ACCESS TRAVELS Unique Accessible Tour Experience

An interesting business opportunity for investors who can offer an amount of SEK 2,775,800

in return for 20% share of the business.

Business Plan

ALAGURAJA.S.P EDWARD MBUYA

1.0 EXECUTIVE SUMMARY: .................................................................................................................................... 3

1.1 THE BUSINESS IDEA: .............................................................................................................................................. 4 1.1.1 Pain Statement: ........................................................................................................................................... 4 1.1.2 Value Proposition: ....................................................................................................................................... 5 1.1.3 How to make Profit: .................................................................................................................................... 5

2.0 SERVICES: ......................................................................................................................................................... 5

2.1 OFFER: ................................................................................................................................................................... 5 2.2 COMPETITORS & POTENTIAL PARTNERS: ....................................................................................................................... 6 2.3 FULFILLMENT: ......................................................................................................................................................... 6 2.4 PACKAGES: ............................................................................................................................................................. 7

2.4.1 Potential customer’s testimonial 1: ............................................................................................................. 7 2.4.2 Potential customer’s testimonial 2: ............................................................................................................. 8

2.5 FUTURE SERVICES: .................................................................................................................................................. 10

3.0 CUSTOMERS AND MARKETS/ THE MARKETING PLAN: ................................................................................... 10

3.1 PROBLEMS AND NEEDS: ........................................................................................................................................... 10 3.2 MARKET / CUSTOMERS: .......................................................................................................................................... 11 3.3 COMPETITOR ANALYSIS: .......................................................................................................................................... 15 3.4 MARKETING: ......................................................................................................................................................... 15 3.5 SALES: ................................................................................................................................................................. 16 3.6 HOW TO MAKE MONEY: .......................................................................................................................................... 16

4.0 FINANCIAL PLAN: ........................................................................................................................................... 17

4.1 IMPORTANT ASSUMPTIONS: ..................................................................................................................................... 18 4.2 BREAK –EVEN ANALYSIS: ......................................................................................................................................... 18 4.3 FINANCIAL PROJECTIONS - 3 YEARS ............................................................................................................................ 19

5.0 BUSINESS MODEL: .......................................................................................................................................... 20

5.1 CUSTOMER VALUE PROPOSITION .............................................................................................................................. 20 5.2 KEY RESOURCES ..................................................................................................................................................... 20 5.3 KEY PROCESSES...................................................................................................................................................... 21 5.4 PROFIT FORMULA .................................................................................................................................................. 22

6.0 IMPLEMENTATION PLAN: ............................................................................................................................... 24

6.1 VISION: ................................................................................................................................................................ 24 6.2 POSITIONING: ........................................................................................................................................................ 24 6.3 PRICING: .............................................................................................................................................................. 24 6.4 SALES STRATEGY: ................................................................................................................................................... 24

6.4.1 Sales forecast: ........................................................................................................................................... 24 6.5 PROMOTIONS: ....................................................................................................................................................... 25

7.0 RISKS AND OPPORTUNITIES: .......................................................................................................................... 25

8.0 OFFER TO INVESTORS: .................................................................................................................................... 26

8.1 EXIT..................................................................................................................................................................... 27

9.0 REFERENCES ................................................................................................................................................... 29

10.0 APPENDIX: ................................................................................................................................................... 30

10.1 FINANCIAL PROJECTIONS - 3 YEARS.......................................................................................................................... 30

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1.0 Executive Summary:

Access Travels will be operational from January 2012 and will offer accessible tourism services to

people with disability, elderly and the visually impaired. The service will be for people who are

interested in exploring Blekinge region of Sweden and the target customers will be from Sweden and

the whole of Europe.

There is a big potential for tourism services as currently there is no company that offers accessible

tourism for this group of customers. The potential for tourism growth in Sweden is very impressive and

in 2009 it had a total turnover of SEK 251.7 billion of which 45 percent accounts for domestic leisure

travelers and over 37 percent foreign visitors.

Access Travels is fully prepared and dedicated to offer a great unique tour experience to our potential

customers by providing support personnel, Travel Consultation, pre-arranged tours, reservations for

lodging, local transportation, equipments renting, exciting customized packages and other services.

Objectives

Access Travel’s projected goals for a period of 3 years are:

To get at least 300 customers in the first year. 600 customers in the second year and 1000

customers in the third year. The trend is expected to keep growing for the following years.

Develop a mutual benefit relationship with Hotels, equipment manufacturers for wheel chairs

etc, Health and SPA centers and other entertainment businesses

Develop payment systems for customers to pay when they arrive at our offices or over the

internet.

Key to success

In order for Access Travels to be able to meet its goals several things need to fall in place.

Targeting a Specific Market niche which is disabled, elderly and vision impaired people.

