ENTRPHRM

FEASIBILITY
CHAPTER 1
And 2
Submitted by:
Gutierrez, Kimberly Faith

Section
TM601P

Javier,
Catanghal,
Divinagracia,
Aguilar,
Calim,
Submitted To:
Maam Lazarin San Diego

1.0 INTRODUCTION
- At present time, people are engaged in travel for many reasons like Leisure, Education,
Health, and Business purposes. Others are travelling to visit friends and relatives (VFR).
Never before have people traveled so frantically as these days. Sometimes we travel not
just because we want to, but because we have to. Since people need to escape from reality
or everyday life that they are in, so, travelling is the best way to happen and experience
such. Thus, _______ is here to impart the best service that it can offer. By having an
affordable rates with high quality services, this will surely meet the budget of potential
customers at high standard tour packages with the guarantee of satisfaction all throughout
their travel. __________ is committed and dedicated in providing continuous supremacy in
travel and tours.
_______________ is a travel agency that is dedicated to provide adventure and
sports/travel packages to people travelling domestically for local and international tourists.
An opportunity for __________ success exists because tourism is one of the major
industries known to be the largest that generate income in the Philippine economy.
Therefore, it is poised to take advantage of this growth and minimal competition with other
travel agencies.
Additionally, making tour packages that will cater different types of individual and tour
groups especially through handling educational tours, company vacation/travel and others to
name a few. Local or domestic tour packages will only be the scope of this agency
considering that we want to feature and promote the beauty of our own country, and support
the slogan "It's More Fun In The Philippines". Truly, Philippines is a wonderful country that
possesses abundant and natural attractions that can pleased everyone's attention either
locally or by other nationalities throughout the World. If you want to have a high quality
experience that are of cheaper and affordable rates, then _______________ is the best for
you.
2.0 MARKETING ASPECT
2.1 Product or Service
2.1.1 Product Description
Looking for a way to have a memorable travel experience?_________ services and tour
packages are the answer for this. While our customers are the focal point of everything we do,
their satisfaction is found in the high performance and quality standards that we set for
ourselves. The tour packages are extraordinarily reasonable, economical or at low-cost Of
course, tour packages and services will be offered and cascaded to the three groups of Island,
from Luzon to Mindanao.
_____________ offers very affordable yet high standard tour packages which covers Hotel
Accommodation, Food and Beverage,transportation,tour guiding services and the entrance fees
for the destinations to visit. Also with different services such as travel consultation, pre-arranged
tours and custom packages. This means that every customer's need during their travel period
and stay to an area will take into account.
______________is a full service agency and sells standard travel agency goods and services,
including airfare and travel packages. Additional services include assistance with passports,

VISA, NSO certificate, providing access to top-of-the-line equipment and supplies, and a
superior offering that includes access to better than average terrain and activities,
accommodations, and entertainment.
Ultimately it is _______'s aim to deliver a consistently high quality product in both performance
and longevity, coupled with support and service to ensure our customers expectations are both
met and exceeded by having a policy of continuous improvement for value added benefits for
our customers.
2.1.2

Benefit of the Product

____________ provides convenience in terms of producing high standard packages and

services to customers. Travel plan comprise of the desires and needs of the travelers all along
their tour. From departure to Arrival, customers need not to worry on their necessity throughout
their journey in a destination as every single thing has been arranged accordingly. Travel
Insurance will be given for the customer's safety insurance as it is needed by every traveler to
feel secure while enjoying or taking pleasure in their excursion.
In addition, this will be offered at cheaper rates with quality-guaranteed. Since adventure
enthusiasts are extremely increasing, this travel agency will attract them as it is a combination of
enjoyment through the arranged adventure activities personally customized according to their
wants at affordable cost. This travel agency is worth paying as it also assures that it is capable
of providing not only the travel experience but also with the learning they will get as they will be
accompanied by a well-trained and licensed tour guide.
_________ is also engaged to help our country be promoted particularly our natural
attractions that are worth visiting and worthy to be proud of. This in turn will help increase the
economic condition since tourism industry is a dollar earner. Therefore, it would be a great help
to patronize the wonders of our country by promoting it through the _________________Thus, this travel agency is a service-oriented establishment with full of aspirations to help the
country and its people while earning profit.
2.1.3

Product Testing

Before ________ be operated and started, random studies/research will be conducted.

