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g. An analysis of the result of the survey.

IV. Service Description

Name of the Service

The proponents came up with Safe and Sound Travel Agency as the name of

the business. The phrase "safe and sound" is usually used when people talk about the end

of a trip e.g. We arrived home safe and sound. In the phrase "safe and sound" sound is

an adjective and it means: "healthy, in good condition, free from injury, no damage, no

accidents." The proponents came up with this name with the intention that clients would

feel secured and the company would be perceived as trustworthy and dependable. By

using a phrase that is commonly used in daily conversations, it would be easier for prospective clients to recall the name of the business, thus easier market penetration.

Location Site

The travel agency is located at the 5/F Gateway Tower, Gen. Roxas Avenue cor. Gen.

Aguinaldo Avenue, Araneta Center, Cubao, Quezon City, Philippines. The proponents elected

the business to be at Cubao, Quezon City since it is known for its commercial area and at

its heart is the well-known Araneta Center. The Araneta Center is already a major

transport hub, with almost a million of people passing by the area every day. The

proponents perceive it as an advantage that the building itself is situated at a known

avenue where it is also identified as one of the financial and business core in the

Metropolitan area.

Department stores and retail centers can also be found in Araneta Center, , Plaza

Fair, Rustan's, Shopwise Supercenter, SM Cubao, Ali Mall, and Farmer's Plaza. At the

center is Smart Araneta Coliseum, often called the Big Dome. Many musical concerts, ice

shows, circus shows, religious crusades, wrestling, cockfighting, and basketball games

are held in this 20,000-capacity coliseum. In the outskirts of Araneta Center is the Cubao

Expo, an artists' colony and site of weekend flea markets. It is also a home to call centers

like APAC, Telus, and Stellar.
http://en.wikipedia.org/wiki/Smart_Araneta_Coliseumhttp://en.wikipedia.org/wiki/Cockfightinghttp://en.wikipedia.org/wiki/Telus_Internationalhttp://en.wikipedia.org/wiki/Telus_Internationalhttp://en.wikipedia.org/wiki/Cockfightinghttp://en.wikipedia.org/wiki/Smart_Araneta_Coliseum


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Service Features

The safe and sound travel agency provides well-rounded, reliable, and trustedservices to ensure you the domestic travel experience that you deserve. With our help andservices, you can have the convenient and fun trip that youve always wanted. Our services

are limited to domestic travels.

hotel bookings (local) domestic flights land transfers (including car & coach rentals) packaged tours and roundtrips sightseeing multi-lingual tour guides study tours Company Excursion Arrangement

Uses of the Service

The service is directed to help arrange for transport means of everywhere

bound tourists and provide tour packages for discriminating travellers.

Major Users of the Service

Our target market would include:

1. Corporate Clients;

2. Group Travellers;

3. Individual Travellers

Target Market

Age 15 and above

Gender Male and Female

Occupation Student, Employee, and Self-employed

Socio-Economic Status Class A to E

Location Araneta Center, Cubao, Quezon City

Description Corporate ClientsFor seminars, conference/ meetings and banquetreservations, they would incur less cost for travellingexpenses with the help of travel agent.

Group TravellersFor group bookings that involve coordinating travel for


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multiple people, its usually easier to use a travel agent.

Individual TravellersReading online reviews of a specific resort or city can takelots of time and effort. If a prospective client is booking a

getaway for leisure, vacation etc., but the destination is stilla question mark, an experienced travel agent can help steerhim toward what he is looking for.

V. Demand Situation

The target market discussed in the previous section comes from the population of

domestic travellers in Metro Manila. To develop Safe and Sound Travel Agency targeting

strategies and marketing efforts, demand analysis helps the business in order to measure

the current demand as well as to project the future demand. For these reasons, the

proponents conducted a survey which includes some companies and organizations as

their respondents. Before a survey is conducted, a sample of respondents is derived from

the total population of 2,560,890 domestic travellers in Metro Manila. The number of the

respondents in the survey is computed through Slovins Formula:

Where:

n = number of respondents

N = population

e = margin of error set at 10%

Using Slovins formula , the proponents obtained 99.99 or 100 respondents as

sample population.

Survey Result

The results of the survey are presented below. It is patterned from the surveyquestionnaire answered by the respondents.


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1. Segregation of Respondents According to Age

Table 2.1Segregation of Respondents According to Age

Age Respondents Percentages (%)

20 years old and below 18 18

21-25 years old 26 26

26-30 years old 23 23

31-35 years old 24 24

36 years old and above 9 9

Total 100 100

Chart 2.1Segregation of Respondents According to Age

Table 2.1 and Chart 2.1 show the segregation of respondents according to age.

Much of the respondents are 21-25 years old, while the brackets with the least frequency

are 36 years old and above.

