The paper focused on developing a business plan for operating a traveling company. In order to assess the feasibility of the concerned business, industry analysis has been conducted. Tools such as Porter’s five forces has been performed to analyze the attractiveness of the industry. A financial planning has also been incorporated in the paper to assess whether the proposed business will be profitable or not.
To make any business successful, proper planning and implementation of that plan is necessary (Lee, 2011; Clarke2010). From a management perspective, a business plan can be defined as an official testimonial of company’s goals, reasons for which those are achievable, and strategy for accomplishment of the same (Bennett, 2005; Kaufman, 2010). The paper focuses on the travel and tourism industry in Singapore and developing a business plan for a new organization Sephat Tours and Travels (ST&T).
Travel and Tourism Industry
Industry Overview: Global perspective
Across the globe, tourism industry has contributed $1364.8bn which is close to 3.1% of the total GDP in 2014. It is expected to grow at 3.9% annually between 2015-2025to reach $3593.2bn by 2025 which will be 3.3% of total GDP (direct contribution). From the total contribution perspective, the figure was $7580.9bn (9.8% of GDP) in 2014 and is expected to grow by 3.8% annually to reach 11,381bn (10.5% of total GDP). The total investment was $ 814.4bn (4.3% of total investment) which is likely to increase at the rate of 4.6 % to touch $1336.4bn by 2025 (Word Travel and Tourism Council, 2015a).