Take advantage of early entry to market by building good reliable reputation for customers.

Being able to have loyal group of customers in order to reach sales forecasts.

Always trying to offer unique tour experience at a fairly affordable price.

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Less administrative costs and overheads which in turn helps to offer good value to the

customers

The company is a partnership firm by two entrepreneurs situated in the region Blekinge, South of

Sweden. The entrepreneurs will be part of the management and as employees. The company is one

among the very few travel operators located in the region and the only company that is dedicated to

offering tour travels for disabled people.

After the initial investment of SEK 2,775,800 it is expected that through intensive marketing programs

and sales it will be possible for the business to break-even in the second half of the first year.

1.1 The business Idea:

The business idea is to start a tourist operator company in Blekinge with focus on accessibility to

attract customers to explore the hidden secrets of Blekinge. Barrier-free tourism with accessibility

options at an affordable price for the disabled and elderly is the niche of the company. The company

makes money by charging individual customers and renting services & equipments.

1.1.1 Pain Statement: There is a problem for disabled and elderly people to have safe and unique tourism experience

taking into consideration the kind of support necessary for them to be able to visit different tourist

places. Currently, there is lack of dedicated specialized travel operator in Blekinge and Sweden who

offers tourism services to people with accessibility difficulties. Access Travels aims to transform travel

-2000000

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1000000

2000000

3000000

4000000

5000000

6000000

2012 2013 2014

Income/Expense/Result

Expenditure

Income

Profit

Poly. (Profit)

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for the disabled to be a pleasure and unique experience. Access Travels will be the only company in

Sweden that is fully dedicated to help customers enjoy tourism activities by providing support

personnel, equipments, exciting customized packages and other services.

1.1.2 Value Proposition: To provide all kinds of accessibility tourism services to the needy such as disabled, elderly etc. at

an affordable price.

1.1.3 How to make Profit:

Access Travels generates profit from the money customers pay for being benefitted by the

service provided by the company. The company will work towards achieving a profit of 15-20% of the

money from every customer package on a collective basis.

2.0 Services: Access Travels provides tourism services for the differently-abled and the elderly clients from

Sweden and Europe with a safe and fun filled trip in Blekinge. Services include Travel Consultation, pre-

arranged tours, Customized packages, reservations for lodging, local transportation etc. Access Travels

seek to be unique by focusing on accessibility.

2.1 Offer:

There is no tourism company in Sweden offering all the services under one platform as offered by

Access Travels. These services might be available at different places in Sweden but we are the only one

to provide them as packages and tailored as per customer’s choice. Our offer includes:

Dedicated visitation tours in Blekinge’s beautiful places for differently-abled people and the

elderly

Assistance to differently-abled people and the elderly so that they can safely enjoy the tour i.e.

Support Personnel

Opportunities for the whole family to go on tours without having to worry about their disabled

family members because we are there to support them.

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Friends offering support to a disabled person Personalized Vehicle and support personnel

Personalized vehicles i.e. adjustable seats, temporary ramps and hydraulic lifts

Accessible packages for places with and without accessibility options

Website that supports visually impaired use and brochures with Braille functionalities

Opportunities for customers to rent equipments i.e. Wheel Chairs Shower chairs, Crutches etc.

Attractive individual, group and Personalized packages at fairly affordable prices

Attractive package for students and group discounts

2.2 Competitors & Potential partners: The greatest strength of the company against competition is that there is no competitor in

Sweden offering accessible tourism for disabled people. But on the other hand there are rather big

established players with a huge market focus targeting non-disabled people and they cover the whole of

Sweden and Europe. The current trend in the industry demands small travel agencies to set up

themselves as specialists in a sector. Access travels differentiates itself in the market as a company with

focus on accessibility. Some of our future competitors and potential partners might be Big Travel and

Första Resebyrån from Blekinge, N &N Resor and Latitude Travel from Europe etc. We are in discussion

with few travel companies for a possibility to partner up with them.

2.3 Fulfillment:

Access Travels will have a closed group of well trained employees including nurses and physical

therapists with the expertise to guide and take proper care of disabled and elderly people during their

tours.

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Access Travels will establish healthy relationships with business partners such as

Hotels

Equipment manufacturers

Health and SPA centers

Other Entertainment businesses etc. in order to have the best deals negotiated specifically

from the suppliers and will maintain powerful position with the ability to substitute and with

low, initial cost of changing.

2.4 Packages:

The packages will be divided into three main segments. Every package is designed considering

the customer will tour for three days.

