trocal full business plan

Download Trocal Full Business Plan

Post on 17-Feb-2017


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    1. Executive Summary.1

    1.1. Highlights on the Opportunity.1

    1.2. Business Idea and Concept.1

    2. Market Research and Analysis.1

    2.1. Overview: Southeast Asia and the Travel and Tourism Industry..1

    2.2. Drivers for Growth2

    2.3. Travel and Tourism Industry SWOT Analysis..3

    2.4. Market and Growth Forecast4

    2.5. Industry Life Cycle4

    2.6. Porters Five Forces.5

    2.7. Target Audience6

    2.8. Competitors.6

    3. Strategic Plan9

    3.1. Customer Value Creation: Mission and Vision..9

    3.2. Product Description.10

    3.3. User Experience and Interface.11

    3.4. SWOT Analysis for the Company.13

    3.5. Competitive Advantage and Differentiation Strategy..13

    3.6. Strategic Objectives.14

    3.7. Financial Ambition14

    4. Marketing Plan.14

    4.1. Product Distribution - App and Website14

    4.2. Pricing Strategy14

    4.3. Sales Strategy15

    4.4. Advertising and Promotions..15

    4.5. Marketing Key Performance Indicators.16

    5. Business and Operational Plan..16

    5.1. Process.16

    5.2. Locations.16

    5.3. Legal Framework17

    5.4. Management and Administration..17

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    6. Financial Plan17

    6.1. Cash Flow Statement.17

    6.2. Balance Sheet..20

    6.3. Break Even Analysis.21

    6.4. Exit Strategy..21

    7. Risk Management..22



    ILLUSTRATION 1: Southeast Asia GDP Contribution of Travel and Tourism..2

    ILLUSTRATION 2: Tourism Industry SWOT Analysis....3

    ILLUSTRATION 3: International Visitor Arrivals to Southeast Asia, 2012-2018.4

    ILLUSTRATION 4: Industry Life Cycle..5

    ILLUSTRATION 5: Porters Five Forces5

    ILLUSTRATION 6: Key Competitor Products..6

    ILLUSTRATION 7: User Experience of Traveler..11

    ILLUSTRATION 8: User Experience of Host.12

    ILLUSTRATION 9: Platform Sitemap...12

    ILLUSTRATION 10: Company SWOT Analysis.13

    ILLUSTRATION 11: Organizational Chart..17

    ILLUSTRATION 12: Financial Statement.17

    ILLUSTRATION 13: Balance Sheet..20

    ILLUSTRATION 14: Break Even Analysis.21

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    1.1 Highlights on the Opportunity

    Southeast Asia is considered to be the region with the highest travel and tourism potential in the world,

    with its tourism sector playing a vital role in its total GDP. The ASEAN nations particularly are

    increasingly becoming the traveling hotspots of the world, and with good reason there are beautiful

    islands and white sand beaches, lush mountain landscapes, delicious cuisine, fascinating culture, and

    among the most welcoming and hospitable people.

    International tourism to the region continues to grow year-on-year, with 16.5% of travelers coming from

    Europe, USA and Australia. A mecca for backpackers, Southeast Asian countries are appealing to

    Western travelers for a number of reasons including: relatively inexpensive cost of food and daily

    expenses; a wide variety of activities for travelers to do, with focus on outdoor excursions and nature-

    related adventures; and generally favorable and warm weather throughout the year.

    1.2 Business Idea and Concept

    Trocal (Travel + Local) rides on the current wave of the sharing economy concept: the idea of

    collaborative consumption where consumer values shift from ownership to access. The sharing economy

    is built around a sustainable economic ecosystem which includes the shared creation, distribution, and

    consumption of goods and services by different people. 1

    Trocal seeks to answer a universal challenge of travelers everywhere around the world: when traveling

    to a destination, specifically a never-before-visited destination, where should one go? What should one

    do? Who can one meet? Rather than booking commercial and guided tours, which often turn out to be

    tourist traps or scams, travelers are more and more looking for unique and authentic experiences that

    allow them to truly immerse themselves in the culture and soul of a city.

