1

A # 1
FEASIBILI
TY
STUDY
FOR
TRAVEL
AGENCY
1 ABRACIA, Hector
2 AGRAAN, Precious Apple
3 AGUILA, Ma. Cristina
4 AKIATAN, Trixie Mae
5 ALIMES, Ruchai Mae
6 AMORA, Joe Ann
7 AWA, Euliza
8 BANDOLA, Jessanel
9 BENDAL, Joanne 2
10 CANTON, Fatima
45 ARIVE, Erlisar
46 CASTILLO, Richalyn
 T ABLE OF C ONTENTS
EVIRA TRAVEL AND TOURS

History.......................................................................................................................................................5
Mission......................................................................................................................................................5
Vision........................................................................................................................................................5
Objectives.................................................................................................................................................5
Keys to Success........................................................................................................................................6
Services....................................................................................................................................................6
Industry Analysis.....................................................................................Error! Bookmark not defined.
Macro-environment.................................................................................................................................11
Market Analysis.......................................................................................................................................13
Competition.............................................................................................................................................15
Competitive Edge....................................................................................................................................15
SWOT Analysis........................................................................................................................................16
Marketing Programs................................................................................................................................17
Direct Marketing Approach...............................................................................................................17
Informal Marketing / Networking.......................................................................................................18
Customer-Based Marketing...............................................................................................................18
Distribution Strategy...............................................................................................................................18
Pricing Strategy.......................................................................................................................................18
Sales Strategy.........................................................................................................................................19
Corporate Social Responsibility...............................................................................................................19
Operations..............................................................................................................................................20
Electronic Ticketing Operation................................................................................................................23
Organizational Structure.........................................................................................................................26

3
Titles, Qualifications and Responsibilities................................................................................................27
Compensation.........................................................................................................................................29
MATRIX....................................................................................................Error! Bookmark not defined.
Organization Policies...............................................................................Error! Bookmark not defined.
Key Financial indicators...........................................................................................................................31
Operating Ratio.......................................................................................................................................32
Forecasting Sales....................................................................................................................................32
Forecasting Sales

EXECUTIVE SUMMARY
A significant growth was seen in the Philippine Tourism Industry as it

now plays an important role in the country’s economic development. This

has mainly been due to the advent of borderless and increased information

dissemination about the majestic sceneries throughout the Philippines.

We are on the edge of penetrating a lucrative market in a rapidly

growing industry. The current trend towards an increased in the number of

tourist entering the country presents an opportunity for Evira Travel and

Tours to penetrate the market. The country’s recorded tourist arrivals in

the first five months of 2010 increased by 5.371% compared to the same

period in 2009, 2.12% of which was from the travel of domestics tourists.

Evira Travel and Tours is a travel agency that caters responsible

travel and domestic ticketing to clients. Evira intends to guide customers

4
in selecting trip(s) based on pre-defined vacation criteria. Evira Travel and

Tours seeks to differentiate itself as the one of the leading eco-tourism

travel agency in the National Capital Region. Evira Travel and Tours will be

dedicated to ecologically and socially responsible tourism. We will be

promoting Philippines tourism and at the same time encouraging

responsible travelers. We will strive to protect and preserve our pristine

natural areas and improve the well being of local people.

Our marketing strategy will emphasize focus. We are relatively new

company in the market and hence we will focus on certain kinds of

services with certain kind of clients. The business will initially start in the

local market, expanding on the regional market as we gain necessary

experience and positive expression. Primarily, the aim is to instill

awareness and confidence in our services. This will be done through

implementing a Market Driven Strategy that is committed to the

continuous creation of superior customer service in all phases of the

transaction. We will ensure that our prices take into consideration peoples

budgets, that this people appreciate the service, know that it exist and

how to contact us. Our promotional strategy will involve low-cost

advertising, informal marketing such as conventions, trade-shows and

5
alike, personal selling tele-marketing and the internet. Details of which are

provided in the marketing section of this study.

We intend to build an advantage of being comprehensively

competitive in meeting our customer’s needs. There will be need to

evaluate jobs and remuneration packages against benchmarks to

employees for their agreed and set out tasks so as to ensure they are

competitive.

The company does not expect any problems with the expenses or

cash flow within the next three years. Annual cash flow for the first year

becomes positive in the fourth quarter of operation.

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EVIRA TRAVEL AND TOURS
H ISTORY
EVIRA Travel and Tours started when a group of friends decided to

make something out of its common interest in travel and nature. Armed

with an advocacy of promoting Philippines’ best nature and visit spot,

these friends decided to create a company and it was established July

2010.

Evira Travel and Tours will initially include pre-arranged tours,

custom packages according to client’s specifications, domestic ticketing

and as time progresses making reservations for lodging amongst other

related services. Evira Travel and Tours seeks to differentiate itself as a

premier in personalizing vacation for special time, not just to satisfy the

client but also to give special memory for them to cherish.

M ISSION
We are committed in providing our clients a responsible travel to

natural areas that conserves the environment and improves the well being

of the local people.

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 V ISION
Our vision is to be one of the leading Nature-based Travel Agency in

the Philippines.

