Business plan of ecological tourism
The ecological tourism agency in Lithuania which would provide sustainable tours within the country, individual and group travel tours to eco tourists, professional service and consultation. Mission and vision. Company ownership. Legal establishment.
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Business plan of ecological tourism
1. Executive summary
ecological tourism business service
Ecological tourism (ecotourism) in the recent decades is rapidly increasing type of tourism industry as well as popular trend. Ecological tourism is in demand due to the awareness that environmental and cultural heritage is damaged. Moreover, adapting a healthier lifestyle is becoming a trend among conscious society.
We decided to open ecological tourism agency in Lithuania which would provide sustainable tours within the country. We noticed that there is a gap in the industry, as there is demand for sustainable tourism products, but there is no supplier. Therefore our agency named «Eco Travel» would be the first one who will offer to potential customers sustainable tours within the Lithuania. These tours will consist of ecological activities such as nature, extreme and ethnographical attractions. Travel tours will be unique because we will ensure that our service is high quality, sustainable, personal and comfortable for customers who appreciate natural environment and are conscious of protecting the nature. Our main target group will be Lithuanians as well as we will look forward to attract and meet tourists from foreign countries. Customers will be able to combine and choose our offers and services what would be most suitable for them.
Our mission of «Eco Travel» agency is to inspire customers by providing them the highest quality service and fully meet their needs and expectations. Our agency will be unique because of participate in ecological events where customers will be ensured that we take care of environment and nature. By travelling with us, clients will have possibility to experience an unforgettable and unique vacation, while having a feeling of doing the right thing for saving the environment.
The «Eco Travel» agency will be located in Klaipeda, Lithuania, because it offers a huge variety of beautiful ecological attractions and it is one of the most visited cities within Lithuania.
«Eco Travel» agency does not have any direct competitors in sustainable tourism field because we are the first travel agency in Lithuania which is providing sustainable tours, however, we will have many indirect competitors. These competitors are travel agencies which are not concentrating on sustainability and provide customers with simple tours within Lithuania and other countries. That is why we have developed a marketing plan to convince the customers to use our service instead of our competitors and ensure customers to know about our existence and the services we fulfil. The establishers of the agency are five college undergraduates.
Mission and Vision
Mission - we intend to create enjoyable and cooperative working environment which will motivate employees to deliver high quality service to our customers at every point of contact as well as fully meet their needs and expectations. We also seek to inspire customers to think «green», develop and use ecological habits in everyday life.
Vision - to become leading travel agency offering eco-friendly tours in Lithuania as well as to promote the country as an attractive tourism destination while providing unforgettable experience.
2. Company summary
Our tourism agency intends to provide individual and group travel tours to eco tourists, professional service and consultation which will meet the basic needs of customers as well as eco travel markets. The company will be positioned as a specialist in the field of green and eco-friendly travel agency in Lithuania which will provide unique and exclusive, fully-arranged or private tours within the country. Moreover, our services include arranging tour packages by the needs of customers which will meet their expectations.
2.1 Company ownership
We have decided to register travel agency as closed joint - stock company. This type of company prevents stock holders of losing their personal property in the situation of failure. According to Lithuanian laws closed joint - stock company can be established by one or more individuals (maximum 249). Personal stocks can be sold, exchanged or gave away.
· In case of failure shareholders are risking only with the share (property) they brought into business, so their individual assets stay untouchable;
· In order to gain more money company can sell stocks to new shareholders;
· Possibility to quit the business by selling or transferring stocks;
· Tax relief: if the average number of employees is not higher than 10 and the income is not bigger than 291427 euro (1 million Lithuanian Litas), applied 5% tax rate instead of usual 15%.