    Therefore, Trocal will be launched as a travel guide app and website, an online platform where travelers

    can connect with local hosts in their chosen travel destinations throughout Southeast Asia. With the

    app, local hosts offer unique travel experiences for the travelers, far from the typical commercial tours

    sold by tour companies or travel agencies; rather than being accompanied by professional guides,

    travelers can plan their itineraries around cultural and experiential activities as seen from the eyes of a

    local: outdoor excursions, historical walks, art and cultural immersions, home-cooked meals, local dining

    experiences, and more.


    2.1. Overview: Southeast Asia and the Travel and Tourism Industry The Travel and Tourism (T&T) industry in Southeast Asia has been experiencing a boom in recent years and is considered one of the major drivers of economic growth in the region. The T&T industry within ASEAN (Association of Southeast Asian Nations) has the following vital features:

    1 MATOFSKA, Benita. What is the sharing economy? The People Who Share, 3 March 2014 [online]. Available on:

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    Direct contribution to ASEAN GDP amounted to USD 117.9bn (4.8% of total ASEAN GDP) in

    2014 2 (See Figure 1)

    Direct contribution to ASEAN GDP is forecast to rise by 5.0% by end of 2015, and to rise by 5.4%

    per annum from 20115-2025, to USD 209.4bn (4.9% of total GDP) in 2025

    9.8% increase in total tourist arrivals in ASEAN from 89.2 million to 98 million, comparing data

    from 2012 to 2013

    ILLUSTRATION 1: Southeast Asia GDP Contribution of Travel and Tourism

    Source: Travel and Tourism Economic Impact 2015 by World Travel and Tourism Council (WTTC)

    2.2. Drivers for Growth

    Abundance of Natural Resources - Southeast Asia is a vast region containing some of Earths

    most beautiful, varied and exotic topography, land formations, and water.

    Culture and History The region holds a rich culture which is reflected in its wealth of ancient

    temples and churches, colonial houses, historic landmarks, UNESCO World Heritage Sites and

    world-famous cuisines.

    Rising Phenomenon of Budget Airlines - Travel within the region has become cheaper with the

    number of budget airlines that ply the routes between ASEAN nations. Air Asia alone has

    reported a 7% growth in its passenger volume comparing 2011 and 2012 year end data.

    Marketing Efforts and Tourism Campaigns - Five countries in Southeast Asia declared 2015 as

    their Tourism Year3: Malaysia, Philippines, Thailand, Vietnam, and Singapore. These countries

    2 WORLD TRAVEL AND TOURISM COUNCIL. Travel and tourism. Economic impact 2015. South Asia [online]. Available: southeastasia2015.pdf 3 ABELLANOSA, Paolo. 5 Southeast Asian countries declare 2015 as tourism year. Travel Update, January 28, 2015 [online]. Available on:

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    have amped up their marketing efforts and tourism campaigns i.e. Malaysias Year of Festivals,

    Philippines Its More Fun in the Philippines, etc.

    Furthermore, technological innovations that will expand and grow the industry have been identified as

    the following4:

    Increased mobile penetration due to the growth of mobile booking engines (such as: booking

    flights on,; and booking hotels on, and

    Social media penetration due to the growing number of travel apps and social media networking sites available to the market, which makes connectivity and engagement instantaneous

    2.3. Travel and Tourism Industry SWOT Analysis ILLUSTRATION 2: Tourism Industry SWOT Analysis

    4 RUSSEL, Tim. 5 Reasons Why Southeast Asia is the future of the Travel Industry. Represent Asian News, August 4, 2015 [online]. Available on:


    - Poor infrastructure in some countries (i.e. airports, public transportation, telecommunications, etc.)

    -Widespread poverty

    -Language barrier (English language capability not very developed in some countries)

    -Safety may be a concern (i.e. protests, political unrest, kidnapping, theft etc.)


    -Well-developed entertainment options (shopping, nightlife, etc.)

    -Resources within the region: nature, culture, etc.

    -Short distance travel between countries (easy to make travel itineraries within the region)

    -Similar seasonality patterns makes multi-country touring more likely


    - Visa liberalization to ease travel between