AVENTURA BUSINESS PLAN REPORT

SUBMITED BY (VIBRANT GROUP)

CHERYLAINEFRANKLIN BHUMIKA BHAGWANANI NIKUNJ VYAS NIYATI CHAUHAN MONIKA GOYAL MONIKA GOYAL
Reema

Business Plan Report On AVENTURA (ADVENTURE TOURISIM)

A report submitted in partial fulfillment of the requirement of the PGPM program of- IBS Ahmedabad

Submitted To: Mr. Prashant Saxena Faculty (IBS AHMEDABAD)

Date of Submission: 04-10-2011

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ACKNOWLEDGEMENT

Apart from the efforts made by us, the success of any project depends largely on the encouragement and guidelines of many others. We take this opportunity to express our gratitude to the people who have been instrumental in the successful completion of this project. We would like to show our greatest appreciation and respect to our Faculty Guide and Mentor Mr. Prashant Saxena, Professor of Business Communication, IBS Ahmedabad for his continuous encouragement, guidance and support. We are heartily thankful for his tremendous support and help. Without his encouragement and guidance this project would not have materialized. Firstly we extend our thanks to the various people who have shared their opinions and experiences through which we received the required information crucial for our report. We would also like to thank and show our greatest respect and appreciation to the owner of Refresh Life Ahmedabad Mr. Mohit Varshey , without his guidance we wouldnt have got practical knowledge of how adventure tours are conducted. The constant guidance and support received from all the members who contributed and who are contributing to this project, was vital for the success of the project. I am grateful for their constant help and support.

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TABLE OF CONTENTS
Table of Contents
INTRODUCTION ........................................................................................................................................ 5 UNIQUENESS ......................................................................................................................................... 6 SCOPE ...................................................................................................................................................... 6 CONCEPT ................................................................................................................................................ 7 BACKGROUND .......................................................................................................................................... 8 COMPANY INFORMATION...................................................................................................................... 9 Location .................................................................................................................................................... 9 OBJECTIVES ........................................................................................................................................... 9 DEPARTMENTS ................................................................................................................................... 10 BENEFITS TO THE COMMUNITY ......................................................................................................... 12 ECONOMIC BENEFITS........................................................................................................................ 12 COMMUNITY DEVELOPMENT ......................................................................................................... 12 HUMAN DEVELOPMENT ................................................................................................................... 12 COMPANY ANALYSIS ............................................................................................................................ 13 Process .................................................................................................................................................... 13 Licensing.................................................................................................................................................. 13 INDUSTRY ANALYSIS............................................................................................................................ 14 COMPETITORS ......................................................................................................................................... 14 PROFITABILITY ......................................................................................................................................... 14 GROWTH OPPORTUNITIES ...................................................................................................................... 14 Management team ....................................................................................................................................... 15 MANUFACTURING AND OPERATIONAL PLAN................................................................................ 17 Location and space requirement ............................................................................................................. 17 TRANSPORTATION .................................................................................................................................. 17 EQUIPMENTS .......................................................................................................................................... 17 LABOUR FORCE ....................................................................................................................................... 17 3 AVENTURA BUSINESS PLAN

PURCHASING REQUIREMENTS ................................................................................................................ 17 LIST OF ACTIVITIES ............................................................................................................................... 18 VARIOUS LOCATIONS AND ACTIVITY CONDUCTERS .................................................................. 19 PARAGLIDING ......................................................................................................................................... 19 LOCATIONS ...................................................................................................................................... 19 INSTITUTES ...................................................................................................................................... 19 BUNGEE JUMPING .................................................................................................................................. 19 LOCATIONS ...................................................................................................................................... 19 PERMISSION ..................................................................................................................................... 19 RIVER RAFTING ...................................................................................................................................... 20 LOCATION ........................................................................................................................................ 20 Mountaineering and trekking: ..................................................................................................................... 20 LOCATION ........................................................................................................................................ 20 PERMISSION ..................................................................................................................................... 20 Requirements for Trekking and Mountaineering in India....................................................................... 21 Major Equipments for Scuba diving and Snorkeling .............................................................................. 21 Major equipments for Skiing adventure in India .................................................................................... 22 Labor Force ................................................................................................................................................. 23 Recruiting Labor ...................................................................................................................................... 23 MARKETING PLAN ................................................................................................................................. 24 OUR TARGET MARKET ..................................................................................................................... 24 STRATERGY ......................................................................................................................................... 25 Example of one of our Abu Package ........................................................................................................... 26 Financing Business: ..................................................................................................................................... 27 Financial Analysis .................................................................................................................................... 28 Appendix ..................................................................................................................................................... 29 REFERENCES ........................................................................................................................................... 30

