Tuesday, February 19, 2008


1.0 Introduction
The business plan was drafted by the Sky Tours Travel companion 31st Oct. 2007. it was mainly drafted for different purposes like soliciting of the funds from the donors and the financial support, to assist in the decision making process, guiding the general performance and operations of the company, and to help in fulfilling the stated objectives and goals of the company.

The business plan looks at the different areas like the situational analysis that is the Strength that the company enjoys, the Weaknesses affecting the operations of the company internally, opportunities that are lying ahead for the company to grab and the Threats which are the external environment affecting the operations of the business (SWOT analysis).

The business plan also looks at the vision, the mission statement, the objectives that are to be taken, strategies being taken, the goals and programs Sky Tours and Travel Company is working on and the ones that are still to be achieved.
The plan also looks at the services being offered by the company, the current status, technology and research, operational pans, management and administration and the funding requirements.

2.0 Vision
The company’s vision is to become the become the leading tour and travel company operating at international level and having many branches, being the largest employer in the region and packaging the best quality of the products and activities.

3.0 Objectives
 To provide better and quality services.
 To satisfy our clients with all services and products which are be offered
 To create a wider market for our products and services.
 To provide the best value for money package in the business company
 To create partnership with other companies, associations and principals like air lines hotels.

4.0 Goals:
 To have a professional work force.
 To re package the company’s products and services
 To operate world wide that is serving clients from nation to nation.

5.0 Programs of sky tours and Travel Company:
Financing the company so as to boom and be able to operate internationally competing favorably with first class tours and Travel Company such as Thomas cook and American tours.
Expanding the company’s services and products through setting up many branches worldwide and this can be done through marketing and advertising.
Enhancing customer care, better service and products delivery to our clients by employing of the trained staff

6.0 Values
• The company values mostly providing our clients with the services needed in the shortest time possible.
• The employees of the company are very honesty to the clients during the service provision.
• The satisfaction of the clients is our pleasure as “the customer’s satisfaction is our pleasure”
• The moral conduct of both the tourists and the employees is strongly emphasized in the service provision
• We provide the service according to the public and tourist interests as we believe that “The customer is always right” and “the customer is the king”
• There are law and policies that are followed by the company to ensure the service quality is provided to the clients
• Adequate and timely information is provided to the clients the website brochure and through our trained information providers like the consultants.

7.0 Mission and Strategies
The mission of Sky Tours and Travel Company is to provide and develop the best tourism products and services to our clients who demand the products and services that a company produces through the employment of the skilled personnel and improvement in the customer care.

The company’s strategies include;
 The company getting financial support from the profits gained. For example; commissions, and soliciting funds from donors.
 Developing techniques that will be used in getting and analyzing and using the information for decision making, technology used and communication with in the business, for example use of effective computers with internet services and telephones.
 Service quality will be maintained by the company through the improvement of customer services, charging low prices compared to the competitors, having trained staff, carrying on-job training and analyzing the strength weaknesses, opportunities that exist and the threats that will affect the operations of the company.
 Continuous and consistent planning and research will be ensured both for short term and long term operations by the planning and policy making body of the company.
 Monitoring the world stock exchange market in order to keep in touch with competitors.

7.1 SWOT analysis of the activities done by the company
Activity Strength

Car hire
-Increased number of tourists
-Having vehicles
- Cheap rates
- Hiring vehicles
- Competitive car hires

- Acquired on need
- Limited air access
- Competition
- Seasonality
- Insecurity

Foreign exchange services -Increased number of clients
- Location
- Risks of losing peoples money
- Exchange money value - Increased used of foreign currencies - Fluctuations
- Completion
Consultancy - Trained and qualified personnel
-Adequate research - Costly
-Inadequate language skills -Partnership with IATA
-Available information sources
- Globalization - Competition
Safaris - Trained tour guides
- Available cars for hires - Limited finances - CHOGM -Risks like accidents
-Poor road networks
Travel insurance -Existing insurance companies
-Confidence building - Costly
-Keeping of documents - Partnerships with insurance companies - Bureaucracies

8.0 Present status
The company has a number of departments including the human resource department, accounting department, marketing department, sales department and stores department.
According to the stated objectives, some of them have been achieved and others not due to some constraints and challenges

The company has been able to improve on the quality of the service provided to the tourists as they normally give us the feedback through our e-mails and the simple questionnaires that are given to them.
The company employs qualified workers who are in different departments like the tour guides and the reservations managers who have the increased contact with the tourists that improves the image of the company
The company has also managed to open up new branches in some countries like South Africa, Egypt, Chicago and the proposed one in Paris.