· To open closed joined - stock company minimum of 2 900 euro (10000 Lithuanian Litas) fund is required;
· Shareholders can get company's earned profit only through dividends or by getting salary (in this case higher taxes will need to be paid):
Taxes paid from salary
Personal income tax
15% (paid by employee)
Compulsory health insurance contributions
3% (paid by company)
6% (paid by employee)
State social insurance contributions
27.98% (paid by company)
3% (paid by employee)
Contributions to the Guarantee fund
0.2% (paid by company)
2.2 Legal establishment
1. Establishment contract of closed joint - stock company is prepared.
2. The name of closed joint - stock company can be temporary included in Juridical person register.*
3. Accumulative bank account of closed joint - stock company is opened.
4. Money for authorized capital is contributed into accumulative bank account. (all amount or starting contribution, but no less than 2 900 euro - 10 000 Lithuanian litas).
5. Statute of closed joint - stock company is made and signed.
6. List of shareholders is made.
7. Constituent assembly of closed joint - stock company is called.
8. The head-office of the company is registered.
9. Other duties from legislation and establishment contract are being accomplished.
10. Documents are given for Notary confirmation after evaluation of non-monetary contribution***, by which shares are paid partly, establishment contract is made, closed joint - stock company's statute is signed, all starting contributions for signed shares are paid, constituent assembly of closed joint - stock company was placed (if it was called), list of shareholders is made and all other duties from legislation and establishment contract were accomplished.
11. All closed joint - stock company's documents are given to register of Juridical persons after Notary confirmation.
12. Closed joint - stock company is being established after incorporation in register of Juridical persons.
It is not necessary to call constituent assembly of closed joint - stock company, if in establishment contract, according to statute, there are not indicated selected closed joint - stock company members of general shareholders meeting.
Because non-monetary contribution can last longer, by which authorized capital is being paid partly, it is recommended to give it to evaluate for independent estate agent in advance.
2.3 Company location and facilities
In order to achieve the best possible result we are aiming to create individual access to our clients, delivering high quality service and ensuring customers satisfaction. Therefore we are offering our service in two ways:
Internet website is a great way for our customers to get to know about us and our product in general. However, the idea of website is not only to create a possibility for customers to gain the knowledge about services we offer, but also communicate with our company's employees instantly via live chat. Customers also can choose order and pay for selected activities online, without leaving home.
By creating internet website we are aiming at people who prefer shopping via internet or have no possibility of visiting our office. This type of website produces speed while keeping high quality as the possibility to communicate with employees in a distance will provide comfort and reduce doubts, which customers may get during the choosing process.
Office. Taking in consideration that there are people who are feeling more secure and comfortable using face to face communication with agency's employees to get more knowledge about the services provided. Moreover, according to Lithuanian statistic department 19.5% of people age 35-44, 36% of people age 45-54 are not using internet at all (well educated middle age Lithuanian citizens are our main target group), physical object, office, needs to be opened.
We have looked at different locations which would be suitable for our tourism agency office and we reached the agreement that it has to be located in one of the most known Lithuanian city - Klaipeda.
Klaipeda is third biggest Lithuanian city, located 311km to North West from country's capital Vilnius. Klaipeda is an important centre of industry (the port of Klaipлda is the principal ice-free port on the eastern coast of the Baltic Sea), culture and transportation as well as one of the most popular tourism destinations within the country. The old town of Klaipeda distinguishes from any other Lithuanian city, because of its compactness and German, Scandinavian architecture. Several years ago Klaipлda was known as the city with one of the most European old town.
There are several reasons why we chose Klaipeda as a city most suitable for our office instead of bigger Lithuanian cities, including countries capital Vilnius:
· As it was mentioned earlier, Klaipeda is third biggest city in Lithuania;
· The price to rent an office in the old town of Klaipeda costs approximately 7000 euro per one year, while the price of an office in capital Vilnius reaches more than 11 000 euro per year;
· Klaipeda's geographical location is rather favourable. As well as due convenient system of international and local transport networks and well-developed infrastructure, guests can comfortably and quickly reach city from any part of the world;
· Our main target group is domestic tourists who are choosing a sustainable tourism within the country and Klaipeda is one of the most visited cities by Lithuanian residents (Figure no.1);
· Variety of ecological attractions in Klaipeda and nearby gives our customers opportunity to find and enjoy pleasant sustainable activities for their visit in a matter of hours.