18%

26%

23%

24%

9%

Age 20 years old andbelow21-25 years old

26-30 years old

31-35 years old

36 years old andabove


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2. Segregation of Respondents According to Sex

Table 2.2Segregation of Respondents According to Sex

Sex Respondents Percentages (%)

Male 43 43

Female 57 57

Total 100 100

Chart 2.2Segregation of Respondents According to Sex

Table 2.2 and Chart 2.2 show the segregation of respondents according to sex.

Majority of the respondents are female, while minority of the respondents are male.

43%

57%

Sex

Male

Female


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3. Segregation of Respondents According to Occupation

Table 2.3Segregation of Respondents According to Occupation

Occupation Respondents Percentages (%)

Student 18 18

Employee 63 63

Self employed 15 15

Others 4 4

Total 100 100

Chart 2.3Segregation of Respondents According to Occupation

Table 2.3 and Chart 2.3 show the segregation of respondents according to

occupation. Majority of the respondents are employee, while the brackets with the least

frequency are self-employed and others.

18%

63%

15%

4%

Occupation

Student

Employee

Self employed

Others


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5. Segregation of respondents whether they use travelling agency

Table 2.5Segregation of respondents whether they avail the services of a traveling agency

Whether they avail the services of a

travel agency

Respondents Percentages (%)

Yes 34 34

No 66 66

Total 100 100

Chart 2.5

Segregation of respondents whether they avail the services of a traveling agency

.

Table 2.5 and Chart 2.5 show the segregation of respondents according to whether

they use travelling agency. Majority of the respondents doesnt use travelling agency,

minority of the respondents use travelling agency.

34%

66%

Whether they use travelagency

Yes

No


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6. Segregation of respondents according to whether they are from corporate client or non-

corporate client.

Table 2.6Segregation of respondents according to whether they are from corporate client or

non-corporate client

Client Respondents Percentages (%)

Non-corporate Client 37 37

Corporate Client 63 63

Total 100 100

Chart 2.6Segregation of respondents according to whether they are from corporate client or

non-corporate client

Table 2.6 and Chart 2.6 show the segregation of respondents according to whether

they are from corporate client or non-corporate client.. Much of the respondents came

from a corporate client while the rest are non-corporate client.

37%

63%

Type of client

Non-corporateclient

Corporate Client


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7. Segregation of respondents according to how often they travel using the services of

travel agency

Table 2.7Segregation of respondents according to how often they

travel using the services of travel agency

How often they travel Respondents Percentages (%)

Once in a year 8 8

Once in 6 months 45 45

Once in 3 months 26 26

Every month 17 17

Every week 4 4Total 100 100

Chart 2.7Segregation of respondents according to how often they

travel using the services of travel agency

Table 2.7 and Chart 2.7 show the segregation of respondents according to how

often they travel using the services of travel agency. 45%of the respondents travel once in

6 months, while the bracket with the least frequency travel every week.

8%

45%26%

17%

4%How often they travel

Once in a year

Once in 6 months

Once in 3 months

Every month

Every week


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8. Segregation of respondents according to their experience of not being accommodated

by a travel agency

Table 2.8Segregation of respondents according to their experience of not being

accommodated by a travel agency

Have experience Respondents Percentages (%)

Yes 3 3

No 97 97

Total 100 100

Chart 2.8Segregation of respondents according to their experience of not being

accommodated by a travel agency

Table 2.7 and Chart 2.7 show the segregation of respondents according to their

experience of not being accommodated by a travel agency. Most of the respondents have

experienced being accommodated by a travel agency.

3%

97%

Have experienced

yes

no


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9. Segregation of respondents according to preferred travel Philippine destinations

Table 2.9Segregation of respondents according to preferred travel Philippine destinations

Philippine Destinations Respondents Percentages (%)

Baguio 17 17

Bohol 8 8

Boracay 23 23

Cebu 8 8

Davao 3 3

Palawan 36 36

Puerto Galera 5 5

Total 100 100

Chart 2.9Segregation of respondents according to preferred travel Philippine destinations

Table 2.9 and Chart 2.9 show the segregation of respondents according to their

travel preference. 36 % of the respondents prefer to travel to Palawan, 23% to Boracay,

17% to Baguio, 8% to Cebu and Bohol, 5% to Puerto Galera and 3% to Davao.

17%8%

23%8%

3%

36%

5%

Philippines destinationsBaguio

Bohol

Boracay

Cebu

Davao

Palawan

Puerto Galera


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10. Segregation of respondents according to if they will avail other domestic services.