Elderly people package

The elderly package includes exciting activities that could be of great interest to elderly people

such as Historical Tour to places like Karlshamn, Karlskrona etc, Exhibitions and Art Galleries, churches

etc. they might want to visit at different places in Blekinge, Health and SPA’s, physical therapy that

would help them be strong, Kayaking, fishing, boating etc. The elderly package would aim towards more

relaxing activities and to make them enjoy the distinctive serenity and the natural beauty of Blekinge.

Customer fishing Historical Tourist spot - Karlskrona

2.4.1 Potential customer’s testimonial 1:

”Det nya konceptet med turisttjänster för äldre och rörelsehindrade är ett värdefullt tillskott till vår vård

och omsorg. Det möjliggör för många av oss att förverkliga drömmar om vad vi skulle kunna göra i ett normalt

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liv. Exempel på upplevelser som med fördel kan erbjudas i Blekinge är segling i skärgården, kanske till och med

kryssningar till Bornholm eller Öland.”

”The new concept of tourism services for old and differently-abled people constitutes a valuable addition to

my care and attention and will help in my rehabilitation, as it will enable realization of dreams of experiences

pertaining to a normal life, which many of us have. An example of such experience which may be offered in

Blekinge is sailing in the archipelago or even cruises to Bornholm and Öland.”

- Stefan Hellberg (61 years)

Young people package

This package is for young people who are excited and happy with activities that are a bit riskier

like rock climbing, scuba diving, Kite surfing, horse riding, Swimming, physical therapy (with guides on

evenings) and Canoeing. Youngsters will also have visits to places such as Karön islands, Brunns Park,

Foundry and Enamel Museum etc.

The pictures here showcase a personal assistant/guide with a disabled customer.

2.4.2 Potential customer’s testimonial 2:

As a wheelchair person,

1. I would expect my tour operator to pick me up on arrival in a taxi which can take me in with my wheelchair.

2. I would love to travel in Boats.

3. I would prefer to have a guide who can understand handicapped people.

- Selvakumar Ramachandran (31 years)

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Potential customer participating in sports Customer and his guide on a walking tour

Kids and Family Package (Family 2 Adults and 3 children)

This package is for customers coming as a family. The proposed package includes activities both

for the other members and the differently abled member such as Hällevik’s camping, Eriksberg Safari

Park, Car and automotive museum, Räntemålagård and Eringsboda, Marine Museum and Lekland for

kids. The tourist company shall provide compliments to the kids and other members throughout the trip

like ice creams, soft drinks, and other solid gifts in memory of Blekinge and Access Travels.

Customer camping Kids at Lekland

Prices vary approximately from SEK 5000 – 8000 depending on the type of package chosen and season.

Accommodation and regular course meal is not included in the package price.

Winter Packages: Experience Christmas and New Year in Blekinge with skiing, winter camps and other

exciting indoor activities

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Outside Trips: Poland, Lithuania, Denmark, India, Tanzania, South Africa, Thailand etc. Outside trips are

planned with the strong network of tourist companies dealing with accessibility in respective countries

for customers in Blekinge and Sweden. These trips will be arranged when Blekinge is off season.

2.5 Future Services:

Access Travels will have an office space at Blekinge initially and will expand its services to the

whole of Sweden and Europe after a successful initial reach through its indomitable services. The

company will increase its network in Europe and other continents like Asia, Africa etc. where it can offer

similar services through trustworthy business partners. Access travel’s long term goal is to establish the

company and its position as a globally renowned provider for accessible tourism.

3.0 Customers and Markets/ The marketing Plan:

Access Travels focuses on tourism in the Blekinge region for customers in Sweden and Europe. Access

Travels aims to serve disabled and the elderly population in Europe who were over 96 million by 2005.

3.1 Problems and needs:

There are more than 2 million people in Sweden and 98 million in the whole of Europe who need

accessible services to live a normal life, equivalent to people who are not disabled. Sweden ensures

accessibility at all possible places with laws regulated as part of its constitution. Although these laws

make daily life activities easy for differently-abled and the elderly, tourism and tourist activities are not

the same when it comes to them compared to those who are not disabled. Challenge starts from the

time they start from their home to a tourist spot till they reach home safely. They will need:

To have a personal assistant

To carry wheel chairs, if they travel by flight

To book hotels with disabled accommodation

To access ferries with disabled accommodation

Taxi facility and booking

Vehicles to accommodate them with their wheel chairs during the entire tour

To access Tourist spots

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Unfriendly stairway Customer taking a ferry

There is a need for a professional who can understand the mindset of this sensitive group of customers,

find a way to solve the issues and help them with the facilities that are existent. Access Travels will be

the professional with nurses, physical therapists and other professionals who can take care of these

customers, offer services and bridge the gap helping customers utilize the facilities available effectively

and creating facilities for the customers to feel fulfilled.