O BJECTIVES
1. To provide enjoyable and quality designed eco-trips on time and on

budget of our clients.

2. To be fully committed in supporting Philippine eco-tourism and

economic growth and development.

3. To increase the number of people visiting in the Philippines' tourist

spots.

K EYS TO S UCCESS
The keys to Evira Travel and Tours success will undoubtedly be

effective market segmentation through identification of several niche

markets specifically in the location of the business. Along these programs

the company intends to implement advertising, personal selling and direct

marketing strategies to the target markets. Hence our key success factors

will include the following:

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1. Excellence in fulfilling the promise. We aim to offer completely

enjoyable, comfortable and informative travel vacations that will ensure

the travelers are satisfied and appreciative at the end of their trip.

2. Timely response to customers’ requests. We are not to delay our clients

in their queries. Hence we continually communicate with them so as to

ensure we are meeting our client’s expectations.

3. Solid and strategic alliances. Considering the nature of our business, we

realize the importance of establishing long-term partnership so as to be

assured of constant flow of clients and high demand and fulfilling their

needs at every opportunity.

4. Marketing know-how. As a new business in the industry there is a need

for aggressive marketing activities to create awareness and be at the

top of the minds of our prospective clients.

S ERVICES
Evira Travel and Tours is a travel agency that caters leisure

excursions and domestic ticketing to clients. Evira intends to guide

customers in selecting trip(s) based on pre-defined vacation criteria.

Keeping in mind the comforts of a tourist, our fleet shall be very well

designed as per customer standards and expectations, thus we intend to

give:

9
EXCITEMENT
Feel the excitement and fun as we bring you wide variety of sports

adventures and outdoor activities while enjoying the scenic views of the

Philippines.

VALUE – SPENDING
Enjoy shopping for globally renowned products here in the

Philippines. From a variety of Filipino designer brands to items specifically

designed for the tourist market made from our finest native materials.

We value your money, so we guarantee an affordable shopping experience

with world-class quality.

Have a taste of Filipino Cuisine

Each region has its own particular cuisine, because of our culinary

expertise; we serve mouth-watering dishes with blend of Oriental,

European and American tastes.

INTIMATE WITH NATURE

Relax, rejuvenate and be awed by the spectacular wonders of

nature and majestic attractions from different regions of the Philippines.

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 Getaway from the hustle of the metro and indulge yourself with our

globally – awarded hotel and resorts and experience the soothing touch of

our traditional healing massage called “hilot” from our wellness centers.

REDISCOVER CULTURAL HERITAGE

Philippines is blessed with rich cultural heritage. We will visit and

explore destinations that will deepen our knowledge as a Filipino being.

ABSOLUTELY FESTIVE
Filipinos are happy people and we love to celebrate. We never

forget our Patron Saints for bountiful harvests and there is no better way of

thanksgiving than by having fiestas and festivals.

All throughout the year different fiestas and festivals are celebrated

in countless towns and cities.

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MARKET FEASIBILITY
I NDUSTRY A NALYSIS

Travel agency have important non-price elements in the industry

including the quality of service provided, staff with intimate knowledge of

destinations and products on offer, ease of access to the service, and

word-of-mouth recommendations.

Below are research and statistical report of domestic tourist volume

in Major Destinations and their profile and characteristics, year 2010.

DOMESTIC TOURIST VOLUME IN MAJOR DESTINATIONS

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 January to May 2010/ 2009
Destination 2010 2009
Metro Manila 301,043 288,732
Cebu 444,163 423,152
Boracay Island 252,890 238,125
Camarines Sur 284,977 275,574
Baguio City 303,718 275,574
Davao City 303,718 353,072
Zambales 126,302 117,493
Bohol 100,534 98,116
Camiguin 101,533 86,660
Negros Oriental 81,1941 79,409
Cagayan 78,144 75,131
Ilocos Norte 75,281 81,172
Puerto Princesa 66,595 48,753
TOTAL 2,464,915 2,413,819
Source: Department of Tourism

PHILIPPINE TOURISTS PROFILE AND TRAVEL CHARACTERISTICS 2010

Mode of Travel Percent of Travelers
AIR 98.38
SEA 1.62
Gender
Male 60.88
Female 37.97
Not Stated 1.15
Average Age (year) 38.21
Purpose of Visit
Holiday 47.31
Visit Friends/ Relatives 25.59
Business 13.50
Official Mission 0.11

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 Health/ Medical 1.20
Others/ Not Specified 12.08
Frequency of Visit
First Visit 31.55
Repeat Visit 52.67
Not Stated 15.78
Travel Arrangement
Package 18.28
Independent 64.72
Not Stated 17.00
Over-all Average Length of Stay
Foreign Visitors 15.88
Overseas Filipinos 44.21
Source: Department of Tourism

The details above show strengths that are essential in formulating

strategy to penetrate the market. Remarkable percentage can be used to

create continuous flow of possible clients and maintain long-term

relationship with them.

M ACRO - ENVIRONMENT

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 The diagram shows how the industry and its environment affect the

company in getting along with the competition and to prevent possible

problems which are related to the growth and progress of the firm.

