MODULE CODE &TITLE: MS70083O – Business Intelligence
MODULE TUTOR: Rusiru Wijerathne (RW)
PREPARED BY: UWL ID: 2143218, 21432249, 21432262,
21432247
Date of Submission: 18th December 2019
TRAVAGO
Your Ultimate Travel Companion
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Content
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•
•
•
•
•
•
•
•
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Introduction to TravaGo
Vision & Mission
Market Gap Analysis
Operational
Strategy
Areas
&
Customer
Industry Analysis
Systems & Information Technology
Used at TravaGo
Data & Insights
Issues & Challenges
Capital Requirement
Structure
&
Cost
Conclusion
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Introduction to TravaGo
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Srilanka’s First Online Travel Marketplace connecting
Travel enthusiasts with industry service providers.
•
TravaGo provides a wide range of inbound & outbound
travel Package deals for consumers to chose from various
travel agents from Srilanka to any destination in the world.
•
Travago also provides Travel related Accessories and
Travel Insurance to make consumers travel hassle free.
•
TravaGo help visitors to compare listed providers easily
through recommendations & reviews and make bookings
for their desired deals in advance through
multiple
payment options with discount offers.
Today’s travelers are getting more independent and they don’t need a travel agency
to plan a trip. That’s why there’s a growing number of travel marketplaces that offer
flights, hotels or other experiences online. Modern age travelers look for a smarter
travel search and a one stop solution for their travel needs.
Thus, Travago
enthusiasts
is
an Online Travel Marketplace which aims to connect Travel
with
industry
service
providers.
Here at Travago we provide a wide range of inbound & outbound travel Package deals
for consumers to chose from various travel agents from Srilanka to any destination in
theworld.
We also provides Travel related Accessories like bags and travel kits and also we
p r o v i d e Tr a v e l In s u r a n c e t o m a k e c o n s u m e r s t r a v e l , h a s s l e f r e e .
Moreover, TravaGo help visitors to compare listed providers easily through
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recommendations & reviews and make bookings for their desired deals in advance
through multiple payment options with discount offers.
Travago is basically a full-fledged travel activity marketplace that offers complete ease
and makes travel planning painless for the end users.
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Why Travago?
•
•
•
•
Increasing outbound tourists over the years
Travellers make average 52 Google
searches before booking for a trip
Lack of opportunity to find all tour
packages in one click
Existing travel agents provide offline
services which are time consuming
Travago sees an opportunity to entre the market because the outbound tourists
market over the years has grown by 10.3% and the Travellers make an average of 52
Google searches before booking a trip. However, most of the existing travel agents in
Sri Lanka provide an offline services which are time consuming and the unavailability
to find all tour packages in one click leads us to a market gap.
Thus, to cater this gap TravaGo offers a Seamless trip planning with an entire package
of travel services available on a one-stop shopping platform with personalized
recommendations along with dozens of reviews by other travelers to evaluate their
decisions.
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Vision
“To be the largest Online Travel Marketplace in Srilanka delivering unique life experiences globally”
Mission
To venture beyond our customers expectations, by Providing value added innovative and hassle free
travel deals, whilst being the most professional, efficient and trustworthy travel search engine in
Srilanka.
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Business Model Canvas for TravaGo
Key
Partners
✓
✓
✓
✓
Travel Agents
Tourist Board
Banks
Technology
Partners
Key Activities
Marketing
Online Sales
Data Management
Vendor acquisition &
Management
✓ Finance
✓ Customer support
✓ Analytics
✓
✓
✓
✓
Key Resources
✓ Technological
Platforms
✓ Data
✓ Employees
✓ Cash in hand
✓
✓
✓
✓
Cost Structure
Technology Setup Costs
Employee Salaries
Marketing
Cost of Sales + Acquisitions
Value
Proposition
“ Travel Without
the Hassle”
Customer
Relationships
✓ Hotline
✓ Social Media
✓ Chatbots
✓ Bank Promotions
✓ Flash Deals
✓ Recommendations &
Reviews
Customer Segments
✓ Geographic –
Destinations
✓ Age/Life Stage
✓ Gender
✓ Travel Motive
✓ Socioeconomic
Status
Channels
Sales: Online Store
Communication:
✓ Digital
✓ ATL – Newspaper
Revenue Streams
Travel Packages
Travel Accessories
Travel Insurance
Further, to analyze the operational areas and customers strategies a business canvas
model has been developed where are customer segmentation could be based on the
travel destinations our consumers chose, or through their age, gender, and live
stages. Further, the travel motive of consumers and socioeconomic status also be a
segmentation. Moreover, to maintain relations with our customers a hotline number,
social media account and a chat box will be used. Further, a personalized
recommendation will be provided through these strategies travago will be able to
retain and attract existing and potential customers.
