Phase IITable of ContentsI.

Executive SummaryII. Management PlanA. Organizational StructureB. Human Resources ProjectionsC.

Get a personal essay quickly and without loss of quality
For Only $13.90 per page!


order now

Production ProcessD. Facility LayoutIII. Marketing PlanTarget MarketCompetitor AnalysisProduct Characteristics and PricingPromotional PlanIV. Financial PlanFeasibility AnalysisInitial CostsMonthly CostsSales ProjectionsBreak Even AnalysisV. International PlanAnalysis Research of CountryExchange Rate StrategyAnnual Sales / Purchases ProjectionVI.

Strategic PlanVII. AppendicesOrganizational ChartHuman Resource / Sales ProjectionsCash Flow ChartsBreak Even AnalysisGannt ChartFloor PlanPricing GuideHuman Resource Evaluation SurveysPhotos to be created into wall hangings for officeII. Executive SummaryExotic Travel Agency, an S-Corporation, its President, and Vice-Presidentare seeking those vacationers who wish to participate in the best vacationof their lives. This premier West Coast travel agency revolutionizes theway vacationers think about relaxation and luxury when participating intheir vacation experience. Exotic Travel works with you, our client toensure that all of your vacation needs are not only met, but also farsurpassed. At Exotic Travel, we believe specialization is a key componentin maximizing your vacation experience.

Focusing our time and energy intoresearching both our clientele and our destinations, we guarantee committedand educated travel specialists that will provide unsurpassed services toyou, our client. With extensive knowledge as both travelers andvacationers, we understand the stress vacationing can be. It is estimatedthat one in every four flights experience delays of some sort (DatelineNBC). It is becoming more and more stressful to plan a vacation, let alonetrying to get there. This is where Exotic Travel can be your guide to thebest vacation you have ever had. Thorough training programs for all of ouremployees associated with your vacationing process are required;guaranteeing a safe, stress free environment while you are both preparingand executing your travel experience. Our clients are never without aknowledgeable travel specialist whos main goal is to provide ourclientele with exceptional services, affordable prices and pricelessmemories, while still securing a feasible profit for Exotic Travel.

Our short-term goals will be accomplished by targeting the middle and upperclass market of individuals who have an annual income of approximately$50,000. Exotic Travel understands that there is still a large range ofconsumers that fall into this income category, so we are focusing in on theage range from 25-60. Many vacationers take a cruise sometime in theirlives, whether it is when they are starting their career or finishing it.This range of income and age is the fastest growing group in America today.

Therefore, we feel as though we are entering the market at a feasible timeto take advantage of these middle and upper class consumers. We hope todraw in many of our clients through comprehensive advertising in bars,hotels, airports, newspapers, magazines, casinos and bridal expos, etcKBecause of our marketing strategies, our advertising margin is purelymobile, allowing us to take advantage of a huge consumer spectrum. Havingour office located in Portland gives us a firm base that is central to manyof the suburban and urban locations where advertising will be intense andfocused. Although initial renting costs will be high, we hope to reach ourbreak-even point within the first XXXXXX.

The Exotic Travel timeline is as follows: Receive ARC approval, completefinancing, establish concrete hotel, airline, and ship contracts, andcomplete office remodeling by the end of April 2002; launch our extensiveand intense marketing campaign, allowing Exotic Travel to book its firstdestination cruises and airfares beginning June 1st, 2002. As we beginto build our clientele, we will be researching and expanding ourdestination cruises to include the Rangiroa, Moorea, Tahaa, EasterIsland, Bora-Bora, etcK We hope to showcase these new cruises within thefirst five years; adding one destination cruise for each successiveyear. Additionally, if our business plan proves to be accurate, we plan togo public approximately five years after we open (2006), thus we would beseeking a single or multiple parties to invest in common stock.

This wouldprovide us with working capital to expand operations and implement our newdestination cruises into our showcase.The feasibility of our business plan is hopeful when considering moderatestart-up costs, the manageable monthly expenses of the business and ouradvantageous annual revenue. Our projections indicate that ourprofitability will be made certain, even though our profit/cost ratio willbe reduced in the beginning. The long term affects will be more profitableover time.Focusing our first destination cruise to Tahiti, we foresee virtuallyno problems arising as a result of international conflict. Although Tahitiis an overseas territory of France, it is responsible for much of its ownaffairs. For many years, Tahiti has been the sleeping beauty of FrenchPolynesia, and with this in mind, Exotic Travel wants to introduce Americanconsumers to Tahitis rich culture and tradition while still protecting itfrom the bombardment of todays society.