In the table below there are written all plans and dates with our predictable actions from the applying for EU support to the opening of the company publicly:
Project writing for EU support
1st of March 2013-31st of March 2013
Hand-in project for EU support
1st of April 2013
Working individually to earn money for the start-up of the company
1st of April 2013 - 31st of December 2013
a) Answer from EU if we are getting support:
1st of October 2013
· Getting support
2nd of January 2014
· Documents preparation for establishment (2.2 Legal establishment)
3rd of January 2014 - 21st of February 2014
· Start making contracts with partners
24th of February 2014
· Start working in office (set up the office, Internet website, advertising - Internet, brochures, posters)
1st of March 2014
· Office opening for public
1st of April 2014
b) Answer from EU if we are not getting support:
· Preparing Lithuanian business plan for bank
2nd of October 2013 - 3rd of November 2013
· Apply for a bank loan for business
4th of November 2013
· Getting a loan
2nd of January 2014
From 2nd of January in both cases (a and b) the time plan remains the same.
Our company is a travel agency that delivers eco-friendly and green travel tours to the customers. The travel agency will help to guide customers in selecting trips in many different varieties depending on customers choices. Customers will be able to select areas and activities of interest based on their preferences and needs. Our concept is not only to provide customers a sight-seeing, but also, an access to the unique and authentic travel destinations according to the individuals or couples preferences.
3.1 Service Description
«Eco Travel» agency will be first one in Lithuania which is going to deliver eco-friendly tours within the country. Unique and authentic trips will be arranged depending on customers' needs and expectations. We will create tours after getting an overview of what travellers want to see, visit, experience and what expectations do they have. In company's webpage as well as in the brochures there will be named different places and activities with its full descriptions where eco tours can be arranged and implemented:
· Water activities;
· Treks (short/long duration; by foot; camping);
· Visits of nature and cultural objects;
· Ethnographical tours;
· Horse riding;
· Bicycle tours;
· Providing all information of other ecological accommodation and catering places in Lithuania.
From this list and descriptions customers will be able to decide and to choose what they want to see, visit and experience and our company will combine everything according to their needs and will make sure that customers will get everything what was promised.
Moreover, keeping in mind, that our main target group is 35 to 50 years of age, with higher incomes, couples or individuals (4.2 Market segmentation), we do not want to limit ourselves and we are also going to be opened to bigger groups, organizations, companies, schools and other related groups. Even if we are concentrating mainly on one special target group, our suggested services can also fulfil wants and need of other target groups.
Furthermore, by arranging unique and individual tours for every single customer looking at his/her needs and wants, in the same way we are providing an authentic experience which will be created during every eco-friendly trip. Using our services, customers will be able to enjoy nature, relax, escape physical stress and get physical rest, meet new people, learn new things and share similar values.
This is one of our detailed tours example to Neringa (resort next to Klaipлda) by bike for one person. Price is 55 Euro including bicycle rent with equipment, 2 overnight stays in Holiday camp and one extreme sport activity (prices in brackets for transportation and museums' tickets are not included):
3 days route (~110km)
1st Day (~55km):
· Transfer by ferry from Klaipлda to Smiltyne (2 Euro both sides);
1. The Klaipлda Sea Museum in Smiltynл (4,5 Euro);
2. The Dead Dunes near Pervalka;
3. Horse lighthouse;
4. Skirpstas hill and ethnographical cemetery;
5. Swimming in a Baltic sea, rest at the beach (optional);
6. Vecekrugas hill;
· NIDA (2 overnight stays):
7. Stay at Holiday camp;
8. Visiting museums: the Tomas Mann House and museum, Nida art gallery, Hermanas Blode museum, Amber museum (1-2 Euro);
9. Nida beach (certificated by Blue flag programme);
10. Parnidis pathway (two-kilometre-long): Sundial - observation spot - Nida lighthouse - Parnidis Dune - coming back to Nida town;
11. Blokarting (extreme sport with engineless vehicle and a sail driven by wind) or sailing;
12. Stay at Holiday camp;
13. Leaving Nida;
14. The Hill of Herons - a colony of cormorants and grey herons (birds watching);
15. Weathercocks gallery;
16. Lithuanian art museum;
17. Exhibition of wooden and stone sculptures (UNESCO heritage);
18. The Hill of witches and Cognitive dendrological track;
· Ferry from Smiltynл to Klaipлda.
