Running head: DREAM VACATIONS

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Dream Vacations
Business Plan

Sharmori Richardson and Vaughn Whittaker

International College of the Cayman Islands

BE- 101
Instructor: Dr. Alicia Law
Due date: December 11th, 2016

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MISSION STATEMENT

The mission statement can be used for many different purposes when it comes to
businesses, but Nimwegen et al. (2008) describes it as the foundation for priorities, strategies,
plans, and work assignments (p.63). In other words, it reflects what the company's intentions
are. Dream Vacations mission statements will reflect the companys true intentions to customer
around the world. The mission statements will be:

To provide a world class travel services for individuals and families; giving access to all

the amenities that the Caribbean, South America, and the Mediterranean have to offer.
To use experience and knowledge of the travel industry to provide clients with original

and best deals, at very competitive prices.

To enhance our customer's experience by providing them with the means of exploring the
cultures and historic sites of the world.
COMPANY PRIORITIES

The priorities for Dream Vacations will focus on both internal and external factors of the
business. The top priorities of the firm will be:
1. To concentrate on creating an entrepreneurial culture based on knowledge of the travel
industry.
2. To develop a plan; begin the research into destinations, hotels, and amenities within the
areas that you are targeting as tourist destinations.
3. To advertise through all the social media channels.
4. To hold lunch and learn sessions and face to face consultation with clients that will help
in the growth of the company.
5. To ensure that the company at least one year's worth of capital to cover operational cost.
6. To hire the right people for the job. Individuals that can see what you are trying to
achieve and want it just as bad as you do.
Based on the situation provided in the scenario, Mr. Arturo has the skills to start his own
business. While being a high-end hotel manager, Mr. Arturo has made the necessary connections

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to make his business successful. But to have a successful business, Mr. Arturo will create a team
of employees and managers that will meet the demands of the mission statement and priorities
provided.
PACKAGES
Dream Vacations will offer pre-packaged deals which included flights, accommodation,
and activities in tourist destinations. One of the pre-packaged deals that will be offered by Dream
Vacations will be the Atlantis Royal Tower Package (Costco Travel, n.d.). The Royal Towers is
located in the heartbeat of Atlantis and is very close to all the islands premier attractions
(Costco Travel, n.d.). This package will include flight, four nights of accommodation at the
Royal Tower, ground transportation to hotel and tours of attractions and sites in the Bahamas
(Costco Travel, n.d.).
In addition to pre-packaged deals, Dream Vacations will allow customers to create their
experiences. This method will enhance the services of the travel agency by giving the customers
the experience that they only dreamt about for a long time.
S.W.O.T ANALYSIS
Ebert & Griffin (2015) define an S.W.O.T Analysis as the identification and analysis of
organizational strengths and weaknesses and environmental opportunities and threats as part of
strategy (p.156). In an S.W.O.T Analysis, managers take advantage of the strengths and
opportunities and find ways to reduce the weaknesses and strengths of the business (Ebert &
Griffin, 2015).
An S.W.O.T. Analysis outcome was and a few outstanding strengths, some weak point,
opportunities and threats were observed.
Dream Vacations strengths are as follows:

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Strong leadership and management and excellent customer service.

Affordable bulk deals for popular tourist destinations.
Strong relationships with their suppliers. (Suppliers such as hotels, airlines and different

tourist attractions in the world).

Extensive advertising and marketing.

Dream Vacations Weaknesses are as follows:

Startup cost for business.

Finding qualified staff and management.

Dream Vacations Opportunities are as follows:

Expansion of operations in the different countries.

The creation of jobs in the tourism market.
Slight growth in economic GDP in tourist destinations.
Access to top-notch tourist attractions.

Dream Vacations Threats are as follows:

The likelihood of operation expenses is rising.

Competitors such as environmental and online travel agencies.
The crime rate in tourism destinations the company offer deals at.
Natural disasters in tourist destinations.
Attractions and facilities may not attract tourist.
Economic recession may discourage tourist from traveling.
The weaknesses were analyzed and are realize due to the impact it can have on the

operations of the business. To avoid such shortcomings, Dream Vacations will ensure that they
have the adequate fund to cover all expenses for the new venture. Also, if the business is unable
to find qualified staff, the business owner, Mr. Arturo will conduct intense training for
individuals that are interested in becoming a travel agent.
The threats were analyzed and brought about due to social concern environmental
concern and the business operations of Dream Vacations. For example, the Caribbean is known
for hurricane season, which is heavily monitored by weather companies in America. In the