This includes random surveys to weigh the interests and demands of the customers in the travel
agency. Survey questionnaires will be disseminated to 100 potential customers and select a
sample out of the respondents. This travel agency needs to be globally-competitive so careful
study of the hottest trends and known-tourist destination which leads to tourists arrivals will be
addressed to have a proper planning.
Having an investigation to the safety and security of the chosen destination of tour
packages will also be studied, by going personally at the place and measure the exact total
expenses per person (pax) including the transportation, lodging, F&B and of course the
adventure touring activities that customers may avail before coming up with the projected rate
per package tour. Through this, proper selection of tie-up interconnected establishments will
also be distinguished.

2.2 Marketing Mix

2.2.1 Product/Service
2.2.1.1 Primary Features
Low-Cost
- The packages and services are of low rates and is highly affordable by any adventure
enthusiasts and travelers domestically. Much of __________ pricing is determined by market
standards. ATTA will attempt to maintain margins of 10% on all airline travel. _________ will
make every effort to maintain a competitive pricing policy.
Safety
- The destinations presented in projected tour packages are carefully studied so safety of the
place is assured to travelers. The staffs especially the tour guides/facilitators are well-trained
and licensed enough to conduct a tour. Bus-drivers are also licensed and professional enough
who had undergone a series of examinations and is connected to a bus-transport agency.
Touring activities for adventurers or those who want to engage in these activities will also be
take into account. Travel insurance will be given to travelers.
Convenience
- The tour packages are specifically designed to meet all the needs and wants of the customers
including the lodging, transport, f&b etc. For additional services like passport and VISA needed
by the traveler, _______ will take into charge of it at the right cost.
Accessibility
- Since this travel agency will be located at Makati area, It will be accessible for customers to
reach and find it since it is around NCR and at a commercial area. This is a hassle-free travel
agency which is easy to go to.

2.2.1.2 Added Value compared to competitors

Affordability
- The rate of the tour packages that we offer is surely more affordable than any travel and tour
companies out there. We have proper negotiations with the management of tourist destinations
and bus companies to tied up with us so we willpay less for their services. Ensuring that we will
be partners with contracts supported legally so their rate on us us more cheap.that's why our
tour packages is cheaper than any travel and tours company.
Security
- We want to make sure that our customers are secured so we have tied up a partnership
with a insurance company with a low rate. We anticipate accidents and incidents and we will
make sure that our customers will be insured in case of any accidents or incidents. It is one of
our ways to show how much we care for our customers.

Loyalty Discount
- If a certain individual, school or company avail our services for consecutive times they will
be granted a great discount. We value the patronizers of our service and a continued availing of
our service means more advantages for our valued customers.

2.2.2

Place
2.2.2.1 Use of Distribution Channels

Internet
- Since social media plays a big role in providing information and awareness to people and
mostly everyone has an access in the internet, We will be using the internet to show and feature
our tour packages and services that they can avail. Other details and promos will also be
presented through this channel. In case they have inquiries, they will be accompanied and
answered accordingly.

Printed Ads
- Flyers is one of the cheapest yet effective way of presenting the product and service to the
market. Thus, it will be distributed in public areas like malls,schools and MRT stations where it
features our tour packages and promos, including our company information like contact details
and address for their queries and how they can reach us. We also be having print ads along the
streets through tarpaulins and newspapers.
2.2.2.2 Strategic Placing in the market
_______________________will be located in a place that is accessible to most people,
which is around the NCR region. This agency will be located particularly at Ayala, Makati near
Bel-Air Makati, Metro Manila and its land area is around 100 Square meters. There are two
potential competitors of _______around this area -ITravelPhilippines (23-0 Burgundy Corporate
Tower, 252 Sen Gil Puyat Ave, Makati City, Metro Manila) and Study Connect International
Services, Inc. - Makati Office (Unit 1003 Philippine AXA Life Insurance Center, 1282 Senator Gil
Puyat Avenue, Makati City, Metro Manila.)

This is our first choice because it is known for successful businesses

being operated. This is also accessible for the customers.