Tahiti is a lush resource that isjust waiting to introduce itself onto the global map of economy. Our long-term goals of expanding our clientele to additional French Polynesianislands fall into place with the favorable economic outlook for both ourcountry and that of the French Polynesian islands. We plan to promoteTahiti as both a beautiful and sacred island while at the same time workingwith Polynesian natives to preserve the culture and environment and try notto saturate French Polynesian customs.III. Management PlanA. Organizational StructureExotic Travels organizational structure will be divided up by duties.

Thepresident and CEO (Ibrahim) is responsible for the day to day affairs ofthe company as well as working together with the rest of the team indeveloping innovative ways to attract customers. Ibrahim, who is not onlythe President, but Director of International Affairs, will be responsiblefor obtaining, maintaining and managing our contacts in Tahiti. He will dofurther research into other potential foreign countries for futureexpansion in our cruise line packages. Vice-President of Financing,Jeanette, has a primary role in the decision making process for she willkeep the rest of the team informed about the companys financial positionand allocate funds accordingly. Ibrahim, the Vice-President of Marketing,will be responsible for the companys publicity and tactics. Vice-President of Information Systems, Jeanette, will be responsible forupdating and analyzing any and all data relevant to our companysoperations.

Ibrahim, who is not only the CEO, but the Executive Manager,will be responsible for the bureaucratic relations for the company. Alongwith the teams respective duties, each member will be consulting thecustomers on their travel plans. In addition to the Portland based team, wewill have two well trained individuals working for us in Tahiti. They willassist our clientele with whatever needs they may have while visiting theFrench Polynesian Islands.(Please refer to Appendix A: Organizational Chart)B. Human Resources ProjectionsIn the first year, Exotic Travel will not demand a large staff.

Our fivecompetent team members will be more than able to handle the companys day-to-day operations. We will recruit one unpaid student intern from PortlandState University. This opportunity will provide an eligible student with onhand experience in the business world.At present, the only paid employees outside of the Portland based staffwill be the consultants located in Tahiti. These positions will requireextensive knowledge of Tahiti as well as its sister islands; includingcustoms, clothing, entertainment, excursions, motivation and interpersonalskills. The consultants will also be well informed on the travel industryas well as the goals, objectives and rules of our company.C.

WagesExotic Travel partners will receive a percentage of the total companyscommission profits as their monthly earnings. Our consultants will receivea set dollar amount from our monthly expense account.A set dollar amount will be allocated in order to cover both health andlife insurance. The dollar amount will be established by multiplying thebase monthly rate of $100.00, for a year, by the number of employees.

Atotal of 85% of the companys profits will be doled out to the five teammembers for their monthly wage. Each team member will receive 16% withfederal, state and social security taxes withheld appropriately. Theremaining 15% will go into our common working account.The consultants based out of Tahiti will be paid according to the currenteconomic conditions of their country. Our plan is to offer the consultantsa fee for each scheduled cruise to Tahiti.

Our plan is to offer theseconsultants a monthly wage of approximately $2400.00 USD, which converts toapproximately 17,892.72 Francs. If applicable, any and all foreign taxeswill be deducted and paid to the proper authorities. In addition to theirfee, these consultants will be offered bonuses at the end of the year;after an evaluation of their performance.

(Please refer to Appendix B: Human Resource Projections)D. BenefitsAll Portland based members of Exotic Travels team and immediate familymembers will be offered both life and health insurance coverage. As membersof the International Airlines Travel Agent Network, we will all reap thebenefits granted by the travel and hospitality industry.

Such benefits mayinclude discount airfares and hotel accommodations. In addition to thesebenefits, bonuses will also be awarded following performance evaluations.The bonus money will come out of the common working account. Two weeks paidvacation will accrue after one full year of employment; to be increased tothree weeks after two years and four weeks after five years. Other travelindustry perquisites will be offered on an availability basis.E. Production ProcessOur Gantt chart illustrates our critical points for success not only onopening day but for the future of our company.