3.2 Market / Customers: The Accessible tourism company has 4 groups of potential customers:

Mobility impaired people

Elderly people

Visually impaired people

Family and friends accompanying disabled people

Our target market is Sweden and the whole of Europe. According to Eurostat (2003) within the age

group of 16 to 64years in Sweden the disabled people accounted for 19.9% of the country’s population

which is approximately 1.2 million people. The breakdown of the disabilities in the figure shows that

Mobility impairment alone accounts for 37% of the whole disabled community. Other hidden

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impairment disability such as dysfunctions of the heart, blood pressure etc. will not be the focus of our

business model and in most cases these people don’t require much physical support on tours.

Mobility impaired people

Various researches done into the number of mobility impaired people in Europe presents a

significant figure for a business. According to Eurostat (2005), In Sweden alone Mobility impairment

claims 42.7% of all the people with disability condition. This 42.7% is equivalent to 500,900 people; in

the wider scale the whole of Europe has a total number of 14,332,600 mobility impaired people. The

figures present a very considerable market potential to explore.

Elderly people

The population of elderly people grows at a very fast rate in Europe. The table below presents

the rate at which ageing population increases, the projections are for years 2005 and 2025.

Ageing population (2005-2025)

European Union Population > 65 in 2005 Population > 65 in 2025

Increase in Percentage Population % Population %

Germany 15577000 18.9 19815000 24.6 27.2

United Kingdom 9536000 15.8 12996000 20.4 36.3

Sweden 1568000 17.4 2158000 23.2 37.6

France 9962000 16.4 13980000 22.2 40.3

Source: Eurostat, 2005b

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In 2005, 17.4% of Sweden’s population was above 65 years equal to 1,568,000 people and the

projections for 2025 shows 23.2% of Sweden’s population will be above 65 years of age which is a little

more than 2 million people.

In Europe for 2005, a total of 76 million people were above 65 years of age and the projections for the

2025 shows that the number will reach 103 million. The numbers are significant enough to present a

business demand for accessibility tourism with good profit now and for the years to come. This inspired

us to include the old people as potential business customers for our business model due to the

challenges faced by old people in accessing tour places and the need to support their enjoyment.

Visual disabilities

This segment of disabled people has not been considered for much of tourism activities. Our

business model will accommodate people with visual challenges. In 2006, there were 175 000 visually

disabled people in the age group of 16 – 84 years in Sweden. (Source: Mail from Karlskrona Kommun

handikappförvaltningen) This number presents a good business opportunity for a company that can

offer reliable unique experience for this group of society.

The table below presents the market size and segment and it can be seen that by considering the three

main categories of customers we intend to focus on (Mobility impaired, Visual impaired and Elderly

people),in 2005 Sweden alone had over 2 million people, so these are potential customers for our

business.

Market size per country and market segment

Country Mobility Impaired Visual Impaired Elderly population

(> 65) TOTAL demand for accessibility

Germany 1 124 400 109 500 15 577 000 16 810 900

UK 3 486 700 185 800 9 536 000 13 208 500

Sweden 500 900 21 100 1 568 000 2 090 000

France 3 764 000 943 400 9 962 000 14 669 400

Source: Eurostat, 2005; Statistisches Bundesamt, 2003a; U.S. Census Bureau, 2005

The total demand for accessible services in the whole of Europe is also very impressive. In year 2005

there were more than 98 million people in Europe in need of accessible services. The number of people

in need of accessible services presents us with a potential number of customers that we can explore and

make successful business.

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Travel motivations

What makes disabled people do tourism activities despite the challenges they face in regard to

their physical being and the inaccessible tour places? In order to be able to make a business out of

supporting disabled and elderly people to do tourism activities, it is important to understand the

motives behind their wish to tour the world which will help us planning the kind of packages that we

offer them, minimize the risks and the costs associated with the trip.

A study done in the UK on visual, hearing and mobility impaired people found that disabled people like

to go to holidays despite the challenges that they face, for the families with disabled child the motive

behind their wish to go to holidays was to have a happy time as a family and give their children new

experiences, for the adult people the reason for taking holiday was a desire to travel and having new

experiences (NOP Consumer 2003 UK).

Another study done in the UK found that the motive behind most disabled people travelling for holidays

was to have rest, relaxation, the feeling of freedom and the experience of visiting new places (Shaw et

al 2004 UK).

A study done in Germany tried to compare the motives for travelling between disabled people and

overall Germany population, the majority of the results was that the reasons were the same i.e. relaxing,

de-stressing and pressure relief, though there were minor differences between the two groups (BMWA

2004 Germany).

The identified travel motivations for German disabled travelers and elderly people included:

Relaxing/de-stressing/pressure relief

Health climate

Improving one’s health

Recharging batteries and

Experiencing nature

When the above motivations are compared to those of the overall German population the difference in

motivations is very small. The overall German population’s motivations which are slightly different are

getting away from it all, freedom/leisure time and sun/warmth/good weather.