2.2.3

Promotion
2.2.3.1 Advertising and Promotion
2.2.3.1.1 Advertising

Social Media/ Website

- The social media will be used to advertise/promote our tour packages, discounts and
promos. We will be making specific page and website for _____________ through facebook
page, instagram and twitter account. This will guide the potential customers to avail the service
they want.
Flyers
- The flyers will primarily encompass our services, latest promos, and details of the
company within. It will be simple but eye-catchy in terms of its appearance including the
color,texture,size which influence the attention of people.
Newspaper Ad
- We will choose and pay a certain locally-known newspaper agency but of the lowest cost
possible as a starter and print our advertisement on their ads.
Tarpaulins
- Tarpaulins will also be posted along the streets and public areas specifically along nearby
areas.
2.2.3.1.2
Opening Discount

Sales Promotion

- As we start our operations in the first day, the first 30 customers that will avail our tour
packages will be granted a 10% discount.
Senior Citizen Discount
- Senior citizens from 60 years old and above is highly acknowledge and will automatically
receive 20% discount on any tour packages and services. Submission of any valid I.D and birth
Certificate is needed.
Summer Season Promo
- During this season, 25% discount on every destination place they avail as long as it is
connected with resorts and beaches will be offered to the customers.
Large Tour Group/Quantity Discount
-There will be quantity discounts on travellers when they have reached 50 people or more
going for a specific tour package. This will serve as a motivation for them to purchase our
service in large volumes.

2.2.3.1.3

Personal Selling

Sales Persons Approach

- We will assign sales persons to roam on public places and to personally offer our tour
packes. Also we will send sales persons on schools and offices to offee our tour packages.
Tour Counseling
- We will conduct tour counseling for our customers to know the appropraite tour packages
suited for their preferences and budget.
2.2.3.1.4

Public Relations

Inquiries
- We are open to all the questions of our potential customers in the social media. Also we
have our hotline and mobile phone number for their queiries. They can also personally visit our
travel agency for their questions.
Suggestions
- We are open for suggestions in our social media accounts and pages. Suggestions from
social media will be reviewed and studied if can be applied to our services.
Comments and Reactions
- The customers that availed our tour will be given a reaction sheet to evaluate their overall
experience in the tour. We are also open for the comments and reactions of the netizens on the
social media about our tour packages.
2.2.3.2 Methods and Message
2.2.3.2.1 Type and Media used

Social Media
- We will have our facebook page for Schole Travel and Tours
Also a instagram and twitter accounts.
Newspaper and Print Ads
- Schole Travel and Tours will have an ad on a certain newspaper. Additionally flyers will be
distributed and tarpaulins will be posted along the streets.

2.2.3.2.2

Message conveyed

The message we will convey is mainly our affodable but high quality service. We would like
everyone tobe aware that we are dedicated in providing excellent service in terms of travel and
tours. We will let them know that we find ways for everyone to have a break in the reality of life.
Also we conveyed that tours and travelling are not only for rich people. Even the low wage
earners will have a tour package that they can afford. In simple words travel and tour are for
everyone to enjoy.

2.2.3.3 Spending and Timetables

2.2.3.3.1 Advertising and Promotional materials will be used
Type of Advertising
Internet / Social Media
Flyer
Tarpaulin
Newspaper

Quantity
N/A
1000 copies
200 copies 8x10
N/A

2.2.3.3.2
Overall Budget for Advertising
6,000.00 php
-

Price
Energy Cost
15 pesos per copy
60 pesos per copy
Depends
on
Newspaper
Company Rate

Brief explanation on the budget set for the

advertising and promotions
Overall Budget for Promotions
2,000.00

The set budgets are based on the estimated cost of the spending on Advertising and
Promotions.
2.2.4

Pricing
2.2.4.1 Describe the pricing strategy and justification

For Day Tour

Transportation
Toll Fees
Tour Guide, Driver, Staff
Hotel Accommodation
Entrance Fees
Insurance
Buffer
Total = x15 Mark up

2.2.4.2 Gross Profit Margin

2.3 Marketing Environment

2.3.1 Target Market
2.3.1.1 End users from customers
End Users
Students
- Fully developed tour packages are commonly for them because their tour is for educational
purposes. The tour will enhance their knowlegde and skills. The tour packages product will
cause them cognitive development. They always tend to avail the same service for the reason
that it willenhance their further development.
Pilgrims
- These peace seekers aims to develop theirselves and enhance their faith. Fully develop tour
packages are for them cause their itineraries should be purely destinations that is quiet and
peaceful. They tend for repetition of availing the service if they more seek for inner peace.
Customers
Vacationers

- The individuals, couple or tour groups that seeks places to have fun and unwine
They want to remove the stress they acquire from their work. Any tour package will fit them for
the reason that they are open to go to any destinations that they can enjoy.