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instance of a hurricane threat to one of the tourist destinations, Dream Vacations will advise
customers not to choose that destination, to ensure safety.
MARKETING STRATEGIES
Dream Vacations will use local and online international newspapers for advertising.
Using this method can inform the old style tourists, with the newest and biggest tourism products
travel packages that will be made available in the United States. Secondly, with the rapid
evolution of technology, Dream Vacations will create an official website and will use social
media applications such as Facebook, Twitter, LinkedIn, and Instagram, effectively. Also, in the
future, Dream Vacations will be developing their very own phone application, where guests can
book their travel packages and also check the activities that will be available in destinations,
from the comfort of their homes. Finally, Dream Vacations will be using television
advertisements to reach out to families that have TV time together. The owner, Mr. Arturo feels
that these will marketing strategies will play a big part in Dream Vacations growth.
RESOURCE ALLOCATIONS
According to, (Wharton University of Pennsylvania, 2011), "Resource allocation is how a
firms budget distributes across products, geographies, and marketing tools." In this scenario, the
group decided to go a little bit broader on expenses and list where capital will come from for the
1st year of operations.
Based on research provided, the group decided to state the business' funds source. Figure
1 below shows the type of resources and how much it will cost to run the business in the first
year.
Figure 1: Dream Vacations Total Funding

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FUNDING

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ESTIMATE COST

TOTAL
ESTIMATE
COST

Investors (Dream Vacations will need only two

$60,000

investors to make sure that the operation of

the business runs smoothly).
Bank Loan (This will be one of the backbones
of Dream Vacations capital).
Personal Capital
Total Estimated Funding

$300,000
$350,000
$710,000

Based on research, Dream Vacations will need to operate with equipment, to get the job
done quickly and promptly. Figure 2 shows the estimated cost for operating expenses.
Figure 2: Dream Vacations Operating Expenses.
OPERATING EXPENSES

ESTIMATE COST

TOTAL
ESTIMATE
COST

Selling Expenses (This includes expenses such as

$60,000

advertising and marketing, website expenses and

maintenance, etc.)
Administrative Expenses (This includes expenses

$110,000

such as Salaries and Wages and Office

Equipment, Computer Software etc.)
Total Operating Expenses
Figure 3 below is an estimate of fixed expenses that is a requirement for the 1st year.

$170,000

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Figure 3: Estimate Fixed Cost

FIXED COST

ESTIMATED

TOTAL

COST

ESTIMATED
COST

Fixed Cost (Fixed cost will include expenses such as

$95,000

taxes, interest expense, rental fee of business internet

and telephone expenses etc.)
TOTAL FIXED COST

$95,000

In addition to the budget for resource allocation, Dream Vacations will target hotels and
airlines across the world such as:

The Kimpton Hotel

Marriott
Ritz Carlton
The Wyndham Resort and Spa
Four Seasons Hotel
Viceroy Hotel
American Airlines
JetBlue
British Airways
Cayman Airways
Emirates Airlines
Turkish Airlines; etc.
Also, Dream Vacations will reach out to destination tourist boards and their companies to

gather general information about tourist sites they have to offer. This information not only is
beneficial to the services of the Dream Vacations but will also expand the growth of the
customer base. Having close relationships with tourist board is very crucial to the business. If a

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local or a tourist asks about travel agencies that offer great travel deals, that company can
recommend Dream Vacations.

STRATEGIC GOALS
Dream Vacations strategic goals will focus on the factors that will be needed to get the
business up and running.
1. Work on securing relationships with the resources within the Caribbean, South America,
and the Mediterranean.
Objective: To create relationships with hotels in each island in the given region.
Action Plan: Talk to hotel managers and airline directors and make travel plans or online
business meetings to discuss Dream Vacations proposition.
2. Build package deals
Objective: To create different package deals that fit customer needs.
Action Plan: Gather information from various tourist board and attraction business in the various
countries. Also send out questionnaires about the things guests travel to an island or a country to
experience.
3. Recruit experienced and reliable consultants.
Objective: Identify and locate legal, accounting and industry consultants
Action plan: Talk to accounting and a law firms about their prices for a start-up business.

