This is a sample business plan for travel agency in Nigeria. A
travel agency is a business that provides travel services such as; travel
advisory, reviews and travel services (hotel bookings, flights and car hire). Based
on the kind of business model they operate travel agencies with a decent clientele
and sales tend to be highly profitable.
Market
Overview of Online Travel Market in Nigeria
Online travel agencies operating in Nigeria have made massive
impacts since their entry as far back as 2007 with the likes of Wakanow making
a strong market entry and quickly dominating that market in the space of a few
months. They command an overwhelming market share of both the local and
international travel bookings among Nigerians desiring to book flights and
hotels whether within Nigeria or globally to various countries abroad. There are
nearly 90 online travel agencies in Nigeria and majority of them use social
media and targeted online adverts to reach their online target markets. At least
350,000 Nigerians travel abroad yearly for various reasons (tourism, official
assignments, business trips, Education, pilgrimage, missionary, diplomatic
missions and medical trips).
What are
the Opportunities for Online Travel Agencies in Nigeria?
Avis-rent-a-car while not a travel agency on its own had
demonstrated as far back as 2007 that internet marketing was the way forward
for tourism operators by capturing over 90% of their clients using their
website and almost discarding of the other traditional means of marketing. In 2020, the situation even more applicable as the market leaders travel.jumia, wakanow and travel start all use mainly the online medium to their target markets. It is a safe prediction hat online travel agencies will eventually render conventional travel
redundant with existing trends from consumer behaviour and the use of technology in sharing buyer centric information plus the convenience of using mobile devices to book flights, hotels or rent cars.. There are three reasons this will happen namely;
- Easy and Affordable internet data is and the accessibility of information about travel products and services, many people now go online to do research for their desired travel needs before
- Online travel agencies are more cost effective and profitable than conventional travel agencies.
- Reduced commission paid out to online agencies makes
them the preferred options for travelers.
Who can
setup a travel agency in Nigeria?
While you do not need any certification or qualification to
run an online travel agency in Nigeria, but having one is will go a long way in
securing lucrative travel opportunities in Europe and US. So start with what
you have but grow it slowly till your growth puts you in contact with big
clients abroad.
Related
Sample Business Plans
What is the
Future of Online Travel Agencies in Nigeria?
Online travel agencies will account for more than 70% of all
hotel and flight bookings. The global travel market has always been on the rise
as far back as the 1970s year on year because of growing global trade,
increasing number of people on international business, international students,
tourists and a whole lot more. This means that year on year global sales in
online travel agency industry will grow and much higher than most other
ecommerce ventures.
What is the Startup
Cost for an Online Travel Agency in Nigeria?
To setup an online
travel agency in Nigeria besides a tangible marketing budget and the cost of
the GUI powered website that will enable comparison by consumers between travel
products, services and options, one would also need to rent an office space and
pay for running costs for 6 months till existing clientele and new customers
can provide revenue to sustain the business. In addition, possessing an IATA
certification would be a huge advantage especially for gaining recognition from
major international travel providers. This should amount (without IATA
certification) would be at least 2.7 million. For and IATA certification total
startup would be 34 million.
What Should a First Year Financial Projection look like?
Assuming an average commission
of 18,000 naira commission for international flights, 4,000 naira for hotel
bookings and 6,000 naira for car rentals and number of customers are; 300, 600
and 1,200 respectively we could see first year sales of 15,000,000 naira. An
assumption of 40% running costs should yield 9,000,000 as profit before tax and
6,300,000 naira as profit after tax. Based on an investment of 2.7 million
naira that is over 230% ROI, thus making it a very profitable business.
Paul Onwueme is a professional Business Plan writer since
February 2014, has achieved respectable results with his business plan writing
service with several of his clients securing funding and leaving positive
feedback about his writing service. You can connect with him via phone: 0803
206 4106 or email: paulonwueme@gmail.com
|
Other
Sample Business Plans in Nigeria
|
|
No comments:
Post a Comment