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.

Service Features
The safe and sound travel agency provides well-rounded, reliable, and trusted
services to ensure you the domestic travel experience that you deserve. With our help and
services, 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 Clients
For seminars, conference/ meetings and banquet
reservations, they would incur less cost for travelling
expenses with the help of travel agent.
Group Travellers
For group bookings that involve coordinating travel for
7

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

Individual Travellers
Reading online reviews of a specific resort or city can take
lots of time and effort. If a prospective client is booking a
getaway for leisure, vacation etc., but the destination is still
a question mark, an experienced travel agent can help steer
him 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

population

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 survey
questionnaire answered by the respondents.

1. Segregation of Respondents According to Age

Age

Table 2.1
Segregation of Respondents According to 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

Total

100

100

Chart 2.1
Segregation of Respondents According to Age

Age
9%
18%

20 years old and

below
21-25 years old
26-30 years old

24%
26%
23%

31-35 years old

36 years old and
above

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.

2. Segregation of Respondents According to Sex

Sex

Table 2.2
Segregation of Respondents According to Sex
Respondents
Percentages (%)

Male

43

43

Female

57

57

Total

100

100

Chart 2.2
Segregation of Respondents According to Sex

Sex

43%
Male

57%

Female

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.

10

3. Segregation of Respondents According to Occupation

Table 2.3
Segregation of Respondents According to Occupation
Occupation

Respondents

Percentages (%)

Student

18

18

Employee

63

63

Self employed

15

15

Others

Total

100

100

Chart 2.3
Segregation of Respondents According to Occupation

Occupation
4%
Student

18%

15%

Employee
Self employed
Others

63%

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.

11

4. Segregation of Respondents According to Monthly Allowance / Income

Table 2.4
Segregation of Respondents According to Monthly Allowance / Income
Monthly allowance or

Respondents

Percentages (%)

2,000 and below

11

11

2,001- 5,001

5,001- 10,000

10,001-30,000

66

66

30,001-50,000

10

10

50,000 and above

Total

100

100

income

Chart 2.4
Segregation of Respondents According to Monthly Allowance / Income

Monthly Allowance/Income
10% 2%

11%

2,000 and below

7%
4%

2,001- 5,001
5,001- 10,000
10,001-30,000

66%

30,001-50,000
50,001 and above

Table 2.4 and Chart 2.4 show the segregation of respondents according to
monthly allowance/income. Much of the respondents have monthly income/allowance of
P10,00-P30,000, while the brackets with the least frequency have P50,001 and above.

12

5.

Segregation of respondents whether they use travelling agency

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

Respondents

Percentages (%)

Yes

34

34

No

66

66

Total

100

100

travel agency

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

Whether they use travel

agency
34%
Yes
66%

No

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.

13

6. Segregation of respondents according to whether they are from corporate client or noncorporate client.
Table 2.6
Segregation 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 2.6
Segregation of respondents according to whether they are from corporate client or
non-corporate client

Type of client
37%
63%

Non-corporate
client
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.

14

7. Segregation of respondents according to how often they travel using the services of
travel agency
Table 2.7
Segregation of respondents according to how often they
travel using the services of travel agency
How often they travel

Respondents

Percentages (%)

Once in a year

Once in 6 months

45

45

Once in 3 months

26

26

Every month

17

17

Every week

Total

100

100

Chart 2.7
Segregation of respondents according to how often they
travel using the services of travel agency

How often they travel

4%

8%

Once in a year

17%
26%

Once in 6 months
45%

Once in 3 months
Every month
Every week

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.

15

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

by a travel agency
Table 2.8
Segregation of respondents according to their experience of not being
accommodated by a travel agency

Have experience

Respondents

Percentages (%)

Yes

No

97

97

Total

100

100

Chart 2.8
Segregation of respondents according to their experience of not being
accommodated by a travel agency

Have experienced
3%

yes
no

97%

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.

16

9. Segregation of respondents according to preferred travel Philippine destinations

Table 2.9
Segregation of respondents according to preferred travel Philippine destinations
Philippine Destinations

Respondents

Percentages (%)

Baguio

17

17

Bohol

Boracay

23

23

Cebu

Davao

Palawan

36

36

Puerto Galera

Total

100

100

Chart 2.9
Segregation of respondents according to preferred travel Philippine destinations

Philippines destinations
Baguio

5%

Bohol

17%
8%

36%

Boracay
Cebu

23%
8%

Davao
Palawan
Puerto Galera

3%

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

10. Segregation of respondents according to if they will avail other domestic services.
Table 2.10
Segregation of respondents according to if they will avail other domestic services
Other Domestic Services

Respondents

Percentages (%)

Car/Bus rental

Multi-lingual tour guides

Will not avail

87

87

Total

100

100

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

Preferred way of travel

9%

4%

Car/Bus Rental
Multi-lingual tour
guides

87%

Will not avail

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.

18

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

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

Respondents

Percentages (%)

Price

24

24

Security

27

27

Service

49

49

Total

100

100

choosing travel agency

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

Factors considered in choosing

travel agency
24%
49%

Price
27%

Security
Service

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.

19

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 2.12
Historical Demand
Population
1749122
1924035
2116438
2328082
2560890

Market Acceptability
Rate
34%
34%
34%
34%
34%

Frequency of Availing
Annually
2
2
2
2
2

Annual
Demand
1189403
1308344
1439178
1583096
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.