The sales and profits have also increased as a result of advertising and creating awareness about the existence of the company, the financial capital of the company have increased that has made the salaries of the workers to be increased to improve on their motivation. There has also been improvement in packaging of the new products that are done according to the interests of the tourists who demand them.

9.0 Challenges
The company has not fulfilled some of its objectives because of a number of challenges it faces of which may be internal and others external, some avoidable and others unavoidable. These challenges include the following;
• Competition as there are many tour and travel companies that are offering the same products which also make it expensive to create a difference between the company and competitors
• Increased influx of the clients from different countries who may need different ways of handling them like the issues of the languages for example Chinese
• Inadequate finances which have affected our marketing and delivery activities of the products
• Poor infrastructure development in terms of roads which have made our safaris not to be effective as many roads have a lot of potholes especially the ones in the rural areas that sometimes become impassable during the rainy season.

Table 2
 Internal size of the office
 Reputation of the company
 Convenient location
 Product strength that is unique from competitors
 Contacts overseas
 Friendly people
 High quality of safari experience  Staffing
 Inadequate financing
 Promotion and low awareness in the market place
 Inadequate or expensive packing facilities
 Price
 Limited air services
 New housing estates being built in the vicinity
 A new industrial development
 Marketing tactics
 Large and new markets coming up
 New destinations or enhancement of tourist infrastructure
 Tourism cooperation and marketing of East Africa as a single destination
 Longer stays and high expenditure by tourists
 Funding from donors
 CHOGM  Economic and global political situation
 Poor image of the country and insecurity
 Local economy
 Competition and their increased effectiveness
 Currency fluctuations and fuel increases
 Seasonality
10.0 Product description
Sky Tours and Travel Company is offering a large number of services to the clients that include the following;

10.1 Car hires service
The car hire services are offered where by the company gives the cars to the tourists but they are also hired to the people who have the weddings and other functions and arrangements that may require the use of vehicles. The vehicle are hired from the other tour companies and them given to the tourists on the profit except if it is a small number then the company vehicle can be used.

The vehicles are given in a way that sometimes the tour company provides the driver or the tourist’s drive themselves paying different rates. The vehicles that are used must be in good condition, licensed, and the driver must have the driving permit. If the client wants to drive him/herself, the terms and the requirements are agreed upon before the vehicle is taken.
10.2 Reservations and bookings
The tour company offers the services to the clients who are traveling in a way that it books for the accommodation in the destination. The clients are booked for such that as the tourists are paying it is at an “all inclusive price” offered for sale.

10.3 Arranging for the documents
In case there are clients that want to travel and they do not have the travel documents, the company arranges for them on behalf of the clients. The documents that are normally dealt with include the visas, passports and other related travel documents like travel insurance. This is done in such a way that if the client is to travel, s/he is likely to arrange the bookings with us. The conditions and the other requirements are also given to the client who may intend to travel.

10.4 Foreign exchange services
Because of the increased used of the foreign currencies like the dollars and pounds, it necessitated people to exchange them into the local currencies that became possible for us to provide the service. The company runs a foreign exchange bureau that aims at helping clients who may want to change the money by bringing the services nearer.

10.5 Consultancy
Sky Tours and Travel Company provides travel information to the actual and potential clients. The information that is provided is concerning the requirements of travel to certain areas, the cultures in the areas and how the client should behave while traveling, the tourist attractions that are available, the accommodation facilities that exist at the destination areas.
Most of this information is obtained from our brochures our website (www.skytoursandtravel.com ) that is always updated with new information and our magazines that are published quarterly.
10.6 Safaris
The safaris are carried out mainly in the East African region in the countries of Uganda, Kenya, Tanzania and Rwanda. They are conducted with our trained and qualified tour guides in all the fields like bird watching, game viewing cultural tourism, ecotourism, gorilla tracking, mountaineering catering for all the types and interests of the tourists.
The safaris are carried out using the tour vehicles especially the game drives n the national park.

10.7 Travel insurance
Sky Tours and Travel Company arrange for the travel insurance to the clients. It arranges with the insurance company on behalf of the client of which the cost is included in the package. During the travel insurance, the company provides all the information required for insurance and the insurance cover the client should cover the country the client is traveling to, the amount of luggage to carry and the circumstances back home.
11.0 Profiles of the target market
Sky Tours and Travel company targets both the external or international tourists like the ones from United Kingdom, Germany, Denmark, United States of America china and South Africa and other major tourist generating countries.

The regional market is also targeted that includes the countries of East Africa like Kenya, Tanzania, Rwanda and Burundi. These countries are targeted because they help much in especially during the off-peak seasons when the international arrivals are very low.
The market is also targeted because their demands are not too much as they are from the same region.

