NEW TOUR AGENCY

New Tour Agency Business

New Tour Agency Business

Section A)

Introduction

This study will propose a report for the bank manager that will help in defining the feasibility and profitability of London Dreams Travel Agency. The idea to from London Dreams Travel Agency is proposed by Sam David. The company will offer the services for arrangements of stay for people who intend to visit different sites of their interest in London. The company arranges flight tickets, accommodation, transportation and other such services for the visitors of London.

Tourism industry of United Kingdom contributes a large share in the GDP of the country. United Kingdom is currently the house of nearly 40000 hospitality business and according to BHA (2010) the country's tourism industry is boosted because of its dynamic hospitality industry. The industry is expected to grow rapidly as United Kingdom will host the 2012 Olympics event.

The subject for the study will help in determining or forecasting the benefits a tourism company can obtain of the mega event likely to occur because of London Olympics 2012, by analyzing the present situation of the hospitality industry. The company will offer various tours package to the people most notable among them are:

London Visit;

Historical Sites Visit;

Know the UK.

London Visit Package: This one day package includes the brief visit to most famous tourist attractions of the London.

Historical Sites Visit Package: This will include the visit of the historical sites of London, and other locations near to the London.

Know the UK: This includes the visit to different sites of UK, including sites where Olympic Games are being played.

Tour Trip Description

Day

Time

Location

Facility

Meal

Total

Variable Cost

Fixed Costs

Per Passenger

£ Sterling

£ Sterling

 

 

 

Trip 1

 

 

 

 

Day 1

1-Jan-11

7:00 AM

Hilton Airport, London, UK

Transportation

Tea and Biscuit

45.85

7.00

1-Jan-11

8:00 AM

Hilton London Canary Wharf hotel

Accommodation

Rest

850.00

 

1-Jan-11

2:00 PM

Hilton London Canary Wharf hotel

Meal

Lunch

35.00

1-Jan-11

9:00 PM

Hilton London Canary Wharf hotel

Meal

Dinner

 

40.00

1-Jan-11

2:30:PM

London Bridges

Sightseeing

None

350.00

1-Jan-11

4:00 PM

London Island

Sightseeing

None

40.55

5.50

1-Jan-11

6:30 PM

Parks

Sightseeing

None

25.33

5.50

1-Jan-11

8:00 PM

Galleries

Sightseeing

None

 

27.00

 

 

 

 

 

 

1,311.73

120.00

Day

Time

Location

Facility

Meal

Total

Variable Cost

Fixed Costs

Per Passenger

£ Sterling

£ Sterling

 

 

 

Trip 1

 

 

 

 

London 1

1-Jan-11

7:00 AM

Hilton London Gatwick Airport hotel

Transportation

Tea and Biscuit

75.00

10.00

1-Jan-11

8:00 AM

Heathrow International Hotel

Accommodation

Rest

750.00

 

1-Jan-11

2:00 PM

Heathrow International Hotel

Meal

Lunch

65.00

1-Jan-11

9:00 PM

Heathrow International Hotel

Meal

Dinner

 

85.00

1-Jan-11

2:30:PM

Visit to Golden Domes church. Tourists will be taken by minibus. A golden dome is known for its architecture and beauty.

None

700.00

1-Jan-11

7:00 AM

visit to the Great Patriotic war Museum, a memorial complex commemorating the Germen-Soviet

 

None

600.00

7.89

 

 

 

 

 

 

 

 

 

2,125.00

167.89

Day

Time

Location

Facility

Meal

Total

Variable Cost

Fixed Costs

Per Passenger

£ Sterling

£ Sterling

 

 

 

Trip 1

 

 

 

 

UK 1

1-Jan-11

7:00 AM

Hilton London Docklands Riverside

Transportation

Tea and Biscuit

85.00

14.00

1-Jan-11

8:00 AM

Park Inn by Radisson St Helens

Accommodation

Rest

800.00

 

1-Jan-11

2:00 PM

Heathrow International Hotel

Meal

Lunch

65.00

1-Jan-11

9:00 PM

Heathrow International Hotel

Meal

Dinner

 

85.00

1-Jan-11

2:30:PM

Sefton Park

None

700.00

1-Jan-11

7:00 AM

Tate Gallery

 

None

600.00

9.98

2-Jan-11

8:00 AM

Liverpool Cathedral

None

700.00

3-Jan-11

9:00 AM

Park Inn by Radisson St Helens, Liverpool

None

750.00

 

 

 

 

 

 

 

3,635.00

173.98

Price

Price is the most important factor affecting the decisions of the tourists. Therefore, it is high time that companies analyze the expectations of customers with the help of cost-benefit analysis. If the benefits of their offers are lower than the price, which the customers have to pay, then customers are likely to switch to their competitors. In an era, when tourism revenues are already declining, and tourism and hospitality industry is facing a downturn, no company can afford to lose its customers. Therefore, companies must give significant price discounts to its repetitive and first time customers, so that they do not lose ...