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INTRODUCTION BACKGROUND
NATURE OF BUSINESS : PROVIDING ADVENTURE/SPORT TRAVEL PACKAGES SPECIALISE SOLELY IN ADVENTURE

An Adventure Tourism business provider can arrange a single adventure or a combination of adventure pursuits for paying tourists. When considering an Adventure Business it is probably more cost effective to concentrate on the aspects that you are good at and have a specialized interest in. Unlike other tourism businesses our Adventure Tourism enterprise will rely heavily on the specialist interest, experience and skills. Therefore, the specialist understanding required for adventure activities, is a critical area of experience for a would-be adventure tourism entrepreneur. Tour operations play an integral role in the tourism industry and are very competitive. Experience not provided by other operators. Tourists desire tours that: offer a unique experience enhance their awareness satisfy their curiosity provide local cultural experiences provide value for money

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UNIQUENESS Our product or service is unique because along with adventure tourism our main aim is to carry out thorough research and divide our customers into various groups like 1) 2) 3) 4) Corporate College students School students Individuals Based on these criteria we will design our packages, like for Corporate Stress management would be the theme, for College and School Students Leaderships, Decision Making, Facing the Fears, being participative, fun and sports activities would be included. For individuals Adventure sports would be the main focus. SCOPE INDIAS DISPOSABLE INCOME IS INCREASING YEAR BY YEAR SO IS THE TOURISM MARKET.IN 2010 IT WAS (US$ MILLION) 13549.1. HENCE AS THIS INDUSTRY HAS A EXECELENT SCOPE IN THE FUTURE TO COME SO WE CHOSE TO ENTER THE TOURISM INDUSTRY WITH ADVENTURE AS OUR THEME. ADVENTURE TOURISM IS BECOMING QUITE A RANGE WITH THE YOUNGER GENERATION, TO VENTURE INTO AND EXPERIENCE THE UNKNOWN ADVENTURE WORLD. TOURISTS FROM AGE 16-40 PARTAKE ADVENTURE TOURS THE MOST. SCHOOL AND COLLEGES GO ON SPECIAL CAMPAING AND OTHER STUDY TRIPS.

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CONCEPT VISION: Aventuras vision is to top the adventure tours market and provide the best ever possible services to its customers.

MISSION: Aventura has a mission to accomplish and that is providing the best ever possible adventure tour services to its customers and making innovative moves for increasing customer base and for successful existence in the market.

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BACKGROUND PROVIDING ADVENTURE/SPORT TRAVEL PACKAGES:

ACCOMODATIONS: In the hotels/ camps depending upon the location and the type of activity. TRANSPORTATION: Entire round trip journey at all places. MEALS : Daily breakfast, lunch , dinner ADVENTURE ACTIVITIES

SPECIALISE SOLELY IN ADVENTURE:

An invaluable bliss of outdoor activities in the secluded venues, the endless beauty of nature. Our programs are a real experience of leadership, communication & team-integration by drawing upon the individual strengths. Achieved through adventure activities like trekking, rock-climbing, rappelling, river crossing, these are enriching in many ways.

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EXECUTIVE SUMMARY COMPANY INFORMATION

Our business plan is related to adventure part of tourism industrys the world is growing and peoples power of purchasing is increasing people would always like to spend on travelling and entertainment that can relieve them from stress and day to day operations. Adventure is something that grows on a person and people always like to go for some thrilling adventure which reduces their stress and worries. So therefore we as a team thought of starting this venture and putting our best foot forward and at the same time making adventure tourism more exciting and something that people would cherish. Though there is a tough competition in the national as well as international market, but we would try our best to cut through the clutter and top this tourism segment. HENCE WE WOULD OFFER PROVIDING ADVENTURE/SPORT TRAVEL PACKAGES SPECIALISE SOLELY IN ADVENTURE Location Our location would be in Ahemedabad where our main office would be located initially on rent and in future we will plan to purchase our own offic

OBJECTIVES Effective positioning of Aventura in the minds of customers. Provide the best services regarding adventure tours. Intend to offer completely enjoyable, comfortable and informative adventure travel excursions that will ensure that travellers are thoroughly satisfied and appreciative at the end of their trip.