2.3.1.2 How the product/service will benefit its end users and
customers
Benefit to End Users
- The tour service can help the end user to develop themselves in certain aspects. Specialized
tour packages are can cause them to acquire new knowledges and skills. Tending for repetition
of availing the service can more enhance their knowledges, skills and other aspects in their
lives.
Benefit to Customers
- The tour service will enable them to escape the reality of life which is full of stress. The whole
tour will enable them to escape the real world for a while. They will feel relaxed and stressed
free. The feeling of joy during the tour is priceless especially when they are with their loved
ones. It also make them explore new destinations, their tour is full of adventures and enjoyment.

2.3.2

Business-to-business markets
2.3.2.1 To what industry does the target market belong to?

Manual Labor Industry

-This industry is one where the target market belongs. These individuals are commonly
composed of low wage earnersor manual laborers which is theblue collar job workers but still
Schole Travel and Tours has a tour package that they can afford. They are one of the target
because their population is huge and they always wanted to have a rest durings holidays with
their families and co workers.
Educational Institutions Industry
- This industry which are one of the main target because one tour availed by the institutions of
this industry can bring a huge profit. Educational purposes are the reason why schools avails
tour packages. It can be and educational trip or seminars.
Corporate Industry
- This industry is composed of professionals which are average and high wage earners which is
the white collar job workers. Hence their company usually conducts company tours or outings.
Having them availed our tour services can generate a huge amount of income.

2.3.2.2 The market size

The size of the target market of Schole Travel and Tours are all huge. Because these industries
belongs to the largest industries in the Philippines. They are commonly the industry that avails
tour packages. Thus tours are common to these industries whether for leisure or educational
purposes. So the market size of the manual labor, educational institutions and corporate
industries are all huge.

2.3.3

Business-to-customer markets
2.3.3.1 Demographic Factors
2.3.3.1.1 Distribution of Respondents According to Age
2.3.3.1.2 Distribution of Respondents According to Gender
2.3.3.1.3 Distribution of Respondents According to Civil
Status
2.3.3.1.4 Distribution of Respondents According to
Occupation
2.3.3.1.5 Distribution of Respondents According to Monthly
Income

Philippines Demographics Profile 2014

- Statistics Data are from the Official Site of National Statistics Office
Population

107,668,231 (July 2014 est.)

NCR
9,932,560 = 12.98
Age and Gender
0-14 years: 33.7% (male 18,493,668/female 17,753,359)
15-24 years: 19% (male 10,416,358/female 10,044,724)
25-54 years: 37% (male 20,031,638/female 19,796,545)
55-64 years: 5.8% (male 2,882,719/female 3,372,485)
65 years and over: 4.5% (male 2,103,596/female 2,773,139) (2014 est.)
Civil Status

Occupation

Monthly Income

2.3.3.2 Psychological Factors

2.3.3.2.1 Psychological Segmentation
Knowledge (cultural or educational motives)
- The tourist that seeks to learn about a certain culture of a place or for educational
purposes like seminars and trainings.
Punishment Minimization (the need to escape)
- The tourists that want to release stress in the way of leisure.
Reward Maximization (pleasure or sensation-seeking)
- The tourists that succeed something in their life and wants to celebrate it by means of
seeking pleasure in leisure.
Self Esteem (Social Prestige)
- The tourists that want to socialize with others or find new friends and acquaintances by
the means of tour to develop their self esteem.
Ego Enhancement (Social Prestige)
- The tourists that seeks social recognition from others that they are living a prestige life.

2.4 Competitors

2.4.1

Describe from the target market level who are the direct and indirect
competitors

Target Market Level

-

The target market level of Schole Travel and Tours are people of all ages vary with any
reason that wants to travel within our country. Reasons that may vary from educational,
business, leisure, religious etc.

Direct Competitors
-

The travel agencies near our area and within the Quezon City that offers the same
services.