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Another study presents the motives behind Elderly people to go on holidays as having rest and

relaxation, opportunities for social interaction, physical exercise, learning, excitement, exposure to new

situations and escape from daily life (Burnett et al 2001; Wang et al 2005).

3.3 Competitor Analysis:

There is no direct competition for the business. There are few good services offered by the local

municipality and other NGO networks but the services offered by Access Travels are competent enough

as they are custom-made and will utilize the services offered by other organizations as support

activities.

The indirect competition for the company shall be the local tourist operators and the big and established

ones. The company shall outdo this competition as they do not offer similar service and the big

operators have a different focus with a huge target market. There are possibilities of future competition

and the company shall be updated with the market and be a market leader in the segment.

3.4 Marketing: Marketing will be done through several channels such as:

Organizations dealing with disability in and around Europe

There are several popular non government and other organizations dealing with improving

accessible facilities in Europe like the ENAT (European Network for Accessible Tourism), ANED

(Academic Network of European Disability Networks), EDF (European Disability Network) etc. The

company will market through these networks as they are reachable worldwide.

Social and networking communities

Social communities and networks form a major part of today’s internet era. The company will

Market through social communities such as the face book, Orkut, LinkedIn etc. There will be

advertisements and separate pages through which the services will be marketed.

Frequent advertisements on News papers

Advertisements are an expensive promotional tool for small businesses. Yet, it will be required

to increase the customer base and market potential for the company to gain customers and to earn a

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reputation with the obtained customers. The company will advertise through newspapers, television,

radio, posters, magazines etc.

The company’s official website

The company’s official website will be one central point of marketing and the service can also be

purchased through the website. The website will have all possible information necessary like the list of

all packages, products and Services offered.

Local municipality’s tourist bureau

The local Municipality’s tourist bureaus are great source of marketing for the region. Tourist

bureau is the first point of contact for tourists who have less idea on local tourist operators. Marketing

through the local tourist bureau in every municipality will be a good strategy to market the company.

3.5 Sales:

Sales will be primarily through the company’s website which supports Braille features.

Customers can also book a trip by phone and pay when they arrive to the tourist county. There are

possibilities of group booking by organizations, schools and others. Access Travels will have brochures

and information leaflets on interesting tourist spots, services offered by the company to its customers,

discounts & details on hotels, shopping spots etc. The company will provide access to a complete

database on list of all available accessible places in the whole of region Blekinge.

3.6 How to make money: Access Travels has multiple cash streams as listed below and these options will guarantee the success of

the business.

Individual cost

Access Travels will make money by charging individual customers for the services we offer. The

plan is that the company will charge a normal package fee and also charge a rent fee when customers

rent equipments such as wheelchairs from the company. Work Statistics Sweden (2008) shows that

more than 50% of the population of disabled people in Sweden have jobs, of those 65% have full time

jobs and 35% have part time jobs, the people above 65 year are retired, therefore the data proves that

disabled people have the income to make them be able to pay for various relaxation activities, if they

are presented to them.

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Rent services to other operators

Since Access Travels is dedicated to offering accessible services to disabled people, we believe

that our expertise in offering the accessible tour service will build a good relationship with other tour

operators who offer services to non-disabled people. It’s our expectation that we can rent our services

to them in case they need to get accessible services.

Rent services to schools and organizations

From the research we have done schools and different organizations rent services when they go

for study tour or on a group tour. The schools and disabled people’s organization will be our customers

because we have the expertise to offer safe reliable tour for disabled people. Disabled school kids also

have the right to attend various study tours irrespective of their physical challenges therefore we will be

there to rent such services to the schools in need of accessible services.

Advertisements in company website

Access Travels will generate income through advertisements on the company’s website by

manufacturers of the products that are focused on disabled people. Since Access Travels will have many

customers who use our website to access a lot of valuable information, it will be a good channel for

companies that intend to reach disabled people to advertise on our website.

Rent services to any other organization

We also intend to make money by offering our services to different organizations like the

Government, EU, Municipality, County, region Blekinge etc. We believe these organizations will provide

us with a good revenue source.

4.0 Financial Plan:

Our initial estimate suggests that Access travels will experience a slow and a steady growth in

the first year of operation. This is partly due to initial investment as a start-up and the seasonal factors.

However, the second year growth curve proves to be prominent and growing gradually indicating

development at a steady pace. Access Travels foresees an increase in sales volume. The financial plan

presents a realistic projection of the company’s growth.

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4.1 Important Assumptions:

The economic situation of the travel industry will not undergo a significant decline in the next

few years.