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DEPARTMENTS The work would be divided mainly into these departments 1. 2. 3. 4. SALES OPERATIONS HR FINANCE

SALES: The sales department would perform the following activities 1. Survey 2. Feedback 3. Prospects o Based on the survey conducted the package would be designed in a way that which activities would be included and which would not how the groups would be divided and what are the customer needs. o The Feedback would help us improve and become more effective in working style

OPERATIONS: Operations department would perform the following work 1. They will take care of arranging transportation 2. Booking Hotels 3. Tie ups with the local activity conducters

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HR: The HR Department will perform the following work 1. Training and development of employees. 2. Help the research department to design packages by helping them in doing research. 3. Design the salaries of employees.

FINANCE: The finance department will take care of the following:

1. Arrange finance for the firm 2. Invest profits to earn money out of it.

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BENEFITS TO THE COMMUNITY

ECONOMIC BENEFITS It would create more business opportunities: Since we would outsource various processes like 1. Transportation service from various modes of transport. 2. Book Hotels. 3. The Adventure activity conductors. Hence our business would provide business to other businesses too.

COMMUNITY DEVELOPMENT As our business first conducts research and then based on the requirements it creates packages in which various activities are included these would benefit the individuals help them reduce their fears and this would ultimately help them learn and live a better life after the tour. Few businesses are as fun and satisfying to own and operate. When your customers arrive, they are filled with anticipation and excited. During play, everyone is enjoying themselves. Moreover it will help the community in an impactful way because learning would take place along with various activities. The Customers wont have to worry about arranging tour for themselves

HUMAN DEVELOPMENT

Our business provides a flexible working environment to the employees which would help them to be more effective and efficient.

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COMPANY ANALYSIS

Our business is a partnership firm since all the members contributes in the functioning of the business and even getting initial capital; hence the risk and profit would be divided equally.

Process

First of all we will establish our office in Ahmedabad Divide the work into various departments Start functioning

Licensing

1. To establish the firm we would need Government permission 2. For conducting Adventure activities at various venues we would use license of the local adventure activities conductors and take license from them and pay royalty to them.

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INDUSTRY ANALYSIS
We operate in the tourism industry with adventure as our theme.

COMPETITORS

In the Adventures tourism we have many competitors like: RIMO Expeditions Mercury Travels Code Nast Travelers Himalaya Frontiers etc.
PROFITABILITY

Since we are not making any investment to buy Assets, our costs include Traveling, Accommodation, Activity conducting cost and food cost, our package would cover almost all the costs and profit margin can be added to it, hence it is a very profitable business. Secondly we also include camping in our business hence the cost of camping is lower compared to staying in hotel even that could add an advantage to our business.
GROWTH OPPORTUNITIES

ADVENTURE TOURISM IS BECOMING QUITE A RANGE WITH THE YOUNGER GENERATION, TO VENTURE INTO AND EXPERIENCE THE UNKNOWN ADVENTURE WORLD. TOURISTS FROM AGE 1640 PARTAKE ADVENTURE TOURS THE MOST. SCHOOL AND COLLEGES GO ON SPECIAL CAMPAING AND OTHER STUDY TRIPS.

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Management team
Key members of the business team are Bhumika, Niyati, Cherliyne, Monika, Nikunj The company be structured in team structured formation

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Team balanced on individual skills of marketing, sales, HR, finance and etc like that well work and conduct the business. The culture of the company based on creating a positive organizational culture, its depends on building on employee strengths, rewards more than it punishes and emphasizes individual vitality and growth, Our Leadership style is participative

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MANUFACTURING AND OPERATIONAL PLAN Location and space requirement

Plan location is in Ahemedabad where our main office is located initially on rent and in future we will plan to purchase
TRANSPORTATION

In transportation we will book tickets of various modes of transportation based on the location and the type and requirements of the group We will outsource all the facilities like for camping, trainers, travel agency and with hotels also etc.
EQUIPMENTS

