were done after the city tour and Wicklow tour. Interviewed people stated that these tours are a very useful, especially the city tour when you do not have much time to spend in Dublin but want to see as much as possible. The interviewed people on the Wicklow tour stated that it is a beautiful experience but they wished it had lasted longer. This is something Tour de Dublin will work on.

Telephone interviews Telephone interviews were done with companies and government authorities regarding star-up equipment and some overhead costs.

AutoGasIreland: Telephone interview with employee who explained in detail the process of engine conversion for the buses used by Tour de Dublin and costs of this process for each bus. He also insured me that AutoGasIreland would provide our company with gas.

Ardee Coach Ltd: Telephone interview with employee who explained the process of bus retriming for city tour buses and stated the cost for each bus.

Keystone: Telephone interview with employee of this insuring organization who explained in detail the costs of insuring employees, customers and buses.

National Transport Authority: Telephone interview with person in this government body which regulates the licenses for city tours and Wicklow tours. The person explained in detail the process for getting the license and annual costs of those licenses. Also this information was confirmed in the interview with the General Manager of one major competitor.

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North Side Test Centre: Telephone interview with employee of this company has provided me with information regarding the testing and servicing of buses and annual costs for this service.

All observational research and all interviews were conducted by Damir Filipovic throughout the academic year in order to gain primary research data.

Appendix 3- Calculations Calculation of sales

City tour: Calculation of sales for this tour was done by doing primary research which has indicated in which months we can expect high sales and in which we can expect low sales. Also we have to take in account that our city tour buses have 72 sitting places altogether, the number of tours that each city tour bus drives every day and that our city tour ticket lasts for three days. For example: The price of the city tour ticket is 21. One bus has 72 sitting places. Each bus can drive 5 tours a day. This means that this one bus could earn a maximum of 7560 if it would be full each tour. Here we have to take in account the time of year and the fact that out ticket lasts for three days.

Wicklow tour: Calculation of sales for this tour was done by doing primary research which has indicated the possible numbers of visitors during the year. Also the number of seats and number of weekend tours was taken into account when calculating the estimates sales.

Student Night Out: Calculation of sales for this tour is not easy given the fact that this is a new type of service, and therefore it was allocated only 5% of total sales for each of the first three years.

37