• 
  

  Cost

  Travelling cost abroad is very high for most people

• 
  

  Solo Traveling

  Travelling alone is difficult and incovenient

• 
  

  Consumer behaviour

  Travelers prefer to pay more for shopping and reduce their travel cost.

• 
  

  Limited Services

  Big group travelers often demands to travel in one plane at the same time but hey always find difficulty making such a reservation.

• 
  

  Foreign Currencies & Exchange

  Many foreign traveler wants to pay cash but has no local currency cash.

TravCom:

Travpay:

Variable Cost:

Fixed Cost:

Case 1 – Unable to earn economies of scale

Q : 50 TRAVELERS
1 Tour Guides
→ total : $400 x 1
50 Meals @ $8/meals x 2
→ total : $800
25 Hotels rooms @ $100/room
→ total : $2,500
100 Flight Tickets @ $500/ticket
→ total :$50,000
100 Entrance Tickets @ $100/ticket
→ total : $10,000
Total Travel Package Cost : $63,700
Total Cost Per-Person (Average Variable Cost) : $1,274
Total Price Per-Person : $1,274*1.1 = $1,401
Bank Transaction Fee @ 3%*$1,401 = $18
Net Profit Per-Person @ 10% : $1,401 – $1,274 – $42= $85
Total Net Profit : $85*50 = $4,268

Case 2 – Successfully to earn economies of scale

Q : 500 TRAVELERS
10 Tour Guides @ $400/TG
→ total : $4,000
500 Meals @ $7/meals x 2
→ total : $7,000
250 Hotels rooms @ $90/room
→ total : $22,400
500 Flight Tickets @ $450/ticket
→ total :$225,000
500 Entrance Tickets @ $90/ticket
→ total : $45,000
Total Travel Package Cost : $303,500
Total Cost Per-Person (Average Variable Cost) : $607
Total Price Per-Person : $607*1.1 = $668
Bank Transaction Fee @ 3%*$649 = $20
Net Profit Per-Person @ 10% : $668 – $607 – $20= $41
Total Net Profit : $41*500 = $20,335

Travcom website

• 1. Mathematical Algorithm
• 2. Share Button & shown in Google
• 3. Open Trip

Travcom’s backend design

Travpay (Website & Mobile app)

• 1. Payment in foreign currency

First Travel

A tour and travel company based in Indonesia named “First Travel” was alleged for fraud activity by promoting a half price pilgrimage tour package that starts from Indonesia to Mecca (Saudi Arabia). The company succeeded to make sales amounted Rp 848,000,000,000
(approx: $ 62,601,266) but was not able to make a successful bookings toward the local supplier in Mecca due to conventional bookings. The victims were low cost travelers with low income family from Indonesia.
http://www.thejakartapost.com/news/2017/08/22/court-orders-first-travel-to-repay-customers.html

Tours4fun

An American based tour and travel company named tours4fun (toursforfun.cn) has successfully created a promotion strategy through travel companionship program. Therefore, they succeeded to bring millions of tourist. But, their travel price is not cheap.
https://www.tours4fun.com/travel-companions/

Booking.com

Online travel agencies such as booking.com is the most innovative and dominant market players in this industry because of the convenient way of reservation and cheap price. Thus, more than 50% hotel reservation has been dominated by such online travel agencies.

Marketing Plan & Phase

SWOT Analysis

STRENGTH
– Cheap Service
– Diversified
– Professional Employees
– User Friendly IT System

OPPORTUNITIES
– Competitors High Price
– Big & Growing Market
– Service that is difficult to copy
– First Innovation Technology

Market & Industry Analysis

Porter’s Five Forces Analysis

Barriers to Entry and Penetrations

1. Math’s Algorithm, Innovation, and Product Differentiation
2. Branding and Predatory pricing
3. Access to Outbound Travel Agencies and Local Suppliers (B2B)

• Bali
• West Java
• East Java
• Central Java
• Islands

• Blog
• Custom
• All reviews
• Leave review

• About us
• Partner
• Contact

• Terms and conditions
• Sitemap
• Insurance