20

Table 2.13
Projected Demand
Year
2015
2016
2017
2018
2019

A
138000
138000
138000
138000
138000

Yi-1
1741405
1879405
2017405
2155405
2293405

Yc
1879405
2017405
2155405
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 2.14
List of Travel Agencies
21

Business Name
Quicklines Travel
International, Inc. Cubao

Manila Genesis Charters

and Tours Inc

Address
Ground Floor Shopwise Supermakrte,
Araneta Center, Cubao, Quezon City,
Metro Manila
G/F Genesis Transport Building,
EDSA corner New York Street,
Cubao, Quezon City, Metro Manila

Distance
Approximately
0.03 KM away

Approximately
0.50 KM away

Radio Communications Of

711 E. Delos Santos Avenue, Cubao,

Approximately

The Philippines

Quezon City, Metro Manila

0.75 KM away

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

Approximately

Kamias, Quezon City, Metro Manila

0.87 KM away

Pagan Nomads Tour

Management and Travel
Consultancy
San Travel and Tours -

Unit 1007 Prince John Condominium,

Main Office

291 P. Tuzaon corner 18th Avenue,

Cubao, Quezon City, Metro Manila

Mosconi

0.94 KM away

7F Gregory Condo, 12th Avenue, Approximately

Cubao, Quezon City, Metro Manila

Source:

Approximately

1.00 KM away

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

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

22

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 2.15
Historical Supply
Year

Demand

2010
2011
2012
2013
2014

1189403
1308344
1439178
1583096
1741405

Supply Situation
Rate
97%
97%
97%
97%
97%

Annual
Supply
1153721
1269093
1396003
1535603
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 2.16
Projected Supply
Year

Demand

2015
2016
2017
2018
2019

1879405
2017405
2155405
2293405
2431405

Supply Situation
Rate
97%
97%
97%
97%
97%

Annual
Supply
1823023
1956883
2090743
2224603
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

23

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
Annual

Annual Supply

DemandSupply Gap

Year

Demand

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

2015
2016
2017
2018
2019

56382
60522
64662
68802
72942

Target Market
Share Percentage
2%
2.20%
2.42%
2.66%
2.93%

Target Annual Market

Share
1128
1331
1565
1832
2136

The chart below shows the market share situation of the travel agency business
before the introduction of Safe and Sound Travel Agency.

24

Chart 2.12

Sales
Quicklines Travel International,
Inc. Cubao
Manila Genesis Charters and
Tours Inc
3%
16%
34%
4%

26%

5%
12%

Radio Communications Of The

Philippines
Pagan Nomads Tour
Management and Travel
Consultancy
San Travel and Tours - Main
Office
Mosconi

Unsatisfied Demand

The next chart below portrays the projected market situation of the travel agency
business after the introduction of Safe and Sound.

25

Chart 2.13

Projected Market Share Distribution

6.5%

Manila Genesis Charters and

Tours Inc

12.5%

16%

11%

Quicklines Travel
International, Inc. Cubao

Radio Communications Of
The Philippines

34%

Pagan Nomads Tour

Management and Travel
Consultancy
San Travel and Tours - Main
Office

9%

12%
5%

Mosconi
Unsatisfied Demand
Safe and Sound Travel Agency

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:

26

Table 2.19

SWOT Analysis
Strengths
Weaknesses
Diversified client base:
Difficulty
in
developing
brand
Combination of skills in employees
awareness
Extensive advertising and marketing
Lack of clear strategic allies
A limited financial base compared to
the major players in the industry.
Opportunities
Threats
Current drive by government towards Potential entry of new competitors
encouraging the participation of Competitors have launched a new
indigenous entrepreneurs in tourism
advertising campaign
current marketing campaigns by both External factors such as taxes
the government and regional tourism Increase in cost due to inflation
body
Expansion of the business
A market vacated by an ineffective
competitor
International tourism trends

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 Clients

Baguio

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

27

Promotional Strategies
For the business to be successful, the service offered must be publicized to
potential clients. Since the business is at the start of its operations, a detailed promotional
strategy should be planned to create product awareness. This is composed of different
tools like advertisement and sales promotions. The proponents intend to implement the
following promotion tools for the first year of its operations:
1. Opening Day Promotion
The company will be conducting ribbon cutting as well as establishment blessing
with the partners and staffs. After the activity, flyers will be distributed in front of the
establishment and near areas. Tarpaulins will be strategically placed near the
establishment to raise awareness to the potential customers that a new travel agency has
just opened.
2. Advertisements
For the consumer to be aware of our service, we decided that to reach them
directly is one of the most effective ways to promote our business. All the successful
businesses are built by heavy advertising techniques such as the following:

Promotional posters, tarpaulin, leaflets and the like

Printed materials like brochures, handouts, leaflets, flyers, and calling
cards shall be distributed to the different hotels and resorts, the Department of
Tourism. It could also be given to the passer-by near the establishment.

Website
This could be help for the easy access of information about our services
offer including the prices and tour packages.
Table 2.20
Promotional Budget
Summarized below is the estimated cost of the promotion plan:
Promotional Program Budget
Items

Quantity

Cost/ Unit

Total Cost

Regular Advertising per Year budget

20

Promotional Posters ( 18X24)

28

P 50.00

P 1,000.00

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

P 6,000.00

P 6,000.00

TOTAL

P51,000.00

29