The Tru Loyalty Travel Venture’s Operations

Mission Statement

Tru Loyalty Travel is represented by an independent travel agent and strives to provide the best services in organizing travel for its customers. The report considers key aspects of the venture’s operations, demonstrating the benefits of investments in it. The venture mission is “Committed to providing our clients with exceptional service, a complete end-to-end booking solution covering all aspects of your travel needs. Specializing in youth/student educational trips focused on traveling with a purpose and mission to serve others.”

Value Proposition

Tru Loyalty Travel's value proposition
Figure 1. Tru Loyalty Travel’s value proposition (Template is adapted from Belleflamme and Neysen (2021), and the content is created by the author).

Value Proposition Analysis

Tru Loyalty Travel services create unique value for their clients. After the pandemic, the industry is recovering, and customers fear unsafe traveling (Orîndaru et al., 2021). Therefore, they need an efficient and safe travel arrangement and an agent that can provide advice anytime (Orîndaru et al., 2021). Tru Loyalty Travel services meet these needs by offering the benefits of free service, personal communication, and support.

The Problem the Business Solves

Organizing the journey can be challenging for people planning the trip. The process involves finding transportation and overnight stay opportunities, booking tickets and rooms, considering the established budget. Consequently, the travel may be unsatisfactory, and the travelers do not fulfill their plans. Tru Loyalty Travel solves this problem by providing travel services that cover all necessary reservations and other travel needs. Tru Loyalty Travel makes travel planning much more manageable by opening various travel opportunities to its customers.

Serving Society and Organization’s Interests

A travel agency can bring significant benefits to society. Traveling is an experience of immersion in other cultures, clients’ recreation, and opening up new opportunities for them. Tru Loyalty Travel’s specialization in educational tourism, exchange of experience, and volunteering contributes to the public interest by promoting social development and justice (Higgins-Desbiolles, 2020). The agency, as an organization, serves its interests as it receives bonuses from the sale of tours. Tru Loyalty Travel can attract new clients and increase its income by expanding its operations in different territories.

Perfect Customer

The agency provides services to various customer segments, but specialization in student traveling presents the venture’s target client. Tru Loyalty Travel’s primary audience is college and university students with an active life position and a desire for constant self-development and assistance to others. Their motivation for travel is dictated by their passion for learning, helping society, and serving others. Customers’ examples include young people who go to scientific conferences. Another example is a group going on a volunteer mission. In addition to students, clients include any young people traveling for leisure or business.

Go-to-Market Plan

Starting a business requires creating a go-to-market plan for its products or services. Following the components outlined by Moore and Brush (2020), the plan is as follows:

  • Market definition. Tru Loyalty Travel is initially aimed at young people and students from the US but allows for expansion to other countries. According to the available data for 2018, the cost of the youth travel market is about USD 333 billion (“Facts and stats, 2018). Moreover, Gen Z and Millennials take the longest vacations and trips and are the highest spenders (“Travel statistics,” 2021).
  • Customers. The agency specializes in educational, volunteering, and business travel for students and young people.
  • Distribution model. Clients can access services by contacting the agency via telephone or website.
  • Product messaging and positioning. To attract customers, Tru Loyalty Travel will run a social media campaign. The value of agency services lies in their convenience, accessibility, and customer support provided by employees.
  • Price. Travel and booking organization services from Tru Loyalty Travel are free.

Management and Leadership

The venture does not require a large team to work; therefore, one manager is enough. The ideal manager will be the one who will involve employees in the work processes and motivate them. The manager should give employees independence but help organize work effectively. Since travel agency assists customers in discovering the world, all employees should be open to new ideas and views. Essential leadership qualities include empathy, integrity, sociability, and the ability to influence others.

Pro Forma Financial Summary

The financial summary presents assumptions about cash flows for the first two years of the venture activity. The income of the agent cooperating with InteleTravel averages $45,899 (Travel agent, 2022). The need to learn and create a customer base suggests less potential revenue at first. The estimated tax expense was calculated using the Federal income tax calculator (2021). Operating expenses include Internet and telephone fees, and marketing consists of creating a marketing plan and advertising.

1stYear 2ndYear
INCOME
Commissions from sales $30,000 $40,000
Total income $30,000 $40,000
EXPENSES
InteleTravel enrollment fee $179.99 $0
Income tax $4,190 $6,155
Operating expenses $1,300 $1,300
Marketing $4,500 $2,400
Total expenses $10,169.99 $9,855

Pitch

Tru Loyalty Travel is a promising venture, providing its customers with unique travel management services and support for essential travel needs via phone and the Internet. The agency’s activities solve the problem of effective organization of safe travel, serve the interests of society, and do not require a large team to work. With additional investment, Tru Loyalty Travel can rapidly scale its operations to generate more revenue.

References

Belleflamme, P., & Neysen, N. (2021). A multisided value proposition canvas for online platforms. Journal of Business Ecosystems (JBE), 2(1), 1-14. Web.

Facts and stats. (2018). WYSE Travel Confederation. Web.

Federal income tax calculator. (2021). Smart Asset. Web.

Higgins-Desbiolles, F. (2020). Socialising tourism for social and ecological justice after COVID-19. Tourism Geographies, 22(3), 610-623. Web.

Moore, J., & Brush, K. (2020). Go-to-market strategy (GTM strategy). Tech Target. Web.

Orîndaru, A., Popescu, M. F., Alexoaei, A. P., Căescu, Ș. C., Florescu, M. S., & Orzan, A. O. (2021). Tourism in a post-COVID-19 era: Sustainable strategies for industry’s recovery. Sustainability, 13(12), 1-22. Web.

Travel agent yearly salaries in the United States at InteleTravel. (2022). Indeed. Web.

Travel statistics by age group 2020-2021. (2021). Condor Ferries. Web.

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StudyCorgi. 2023. "The Tru Loyalty Travel Venture’s Operations." June 8, 2023. https://studycorgi.com/the-tru-loyalty-travel-ventures-operations/.

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