POLITICAL ELEMENTS

Political arena has a huge influence upon the regulation of business,

and the spending power of consumers and other businesses. The

consideration of the following such as the stability of the political

environment; it will depend on the person who holds the authority. The

government can also influence laws that regulate taxes for businesses.

Marketing Ethics element sets the standard operating procedures

that will guide employees in meeting the needs of our clients.

ECONOMIC ELEMENTS

Demand and supply, trend and buying patterns are also to consider

before establishing a company. Philippine Tourism industry is mainly based

on the outcome of the country economic stability and resources. We

should also consider the level of inflation, employment level per capita as

well as the long term prospects for the economy Gross Domestic Product

(GDP).

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TECHNOLOGICAL ELEMENTS

Change in technology can affect the demand for a firm’s products

and services. Innovation of central reservation system software may help

our business to operate and serve customers well. Another is the broad

usage of internet in this generation which can reach a great number of

clients.

Technological changes may create new opportunities for the firm or

threaten the survival of a product, firm, or industry.

SOCIAL ELEMENTS

Customers’ lifestyle is one of the factors that may affect our

company. It influences the ability of the business to obtain resources,

make goods and services, and function within the society. This includes

anything within the context of society that has the potential to affect an

organization such as population demographics, rising educational levels,

norms and values and attitudes toward social responsibility.

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M ARK ET A NALYSIS
A significant growth is seen in the Philippine Tourism Industry as it

now plays an important role in the country’s economic development.

The country’s recorded tourist arrivals in the first five months of

2010 increased by 5.371% compared to the same period in 2009. 2.12% of

which was from the travel of domestic tourists.

Alongside this growth is the progress in the eco-tourism industry.

Eco-tourism is a rising trend in the travel agency. It intends to educate the

traveler, provide funds for conservation and directly benefit the economic

development of local communities. Earlier this year, former DOT Secretary

Ace Durano projected a double digit growth in the sector.

Department of Tourism’s efforts helped sustain tourism growth in

the midst of challenges brought by the global financial crisis. And with the

implementation of Tourism Act of 2009, the commission envisions to

spearhead the development and promotion of more tourism areas in the

country, prioritize and coordinate the sector’s infrastructure requirements,

as well as facilitate the linkages of tourism with agriculture and other

sectors, including the protection of environment and culture for future

generation.

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 With the sustained growth and increased opportunities in the

industry, we decided to establish a travel and tour agency, focusing on

Philippines’ eco-tourism. Evira Travel and Tours will be promoting the

country’s cultural heritage, scenic places, and natural resources.

TARGET MARKET

Our target market will be from 21 to 30 years old, single, regardless

of gender and who lives in the urban and sub-urban areas. They have

reached tertiary level of education (college level) with a monthly income of

at least Php 15,000.00, and belong to class B or C; or the working class.

They acquire information about lifestyle trends and current events

through television, radio, print and the internet. They are the Yuppies

(young professionals) who are positive about life, fun-loving, outgoing,

adventurous and nature lover. They are socially conscious individuals with

concern for the environment. They want to go out of the busy metro for

fun and relaxation, and seek convenient yet economical travel experience.

Aside from business trips and company outings, this segment would

often travel during long weekends, Christmas vacation, Lenten season and

summer season. Their need for a convenient yet economical travel

experience is what we are about to fulfill. We will provide them a

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 personalized vacation packages that will not just satisfy their needs but

will also give them a special memory to be cherished.

C OMPETITION
The travel and tourism industry is indeed competitive. The growth of

the industry paved the way for a more competitive ground for travel

agencies. Our competition will not only be based to those travel agencies

promoting eco-tourism and responsible travel. Evira will compete with

other travel agencies and ticketing offices in National Capital Region as

they offer alternatives to travel and have the advantage of established

relationships with clients.

There are nearly 200 travel agencies offering both international and

domestic travels and about 90 authorized ticketing offices in NCR.

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 C OMPETITIVE E DGE
Evira Travel and Tours will be dedicated to ecologically and socially

responsible tourism. We well be promoting Philippines tourism and at the

same time encouraging responsible travelers. We will strive to protect and

preserve our pristine natural areas and improve the well being of local

people. Our Travel Agency will not just promote tourism but responsible

tourism.

MARKETING AND SALES STRATEGY

Evira Travel and Tours strategy will be that of differentiation from

our competitors in the local market. We ensure to provide our clients

unique, affordable, enjoyable and comfortable eco-trips, as well as

informative insights in various natural locations and areas. In terms of

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marketing, we are positive that our name and services will be marketed

extensively so that the customers will be aware of our existence. Our

effective interaction with our employees to our clients will strive to

establish a greater service value and satisfied and loyal customers.

Our marketing strategy will emphasize focus. We are relatively new

company on the market hence the aim is to instill awareness and

confidence in our services. The business will initially start in the local

market, expanding on the regional market as we gain necessary

experience and positive expression.

SWOT A NALYSIS

With the presented analysis, Evira Travel and Tours will strive to

implement the following strategies:

1. Market Driven Strategy. Establish a culture that is systematically

and entirely committed to the continuous creation of superior customer

service in all phases of the transaction, including timely follow-through.