Table 2.10Segregation of respondents according to if they will avail other domestic services

Other Domestic Services Respondents Percentages (%)

Car/Bus rental 9 9

Multi-lingual tour guides 4 4

Will not avail 87 87

Total 100 100

Chart 2.10Segregation of respondents according to if they will avail other domestic services

Table 2.10 and Chart 2.10 show the segregation of respondents according to if

they will avail other domestic services. Most of the respondents will not avail while 9%

will avail car/bus rentals and 4% will avail multi-lingual tour guides.

9%4%

87%

Preferred way of travel

Car/Bus Rental

Multi-lingual tourguides

Will not avail


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11. Segregation of respondents according to factors considered in choosing travel agency

Table 2.11Segregation of respondents according to factors considered in choosing travel

agency

Factors considered in

choosing travel agency

Respondents Percentages (%)

Price 24 24

Security 27 27

Service 49 49

Total 100 100

Chart 2.11Segregation of respondents according to factors considered in choosing travel

agency

Table 2.11 and Chart 2.11 show the segregation of respondents according to the

factors considered in choosing travel agency. Half of the respondents consider service as

main factor in choosing travel agency, while the bracket with the lowest frequency

considers service as main factor in choosing travel agency.

24%

27%

49%

Factors considered in choosingtravel agency

Price

Security

Service


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Past Demand

There is no available data about the demand of travel agency for domestic travels

for the past years. Therefore, the proponents assumed that the demand determined from

the survey is the same as what the demand was for the last five years. To compute the

annual demand, the total population will be multiplied by the market acceptability rate

and frequency of availing. From the survey, the market acceptability rate computed by

dividing the number of respondents who would like to avail the services of travel agency

is equal to 34% and frequency of availing is four times a year.

The proponents assumed a 10% growth rate in the population of the domestic

tourist market within Metro Manila which represents the Philippine tourism industry

growth rate.

Table 2.12Historical Demand

Population Market AcceptabilityRate

Frequency of AvailingAnnually

AnnualDemand

1749122 34% 2 11894031924035 34% 2 13083442116438 34% 2 14391782328082 34% 2 15830962560890 34% 2 1741405

Projected Demand

In this study, the proponents used the historical demand data and used the least

square method in getting the estimated projected demand.


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Table 2.13Projected Demand

Year A Yi-1 Yc2015 138000 1741405 18794052016 138000 1879405 20174052017 138000 2017405 21554052018 138000 2155405 22934052019 138000 2293405 2431405

To compute for the estimated projected demand, least square method was used.

The formula for the least square method is shown below:

Least Square Method:

Formula : Yc = a + Yi -1

a =

Where:

Yc = initial value (1st year)

Yn = final value (last year)

N = number of years

Yi-1 = value for the year past

Table 2.13 shows the projected demand of the proponents business for five (5)

years. The projected demand for year 2015 was computed using the Least Square method

in which the initial value was subtracted from the final value then dived by the number of

years minus one. After the computation, the computed increase every year will be added

to the final value.

Computation reveals that every year the demand for travel agency that offers

domestic services will increase for at least 138,000 customers.

VI. Supply Situation

Main Competitors

The following is the list of travel agencies near Araneta Center, Quezon City.

Table 2.14List of Travel Agencies


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Business Name Address Distance

Quicklines Travel

International, Inc. Cubao

Ground Floor Shopwise Supermakrte,

Araneta Center, Cubao, Quezon City,

Metro Manila

Approximately

0.03 KM away

Manila Genesis Charters

and Tours Inc

G/F Genesis Transport Building,

EDSA corner New York Street,

Cubao, Quezon City, Metro Manila

Approximately

0.50 KM away

Radio Communications Of

The Philippines

711 E. Delos Santos Avenue, Cubao,

Quezon City, Metro Manila

Approximately

0.75 KM away

Pagan Nomads Tour

Management and Travel

Consultancy

Unit 4, #49 K-9th Street, West

Kamias, Quezon City, Metro Manila

Approximately

0.87 KM away

San Travel and Tours -

Main Office

Unit 1007 Prince John Condominium,

291 P. Tuzaon corner 18th Avenue,


Approximately

0.94 KM away

Mosconi 7F Gregory Condo, 12th Avenue,


Approximately

1.00 KM away

Source: http://nearbyph.com/travel-agencies/all/14.622799/121.052902/lrt-2-araneta-

center-cubao-station-general-aguinaldo-avenue-quezon-city-1109-philippines


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Past Supply

There is no available data on the supply of travel and tour business for the past

years. In order to estimate the past supply, the proponents used the past annual demand.

The portion of demand that was met by the supplier in the questionnaire will be

considered as the supply rate provided by the travel and tour businesses. The proponents

used the data based on the number of respondents that are not immediately

accommodated by a travel agency.

Table 2.15Historical Supply

Year Demand Supply SituationRate

AnnualSupply

2010 1189403 97% 1153721

2011 1308344 97% 12690932012 1439178 97% 13960032013 1583096 97% 15356032014 1741405 97% 1689163

Projected Supply

The proponents assumed the same supply situation rate of 97% for the next five

years. The annual supply for the next five years is as follows.