We have considered a reasonable average amount of SEK 5000 per customer which is the

minimum amount that the customer will spend during his trip excluding his stay and lodging.

The number of customers will increase by two times every year.

4.2 Break –Even Analysis:

The graph below explains the expenditure and income analysis of Access Travels. As explained

earlier the company experiences a slow and steady growth during the first year of operation and

achieves break even during the second half of the operational year.

The expenditure for January is plummeting due to the initial investment required for the assets like

personalized vehicle, marketing activities, employee salary and other necessities for the business to take

off.

Access Travels anticipates a steady growth after the second half of the first year as projected for the

next few years. There is a decrease in sales for one month in the second half as indicated in the graph

which is due to the seasonal nature of the business. The fund scenario is also projected for easier

understanding and to explain on how the business shapes with time.

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

Jan

Feb

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ch

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e

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Income vs Expenditure

Expenditure

Income

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4.3 Financial Projections - 3 Years

Description 2012 2013 2014

EXP

END

ITUR

E

Prim

ary Co

st

Employees 4 5 6

Employee Salary 1296000 1620000 1944000

Company Registration fees & insurance 10800 9600 9600

Website hosting and maintanence 50000 15000 15000

Vehicle and support Equipments 1000000 _ _

Office Rent 60000 60000 60000

Office facilties (computers, printers, furnitures etc.)

35000 10000 10000

Seco

nd

ary Co

st

Advertising cost 75000 75000 50000

Marketing cost 30000 30000 30000

Operational Cost 84000 168000 336000

Travel cost 30000 36000 36000

Exhibitions and Conferences 45000 45000 45000

Communication (Telephone, Internet etc.)

36000 36000 36000

Miscellaneous 24000 24000 24000

Total Expenditure 2775800 2128600 2595600

INC

OM

E

Number of customers 306 600 1000

Income from advertisements 12000 24000 48000

Income 1542000 3024000 5048000

Net Profit -1233800 895400 2452400 Fu

nd

Scen

ario

No Investment -1233800 -338400 2114000

Total investment for Marketing, Vehicle & Employee Salary.

1281200 2176600 4629000

Total Investment required 1542000 2437400 4889800

* Amount in Swedish Kronor

* As assumption SEK 5000 per customer

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5.0 Business model:

The business model is divided into four major pillars which are crucial for the business,

Customer Value Proposition, Key Resources, Key Processes and the Profit Formula:

5.1 Customer Value Proposition

Access Travels will provide safe, accessible tourism with unique experience at an affordable price.

Safety for our customers will always come first and it is our intention to ensure that they will be able to

access all the tour places in their respective packages and we will offer them a tour experience they can

be remembered for the rest of their lives.

5.2 Key Resources Personnel (staff)

Access Travels will rely on its well trained staff to offer good quality service to the customers.

Staff will be the key for success of the business therefore the company intends to employ/recruit people

who are specialized in dealing with disabled people. These well trained personnel will be good

ambassadors for the quality of service that we intend to offer to our valued customers.

Personalized vehicles

Access Travels will have personalized vehicles offering more functionality compared to the

public transport cars. The cars will have features such as a temporary ramps, replaceable/adjustable

seats, hydraulic lifts etc. This kind of a car will offer easy boarding for our customers, ability to carry their

equipments etc.

Equipment renting

Access Travels will offer renting services for equipments on a daily basis. Our customers won’t

bother to take their wheelchairs wherever they go. The company plans to rent these kinds of

equipments even to customers who don’t intend to tour with us. The company will be operating an

equipment renting service to anyone who comes to Blekinge.

Company’s Website

Access Travels will have a good user friendly website that will support visual impaired use and

also have brochures with Braille functionalities. Our customers will get help on booking flights, arranging

for hotel etc. The website will include all important information that is essential for our customers, i.e.

hotels, museum, shopping centers etc that have accessibility options.

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Attractive personalized packages

The company has a list of packages that a customer can choose from. The packages are

prepared in such a manner that each package that our customer chooses will produce maximum fun

experience. The combination of activities included in the packages will be unique and affordable. This

will guarantee customer satisfaction and create goodwill to our company.

Attractive group and students discounts

The company will be offering special discounts to customers who come in groups and to students.

Partnerships

Access Travels intends to be in partnership with hotel industry like Scandic, Camping facilitators,

health clubs and spas, Disability equipment manufacturers, companies in entertainment business in

order to fully offer a competitive quality service. These partners will help the company be strong with

regard to the quality of service offered, be able to lower our prices and have an upper hand in

negotiating best deals for our customers.

Capital

The company needs capital in order to have a successful start. The capital acquired will assist in

setting up all necessary resources required for the business and also to cover the operations cost for a

couple of year while the business is growing.