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2. Aggressively promote eco-trips as healthy, eye-opening and exciting

activities as we intend to build image and awareness through

consistency and distinctiveness in our service programs.

3. Establish a high-performing team who is passionate and that displays

competence in customer orientation with the high regard for

professional ethics and Christian values.

4. Doing all of the above in a cost-effective manner.

M ARK ETING P ROGRAMS

DIRECT MARKETING APPROACH MAY INCLUDE THE FOLLOWING:

• Low Cost Advertising Specialties. Items specifically T-shirts and

eco tote bags, printed with Evira Travel and Tours, to be given to

our potential clients.

• Direct Mails, Brochures and Newsletters.

• Electronic Mails.

• Telemarketing and Personal Selling. It will involve targeting

potential customers for our services and informing them of our

existence and destinations. We may then arrange an

appointment with the respective decision-maker, with the

intention being to lure them into utilizing of our services.

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INFORMAL MARKETING / NETWORKING
• Establish partnership that has the same advocacy as Evira.

• Attend conferences that will further enhance our knowledge

about Eco-tourism and that would make valuable network.

• Create, build and maintain social networking sites, like Facebook

and Twitter that will primarily drive awareness of our company,

this will also provides an opportunity for ourselves to acquire

information from potential clients.

C U S T O M E R -B A S E D M A R K E T I N G
• Emphasizing repeat sales by clients who have taken Evira Travel

and Tours eco-trips.

• Deal with add-on sales to increase the total revenue per client

through the sale of extra products or services.

D ISTRIBUTION S TRATEGY
Evira's distribution strategy will focus on the target market in the

National Capital Region to whom it will sell directly. Secondarily, Evira

seeks to establish distribution competence on the World Wide Web (www)

or the internet. Our website will improve the business’ ability to establish a

national reputation.

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P RICING S TRATEGY
Much of Evira's pricing is determined by market standards. Evira will

attempt to maintain margins of 10% on all airline travel and packages.

Margins on all other products and services vary depending upon the

provider but are expected to average 20%. Evira will make every effort to

maintain a competitive pricing policy.

S ALES S TRATEGY
For the first year at least, the selling process will depend on

personal selling, networking and advertising to lure and inform our

potential customers about the services we offer. The total sales will be

composed of 70% for domestic ticketing and 30% from packages and

tours. It should be clear that we generate our sales from the efforts of our

agents; they will have their quota per day.

C ORPORATE S OCIAL R ESPONSIBILITY

Evira recognizes the fact that as it is involved in the tourism sector

of the overall economy there is need to be involved in a wide range of

social responsibility engagement programs as to invest back into the

community in which we operate. Evira considers that in social

responsibility program we can indeed assist in improving people’s lives.

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 One of the ways the company intends to be involved in is “Sagip Ilog

Pasig” through organizing cleaning campaigns. In order to entice the

community to get involved in these campaigns, as well as to create

awareness about our business and services we intend to give out T-shirts

and brochures and flyers with our company name. These campaigns will

help us build positive image and appreciated as a good corporate citizen.

TECHNICAL FEASIBILITY
OPERATIONS
LOCATION

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 Evira Travel and Tours will be located at the ground floor of Rosario

Commercial Building in Ortigas Avenue Exit Rosario, Pasig City. It will be

34.2 square meter office that will be maintained in a manner such that it is

conducive in inviting clients to visit for in-person consultations.

The location provides a greater access to the prospective customers

since Pasig has been one of the Metro’s important commercial and

business centers. Found here are the headquarters of the Philippine Stock

Exchange which is 2.9 km, Ever Gotesco ,Ortigas 1.9 km, Cosmos

Construction Corporation 1.4 km, IDS Logistics 1.6 km, San Miguel

Corporation head office 3.2 km, San Miguel Yakamura packaging

Corporation 3.3 km, MERALCO 3.2 km, PLDT 2.8 km, Honda Prestige

traders 3.2 km, Mitsubishi Motors Philippines Corporation 2.9 km, Banco

De Oro (650m,90m,1.2m), HSBC savings bank 1.5 km, Asian Development

bank 3.2 km, SM Megamall 3.3 km, Saint Paul College 2.5 km, University of

the Asia and Pacific 3.1 km, La Consolacion College 2.7 km, Arellano

University of the Philippines 3.4km,away from “EVIRA Travel and Tours”.

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 Pasig is easily accessed from EDSA through most cities like

Mandaluyong and Quezon City, either via Ortigas Avenue or Shaw

Boulevard and the C5 road. The most commonly used mode of

transportation is jeepney that will go through most of the city’s streets.

Alternatively, taxis can also do the same. The Business is open from 8:00

in the morning and closing at 5:00 in the afternoon, Monday through

Saturday, except holidays.

OFFICE LAYOUT

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 Evira Travel and Tours will be renting a space at the ground floor of
Rosario Commercial Building.

The office area is divided into major sections as follows:

1. Area for walk-in customers

2. Counter (includes computer, landline and fax machine)
3. Small office/ cubicle for the general manager (includes laptop
4. Comfort room at right side corner
5. Air condition unit at the front left side corner

BUILDING AND FACILITIES

Evira will rent a 34.2 square meter office that cost Php 23,000.00

per month that subject to the policy of 2 months advance and 1 month

deposit. Water and electricity depends upon the reading of the meter

consumption.