The major operational areas of travago would be Marketing, Online Sales, Data
Management, Vendor acquisition & Management, Finance, Customer support and
Analytics these areas allow travago to run its operations effectively
Further, the key partners and resources like Travel Agents, Tourist Board, Banks,
Technology Partners, Technological Platforms, Data, Employees, Cash in hand ensure
travago sustain in the industry for a longer period of time.
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Industry Analysis
Tourism is the 3rd large foreign exchange earner of Sri Lanka
According to Srilanka Tourism Development Authority Tourist
Arrivals increased by 10.3% to 2.3Mn and the number of
Srilankans travelled overseas increased by 2.53% to 1.47 Mn in
2018 Compared to 2017.
Sri Lanka was named as best travel destination by Lonely Planet
in 2019
Easter Sunday Attacks contributed to a major downfall in the
Srilanka Tourism Industry. Industry slumped 70% in terms of
tourist arrivals and revenue.
904 registered Travel Agents & Tour Operators
No service is available to provide all available travel packages
in one place
345 million tourists choose Asia and Pacific as tour destination
85% international tourists arrive for leisure and recreation
Sri Lanka is an Island which is full of natural resources, historical places, forests and
beaches and increasingly popular destination for international travellers
Total number of foreign tourists to Sri Lanka during 2018 2,333,796 which is 10.3%
increase of previous year and total number of Sri Lankans travelled overseas during
the year 2018 is 1,475,929 which was an increase of 2.53% compared to 2017
Sri Lanka was named as the best travel destination in the world by lonely planet and
as one among the ‘top ten coolest countries’ to visit by Forbes magazine in 2015 and
therefore the outbound tourists count is expected to grow higher
There are 904 registers travel and tour agents in Sri Lanka who are operating offline
and there is no any online service provider facilitating travellers to find, compare and
choose best available tour package which fulfill their desire.
The terrorists attack on Easter Sunday (21st April) have dampened the growth of the
industry but with the change of government policies and investments it is being taken
to the right path.
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The travel agents who are currently operating in the market operates offline provides
competitive services such as inbound and outbound holiday travel packages, business
travels, VISA services, accommodations, cruise vacations.
Highly rated travel and tour agents are partnered with organizations such as IATA,
PATA, Cox & Kings, Rail Erope, ABTA, VISA, Mastercard and amex in order to provide
best services.
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Industry Analysis – Porters Five Forces
Threat of new entrants
Brand Identity
Threat of
new
entrants
Approvals of authorities
(Medium)
Capital Requirements
Bargaining power of
buyers
Lack of experience
Increasing number
tourists
Bargaining power of
suppliers
904 registered tour
agents
Well
established
market
leaders
bearing higher market
share and goodwill
Bargaining
power of
suppliers
Rivalry among
existing
competitors
Bargaining
power of
buyers
(Medium)
(High)
(High)
Rivalry
among
existing competitors
No common portal for
all agents in Sri Lanka
Threat of
substitute
products
Single sites does not
cater the requirement
of ‘finding best tour
package’ for customers
(Low)
Threat of
products
of
No one common site for
tour information of all
the agents
People search for easy
ways to find tour
information
without
physical appearing to
tour agent
Searching each singe
tour agent is time
consuming and tiring
task
substitute
Loyalty of customers for
particular agents and
packages
a) Threat of new entrants is medium for TravaGo due to unavailability of online
services and availability of highly established travel agents which operates offline.
Lack of experience in the field is also is another important factor which can be
identified as a threat of new entrants.
b) Bargaining power of suppliers is medium as there are 998 registered travel agents
and other local agents who are providing similar services with variety of ranges.
c) Bargaining power of buyers for TravaGo considered to be high due to number of
opportunities they’ve got with the large number of travel agents and competitive
services they are providing. Brand loyalty would be an added advantage for other
agents which would adversely affect on TrivaGo.
d) Threat of substitute products is considered to be low due to no any other service
is found to facilitate all online travel services for the travellers.
e) Higher rivalry among existing competitors is found as TrivaGo is the only online
service provider in the market and wiling to attract more attention of the
travellers as well as travel agents.
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Systems & IT Used at TravaGO
Data &
Insights
Operations
Payment
Gateways
Website
Integration
TravaGo
Finance
CRM
Systems & Technology that will be used at TravaGo can be divided in to Six different
areas.
1.
2.
3.
4.
5.
6.
Website Integration:
Customer relationship Management
Finance
Payment Gateways
Operations
Data & Insights
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Website Integration
➢ Travelshift is a user friendly Travel Marketplace system
➢ SaaS application which is powered by Amazon Web Services
➢ Frontend System of TravaGO
➢ System will be used for following activities at TravaGO.