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LONG-TERM GOALS

As of now, Dream Vacation has only three primary long-term goals. The first long-term
goal of Dream Vacations will be to become the number one travel agency in these destinations.
The business will be doing this by offering state of the art deals that will attract customers to
their social media pages and official website.
The second long-term goal of Dream Vacations will be to create a product(s) that will
provide travelers with top-notch service and creative solutions. The idea is to give clients with
the opportunity to build lifelong memories by assisting them in making their dreams of visiting
destinations within the Caribbean, South America, and the Mediterranean come right and at very
affordable prices.
The last long-term goal of the business is to expand operations into different parts of the
world. The idea behind these goals is to build customer equity from clients already solicited,
delighting them in such a way that they tell others, which will help to bring more customers to
the business. The company must do its best to build customer loyalty, to sustain its long-term
goals.
GOAL MEASUREMENT
Mr. Arturo will measure his goals by applying the acronym S.M.A.R.T. meaning:
Specific, Measurable, Attainable, Relevant, and Time-Bound (Ebert & Griffin, 2015). Also
creating an action plan can help with the measurement of goals. If the priority of the business is
to develop relationships with the resorts that are in the Caribbean, South America, and the
Mediterranean Mr. Arturo should stay focus and try to make those contacts. Without those
relationships, Dream Vacations will not be able to fulfill their mission statement, long-term and
strategic goals.

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INTERMEDIATE GOALS

To meet the long-term goals, Dream Vacations intermediate goals will be:

Effective advertising around the regions to customer audiences such has couples,

honeymooners, families, etc.

Connect with businesses in those areas to get special packaging for the service they offer.
Higher experts in the travel industry sector.
To increase sales by 4 percent; in the next 2 years.
CORRECTIVE ACTIONS
A type of corrective action Dream Vacations will be using is the Rational Decision

Making Process (Ebert & Griffin, 2015, pp. 291-292). The steps of this decision-making process
are:
I.
II.
III.
IV.
V.
VI.

Recognizing and Defining the Decision Situation

Identifying Alternatives.
Evaluating Alternatives.
Selecting the Best Alternatives
Implementing the Chosen Alternative
Following Up and Evaluating the Results.
This corrective action will be beneficial to the managers of Dream Vacations. This

decision-making process will assist them in critical decision making that can help resolve the
situations at hand.
DREAM VACATION TWO YEAR ANALYSIS
As per the SWOT analysis, Dream Vacations will have a growth percentage of 4 to 7
percent of their customer base within two years. This increase will result from the effective
advertisements and marketing Dream Vacations will be using. At this juncture, weaknesses such
as startup cost would be covered by investors brought onboard, personal funds and generated
revenue from services provided.

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At this point in the market, strong relationships will be made with our suppliers and
will try to make more relationships that can benefit the business shortly. In addition to making
new relationships with different providers, Dream Vacations will be offering new and affordable
packages based on the services provided new suppliers. This will attract a diverse audience
interested in traveling.
In two years, Dream Vacations would have gained enough capital to start a branch in one
of the Caribbean islands. This office will consist of one manager and three staff members and
will provide the same services as the main branch. Mr. Arturo believes that everyone has
something to bring to the table, and through the past and present relationships he has made, there
is a possibility to reach much further clientele; create new relationships and build offices in other
tourist locations. To achieve this goal, we would recommend using strategy formulation which
involves the creation of actual plans. As describe by Ebert &Griffin (2015, p. 154), there are
three types of strategy: (1) corporate strategy, (2) business (or competitive) strategy, and (3)
practical approach. Plans are viewed on three levels: (1) strategic plans, (2) tactical plans, and (3)
operational plans (Ebert &Griffin, 2015, p. 157)
CONCLUSION
In conclusion, based on the analysis of the scenario provided, the students see that Mr.
Arturo business intentions are clear. The students also l believe that with Mr. Arturo experience
in the hotel and tourism industry, he will have one the best travel agencies in the United States of
America. His experienced and well-trained staff will contribute significantly to meeting the
demands of the customers. If Mr. Arturo follows the steps of the business plan, he will see a high
return on investment into his business.

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REFERENCES
Costco Travel. (n.d.). Bahamas: Atlantis Royal Tower Package. Retrieved from CostCo Travel :
https://www.costcotravel.com/VacationPackages/Caribbean/Bahamas/Offers/CARNASATLANTISROYAL20121116
Ebert, R. J., & Griffin, R. W. (2015). Business Essentials (11th Edition ed.). Boston: Pearson Education.
Nimwegen, G., Bollen, L., Hassink, H., & Thijssens, T. (2008). A stakeholder perspective on mission
statements: An international empirical study. International Journal of Organizational
Analysis, 16(1), 61-82. DOI:http://dx.doi.org.ezp-02.lirn.net/10.1108/19348830810915505
Wharton University of Pennsylvania. (2011, February 26). Resource Allocation. Retrieved from KWHS
Wharton University of Pennsylvania: http://kwhs.wharton.upenn.edu/term/resource-allocation/