5.3 Key Processes The company has identified key processes that will lead to its success, these processes are,

Marketing

The company intends to use its official website, Local municipality’s tourist bureau,

organizations dealing with disabled people in and around Europe, social and networking communities,

the architect professionals in the region and frequent advertisements on News papers in order to reach

the intended customers.

Solution driven approach (equipments)

Access Travels is dedicated to offer cutting edge solutions to the challenges that disabled people

face in the tourism activities. The necessary equipments such as customized cars will play a big role in

the best performance of the company.

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High volume business

The company intends to capture groups of customers like students and friends who come in groups due

to attractive group pricing mode. The high volume will ensure a stable company growth and profit. We

expect more than 300 customers the first year and the number to double every following year.

5.4 Profit Formula The success of any business is measured on the profit it can generate. Access Travels will deploy several

measures in order to make sure that we attain a considerable profit level. Some of techniques include:

Low group price (group discounts) By lowering the price for group customers the company will be able to recruit a big volume of potential

customers and generate huge income in one round which will guarantee good profit for the company.

Affordable individual prices

The company will strive to make sure that the individual prices are low as much as they can be

based on customer’s requirement. This will help in attracting customers because many potential

customers will be able to afford our services.

High resource velocity

Access Travels will be able to generate profit by utilizing resources efficiently by keeping vehicles

and equipments busy in our tour operations and whenever the company has no planned tours, the

equipments will be employed to schools and other tourism companies as needed.

Less administrative costs and overheads

The company will implement cost cutting means by having less administrative costs, small

sufficient office space and overheads without affecting the quality of services offered. The plan for the

company is to employ one dedicated person who will be responsible for handling all office transactions.

Negotiated best deals with vendors

Access Travels will negotiate best deals with the potential partners in hotel industry, Disability

equipment manufacturers and companies in entertainment business. By having a high negotiation

power, the company can generate profit by negotiating best conditions for business.

Cost sharing option Access Travels will utilize a cost sharing scheme. The company will be open to sharing cost in things like Office space and by sharing IT infrastructure with other companies.

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Business model:

This Business model is adopted from the author of “Seizing the white space”- Mark W. Johnson

Customer Value Proposition (CVP) Provide safe, accessible tourism with unique experience

at an affordable price

Profit Formula

Low group price (group discounts)

Affordable individual prices

(nominal prices maintained as low

as possible based on customer’s

requirement)

High resource velocity (keeping

vehicles and equipments busy

employing them with schools and

other tourism companies)

Less administrative costs and

overheads (one dedicated person

handling all office transactions, a

small sufficient office space etc)

Negotiated best deals with

vendors (High negotiation power)

Cost sharing option

Key Resources

Personnel (staff)

Personalized vehicle

Equipment renting

Website

Attractive personalized

packages

Attractive group and

students discounts

Partnerships (hotels,

equipment

manufacturers,

entertainment business)

Capital

Key Processes

Critical information

resource

Solution driven

approach

(equipments)

High volume business

Marketing

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6.0 Implementation plan:

6.1 Vision:

Access Travel’s vision is to be able to offer unique high quality service at an affordable price. By

offering good tour packages, the company will be able to provide outstanding value to customers. The

company’s founders have extensive knowledge on innovation areas and will be able to develop new

innovative service lines.

6.2 Positioning:

Access Travels has positioned itself in offering tourism service for Disabled people, Elderly

people and visually impaired people. Currently no company offers a dedicated tour service for this group

of customers.

6.3 Pricing:

Prices vary approximately from SEK 5000 – 8000 depending on the type of package chosen and

season. Accommodation and regular course meal is not included in the package price.

6.4 Sales strategy:

Access Travels will have brochures on services offered by the company to its customers,

discounts and details on hotels, shopping spots etc. The company will provide access to a complete

database on list of all available accessible places in the whole of region Blekinge.

6.4.1 Sales forecast:

According to the analysis done, Access Travels expects to be able to get 300 customers in the

first year. For the second year the company projects the number of customers to be 600 and for the

third year the expected number of customers is 1000. These projections will make sure that the

company generates enough income to sustain the business and make profit.

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6.5 Promotions:

Access Travels will use different media streams for promotional purposes. Newspapers,

Television, radio, posters and magazines will be put into use in order to make sure that customers get to

know our company and the unique quality service that we offer.