The company and the owner, Mr. Erlisar B. Arive, is qualified and

authorized to operate a travel and tours agency business in Pasig City,

Philippines, by securing the following permits:

• Mayor’s Permit which certifies that the owner, Mr. Erlisar B. Arive,

and the business, “Evira Travel and Tours” has been granted to

operate in the city of Pasig.

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 • DTI Certificate of Business Registration which certifies “EVIRA

Travel and Tours” is a business name registered and issued to the

owner, Mr. Erlisar B. Arive, in the office of DTI.

• DTI Brokers Certificate which authorized the company to act as a

ship broker of different airline tickets.

• Sanitary Permit

• BIR Certificate

• Mechanical Permit

• Electrical Permit

• Fire Safety Inspection Certificates

The permits stated above, shall be posted conspicuously at the place

where the business is being operated.

Technology
Central Reservation Systems (CRS) is a computerized system

that stores and distributes information on an airline, cruise, hotel, resort or

other lodging facilities. It is used by travel agencies to check up-to-date

information about airline fares, flight schedules, hotel room availability and

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seat availability. Central reservation systems are available exclusively to

hotel representation companies, hotels themselves, and CRS providers.

The different Central Reservation Systems (CRS) used in the

Philippines are:

✔ Abacus Distribution Systems Philippines, Inc.

✔ Galileo Philippines

✔ Amadeus Philippines

ELECTRONIC TICKETING O P E R AT I O N

Electronic ticketing simply is the combination of purchasing ticket

and issuing the ticket. E-tickets are transacted through ticketing models

provided by the Central Reservation Systems (CRS), a provider that record

and control most air travel transactions. An automatic e-process is used,

written in middleware such as Perl or Java. It is the IATA, International Air

Transport Association, that gave permission for travelling agents to sale

tickets without issuing paper ticket (they transmit purchase information

directly to the intended airline’s database), and for travelers to board

without providing paper ticket proof. When a passenger arrives at the

airport, he or she only needs to provide valid photo identification in order

to receive the boarding pass.

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Feedbacks
Monitoring
User
Change
Capacity
Fix Problems
TICKETcontrol
planning
& N
T
Data
Complaints
monitoring
Availability
Collection
(SLAs) io
SYSTEM
Accounting
Requests
Improvements
Trends t
c
Upgrades
Detect problems i
k
f
e
ti
c
a
t
i
o
n
s

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 EVIRA Travel and Tours needs technological assistance and these

are the list of offices and specialists whom we will coordinate with or hire

on a retainer’s basis. These will help the company with external techno-

managerial assistance during the company’s operation period.

The assistance needed by EVIRA Travel and Tours are IT

Consultancy, Accounting Assistance, Marketing, and Tourism.

IT Consultancy is necessary to EVIRA Travel and Tours in order to

maintain the Applications or Programs, Systems Engineering, Network

Analysis, IT Analysis, and online server of the computer system.

Accounting assistance will help to check and balance the daily and

quarterly transactions of the company operations.

The marketing assistance will guide the company in its marketing

aspects such as pricing strategy, promotions, advertisements and other

32
 related concerns. Moreover it will also assist the company in training new

breed of agents.

Tourism assistance will guide the company regarding the best

tourist spots here in the Philippines and around the world. It can even

provide adequate information needed.

MANAGEMENT AND PERSONNEL

FEASIBILITY
The human resources element shall be an essential component in

the delivery of the total services. By encouraging all employees to handle

customers’ well, and by having enthusiastic, capable and empowered

people interact with our customers, we intend to build an advantage of

33
being comprehensively competitive in meeting our customer’s needs.

There will be need to evaluate jobs and remuneration packages against

benchmarks to employees.

O RGANIZATIONAL S TRUCTURE
Initially, our company will be utilizing a functional type of

organizational structure. We will intend to ensure that there is an open

communication between all personnel at all levels. However, as our

company grows, we will supplement and develop the structure to maintain

and meet the needs of our growing customers.

T ITLES , Q UALIFICATIONS AND R ESPONSIBILITIES

Titles Qualifications Job Specifications
General Manager • Male/female, • Responsible in
preferably single, handling the
shall be 30-45 daily operation of
years of age the business,
• Have at least four making
to six years of budgetary
experience estimates,
• Shall be a planning and
graduate of implementing
tourism or any policies and
business related supervising
course employees.