The domestic market is also targeted which includes the business travelers, governmental officials, holiday makers and honey mooners and even the students who may be carrying out the study tours.

The company segments the market mainly according to the age like the youth, the adults and the elderly with each segment having a reasonable size and a reliable one that can generates income to the tour company.

The revenues and the arrivals are increasing slowly and sometimes sharp increase during the peak seasons but at a normal rate. This is mainly because of the increased advertising and creating awareness within the market place.

Among all the target markets, Sky Tours and Travel Company receives more of the international tourists than the domestic and the regional as they bring in a lot of money through the purchase of the expensive tourism products.

12.0 Marketing strategies, sales and projections
Advertising is used through the use of the radios, the televisions and the newspapers. The company writes the article into the newspapers targeting at creating awareness about the nature conservation by all the stakeholders hence marketing its products. This is also done through the use of magazines like “The Eye” and the Uganda info Digest.
Market segmentation is also used where the market is divided into different sub groups of similar customers. This helps to improve on the productivity and efficiency as the company concentrates on one region or one age group.

Discount allowance for the people that have been dealing with us for example a person who has booked above 10 times is given a discount that markets our products and creates customer loyalty hence increasing the sales of the company.
Participation in exhibitions and trade fares to show what we offer to the public. These exhibitions are both national and international together with other travel agencies and the principals

Carrying out market research in order to identify the needs and wants of the actual customers and the potential customers and this is done through asking the clients either by questionnaires or carrying out the post sale services.
Offering services at low prices such that the company can out compete other companies in the same business.

This is also be done in addition to the increased quality and good customer care and by creating rapport

13.0 Technology, research and development
On the technological matters the company is also using the modern means of communication in a way that it uses the computers that are connected to the internet in the reservations and bookings for the client. The computers are used as the means of communication between the tour company and the client. The computers are also used in the day-to-day operations of the business.

The company has acquired the telephones for the office work and also in the communications with our clients. The office telephones are distributed to the managing director, the reservations manager and the secretary.

Furniture for management and ,like any other tour company, sky tours and travel have acquired excellent furniture for the office which includes front desk for where the computer is to be placed, sofa set , where our clients can sit and feel comfortable, modern office chairs for the management.

Website and email address. As a result of high demand of the use of modern technology, sky tours and travel company had to find a way of not being left behind, as a result, the management decided to establish its own website and email address where actual and potential clients would easily get to know more about the company, what we offer, where we are located, how different we are from our competitors.

Brochure designing, sky tours and travel had to find a way of putting what it offers to the clients in form of tangible offers. It is from here that our clients can see, read what the company offers to them. The brochures also work as marketing tools for our company; it also enables us to summarize our designed itineraries.

Research on customer interests and markets Sky tours and travel carries on the research to find out what the customers demand and it is done to through the interviews carrying out consumer surveys and use of the questionnaires.

The vehicle has also been acquired by the tour company to carry out the company’s activities and for carrying out safaris. The vehicle is used in case of the small numbers and when the number is large, and then the bigger ones are hired.

14.0 Operational plans
We have set specific hours of arrival and departure to and from office for the effective work of the employees. This is done by making sure that the employees sign in the books every time they arrive in the office and as they are leaving.

Working is in shifts where by there are two shift and of which each shift works for 8 hours in a day. The premises do not close and therefore the clients are properly served with the services.

Sky tours and Travel company purchases the tickets on behalf of the clients and is done on demand in a way that it is after the customer has decided on the travel that the company will arrange for the ticket before the departure date and the company makes sure that it is done in time.

Regular monitoring and supervision of the work done by the employees which is done to ensure that the work is done in a proper way to ensure the quality of the services provided to the clients

The transfers are organized for the clients who book with the company. They are mainly picked from the airport to the hotels where they are booked and sometimes taken back after their period of stay. Sometimes the tourists are taken around the town to visit the major attractions within the vicinity.

15.0 Management and administration
The managing director who is the supervisor and he is the one concerned with the overall activities of the company. The manager has good communication skills and knowledgeable about the trade and tourism and should have good managerial skills.
Tours manager with enough qualifications, with computer skills and management, and knowing many languages for easy communication and he has enough experience and high quality service.

The reservations manager who is responsible for the bookings made by the clients who is computer literate and good communication skills to communicate wells with the clients especially during the telephone communication

Accounts manager/ officer with good business skills who is responsible for the controlling of the funds and he is qualified with the skills.

The secretary or the messenger who helps in the office work and she has qualifications in typing and short hand, skills in office management and computer work

The tour guides / drivers who are responsible for taking the tourists. They are qualified in the field work and skilled in tour guiding, good communication skills; know many other languages apart from English that caters for all the groups of the tourists, with driving permits, honest, presentable and courteous.