To be recognized as a travelagency we will have to gain approval from the Airline Reporting Corporation(ARC). This process averages four months for authorization. We expect thatin order to establish and confirm pricing contracts with hotel and airaccommodations we will need to allot a couple of months time.

This is animportant step in our process in that it ensures consistent availabilityand competitive pricing for our customers. We estimate that approximatelyfive years after the official grand opening, we will consider offeringadditional exotic cruise vacations to other countries. It will be importantto evaluate the success of our cruises to Tahiti prior to investing in thepromotion of other exotic vacations. We are optimistic that in two yearstime we will have encompassed enough of the travel and hospitality market;that we will have established ourselves as a leading company in the travelindustry.(Please refer to Appendix C: Gantt chart)F. Facility LayoutWhile upholding industry regulations, the layout of our facility isintended to allow for optimal productivity and enhanced customerassistance.

Our office is a single level, 1200 square foot unit. Our guestswill be greeted by our student intern/receptionist. The reception area willbe designed for maximum comfort. Comfortable couches and chairs willwelcome our clientele while colorful and exciting brochures will catchtheir eye. Refreshment will also be made available.The office will be equipped for successful sales of our products andservices.

Each team member will have his or her office easily accessibleand visible allowing for a friendlier atmosphere. Each team membersoffice will encompass the entire office and will be partitioned by glasswalls. We will have travel books and brochures located in our officespaces. More importantly, we will have extensive literature placed instrategically placed racks in the reception area. We will create a wall ofliterature which will be located opposite the main entrance to our office.The back office will be for processing the travel transactions and forstorage. The three key elements of this back office will be the itineraryprinter, the ticket printer and the safe.

According to ARC regulations,these three items must not be visible to our customers; our application forrecognition is contingent, based upon this fact. There will also be a breakroom where our staff can enjoy their lunches or a well-deserved break. Nextto the break room will be a common restroom.

Since parking is often a problem at our downtown location, we will validateparking if and when our parking lot is full. The parking facility will bemaintained by the buildings owner.(Please refer to Appendix D: Floor Plan)IV. Marketing PlanA.

Target MarketIn the last two decades, Multnomah Countys population has doubledaccording to the Census Bureau. Our focus will be on middle to high-classconsumers, between the ages of 25 and 55 years old who live within thenorthwest and southwest areas of Portland. This consumer group makes up 44%of the total county population. By targeting this specific group, we hopeto attract mature consumers that will find our exotic vacations financiallyaffordable and enticing.Middle to High-class families will enjoy the luxury, which a cruise toTahiti and other exotic locations will have to offer. By focusing on thisgroup it is our goal to provide a service, which is financially affordableand enticing to many people who would like a multi service one-stop center.

We have found that most consumers who engage in international vacations arewithin the age range of 25-55 years old. Our promotion strategies will befocused on this age range of working singles and couples.Our most intense marketing strategies will be focused on the months of Mayand June. Statistics reveal that 30% of travel is done during the 3rdquarter. Therefore, by augmenting our marketing strategies prior to thisquarter, this will enhance our chances for a successful grand opening inJune.B.

DemographicsThe total population for Multnomah County is 583,887. Females are 51.3% ofthe total population and males are 48.7% of the population. 36% of thecountys population is families with two or more children per household.40% are dating couples that want to get married.

24% are singles with nochildren.Due to our research, our target market will be dating and married couplesbetween the ages of 25 and 55. We have found that 60% of the couples weinterviewed want to travel to exotic, romantic locations; while 40% of thesingles were more flexible, yet also romantic. This diverse group ofconsumers will definitely enjoy the exotic experience, which Tahiti has tooffer; as well as other exotic locations, which we will be adding to ourcruise destinations.

C. Income LevelAccording to our demographic research, these are the consumers with anaverage annual income of $35,000 – $75,000. Our target market income levelis a consumer with an annual income of $50,000 per year.A.

Economic FactorThe average household income of Portland families is about $35,000-$40,000per year. This is a fast growing city; the population is growing andcompanies are moving to both the northwest and southwestern areas ofPortland. This fast growing city has high demand of travelers and touristsas well, which brings a lot of economic growth to the travel industry.B.