Table 2.16Projected Supply

Year Demand Supply SituationRate

AnnualSupply

2015 1879405 97% 18230232016 2017405 97% 19568832017 2155405 97% 20907432018 2293405 97% 22246032019 2431405 97% 2358463

VII. Demand-Supply Situation

By using the demand-supply analysis, the proponents will come up with a

difference which will be the unserved market, unserved demand or demand gap. Demand


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gap is computed by subtracting the projected annual supply from the projected annual

demand as shown below:

Table 2.17

Demand-Supply Gap for Five Years

Year

Annual

Demand

Annual Supply Demand-Supply Gap

2015 1879405 1823023 56382

2016 2017405 1956883 60522

2017 2155405 2090743 64662

2018 2293405 2224603 68802

2019 2431405 2358463 72942

Market Share Analysis

Every business must determine its market share which will serve as a basis of

marketing strategies of the establishment. It will define the extent of demand the business

need to satisfy. Since the business is on the start of its operations, market share could not

be readily determined. The proponents assumed a 2% market share from the demand gap.The market share is assumed to increase by 10% per year.

The business market share for the next five years is presented below:

Table 2.18

Year Demand Gap Target MarketShare Percentage

Target Annual MarketShare

2015 56382 2% 11282016 60522 2.20% 13312017 64662 2.42% 1565

2018 68802 2.66% 18322019 72942 2.93% 2136

The chart below shows the market share situation of the travel agency business

before the introduction of Safe and Sound Travel Agency.


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Chart 2.12

The next chart below portrays the projected market situation of the travel agency

business after the introduction of Safe and Sound.

34%

5%

12%

26%

4%

16%3%

SalesQuicklines Travel International,Inc. Cubao

Manila Genesis Charters andTours Inc

Radio Communications Of ThePhilippines

Pagan Nomads TourManagement and TravelConsultancy

San Travel and Tours - MainOffice

Mosconi

Unsatisfied Demand


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Chart 2.13

VIII. Appropriate Marketing Program or Strategy

Quality of Service

The proponents must assure that our clients will gratify with our utmost services.

Thus, Safe and Sound Travel Agency offers quality and exceptional services, values and

advices with the affordable prices to its clients to show the agencys experience and

passion for travel. They may reach the agency through visiting the office, which is open

Monday to Saturday from 8 a.m. to 4 p.m., or on its website. Furthermore, we have

available and competent employees who will serve and assist them to their travelling

needs. We also guarantee to our clients that our agency is accredited by the Department

of Tourism showing that we followed and passed their standards.

Presented on table 2.21 is a brief SWOT analysis of the service:

34%

5%

12%9%

11%16%

6.5% 12.5%

Projected Market Share DistributionQuicklines TravelInternational, Inc. Cubao

Manila Genesis Charters andTours Inc

Radio Communications Of The Philippines

Pagan Nomads Tour Management and TravelConsultancySan Travel and Tours - MainOffice

Mosconi

Unsatisfied Demand

Safe and Sound Travel Agency


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Table 2.19

SWOT AnalysisStrengths Weaknesses

Diversified client base: Combination of skills in employees Extensive advertising and marketing

Difficulty in developing brandawareness

Lack of clear strategic allies A limited financial base compared to

the major players in the industry.Opportunities Threats

Current drive by government towardsencouraging the participation ofindigenous entrepreneurs in tourismcurrent marketing campaigns by boththe government and regional tourism

body Expansion of the business A market vacated by an ineffective

competitor International tourism trends

Potential entry of new competitors Competitors have launched a new

advertising campaign External factors such as taxes Increase in cost due to inflation

Pricing

Based on the research conducted, we have concluded that the following charges

are appropriate for services offered:

Average Commision per Domestic Tour Packages*

Places Corporate Clients Non-corporate ClientsBaguio P 1080 P 1200

Bohol P 830 P 930

Boracay P 840 P 940

Cebu P 1170 P 1300

Davao P 1380 P 1540

Palawan P 890 P 990

Puerto Galera P 860 P 950

*Domestic Tour Packages includes roundtrip flights, hotel accommodations and other

excursions activities.

Average Commission from car/bus rentals P 150

Average Commission from hiring of tour guides P 100


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Tarpaulin (30 sq. ft.) 10 P 900.00 P 9,000.00

Leaflets (3X8) 5000 P 2.00 P 10,000.00

Foldable Fans 2000 P 10.00 P 20,000.00

Calling Cards (2x3 inches)5000 P 1.00 P 5,000.00

Establishing a Website 1 P 6,000.00 P 6,000.00

TOTAL P51,000.00

Documents

6. Market Study-EDITED