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Unit 6. Economic-financial feasibility study - Coggle Diagram
Unit 6. Economic-financial feasibility study
Definition and objectives
In order to set up a AAVV, an investigation must first be carried out to certify the viability of the company's project.
Travel agencies, like most companies, must start their business journey from an initial analysis or feasibility study that tries to determine whether the ideal conditions exist in the environment for the success of the business project.
Elements
This study consists of the following elements:
Market research
The market research declines several sciences such as:
Economy
Psychology
Marketing
Statistics
Computing
Depending on the complexity of the project and the budget, it can be entrusted to companies specialized in the sector or the AAVV itself will take care of it.
-Location study: Wholesale VPAs are located in large cities and Retail VPAs are located in central, well-located streets.
-Economic and financial study: The company contains an initial economic and financial study of expenses and an income forecast for the first movements.
Market research
The purpose of market research
is to obtain the necessary information on the actual or potential demand for a product or service and on the existing supply of that product or service, in order to be able to make decisions about it at a given time.
In general, travel agencies need to conduct market research at the following three points in time:
Prior to installation.
Once installed when it periodically reviews its business strategy plans.
Prior to product launch.
Travel agency location study
The type of market chosen largely determines the location:
country, city, neighborhood and even conditions the type of premises and decoration to be chosen for the travel agency.
.
A wholesale travel agency
It is more convenient to be located in large cities, as it has nearby suppliers and numerous retail travel agencies for easier distribution of its products.
An outbound retail travel agency
aimed at transient or vacation clientele should be located in busy commercial
areas, mainly corners or visible areas
, taking care of its external decoration and shop windows.
Economic and financial study
The selected market conditions the location and advises on the initial internal structure of the travel agency and from here the financial resources necessary for its installation must be deducted.
These requirements are set forth in the Economic and Financial Study, which contains an initial expense budget and an income forecast for the first fiscal years.
The initial expense budget must include the following items:
Legal requirements regarding paid-in capital, bonding and insurance.
-Travel license processing costs (notary, notary's office, registry, etc.)
-Purchase or lease of premises.
-Personnel payroll.
-Contracts for electricity, telephone, telex, heating, water, cleaning, etc.
-Technical and tourist information subscriptions.
The study of viability gathers some contents that must appear in the Social Statutes and in the Deed of Constitution that it is necessary to present when it is requested the Title License of Travel Agency. And it must culminate with the writing of a document called Memory or Business Project that is a concrete, formal and written definition of the company.
The elements that must appear in the Business Project are as follows:
Partners and their curricula vitae. Economic and labor participation.
Social objectives.
Type of travel agency and main functions.
Preferred demand to be addressed.
Main and complementary products.
Main features of the company culture.
Milagros Camacho 8-870-401