We will outsource the local company and trainers for tracking and all so there is no need to rent or purchase the equipments because they will provide us all
LABOUR FORCE

In our plan basically the labor cost is of the tie ups hence employee and the trainers staff in office is not needed more.
PURCHASING REQUIREMENTS

We dont have any purchase requirements because all are going through the tie up

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LIST OF ACTIVITIES

SKY AND GROUND

FREE FALL PARA GLIDING SKY DIVING TREKKING WATER RAFTING JUNGLE SAFARI GO-KARTING ROCK CLIMBING CAMPING AND BUNGEE JUMPING DESERT SAFARI

WATER
SNORKELING SCUBA DIVING PARA SAILING SURFING CANOEYING KAYAKING JET SKIING

SNOW
SNOW SKIING ICE SKATING SNOW TUBING SLEIGH RIDING SNOW ART

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VARIOUS LOCATIONS AND ACTIVITY CONDUCTERS

PARAGLIDING LOCATIONS Himalya regions such as uttranchal, himachal Pradesh, north goa ,kovalam,ratnagiri,islands of Andaman and nicobar islands INSTITUTES The Western Paragliding Association,mumbai., Himalayan Institute of Adventure Sports Manali, Himachal Pradesh, Indian Institute of Skiing & Mountaineering, New Delhi etc.(from where we will hire trainers) BUNGEE JUMPING LOCATIONS Shivapuri, Sikkim, ladakh.dalhousie, mussourie PERMISSION Ministry of Home Affairs, North Block, Central Secretariat, New Delhi 110 001 India Foreigners' Regional Registration Officer, New Delhi 110 002 India FRRO & Deputy Commissioner of Police, Mumbai Chief Immigration Officer Chennai Superintendent of Police (Immigration and CID), Amritsar
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 Deputy Inspector General of Police (Border), Calcutta Commissioner and Resident Deputy Director (Tourism), New Delhi

RIVER RAFTING LOCATION Ladk,rishikesh,goa,teesta river in sikkim,darjeeling,alaknanda and bhagirathi Mountaineering and trekking: LOCATION: Ladakh,mt.abu,uttranchal,Darjeeling,manali etc PERMISSION The Mountaineering institute and allied sports complex in Manali will give better assistance for the entire adventure enthusiast in Trekking and Mountaineering in parts of Himalayas. For foreign tourists a permit for Trekking and Mountaineering is a must and it is a punishable offense if anyone failed to do so. One have to register their identity and applications had to be send to the Indian Mountaineering Foundation three months in advance. The major aspects here to be noticed is to mention the destination for Trekking and Mountaineering, the route path, guide, no of people in the group, group leader, no of days required for Trekking and Mountaineering and about the past experience of any Trekking and Mountaineering.

applications has to be sent to state government or military base six months in

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advance. Many areas for Trekking and Mountaineering are restricted and special permissions are required for trekking in these areas such as Jammu & Kashmir. Before two weeks of the Trekking and Mountaineering expedition one must inform the Commissioner of Police or defense base of the particular area of Expedition. Requirements for Trekking and Mountaineering in India Persons involved in Trekking and Mountaineering in India should be medically fit for their expedition. Every person involved in Trekking and Mountaineering in India should have a insurance policy cover for accident and helicopter search and rescue. For foreign tourists the insurance policy should contains a letter of clause stating that an amount of $ 6000 have to be paid for the Indian Mountaineering Foundation after the event of accident rescue and search mission conducted by the Indian Air force.

Major Equipments for Scuba diving and Snorkeling The important equipments used in Scuba diving and Snorkeling are a Wet suit, fins, tank, mask, Snorkel, knife, leather or canvas gloves and underwater flash lights for night diving etc. You can get these equipments for rent on a cheaper rates form all the destinations of Goa, Lakshadweep and Andaman.

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Major equipments for Skiing adventure in India The first major equipment used in Skiing is the Skis and poles. One should also need Ski parka, stretch salopettes, thermal wear, sleeveless down jacket, woolen jersey, ski gloves, woolen cap or helmet, woolen socks, scarf, ski gaiters, goggles and ultraviolet sunglasses. The best time for skiing in the Himalayas is December

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Labor Force
Our labor force would include 1. The four department heads. 2. The trained employee having knowledge of adventure sports. 3. One employee specializing in conducting various on tour activities.