Social ValuesWhy did we choose Tahiti? Due to our extensive research of the islands,Exotic Travel Agency has found that Tahiti is one of most beautifultropical islands in the world. Its has beautiful crystal beaches, uniquemulticolored flowers and lovely people who are rich in culture. ExoticTravel Agency will guarantee that our customers will return home with anabundance of culturally, heartwarming memories.In addition, the exclusive cruise line to Tahiti is Princess.

We believethat the extensive amenities, which Princess has to offer, will appeal toour clientele. They will enjoy luxurious accommodations and a vacation theywill never forget.C. GeographyExotic Travel Agency office will be located in southwest Portland, which ahigher demand of travelers resides. This location gives us more chances toreach not only regular travelers who want to travel holidays, plan theirweddings and honeymoons; but also corporate and group travelers who want toexperience the islands. Exotic Travel Agencys office is sophisticated.

The office is composed of five office rooms, one storage/equipment room,one bathroom, a break room, front desk receptionist, and guest waitingroom.D. Competitor AnalysisAccording to our research, there are about 16 travel agencies, which offerPrincess cruises in the northwest and southwest Portland area. Due to thelimited choices available to consumers, we fill that this will be to ouradvantage to offer our packages at a reduced rate. This will initiallydecrease our profits, yet give us an advantage in our market share. Once wehave attained an advantage we can revisit our pricing and competition;enabling us to be more profitable. None of these agencies offer the bestpackages at the best price value.

Exotic Travel Agency is composed of fiveemployees who have previous travel experience around the world. We willensure the highest quality of travel package service and exceptionalcustomer service for our clients.We understand how stressful it could be planning a vacation, wedding, orhoneymoon. Exotic Travel Agency is not just a regular travel agency becausewe will provide free and personal one on one consultation, hotel discounts,car rentals discounts, special promotions, and bonuses.E. Product Characteristics and PricingExotic Travel Agencys mission is to be the leader in customer care. It isour goal that every customer who walks into our office is treated likeroyalty.

This level of customer service is rare in this industry; thereforeour company will stand above the rest and this will ensure repeatedbusiness. Our exceptional reputation will be our assurance of growth andexpansion.Our product and pricing varies; dependent upon the level of servicesdesired.

Yet, our Tahiti vacations will be the lowest available; whichshould gain our reputation as a quality travel agency with affordablepricing. This reputable status in the community will in turn allow ourcompany to expand into other international cruise lines.Princess Cruise Lines is the recommended choice for cruise travels toTahiti. Their tradition of innovation are eleven new vessels-five alreadyin service, two others debuting in 2001 and 2002, and four more on the wayto be delivered between 2002 and 2004.

All epitomize the concept ofwhat you want, when you want choice and flexibility with affordablebalconies, multiple dining locations, flexible entertainment and activitiesand more. No other cruise line sails more ships to more port-of-call aroundthe world than Princess.(www.princess.com).Princess offers four departure dates within the calendar year.

Two cruisesdepart Tahiti; leave Papeete and end in Hawaii. Two cruises depart Hawaii;leave Honolulu and end in Papeete. Therefore, it is necessary to purchaseroundtrip airfare to one location; departing the other location. Sinceairfare is seasonally dependent; this option will be added to the followingpackage prices.1. 12 Days Honolulu to Papeetea) Departure date: November 25, 2002 or February 5, 2003b) $2000.00 – $5500.

002. 12 Days Papeete to Honolulua) Departure date: December 7, 2002 or February 17, 2003b) $1900.00 – $5400.00All fares are per person in US dollars based on double occupancy. The faresare varied due to the different level of accommodations provided byPrincess. The accommodations begin with an inside room with two lower bedsto exquisite suites located on the outside of the ship with privatebalconies.

There are additional discounts offered to 3rd and 4thpassengers. There are additional government fees, taxes and port charges;which are minimal and range from $13.00 – $24.00. We have optional paymentplans if you book everything 30 days prior to arrival date. This will giveour clients the options to pay 50% deposit first or full payment withoutbooking 30 days prior to arrival date.

F. Promotional PlanExotic Travel will execute a promo mix in advertising techniques.Advertising techniques will involve both personal and non-personal forms ofadvertisement.