34
 • Must have the • Accountable for
ability to apply leading and
good judgment in coordinating the
resolving day- strategic
today issues planning
related to projects functions of the
under company
management • He is also
responsible to
communicate
with accredited
tourist spots of
DTI in order to
know and update
the prices and
other things
relating to
operations
• Shall also be in-
charge for the
advertising
projects of the
firm
Office Clerk • Female, 21 to 30 • She is expected
years old to take phone
• Must be a calls, e-mails and
graduate of any other matters
tourism related regarding
course booking,
• Must be computer reservations and
literate tours.
• Shall acquire • Organizes and
effective file all the
communication documents of the
skills and have a company
pleasing • Take, record and
personality index minutes of
the meeting

35
Agents • Male/female, 23- • Assist travelers
35 years of age by sorting
• Must have a through vast
bachelor's or amounts of
master's degree information to
in travel and help their clients
tourism that can make the best
benefit possible travel
prospective arrangements
agents • Offer advice on
• Must be well- destinations and
organized, make
accurate, and arrangements for
detail oriented in transportation,
order to compile hotel
information from accommodations,
various sources car rentals, and
and to plan and tours for their
organize travel clients
itineraries • Help to promote
• Preferably travel packages
familiar within to their clients
Metro Manila • They are
particularly in expected to be
Pasig. able to advise
• Must have an travelers about
excellent their
communication destinations,
skills such as the
• Computer skills weather
are necessary conditions, local
and essential, ordinances and
customs,
because most
attractions, and
travel exhibitions
arrangements are • In the event of
now made using changes in
the Internet or itinerary in the
electronic middle of a trip,
reservation travel agents

36
 systems intercede on the
traveler's behalf
to make
alternate booking
arrangements
• They may also
visit hotels,
resorts, and
restaurants
themselves to
evaluate the
comfort,
cleanliness, and
the quality of
specific hotels
and restaurants
so that they can
base
recommendation
s on their own
experiences or
those of
colleagues or
clients
• They make
presentations to
social and
special-interest
groups, arrange
advertising
displays, and
suggest
company-
sponsored trips
to business
managers
P ERSONNEL P LAN

37
 No. of
Position Computation of Commission is presented at the Financial Plan.

C OMPENSATION
We will strive to pay wages that are competitive in our industry. The

company payroll week runs from Monday through Sunday. Both

management and non-management employees receive paychecks bi-

weekly (every two weeks) on Friday for the preceding two-week period.

Also, our employees will be entitled to all fringe benefits that are

required by the law such as Social Security System Membership, Pag-ibig

Fund Membership, Medical Insurance and benefits, 13th month pay, five

days sick leave and five days vacation leave.

38
 In terms of commission for packages, any employee who sold a

package will receive a 5% commission from the 10% service charge of the

company and will receive it in a monthly basis.

The plan is consisted of about 60% salary and 40% incentive pay

which can both motivate sales people and direct their activities.

E VIRA ’ S P LANNED S CHEDULE

39
 YE A R 2 0 1 0
1

P r oject
Con cep tu alization

P r ep ar atio n o f
Feasibility Stu d ies
The schedule above shows the activities of Evira Travel and Tours

40
 from the conceptualization of the project till the start of operations.

FINANCIAL PLAN
Preliminary estimates suggest that Evira will experience slow growth

in the first three quarters of operation. This is partly due to Evira's status

as a start-up company and seasonal factors. Income estimates are based,

in part, on anticipated revenues from accounts that were secured by Evira

agents. Evira has sufficient cash to endure the negative cash flow situation

that it may encounter initially. Evira also anticipates an increase in gross

margin and sales volume. Thus, the overall financial plan presents a

conservative but realistic depiction of Evira's financial position.

MAJOR ASSUMPTIONS

• Market growth projections for the travel industry and for adventure

travel are accurate.

• National economic conditions, which are favorable to the travel

industry, will not experience significant decline in the next five

years.

41
 • The minimum required quantity (QUOTA) per agent is the basis of

the sales and projections of this plan.

• The cost per unit (tickets and packages) is based on the lowest price

in our interviews.

K EY F INANCIAL INDICATORS
We foresee a slow initial growth in sales, as we strive to ensure our

position in the market, though operating expenses will be relatively high,

and strike in our sales and revenue generation as we spread our services

during expansion. This could cost a serious problem with cash flow,

because our working capital situation is chronically tight. However, we

recognize that we cannot control this factor easily.

F ORECASTING S ALES

*All values are in Philippine Peso. Bars on left side represent the Sales and on the
right side is the Net Profit.

The figures above show how strong we can be in the following years.

The company may suffer a slow growth and minimal revenue on the first

42
year but as the company continue to grow and expand it will gain and earn

more for as our research have shown that tourism industry over inflation

rate will be at 2.12% and 3.24% respectively.

O PERATING R ATIO

This shows the expenses over the sales. It gives us an idea of

thinking how much should the company earn to cover up its expenditures.

In the industry the lower the percentage is the higher the possibility to

gain revenue. As these details shows with an average of 80% as the limit,

all the expenses are just reasonable.

S OURCES OF I NCOME

43
 Evira Travel and Tours have two sources of income, the Tours and
Packages and Domestic Ticketing. The company will get 10% from the
price of the package; from that amount 95% will go to the company and
5% will be the commission of the employee. To generate income the
company will add the amount of commission to the price of the product as
a service charge.