Indirect Competitors
-

Large and leading travel agencies that some of their features offers the same services.
2.4.2

Key competitors

Travel Agencies within Quezon City Area

2.4.3
Insufficient funds

Key barriers to entry in the market

- The capital may not be enough in fully establishing the business and also their taxes and
permits that requires fees. Thus availing loans is a high risks and can lead to bankruptcy
because projected sales does not have an assurance of profit generation.
Lack of Experience
- Establishing a travel agency isn't that easy especially when the owners of the business are
new to the field. Even though the owners gone through proper education. The real field of travel
and tours is way far different than educational facilities. Thus newbie owners can experience
unexpected hard circumstances that can cause the failure of establishing the business.
2.4.4

The uniqueness of the product

Revolutionary Itinerary
One of a kind tour packages that is unfamiliar and new to the customers. The great
combinations of the destinations in the itineraries are surely amazing and the tour is undeniably
exciting.
Insurance
We will tie up with an insurance company that offers low price insurance but will cover any
incidents or accidents during the tour. Other travel agency has wavers for customers to avoid
liability. But in our tour packages rate the insurance is included with a cheap and affordable
price.
2.4.5

How competitors will react to this new business idea

The business idea of Schole Travel and Tours may have the tendency to be imitated by
other competitors. Also they will make the price of their tour packages as cheaper as they can to
match or surpass the affordability of the tour packages of Schole Travel and Tours. There's also
a high tendency that the competitors will make more promos to diverse the attention of the
customers to them. There is also a high chance that competitors will make desperate moves like
finding the weaknesses of Schole Travel and Tours and use it as an advantage against us.

2.5 Industry

2.5.1

Details about the industry in which the business operates

Tourism Industry
- Tourism is travel for pleasure; also the theory and practice of touring, the business of
attracting, accommodating, and entertaining tourists, and the business of operating tours.
Tourism may be international, or within the traveler's country. The World Tourism Organization
defines tourism more generally, in terms which go "beyond the common perception of tourism
as being limited to holiday activity only ", as people "traveling to and staying in places outside
their usual environment for not more than one consecutive year for leisure, business and other
purposes".
Tourism can be domestic or international, and international tourism has both incoming and
outgoing implications on a country's balance of payments. Today, tourism is a major source of
income for many countries, and affects the economy of both the source and host countries, in
some cases being of vital importance.
Tourism suffered as a result of a strong economic slowdown of the late-2000s recession,
between the second half of 2008 and the end of 2009, and the outbreak of the H1N1 influenza
virus, but slowly recovered. International tourism receipts (the travel item in the balance of
payments) grew to US$1.03 trillion (740 billion) in 2011, corresponding to an increase in real
terms of 3.8% from 2010. International tourist arrivals surpassed the milestone of 1 billion
tourists globally for the first time in 2012, the same year in which China became the largest
spender in international tourism globally with US$102 billion, surpassing Germany and United
States. China and emerging markets such as Russia and Brazil had significantly increased their
spending over the previous decade.
Tourism is an important, even vital, source of income for many countries. Its importance was
recognized in the Manila Declaration on World Tourism of 1980 as "an activity essential to the
life of nations because of its direct effects on the social, cultural, educational, and economic
sectors of national societies and on their international relations."
Tourism brings in large amounts of income into a local economy in the form of payment for
goods and services needed by tourists, accounting for 30% of the world's trade of services, and
6% of overall exports of goods and services. It also creates opportunities for employment in the
service sector of the economy associated with tourism.[
The service industries which benefit from tourism include transportation services, such as
airlines, cruise ships, and taxicabs; hospitality services, such as accommodations, including
hotels and resorts; and entertainment venues, such as amusement parks, casinos, shopping
malls, music venues, and theatres. This is in addition to goods bought by tourists, including
souvenirs, clothing and other supplies.
2.5.2

Illustrate and explain demand and supply factors and the trends of
the industry

Basic concept on demand and supply factors is the higher the demand, the lower the supply
and vice versa.
If the demand for a destination gets high then the supply in that destination will fall and the
supply should become efficient.
If the supply in a destination is high and the demand for that destination is low then there will be
many exceed on supply and may tend to be a waste of money.

Trends in the Tourism Industry

White Sand Beaches
-

Tourists always look for white sand beaches that are pleasing to their eyes and not to
mention the crystal clear waters.

Local Delicacies
-

Tourists crave for the local delicacies that are native to one province. The recipes that
were passed to present generations by their ancestral traces.

Underground Caves
-

Many percentages of tourists looks for adventure and one of the hottest destinations are
the underground caves.

Ancestral Houses
-

The majestic architecture of the houses of an individual or clan that has a mark on
history.

Historical Heritage
-

The places where the people that part of the national history lives during their glorious
years.

Gambling
-

A hobby for those tourists who have fortunes and want to gamble for fun.

Health and Wellness

-

Certain percentage of tourists wants to travel for health purposes in natural ways like
going to hot springs and doing physical activities that improve physical fitness.