Our initials ETA will tie our name into the travelindustry; imaging the airlines acronym for estimated time of arrival.In the beginning we will attempt many different avenues; narrowing ourfocus to the channels which are most profitable. We have allocated XXXXXfor our monthly advertising budget. This may fluctuate due to the intensetimes of promotion during the second quarter. This is due to the fact thatthe majority of international travel is done during the third quarter.Printed advertising will be expedited through the following channels:Willamette week: Willamette weeks is distributed on a weekly basis. Themajority of the distribution is in the downtown Portland urban areas.

Weekly circulation is 85,000 copies.1full page costs $1631/per week. Ourmonthly cost will be $6,524.Oregonian: We will advertise in the travel section of the Sunday Oregonian.This form of printed advertisement is non-selective. We will design a newpromotion on a monthly basis. A business card size advertisement is$500/week.

Yellow pages: At this time, we feel that it would not be profitable topurchase more than a single listing in the yellow pages. As our businessgrows, we will contemplate utilizing the yellow pages for promotionpurposes. A listing in the yellow pages is free, dependent upon the factour company maintains a business phone line.In addition to printed advertisement Exotic Travel will also promote ourcompany on radio and Internet. The following is a list of these channels:Z100 radio station: We feel that this form of advertisement will be highlyeffective in reaching our target audience.

Our target market is the same asthe market which is targeted by Z100. Running the ad between 5am-8pm willcost $185/50seconds. Although, the off peak time of 8pm-12mid is muchcheaper, we feel that this will not meet our goal of reaching our targetedaudience. We will purchase 40 time slots each month. We estimate a monthlycost of $7400.

00.Qwest: Utilizing the internet will be our only form of advertisement whichwill reach a national audience. Running an ad on Qwestdex.com via fast faxwill cost $29.95/month. There is no sign up fee. Our monthly cost for thisservice will be $29.

95. We will not have a need to hire a web consultant;our team member in charge of information systems is well versed withcreating and maintaining web pages.Our final channel for promotions will be an annual wedding expo held at thePortland Expo Center. We will allocate $5000.

00 for this event. This dollarfigure will cover the purchase of a booth space and many promotional items,such as pens, magnets, coloring books and other items, which will appeal toa variety of consumers. This method of advertising will enable our teammembers to exercise their exceptional personal selling techniques.

At thesame time, we will offer significant Expo only discounts to engagedcouples that wish to commit to an exciting honeymoon or wedding package.II. Financial PlanA. Feasibility AnalysisOur travel agencys start-up costs are manageable at $ XXXXX and we planto invest $15,000 from each partner and the $ XXXXX loan we have been pre-approved from the SBA. Until we have earned such profits that allow us torun our business on a monthly basis with a comfort level that is by yearfive our total earnings will be $ XXXXX. This will allow the owner toexpand the company and develop in other interesting areas or travel.