To attain break even point,

Presented are the Schedules and Financial Statements of Evira Travel and Tours:

Monthly Sales
Septem October Novem Decem January February March
ber ber ber
Sales
Ticket 600,000. 600,000. 600,000. 630,000. 630,000. 630,000.0 660,000.
00 00 00 00 00 0 00
Packages 241,200. 241,200. 241,200. 253,260. 253,260. 253,260.0 253,320.
00 00 00 00 00 0 00

44
Total Sales 841,200. 841,200 841,200 883,260 883,260 883,260.0 913,320
00 .00 .00 .00 .00 0 .00

Less: Cost of
Sales
Ticket 540,000. 540,000. 540,000. 567,000. 567,000. 567,000.0 594,000.
00 00 00 00 00 0 00
Packages 217,080. 217,080. 217,080. 227,934. 227,934. 227,934.0 238,788.
00 00 00 00 00 0 00
Total Cost of 757,080. 757,080 757,080 794,934 794,934 794,934.0 832,788
Sales 00 .00 .00 .00 .00 0 .00

Net Sales 84,120. 84,120. 84,120. 88,326. 88,326. 88,326.0 80,532.

00 00 00 00 00 0 00

Monthly Sales
April May June July August Total
Sales
Ticket 660,000. 660,000. 690,000. 690,000. 690,000. 4,350,00
00 00 00 00 00 0.00
Packages 253,320. 253,320. 277,380. 277,380. 277,380. 1,736,70
00 00 00 00 00 0.00
Total Sales 913,320. 913,320 967,380 967,380 967,380 6,086,70
00 .00 .00 .00 .00 0.00

Less: Cost of
Sales
Ticket 594,000. 594,000. 621,000. 621,000. 621,000. 3,915,00
00 00 00 00 00 0.00
Packages 238,788. 238,788. 249,642. 249,642. 249,642. 1,573,83
00 00 00 00 00 0.00
Total Cost of 832,788. 832,788 870,642 870,642 870,642 5,488,83
Sales 00 .00 .00 .00 .00 0.00

Net Sales 80,532. 80,532. 96,738. 96,738. 96,738. 597,870.

00 00 00 00 00 00
Note: Sales are based on the assumed quota per agent which is 13 tickets and

2packages a day and subject to increase by 5% - 10% per quarter.

45
 Material Costing

Item Quantity Unit Price Amount

Equipments
Ph
Desktop Computer 1 20,000.00 20,000.00
p
Laptop 1 25,000.00 25,000.00
5 in 1 Printer with Scanner 1 5,000.00 5,000.00
Internet with Telephone Line 1 1,500.00 1,500.00
21" Flat Screen Television 1 5,000.00 5,000.00
DVD Player 1 1,500.00 1,500.00
Air Conditioner Unit (2.0 H.P.) 1 12,000.00 12,000.00
Wall Clock 1 300.00 300.00
Electric Fan - Desk 16" 1 1,495.00 1,495.00
USB 2G 1 350.00 350.00
Office Supplies 350.00 350.00
Ph 72,495.0
Total Equipments p 0

Furnitures and Fixtures

Ph
Office Table 2 1,249.00 2,498.00
p
General Manager's Chair 1 500.00 500.00
Office Clerk's Chair 1 450.00 450.00
Chairs for Costumer 2 349.00 698.00
Sofa 1 4,850.00 4,850.00

46
 Filing Cabinet 2 3,000.00 6,000.00
Mirror 1 600.00 600.00
Ph 15,596.0
Total Furnitures and Fixtures p 0

Taxes and Licences

Ship Broker License Php 2,315.00

DTI Registration 315.00
BIR Registration 400.00
Mayor's Permit 500.00
Fire Permit 400.00
Barangay Permit 245.00
Electrical 350.00
Business Permit 3,500.00

Total Taxes and Licenses Php 8,025.00

Note: Figures are based on interview in Pasig City Hall

Electricity / Water Expense

Electic Fan - Desk

(16") Php 211.46
Air Condition Unit (2.0
H.P.) 592.33

47
 DVD Player 118.94
21" Television 290.75
Desktop 1,189.44
Printer 462.56
Telephone and
48.60
Internet
Lights 264.32
Water 500.00
Ph
3,678.40
p

Note: Figures are based on the MERALCO APPLIANCE CALCULATOR (MAC). Its
computation is an estimate based on input data.Presently our country is
experiencing unstable issues on electricity fees and taxes so the business
adjusted the total amount to Php4,000 (See Quarterly Sales and Expenses).

Promotional Expense
First Quarter

Php
Panaflex
5,000.00
Tarpaulins 1,500.00
Posters 756.00
Website 6,000.00
Flyers 500.00

48
 T-shirts 1,410.67
Eco tote Bags 1,000.00
Mails 500.00

Total Promotional Expense Php 16,666.67

Promotional Expense
Second to Fourth Quarter

Website Php 6,000.00

Flyers 544.67
T-shirts 1,410.67
Eco tote Bags 1,000.00
Mails 544.25

Total Promotional Expense Php 9,500.01

Quarterly Sales and Expenses

1st 2nd 3rd 4th TOTAL

49
 Quarter Quarter Quarter Quarter
Sales
1,800,000 1,890,000 1,980,000 2,070,000 7,740,000.
Ticket .00 .00 .00 .00 00
723,600.0 759,780.0 759,960.0 832,140.0 3,075,480.
Packages 0 0 0 0 00
2,523,600 2,649,780 2,739,960 2,902,140 10,815,480
Total Sales .00 .00 .00 .00 .00