1)
2)
3)
4)
5)
6)
Responsive Website Design & Booking Management
Manage Multiple Vendors
Instant Booking Confirmations
Vendor Extranet
Support Multiple Categories & Verticals
Support End – to End Communication between Customers & Travel
Service Providers
7) Provide Recommendations & Reviews for Customers
8) Customer Registration & Data Collection
Benefits to TravaGo by Using Travelshift
- Easy to Manage
- Customizable
- Cost Effective
- Market Ready
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Operations, Finance & CRM - Alpha
➢ Custom built ERP System to Handle Operations, Finance &
CRM elements of TravaGO
➢ Efficient, Scalable & Flexible
➢ TravaGo will use this system for following functions &
activities.
1) Customer Order Management
2) Vendor Management
3) Payments Management
4) Product/Service Information Management
5) Itenary Management
6) Customer Relationship Management
Increased Efficiency: Faster processing & lower manpower costs due to automation.
Track every step of the fullfillment chain and remove delays.
Better Customer Service: Information at fingertips to help customers.
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Payment Gateway – PayHere
➢ All In One Payment Gateway System Supporting
Multiple Payment Options.
➢ Guaranteed Customer Convenience & Security
➢ No hassle of integrating payment methods one by
one & managing them in different portals at
different rates.
➢ No Initial Setup Fees
➢ Seamless Integration with the Frontend System
Supports Multiple Payment Options: accepts all major credit cards, mobile wallets
and internet banking systems.
Guaranteed Customer Convenience & Security: Bank Backed Security & PCI DSS
Complaint. TravaGo customers can make a payment in 3 simple steps.
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Data & Insights
In the Context of TravaGo Data falls into 4 different
Categories
➢
➢
➢
➢
Content Data
Transactional Data
Vendor Data
Marketing Insights
Content, Transactional & Vendor Data are collected and
stored using TravaGO’s main 3 systems and is feeded into
the main database hosted in the cloud which comes inbuilt
in the frontend system.
Capture and Analyze Marketing related Data
Content Data
Content pages like about us, contact, FAQ, and fullfillment policies;
Product pages showing details of — price, destinations, Travel Itenary
Category pages grouping similar Services.
Transactional Data
Customer Data: customer name, address, phone, email, products purchased,
customer geographic, demographic and behavior data
Inventory Updates
Site Data: No of Orders, Top Destinations, Revenue, Conversion Data, Payment
Methods Used, Baskart Value
Vendor Data
List of Suppliers, Top Suppliers, Revenue Per Vendor, Invoice & Payment related data.
Reviews & Recommendations
Marketing Insights
Website Traffic, Unique Visitors, Conversion Rate, Marketing Campaign Data, Market
Data
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Visits/Traffic
User Profiles
Extracted,
Analyzed and
converted into
Valuable
Information
Information
Shopping Cart
Inbuilt Cloud
Database
Analysis
Products
Storage
Data
Purchase Data
Revenue
Baskart Value
Top Destinations
Customer
Behaviour
Marketing
Campaigns
No of Orders
Keywords
Conversion Rate
No of Visitors
Search
User Reviews
Data from Internal & External Sources are gathered through the use of TravaGo’s 3
main systems and then feeded into the Cloud Database.
Tableau software is used to extract these data and convert them into valuable
information for TravaGO which helps the company to;
Make better strategic decisions
Improve control of operational processes
Better understand customers
Reduce Costs
Tableau will be again used to visualize the information in a Dashboard like above.
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Issues and challenges
•
Data loss and security breaches will
•
System interruptions will cause inconvenience to customers.
•
Choosing the right technology & partners
•
Service quality issues due to vendor mismanagement and errors.
•
Lower adaptation on e-commerce.
adversely affect operating result of TravaGo.
TravaGo deals with personal information of customers therefore failure to prevent
security breaches and data loss will adversely effect the organizations entire operation
and the reputation.
System interruptions such as website services unable or slow will cause
inconvenience to customers and lead to reduction in profit.
Customer might complain about the quality of service received due to errors and
mismanagement of the vendors therefore in order to keep up the service quality of
travago the vendors who do errors will be terminated from the organisation.
The next issue faced by TravaGo is choosing the cost effective but efficient
technology and partner.
There is a less trust on the ecommerce in Sri Lanka therefore it a is challenge faced.
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Capital Requirement and Funding
Major Capital Requirements
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•
•
•
•
Travleshift
Alpha
PayHere
Google suite
Tableau
Other Capital Requirements
•
•
•
•
Computers/Laptops
Office supplies
Rent down payment
Furniture
Total Capital Required
Cost (Million)
1.1
1.2
0.12
0.38
0.15
Cost (Million)
0.8
0.4
0.9
0.6
5.65
❑ The funding will be attained by investing 3 million through personal savings and a bank loan of 2.65
million.