B. Initial CostSince our company is a relatively small business; it will not take a largeamount of capital to initiate the start up. Our bonds with ARC and Apollowill total $60,000. Our main marketing strategy is the uptown location ofour office. This will give us an edge on the downtown clientele. Although,the office lease is expensive, we feel that the financial rewards willenable our company to expand at a much faster pace; as opposed to a remoteoffice with reduced lease expenditures. Our initial lease agreement whichincludes the first months lease and deposit will be $7,250.00. By leasingour office, this will enable us the flexibility of relocating our office inthe future, as our company expands in growth and profitability. Our initialcosts for furnishings will total $9,900.00. We will lease office equipmentat a monthly cost of $3700.00. This will enable us the flexibility toupgrade our equipment as our business grows. Utility deposits will be$200.00. We have decided that it is to the advantageous for our company toenlist the services of an attorney who specializes in small businesses andto safeguard our interest with several insurance coverages. Additionalprofessional fees will include banking and check fees along with a fee forhiring a person to manage our office plants. This monthly total will be$350.00.(Please refer to: Appendix C: Cash Flow Charts)C. Monthly CostsOur monthly costs will vary. Prior to and during our peak season, the thirdquarter, our cost will be substantial. This will be the result ofadditional marketing ventures and our fees to our Tahiti based consultants.A minor contribution to this variance will be our expenditures for freeparking offered to our customers. Therefore we have broken our monthlycost into two categories; variable and fixed.The fixed costs consist of our lease expense, monthly advertising, ARCequipment and software lease, phone service, utilities, postage, janitorialservices and supplies. The above expenditures our broken down in theattached appendix noted below. They total $ XXXXX.In an effort to establish our company in the market and maintain financialstability, the team members have agreed that their initial investment willnot begin repayment until September 2002. This will allow the company anadditional estimated revenue of $XXXXX over a period of four months.Our variable costs will be the fees to the Tahiti based consultants. Theseexpenditures will only be incurred four times per year. This is due to thefour cruises to and from Tahiti offered by Princess. We will also incurvaried parking fees; dependent upon the amount of clientele which exerciseour validated parking service. As our company grows and expands ourcruise destinations we will revisit our consultant expenditures. If orderto personalize our service to our clients we feel that it is extremelyimportant for our customers to have an immediate contact to our companywhile on their international cruise vacations.(Please refer to: Appendix C: Cash Flow Chart)D. Sales ProjectionsTravel industries offer a wide variety of services to their clients. Manyconsumers are looking for a unique and luxurious form of travel; a cruiseis one of them. Princess has demonstrated the markets increasing demand forcruise travel; with adding seven additional ships to their line within fouryears time. Our total sales for the first year will be $XXXXX; our agencycommission totals $XXXXX. Upon the deduction of annual expenses of $XXXXXX,the company profit will be $ XXXXX.Each of the partners salary will be 16% of the profits. This will notcommence until September 2002. We have established only the first yearssales forecasts to give us an initial outlook; we will revisit thesefigures approximately one year later. The projection is based on yearlyrevenue and expenses. Our peak season for revenue will be February,November and December; these dates coincide with the actual cruise dates.E. Break-Even AnalysisThe break-even point is the dollar volume that must be sold in order forthe agency to operate without a loss. At the break-even point, there is noprofit or loss; total revenues and total costs are equal. If the actualvolume of sales is higher than the break-even volume, we will earn aprofit.It is imperative that cost figures are accurately accounted for; in orderto determine the break-even point. The costs consist of goods sold, lessthe fixed and variable costs.With an extremely successful start up we will break-even after being openfor only one month. We will also accumulate a substantial amount of reservein our general working account to facilitate the financial growth of ourcompany. We will be able to expand our business within 5 years, using ourgeneral account funds and paying back the initial investment.(Please refer to: Appendix D: break even analysis)V. International PlanA. Analysis and Research of CountryOur international partner is Tahiti. The reason why we decided to chooseTahiti was mainly due to the fact that we needed a strong Pacific Islandbase other than Hawaii. Hawaii almost seems to be over-commercialized, sowith this in mind, we wanted to chose an island group that was virtuallyunknown compared to Hawaii, yet at the same time preserve itsremoteness and beauty. Since Tahiti is apart of French Polynesia,many of the economic and currency factors are tied in directly with France.We strongly believe that Tahiti is a perfect international partner thatwill revolutionize the travel industry by showing the world its beauty,culture, and tranquility.1. Economic BackgroundAlthough Tahiti has a rich and thriving culture that is well established,very little is commonly known today about their life style and culture; thesame can be said about its economic conditions. Surprisingly, its grossdomestic product rose by 3.7% throughout the 1999 year and it is projectedto continue to grow as more people begin to visit the island for vacationpurposes. In