7.0 Risks and opportunities: The risks and opportunities associated with Access Tourism can be highlighted by application of SWOT

Analysis:

Strengths

Quality and Unique service

Specific Market focus

Cost effectiveness at a fairly affordable price worth the service

High resource velocity relating to effective utilization of the resources and in quick turns to

make sure that business moves on towards a sustaining path

Reliable and trained personnel in the organization

Flexibility in our strategies based on outcomes

Less administrative costs and overheads which in turn helps to offer good value to the

customers

Weaknesses

Our company is a new entrant to the market and is yet to build a reputation in the market

Although the business has multiple suppliers for most of the inputs, the fact has to be realized

that the company depends on suppliers and business partners

0

500

1000

1500

year 2012 year 2013 year 2014

Number of customers

No. of customers

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Tourism business in Sweden is seasonal due to changing weather conditions and business gets

unpredictable during some months

Unreliable cash flow at the initial stages of the business

Opportunities

Early entrant and basket of opportunities for growth and improvements

Good market share possible with good and quality service

There shall be external organizations like the NGO’s, government and other regulatory who shall

offer a supporting hand to our company

Threats

The business idea is easily replicable by existing competitors in the market.

There are big and established players as indirect competitors who have good reputation but a

different target market. A change in focus by competitors shall sweep our market.

There is a threat of trained employees leaving the company to join other operators for better

prospects.

8.0 Offer to Investors:

Total Financial Requirement : SEK 2,775,800

Access Travels is a start-up and requires financial investment for acquiring resources such as

equipments, vehicles, webhosting, office facilities etc. The company is looking for investors who

have experience in the Tourism Industry and can stay along for at least 2 years. This is important

as the investor can understand the working of a tourism company and be a business advisor.

Access Travels expects to offer 20% of the business in return for the total finance required after

the details on the pre-money and post-money evaluations. The investors will be shareholders of

the business. We will discuss the share holder agreement on mutually beneficial terms with

investors. The financial pattern suggests that the business will be balanced. The financial

structures are calculated with cushions considering risk factors into account. That doesn’t mean

that the business is under estimated but offers a realistic view on the higher probability for the

calculation to be realized in the actual business.

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The pricing strategy is formulated well to satisfy both the customers and the investors need and

Access Travels expects success.

Access Travels will have to get general insurances and other documents required for any tourism

operator. The company is working towards tax benefits / waiver with the government

considering the kind of services for the disabled and elderly people.

8.1 Exit

The shareholders are expected to stay on for a minimum period of at least 3 years to benefit

from the business. The return on investments is expected to be high considering the nature of

the business and the current market situation in Tourism Industry. The service will be of high

demand in the market segment under consideration and will revolutionize the Industry. The exit

plan shall be through an IPO (Initial Public Offering) or investors selling shares to another or a

new investor.

The business shall be a fit by generating value for the customers and to capture significance for investors

and share holders. This business is a successful venture in the long run for share holders and it will be an

interesting opportunity to be part of this champion business.

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9.0 REFERENCES

BMWA – Federal Ministry of Economic and Labour (2004) Economic Impulses of Accessible Tourism for All. Report, Berlin, Bundesministerium für Wirtschaft und Arbeit Burnett, J.J. & Bender Baker, H. (2001) Assessing the Travel-Related Behaviours of the Mobility-Disabled Consumer. Journal of Tavel Research, Vol. 40 (1), pp. 4-11 Eurostat (2003) Employment of Disabled People in Europe in 2002. ISBN 1024-4352, catalogue number: KS-NK-03-026-EN-N, European Communities 2003, viewed on 06th of April 2005. http://epp.eurostat.cec.eu.int/cache/ITY_OFFPUB/KSNK-03-026/EN/KS-NK-03-026-EN.PDF Eurostat (2005a) Tourism in the Enlarged European Union. ISSN 1561-4840, catalogue number: KS-NP-05-013-EN-N, European Communities 2005, viewed on 06th of April 2005. http://epp.eurostat.cec.eu.int/cache/ITY_OFFPUB/KS-NP-05-013/EN/KS-NP-05-013-EN.PDF Eurostat (2005b) Population and Social Conditions: Percentual Distribution of Types of Disability by Sex and Age Group. All accessed on 13th of June 2005. http://epp.eurostat.cec.eu.int NOP Consumer (2003) Holiday-Taking and Planning Amongst People with a Disability, Ref. 434906, NOP Consumer, London Shaw, G. & Coles, T. (2004) Disability, Holiday Making and the Tourism Industry in the UK: a preliminary survey. Tourism Management, Vol. 25 (3), pp. 397-404 Statistisches Bundesamt (2003a) Statistik der Schwerbehinderten Menschen. Viewed on 6th of May 2005. http://www.destatis.de/download/d/solei/solei_2001.xls Statistics Sweden, Labour market situation for disabled persons – 4th quarter 2008. U.S. Census Bureau (2005) IDB Summary Demographic Data. International Database. Viewed on 01st of July 2005. http://www.census.gov/

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10.0 Appendix:

10.1 Financial Projections - 3 Years