Major capital required such as systems in order to stat the business. The total capital
required to invest in systems will be 2.95 million and total capital required on
property plant and equipment will be 2.7 million. The total capital requirement is
5.65 million.
Each investor will invest 0.75 million through personal savings 2.65 million from the
bank loan in order to fund the business.
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Profit & Loss (P&L) Statement
Revenue 1 - Travel packages
Revenue 2 - Accessories
Revenue 3 - Travel insurance
Total Revenue
Cost of Goods Sold
Gross Profit
Expenses
Marketing Cost
Rent Cost
Systems
Website
Telecommunication
Utility ( Electricity & Water)
Employee Salaries
Office Supplies
Computers & Equipment
Total Expenses
Profit Before Tax
Income Taxes
Netprofit
2020
30
9.6
3.6
43.2
[ SLR Millions ]
2021
2022
45
60
10.3
11.5
4.2
5
59.5
76.5
21
22.2
33
26.5
45
31.5
8.2
0.6
2.95
0.45
0.3
0.25
4.8
0.25
1.04
18.84
3.36
1.17
2.19
8.6
0.6
2.95
9
0.6
2.95
0.6
0.5
5.2
0.32
1.25
20.02
6.48
1.32
5.16
0.9
0.56
5.8
0.45
1.51
21.77
9.73
1.58
8.15
Revenue will be gained through travel packages, accessories and travel insurance. The
forecasted total revenue for the year 2020 will be 43.2 million, the forecasted gross
profit will be 22.2 million , the total expenses for the year 2020 will be 3.36 million as
a result the net profit for the year 2020 is 2.19 million. TravaGo expects a revenue
growth of 38% in the year 2021.
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Breakeven Analysis
•
Total Fixed Cost
5.04 Mn
Total Variable Cost
13.8 Mn
Contribution ( Variable – Fixed Cost)
8.04 Mn
Revenue Forecasted for 2020
43.20 Mn
Contribution Margin
0.186 Mn
Breakeven Analysis = Fixed cost
Contribution Margin
= 5.04
0.186
•
= SLR 27.09 Million
TravaGo needs 27.09 million of sales in order to breakeven.
Total fixed cost was derived as 5.04 Million
Total variable cost was derived as 13.8 Million.
Contribution of TravaGo is 8.04 Million the difference between Variable & Fixed Costs.
Contribution Margin for TravaGo stands at 0.186 Million and TravaGo needs 27.09
million of sales in order to breakeven.
.
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Conclusion
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•
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The tourism industry is expected to grow in the near future thus there is a great opportunity for
TravaGo to enter the market as a Online Travel Marketplace.
Different Information Systems & BI tools such as Travelshift, Alpha and Tableau will be adopted to run
the operation successfully and act as a enabler to reach TravaGo’s Vision ultimately.
The issues and challenges such as system interruption, data loss and security breaches and service
quality issues due to vendor mismanagement and errors has been identified as negative enablers for
TravaGo’s Operating Results where the company will act accordingly to mitigate and rise up to the
Finance, Market & Operational Issues & Challenges.
Therefore it can be concluded that Travago see an opportunity to cater the inbound
and outbound travellers with exciting travel deals and hassle free online booking.
In order to cater to different segments of Local and Foreign Travellers, different
Information Systems & BI tools such as Travelshift, Alpha and Tableau will be adopted.
With the help of these systems TravaGo will mitigate the market, operational and
finance issues and challenges faced by the company in the future.
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References
✓ Annual Statistical Report 2018. Srilanka Tourism Development Authority. Available at:
http://www.sltda.lk/sites/default/files/sltda-annual-report-2018-english.pdf
✓ Annual Statistical Report 2017. Srilanka Tourism Development Authority. Available at:
http://www.sltda.lk/sites/default/files/annual-statical-report-2017.pdf
✓ Sri Lanka Tourism Strategic Plan 2017 – 2020 Srilanka Tourism Development Authority. Available at:
http://www.sltda.lk/sites/default/files/tourism-strategic-plan-2017-to-2020.pdf
✓ Tourism Industry Report 2019 - Q1 – Q3. Available at: http://www.sltda.lk/node/764
✓ UNWTO Global Tourism Dashboard. Outbound Country Profiles – Srilanka.
https://www.unwto.org/country-profile-outbound-tourism
✓ UNWTO Global Tourism Dashboard. Inbound Country Profiles – Srilanka.
https://www.unwto.org/country-profile-inbound-tourism
✓ Osterwalder A and Pigneur Y. (2009) Business model generator, self-published. Available at
http://businessmodelgeneration.com/book?_ga=1.265943247.1539817166.1460905220
✓ Sri Lanka ranked top country for travel in 2019 by Lonely Planet: Article, Available at:
https://www.theguardian.com/travel/2018/oct/23/sri-lanka-ranked-top-country-for-travel-in2019-by-lonely-planet
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