French Polynesia as a whole, the gross domestic product grewby 2.8% which is wonderful news for Exotic Travel considering additionalPolynesian islands will be added to our destination cruises in thefuture. Tahitis economic venue depends largely on tourism. In the early1960s, as much as 50% or the workforce worked in agriculture, by 1990,only 9% worked in agriculture. With increasing productivity, Exotic Travelbelieves that this is a perfect opportunity to introduce us onto the globaltravel stage.2. TourismTahiti is one of the must lush and luxurious places on this planet.Surpassing Hawaii and the Caribbean in grandeur, splendor, beauty,diversity, and tranquility; Tahiti is known by many as the Island of Loveand the Paradise of the Pacific. We have come to believe at Exotic Travelthat many people living on the West Coast that frequent Hawaii are becomingbored with vacationing there. This is why we think that Tahiti is aperfect island getaway that might not have the crowds and commercializationthat you see in Hawaii. It is a perfect place to come when you want therelaxation and fun without the stress.As soon as you first experience Tahiti, you will be blown away by itsoverpowering splendor. Ivory white beaches, crystal clear waters (thataverage at about 80 degrees), lush tropical foliage, and beautiful flowersare just some of the first things that greet you when you step onto theisland. The islands beauty alone is intoxicating. It is interesting to feelas if the whole world has melted away and its just you, relaxing in atropical paradise.Of course having a vacation provided by Exotic Travel can be filled withmany fun activities. For the adventure seeking out there, how about asafari through the jungles of Tahiti, a shark feeding expedition, or rockclimbing to tame your wild side? But if water is more your style, Tahitioffers scuba diving, snorkeling, windsurfing, parasailing, and dolphinswimming. You are also able to visit the interior of the island with 4-wheel drive excursions that allows you to ford rivers, Climb Mountains, andlunch at the famous Relais Maroto. The Maroto is a comfortably built housethat overlooks the entire island.If it is dining and lodging you are concerned about, dont worry becausethere are as many hotels and restaurants as there are fish in the sea. Manyhotels are unique seeing as they are on the water literally. Each roomis your own hut that is culturally decorated. Taking a shower is as easy asopening your door and diving into the aquamarine water. World-class spatreatments and Jacuzzi beds are abundant throughout Tahiti, so if itstotal relaxation you seek, it will be easily attainable.B. Exchange Rate Strategy1. The French Pacific FrancThe currency of French Polynesia including Tahiti is known as the FrenchPacific Franc (CFP). Because French Polynesia is an overseas territory ofFrance, the rate of exchange for the CFP is tied directly to the FrenchFranc, which is approximately 18.18 CFP to 1FF. For exchange with the USdollar, the exchange rate amounts to about 100 CFP to $1. The US dollar isthe only type of currency accepted in French Polynesia other than theFranc. As Exotic Travel progresses, it will monitor the exchange ratesclosely in order to provide the best exchange rates possible to our clientsand assure that if the exchange rate is favorable, immediately take actionto increase our importing status.2. Our StrategyIn the past, the US dollar has always been relatively strong compared toCFP. Because the margin of strength has always been relatively small, weplan on closely monitoring the exchange rates to evaluate when it will bein our best interest to possibly negotiate future contracts. Based onrecent spot rate fluctuations (Appendix F), we will be pursuing the idea ofmaking a forward contract with the bank to set the exchange rate at afavorable number. By our estimates, the most propitious time would be themonth of October to negotiate any contracts and set a forward rate thatwould set that rate for the year. These forward contracts will be ExoticTravels financial agreements that establish a guaranteed rate for theyear. This will of course need to be reassessed each year, but analyzingpast performance of the spot rate, we conclude that October would be theideal time to set this forward rate. These (hopefully) low guaranteed rateswould help boost our profit margin by keeping expenses low. This will helpTahiti by confirming an established business partner that might otherwisehave not assured them a stable client. By doing this, we hope to takeadvantage of favorable exchange rates in order to keeps international costslow so we can concentrate on expanding Exotic Travel.C. Annual Sales/Purchases ProjectionThe purchases we make in Tahiti will be for services rendered rather thanphysical items. These services provided approximately total ____________annually. Foreseeing the fluctuation of exchange rates that directlycorrelate into our projected sales/purchases, we plan to adjust ourprojections accordingly. In order to minimize the affect of exchange rates,we plan to have our forward contracts already negotiated.(Please refer to: Appendix G: example of how our costs will be affected byexchange rate fluctuations)D. Strategic PlanExotic Travel is a premier travel agency with strong goals assuring ourclients that they will receive the absolute best accommodations; bothtraveling to and once on board from the cruise ship. Our customer willreceive superior treatment by our employees and an enriching and anexciting vacation that will leave you wanting more. In order to obtainthese goals, the following steps will be taken to ensure quality, enjoymentand productivity:o Exotic Travel will thoroughly research all of our destination cruiselocations to ensure satisfaction and enjoyment by our clients.

x

Hi!
I'm Jack

Didn't find the essay you're looking for? We offer writing it for you right now.

Check it out