Recruiting Labor

Initially the business partners would handle the main departments The trained person would be recruited based on his skills and practical knowledge through interview and after that one or two test trips.

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MARKETING PLAN

MARKET SEGMENTATION

Young customers

Occasional customers

Senior customers

Regular customers

OUR TARGET MARKET 1. 2. 3. 4. COORPORATES COLLEGE STUDENTS SCHOOL STUDENTS INDIVIDUALS

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STRATERGY

Based on these groups are Marketing Strategy would be to Advertise through hoardings, pamphlets, internet and banners We would also offer various discounts to attract customers Provide free tour to any two teachers/colleague to motivate and encourage the school/colleges/companies to be our customers. Go for tie-ups with these institutes.

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Example of one of our Abu Package Program Details: 1 day Stress Management execrises , yoga mediation , breathing techniques 3 days 2 night. Accommodation: Events / Activities: Camp Stay in Tents for natural feel. Rock Climbing (theory and practicals) Rappelling (theory and practicals) River crossing (theory and practicals) Caving (theory and practicals) Mountain walk Trekking Night Trekking Campfire Other minor fun activities and games

Trip has 1. Lots of competitions , prizes too. 2. Student discounts : flat 20 % . Entertainment Band and much more. Food : Pure Vegetarian and hygienic food (Gujarati, Rajasthani, Punjabi) : fun activities and games , entertainment activities followed by Lush DJ night/ Live

Rs. 5999 / per person including transportation

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Financing Business: For most tourism businesses, the primary season is either winter or summer. Many do not operate year-round. Spring and fall are generally considered low season for most tourism businesses. These peaks and valleys must be taken into account in your financial planning. All annual revenue comes during a six month period; you need to plan your revenues and expenditures for the whole year to ensure that you can sustain the business through the other six months of low cash-flow. This can get challenging, especially since the low time for cash flow is often the same time that you need to invest in marketing and promotion for the upcoming season. Therefore, you will likely need to establish a line of credit with a bank to carry you through the cashflow valleys. This is in addition to having up-front working capital to start your business. Small business financing can involve several types of financing including shortterm debt, long-term debt and equity financing. Alternate sources of financing including leasing, advance payments from customers, and supplier financing through extended payment terms.

Amount needed to open the business Since there is no assets involved the only initial cost would be of establishing an office and office related expenses

The Amount of Money we have is 2, 50,000 Rs 50, 0000 brought by each partner

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Financial Analysis
Year INFLATIO N RATE PRICE ASSUMP TION DEMAND TOTAL REVENUE 2010 9% 5999 15 89985 6538 .91 16 1069 11 7127. 412 18 1270 21.2 7768. 879 19 1509 13.9 8468. 078 21 1793 00.7 9230. 205 23 2130 27.2 1006 0.92 25 2530 97.6 1096 6.41 27 3007 05.3 1195 3.38 30 3572 68 13029.1 8778 33 424470. 0807 2011 2012 2013 2014 2015 2016 2017 2018 2019

ASSUMP TION

COST DEMAND TOTAL COST

7000 15 105000

7630 16 1247 51

7630 18 1359 78

7630 19 1482 16.1

7630 21 1615 55.5

7630 23 1760 95.5

7630 25 1919 44.1

7630 27 2092 19.1

7630 30 2280 48.8

7630 33 248573. 1858

2010 TOTAL REVENUE TOTAL COST 8998 5 1050 00

2011 1069 11.2 1247 50.5

2012 1270 21.2 1359 78

2013 1509 13.9 1482 16.1

2014 1793 00.7 1615 55.5

2015 2130 27.2 1760 95.5

2016 2530 97.6 1919 44.1

2017 3007 05.3 2092 19.1

2018 357267. 9747 228048. 7943

2019 4244 70.1 2485 73.2

450000 400000 350000 300000 250000 200000 150000 100000 50000 0 TOTAL REVENUE TOTAL COST

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Appendix

An Advertising Sample

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REFERENCES
MR. Prashant Saxena(Facultity IBS Ahmedabad) MR. Mohit Varshney (Employee at Refresh live adventure tourism Ahmedabad) Websites 1. www.google.com

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