16.0 Organizational structure

17.0 Financial projections
This can be looked at using The Trading Profit and Loss Accounts, Balance Sheet and Financial flow of the business.
UGX (000) UGX (000) (000)
Sales 18,600
Less cost of goods sold
Opening stock 2,368
Add purchases 11,874
Less closing stock 2,946
Cost of goods sold 11,296
Gross profit 7,304
Add any other income
Discount received 1,000
Less expenses 8,304
Salaries and wages for employees 3,862
Add accrued salaries 138 4,000
Electricity 304
Less pre paid units of power 104 200
Insurance 78
Car hires 166
General expense 314
Depreciation of machines 780
Total Expenses 5,538

The following balance sheet is showing the assets, the liabilities and the owners’ liability of the company derived from the financial statement.

ASSETS COST(UGX000) Accumulated
Depn.(000) Net value
Non current Assets
Building materials 8,000 8,000
Motor vehicle 7,800 780 7,020
Current assets 15,800 780 15,020
Closing stock 2,946
Debtors 3,896
Prepaid electricity bills 104
Bank 1,200
Cash 482 8,626
Capital and reserves
Capital 18,013
Add net profit 2,766 20,779
Current Liabilities
Credit 2,731
Accrued Salaries 138
Total Liabilities 2,869

18.0 Funding requirements
For the proper operation of the company, the company is expecting to get the assistance and support to supplement on the company’s finances from the donors and banks. The money that is expected to be used as follows;
• 500,000 for the maintenance from the donors
• 2,000,000 for another vehicle to purchase that is a loan expected from front page microfinance
• 500,000 for designing, updating and maintaining the website (www.skytoursandtravel.com)
• 5,000,000 (½ from the donors and ½ from the bank) to complete the new premises of the company.

The company expects the following returns as summarized bellow;
• Expanded market due to information displayed on our website targeted at creating awareness about Uganda as a “new” destination
• Increased number of tourists due to the second number of vehicle if it is purchased soon that is expected to increase the profits of the company.
• Increased sales are expected as a result of increased interest of the people to travel around the world, increased advertising and market segmentation.
• Retention of customers and creation of the customer loyalty due to the fact that we offer discounts to the customer the normally book with us. The satisfied customers usually recommend the product to other people.

19.0 Implementation
The major decision points mainly include the following;
• Taking on the more qualified personnel for the proper delivery of the services to the clients in order to maintain our status.
• The company is being advertised allover like in the local newspapers, the websites and through the magazines of which it has subscribed as the member hence increasing on the sales.
• The employees are being trained of which some are trained while on the job and others trained before they are employed that has increased on the quality of the service provision.
• There is reinvesting back the capital within the business of which the money is got from the gained profits.
• The company is currently a member of The Uganda Travel agencies Association (TUGATA) and Association of Uganda Tour operators (AUTO) and have subscribed with Nature Uganda.
• The research is always carried out in the market places and about the competitors for the purposes of sustainability of the company.
From company include;
• The management is required to control the budgets and financial flows of the company that is it should look into programs, procedures of the company to maintain financial health and its progress.

• The management also has the task of coordinating all the activities and different departments within the company.

• The employees are required to be cooperative, trustworthy and coordinated in different departments

20.0 Conclusion
Tourism is a promising industry not only in Uganda but also in the whole world. It was from this background that Sky tours and travel company directors took a practical decision to put their financial resources in the field of tourism business. Sky tours and travel company’s directors together with the employees are determined to see the success of the company in the business of tourism.

However like any other business enterprise, Sky tours and travel company lacks enough financial stamina to enable the company’s dream of success come into a reality. As a result, the company seeks financial help which will not only increase on its financial stand but also enable the smooth running of the company’s operations and increase on its competitive advantage in the tourism business.

21.0 Summary of the plan
The plan which was prepared by the Sky Tours and Travel Company mainly highlights the issues like the vision, mission the company uses to achieve the vision, the goals that the company is targeting to achieve, the strategies taken and the challenges that affect the operations of the company.
The company looks at the financial projections, the financial requirements and what the company has achieved in relation to the technology, research and development.

The challenges that are facing the company are internal like inadequate financing, inadequate manpower required for the company like the language skills required by the tour guides while others are external like seasonality of the tourism industry, poor image of the country, poor infrastructure development.

The company has tried to concentrate on the major tourist generating countries where it has established the offices like USA, UK, France, Egypt, china, south Africa and these countries are mainly the ones that developed tourism earlier especially the ones from the temperate region who come for the tropical sun..

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