1. The delivery and service fulfilment will be provided by the employees of the travel agency. The main point is to fully meet customers' needs and expectations. After looking at travellers' needs, choices and what experience do they want to have, tours within the Lithuania will be arranged. Our company will take responsibility that all customers' will be satisfied with services provided.
2. In order to make sure that arranged tours will go without any troubles, we are going to cooperate with the most reliable companies in Lithuania which has a good image, high service quality and can fulfil all our customers' needs and wants.
3. In order to be even more accessible, company's webpage will have not only the information about tours and different activities but also, live personal chat where customers will be able to communicate with employees, ask them questions and order tours. Moreover, thinking about customers and how to make payment process easier for them, it will be possible to pay online, so they will not have to go anywhere and will be able to do everything without leaving home.
As we are going to open our company in tourism sector, the main and the most important working tool is personal computer. Every employee will have his/her own laptop where he/she will be doing all work, researches and tasks. Also, as we are new on the market and cannot afford big expenses, main advertising source will be Internet and our own webpage.
3.4 Future services
For the beginning and having in mind that company is newly established, we are going to offer enough options for our customers from which they will be able to choose what they want to see, visit and experience. But also, we cannot skip our future plans and expectations. When the demand will be growing, supply will grow as well. We will do research, ask our customers what they want more and what expectations do they have, and in this way we will develop future services and expand our product. Moreover, we will try to attract more customers not only from Lithuania, but also, from other countries (depends on from which country there will be bigger number of visitors). Also, we will do more advertising on radio, television and newspapers only in the future, as for the beginning it is too expensive for a new company. However, market need is the most important factor for the future services, so as long as we will be listening to the customers, we will have a place on a market and will be able to compete with other travel agencies.
4. Market analysis
It is impossible to appeal to all customers in the market-place, or at least all customers in the same way. Customers are too numerous, too widely scattered, and too varied in their needs and buying processes. We have to identify the parts of the market they can serve best and most profitably. Also, our travel agency will design customer-driven marketing strategies that build the right relationships with the right customers.
By analyzing our audience, we identify the most important characteristics and will use it to promote our service directly to the customers. This will help to our travel agency not only to connect with the individuals who are most likely to use our service, but also increase our sales.
Our travel agency's target customers are local Lithuanian middle-aged couples and individuals who are interested in eco and green tourism services and products such as experiencing and feeling the nature. This type of customers are interested in participating in horse-riding, scuba-diving, nature and cultural objects visiting.
Travel agency will be located in the heart of Klaipeda. The natural beauty and authentic experience attract many green tourism oriented individuals. This city has the most untouched and unique area which would be the best option for tourists to pay a visit there.
4.1 Market needs
Sometimes many potential customers are unsure of the location they wish to reach. Therefore, the travel agency has to have enough knowledge and information for the customers. Our agency would provide customers with services and products for a competitive price and unique experience, which plays an important role to customer searching for vacations.
Time is a precious commodity, as a result our travel agency could help to customer save their time and money, and help to ensure that they are satisfied with their vacation.
In conclusion, our travel agency would seek to fulfil the following benefits that are important to the customers:
· A wide selection of eco-friendly, green and unique tour packages;
· Accessibility to any location in Lithuania;
· Personal attention to the customer;
· Provide unique and authentic experience for a competitive price.
4.2 Market segmentation
The profile of our customers whom we are expecting to buy our product and service are more likely to be 35 to 50 years of age, with higher education and stable income, couples or individuals. Main target customers would be Lithuanian nationality as the travel agency would be located in Lithuania and these people would be in priority. This target group is more likely to be aware of environment protection and concerned about green tour experiences and adventures, seeing new places and traditional culture.
There would be no segmentation in gender between male and female because studies showed that 50% of customers are males and the rest 50% - females.
