Hey, I've got my sights set on starting a small business in the travel industry. I've written some notes on what I plan on doing, and I'm looking for some critical reviews, and some guidance on where to go from here. Thanks for the support.


Target Market- My target market is people elderly people who have already retired, or others who need help with their travel services. These people are more likely to want to travel, and may not be as capable as others in searching for competitive fares.

Customer services- I plan on gathering information on dates, methods, and location of travel from customers. With this information, I would be able to search for the lowest rates on airfare, hotels, car rentals, and activities using the internet and phone. Services could range from simply finding an appropriate flight that fits their needs, to putting together a package with all travel arrangements, printed directions to each location, and reservations for activities at the destination. I could provide them with ideas for activities based on research of the specific destination. Overall, I want the customers to feel that we have a special connection and that I am providing the best rates and ideas for their trips. To set me apart from online travel sites, I plan on being as flexible and available to customers as possible. By providing an email and phone number, customers could reach me in a number of ways, day or night.

Profit- In order to make a profit, I would charge something like 10% on the total package price. I feel this percentage would result in a lower fee than competitor?s websites,

Business Layout- I see this business as being a part time business for me. Since I am working 40 hours a week during the summer, and will be taking classes in the fall, the business would be operated at nights and on weekends. One benefit of this type of business is that reservations can be made with just a laptop that I have on me at all times.

Budget and marketing- Currently my budget is small for this business. I am willing to invest $500 in local advertising. Since the fixed costs of a business of this type are very low, and the variable costs include mostly advertising, I feel that this is an appropriate amount to begin with, considering the small scale I wish to start out with. Yahoo websites cost $9.99 a year, and I am prepared to invest in purchasing it, while designing it myself. Another method of advertising I am prepared to do is to hand out flyers. I currently have a side job of handing out flyers on mailboxes for a local bird store, so I know the rules regarding this, and also what a tedious process flyer handout is. The main newspaper in my area charges $250 dollars for a two week advertisement. I think this is an appropriate investment once I decide to get started.

This is all a basic outline of what I intend to do, and I thought I'd let you know, that the more I write about this topic, the more interested and excited I become.

Thanks again for your help and support!

Justin

Justin,
I think you're underestimating the effort required for something like this.

There are currently many travel specialty companies out there but there are getting to be fewer of them everyday. Many of these are local travel agencies that put together various tours or trips for seniors. They rent the buses or charter the planes and sell the fares. Obviously, the difference between what it costs them to charter and rent rooms and what they sell it out for is their profit.

Many of these companies got into this as another way to generate profit when the airlines started cutting commission rates.

It will be you the people call when they get to their hotel and find the hotel's overbooked and they have no room, or they missed their flight or simply got bumped from it. When they're standing in a hotel lobby in Phoenix at 1am without a room, they aren't going to be wanting to communicate by email with someone cramming for exams. While I could elaborate further I think you get the picture, and hopefully will rethink your idea.
Good luck

Denny