Less: Cost of Sales

1,620,000 1,701,000 1,782,000 1,863,000 6,966,000.
Ticket .00 .00 .00 .00 00
651,240.0 683,802.0 716,364.0 748,926.0 2,800,332.
Packages 0 0 0 0 00
2,271,240 2,384,802 2,498,364 2,611,926 9,766,332.
Total Cost of Sales .00 .00 .00 .00 00

252,360. 264,978. 241,596. 290,214. 1,049,148

Net Sales 00 00 00 00 .00
Less: Operating
Expenses
Taxes & Licences 8,025.00 0.00 0.00 0.00 8,025.00
Rent 69,000.00 69,000.00 69,000.00 69,000.00 276,000.00
Electricity/ Water 12,000.00 12,300.00 13,500.00 11,400.00 49,200.00
Telephone/ Internet 4,500.00 4,500.00 4,500.00 4,500.00 18,000.00
Promotional 50,000.00 28,500.00 28,500.00 28,500.00 135,500.00
Trainings 4,000.00 4,000.00 0.00 0.00 8,000.00
148,764.0 148,764.0 148,764.0 148,764.0
Salaries and Wages 0 0 0 0 595,056.00
Commission 3,618.00 3,798.90 3,979.80 4,160.70 15,557.40
Transportation 1,500.00 1,500.00 1,500.00 1,500.00 6,000.00
Depreciation -
Equipment 3,624.75 3,624.75 3,624.75 3,624.75 14,499.00
Depreciation - F/F 779.80 779.80 779.80 779.80 3,119.20
Total Operating 305,811.5 276,767.4 274,148.3 272,229.2 1,128,956.
Expenses 5 5 5 5 60

Net Income (Loss) - - - 17,984.7 -

50
 53,451.5 11,789.4 32,552.3
5 5 5 5 79,808.60
Income Tax
Net Income After Tax

Evira Travel & Tours

Income Statement
For the fiscal year ending Sept. 30, 2011

Net Sales (Quarterly Sales and Ph 1,049,1

Expenses) p 48.00

Less: Operating Expenses

Ph 595,056.
Salaries and Wages p 00
276,000.
Rent
00
135,500.
Promotional
00
49,200.0
Electricity/ Water
0

51
 14,499.0
Depreciation-Equipment
0
18,000.0
Telephone/ Internet
0
15,557.4
Commission
0
Taxes & Licenses 8,025.00
Trainings 8,000.00
Depreciation-Furniture and
3,119.20
Fixtures
Transportation 6,000.00

Ph 1,128,9
Total Operating Expenses p 56.60

(79,
Net Income (Loss)
808.60)

EVIRA TRAVEL & TOURS

Balance Sheet
September 30, 2011

ASSETS

52
Current Asset :

Cash in Bank & On Ph 207,74

Hand p 3.60

Property Plant &

Equipment

Ph 72,49
Equipments p 5.00
Accum 14,49 57,9
Depreciation 9.00 96.00

Furniture & 15,59

Fixtures 6.00
Accum 3,11 12,4
Depreciation 9.20 76.80

Ph 278,2
Total Assets p 16.40

LIABILITIES & CAPITAL

Liabilities
-

Ph 358,02
Capital Beginning p 5.00
(79,80
Less: Net Loss
8.60)

Total Liabilities & Ph 278,2

Capital p 16.40

53
 EVIRA TRAVEL AND TOURS
WORKSHEET
For the Fiscal Year ended September 30, 2011
Transactions Balance Sheet Income Statement
Particulars Debit Credit
Debit Credit Debit Credit Debit Credit
Cash in Bank and on Hand Php 269,934.00 Php 1,049,148.00Php 1,111,338.40Php 207,743.60
Equipments 72,495.00 72,495.00
Furniture and Fixtures 15,596.00 15,596.00
Accum. Depreciation-Equipments 14,499.00 Php 14,499.00
Accum. Depreciation-FF 3,119.20 3,119.20
Capital Beginning Php 358,025.00 358,025.00
Net Sales 1,049,148.00 Php 1,049,148.00
Taxes and License 8,025.00 Php 8,025.00
Rent Expense 276,000.00 276,000.00
Electricity/ Water 49,200.00 49,200.00
Telephone/ internet 18,000.00 18,000.00
Promotional Expense 135,500.00 135,500.00
Trainings 8,000.00 8,000.00
Salaries/ wages 595,056.00 595,056.00
Commission 15,557.40 15,557.40
Transportation 6,000.00 6,000.00
Depreciation Expense-Equipments 14,499.00 14,499.00
Depreciation Expense-Furns. 3,119.20 3,119.20

Totals Php 358,025.00Php 358,025.00Php 2,178,104.60Php 2,178,104.60Php 295,834.60Php 375,643.20Php 1,128,956.60Php 1,049,148.00
Net Loss 79,808.60 79,808.60
Php 0.00 Php 375,643.20Php 375,643.20Php 1,128,956.60Php 1,128,956.60

54