In this type of business there is a big competition because travellers are usually comparing few travel agencies and looking for more choices how to plan their tours. In Lithuania there are 226 tourism agencies and almost 16% (36) of them are established in Klaipлda. Most of the travel agencies are offering tours not within the Lithuania, but to other countries all over the world as well. In their web pages they are providing information about different tours abroad, tickets and hotel prices, different tour packages by bus, by train, by plane, by ferry or cruise. There are only few tourism agencies which are concentrating only on tours within the country. But they are not considered as eco friendly tours, usually they include everything: from accommodation and catering places to different trips and tour packages within Lithuania.
However, even if our product is different from other travel agencies located in Lithuania, we were also thinking on how to compete with them in other aspects and to make sure, that our established company will be outstanding and attractive to new potential customers:
· High service quality. In order to have as more customers as possible and to make sure that they will be satisfied, high service quality is a very important measurement. In travel agencies service quality depends not only on quality of the product but also, on employees who are interacting with the customers. Therefore, because we are the founders of the company and we are the ones who will work there, we are sure that we will provide higher service quality than others, take care of customers and fulfil all their needs and expectations;
· Competitive prices. Product prices of our travel agency will be affordable to our target group (see 4.2 Market segmentation) and we will be opened to discounts and special offers for bigger groups of travellers;
· Provide customized services. «Eco Travel» agency will be different from many others because of our unique product - customized services for our customers. We will take into consideration travellers needs and wants and we will sell them a product exactly which they are asking for and which will meet all their expectations;
· Feedback from customers. Every good travel agency has to listen to their customers all the time if they want to be successful. We will have special questionnaires which we will give to our customers in order to know, what is their opinion about our services, what problems do they see and from this feedback we will know what we need to improve in order to be better and more professional at fulfilling customers' needs and wants;
· Ecological company's philosophy. We are not only suggesting and promoting eco-friendly tours but also, branding our company as an ecological one. It means that in our office we will use rechargeable and reusable office products, like batteries, pens, storage devices, low consumption lamps, print double-sided papers. Also, we are going to corporate with other green companies in Lithuania, join different events which are promoting protection of the environment, become a member of «Eko pasaulis» (transl. «Eco world») - an electronic catalogue of eco companies in Lithuania which is providing information for customers who wants to buy ecological goods and services. Moreover, in the end of every year we will devote 5% of company's revenue for environment protection;
· Motivate our customers. By providing eco product to our customers, at the same time we are educating them about protection of the nature and motivating them to contribute by taking care of the environment and all the time to have in mind saying: «Leave the place the same as you founded».
5. Strategy and implementation summary
5.1 Marketing strategy
To define our marketing strategy we have used Marketing mix model (7 P's) which consists of four tangible elements (Product, Price, Place, Promotion) and three additional elements which helps to define company's philosophy (People, Process, Physical evidence).
Our agency wants to inspire Lithuanian people to be aware of environmental problems, to think «green». We will offer services that are attractive and not polluting environment of the country. At the same time by providing these services we will motivate our customers to take care of the environment and will give them opportunity to experience the traditional Lithuanian culture.
We are planning to create easily recognizable Lithuanian eco-tourism agency for our main target group by giving them trustworthy information about us.
First of all our travel agency would like to create as much partnerships with reliable and qualified Lithuanian companies as we can. We will buy attractions (water activities, treks, ethnographical tours, horse riding, etc.) from our partners therefore, we will purchase products with discount or at the best possible price. Furthermore, we will sell the same attractions to our customers for the regular and competitive price. 10% of the selling price we will earn for the service provided.
We will make sure that our customers are getting informed about our company's existence. Since our company is newly established and has limited budget, for the beginning we will use those forms of promotion that we can afford:
· Advertising. In the first year of running the business, we will advertise the company by flyers and brochures. We will place them in local offices, mail boxes and tourism related businesses that are located in Klaipeda, Kaunas, Vilnius (three biggest cities of Lithuania) and Palanga, Nida (most popular resorts). Also, posters will be made and placed in strategic public locations. To be sure that we will get people interested in our service, brochures, flyers and posters will be bright, well-structured and attractive (Enclosure 1). Location, activities, bookings, dates and travel methods will be mentioned while advertising our agency. On the second year, we will double the advertising costs, and will be able to take a next step and will promote our agency in newspapers and magazines. On the third year of running the business, we will appoint even more money for advertising, therefore promoting the company through radio and TV will be considered.
· Internet Marketing: Already from the start when we will open the travel agency, we will have our company's Web-page where customers will be able to find all the necessary information - attractions and activities, best places to visit, accommodation and catering places. Customers will be able to see company's mission and vision that will be written on our Web-page. Also there will be provided photos of the places that our agency is offering and news to inform our customers about future events and services.
Furthermore, we will use Facebook and YouTube for advertising on Social networks. On Facebook we will create our company's page where everyone who used our services can share their experience with others, write comments and check the news feed that we refresh with new information. YouTube will be used by our agency to upload short videos about our sustainable services which we are providing. Since we will build up partnerships with other tourism organizations, we will ask them to put our agency's logo in their Web-pages so it will also play a role in advertising us.
· Events: For establishing our agency and becoming well known in Lithuania, we will participate in local acknowledged events and conferences, such as «Kaziuko muge» («Kaziukas fair»), which is the biggest fair that is held in the very beginning of March, «Dainu Svente» («National Song and Dance festival»), «Eko valstybe» («Eco Country») and «Eko pasaulis» («Eco World») (6.2 Strategic alliances). Also, we will take a part in the biggest ecological event in Lithuania called «Darom diena» («Let's do it!» day), that is held every spring. Moreover, we will take a part in «Vivattur» fair that is held annually, in the end of February. It will not only increase awareness of our agency's name, but also gives an opportunity to interact with our potential customers. Direct advertising, will enable us to get people interested and create new networks.
In all the above we will try to introduce our agency to people as much as we can taking in count that we have limited budget for the first years of running the business. Our message will focus on assuring potential customers that product we are providing is different from our competitors in Lithuania.
As it was mentioned before, our new established company's office is going to be located in Lithuania, Klaipeda, as it is most popular city to visit, among domestic tourists. Even thought that office location is easily accessible, our customers will also be able to interact with us, directly via official internet web page.
We will try to get in closer personalised relationships during the process of providing the service - to deliver the value for our customers. They will always receive a pleasing personality with polite service handling. Our agency will ensure that the service is delivered as promised.
We believe that our new ecological travel agency will become successful and will already start to bring a profit after first year due to the following reasons:
· It is a first sustainable travel agency in Lithuania which provides eco tours within the country;
· We have not only partnerships all over the Lithuania, but also, we are members of international green organizations. We promote ourselves as sustainable company which is concentrated on saving the environment. «Green thinking» is getting popular every day, therefore this agency will be on a spot line;
· In our business plan we wrote about risks, weaknesses and threats as well as we gave possible solutions how to solve them. That shows we are aware of possible difficulties and ready to face them;
· Financial part and budget for the next three years shows increasing profit.
The present and the future of our company are concentrated on sustainability and protection of Lithuanian's nature while promoting the country as an attractive tourism destination.
1. Lithuanian webpage where is information about what kind of company can be established in the country with descriptions, written by jurist Andrius Liubinas:
http://www.verslilietuva.lt/lt/verslo-pradzia/steigimas/kokia-imone-steigti/#Uюdaroji akcinл bendrovл (article based on stringent regulations which were valid from 2013-01-02);
2. Table for Lithuania statistics «Individuals aged 16-74 who used computer, the Internet by period, information technologies, age and year»:
http://db1.stat.gov.lt/statbank/selectvarval/saveselections.asp? MainTable=M9020201&PLanguage=1&TableStyle=&Buttons=&PXSId=9492&IQY=&TC=&ST=ST&rvar0=&rvar1=&rvar2=&rvar3=&rvar4=&rvar5=&rvar6=&rvar7=&rvar8=&rvar9=&rvar10=&rvar11=&rvar12=&rvar13=&rvar14= (2006-2012);
3. «Port of Klaipлda»:
http://en.wikipedia.org/wiki/Klaip % C4% 97da#Port_of_Klaip.C4.97da
4. Information about Klaipлda:
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