Highly In-Demand Financial Models for Tourism IndustrySadaf Abbas
Highly In-Demand Financial Models for Tourism Industry
Following the global financial crisis of 2008, the tourism industry has been going through a downturn. However, this does not mean that there is no scope for development in the sector. In fact, as a result of rising instability and economic inequality worldwide, interest in travel and sightseeing is increasing. One can enter this industry by becoming an entrepreneur or working as a tour guide or performing some other job related to it. But having a financial model for tourism industry in hand will be much better.
In order to have a successful career in this field, one should focus on long-term goals rather than short-term gains. Most people dream about quitting their jobs and starting something of their own but only a few manage to do so successfully. Therefore, go for entrepreneurship if you have the required knowledge and resources to run your business.
Travelling around the world is one of the best experiences that anyone can ever have
Imagine yourself travelling through Europe or South America! If this sounds appealing to you then it might just be worth taking up a job as an undertaking tourist guide. There are several training institutes that can help you prepare for such jobs before you venture into them full time. The tourism industry has always provided ample opportunities for those who are passionate about their work. It has a lot to offer and can be a great source of income for one who loves travelling and adventure.
One of the most successful entrepreneurs in this field is Richard Branson, the founder of Virgin Group. He started his business by starting off with a music company which took him nowhere initially, but it didn’t dampen spirits and he continued to push forward with conviction and hard work. Today his companies are spread across several industries including transportation, finance, music production, etc. Also, he continues to remain at the top of the industry because he focuses on long-term development rather than quick money generation schemes that don’t last long enough to give you a return on investment.
Even though not everyone will end up being as successful as Mr. Branson, this industry does offer ample opportunities to the ambitious and willing. Keeping all of this in mind, we have compiled the most in-demand financial models. These models will make it easy for you to decide which channel you want to use to enter the tourism industry. A financial model for tourism industry will also help you understand the basic dynamics of this lucrative industry.
1. Financial Model for Ski Resort | Financial Model for Tourism Industry
Skiing has been around for centuries, but it wasn’t until the 19th century when skiing gained real popularity in Norway. From there, its popularity grew to Sweden, Germany, Finland and the Alps. It was in 1910 that downhill skiing was introduced into North America in Banff National Park of Canada where ski lifts were used for the first time which increased ski resort business drastically. A significant event in skiing history was in 1936 when Toni Matt designed a different type of ski called alpine skis which improved turning ability and opened up a new method of transport over snow known as powder skiing. These events all contributed to creating and growing more and more ski resorts across the world. With mountains being one of the most inspirational places on earth, skiing was given the title of being an adrenaline sport for its extreme heights and speeds, making it very popular.
Skiing is simply defined as travelling across the snow using skis which are specially made sticks with edges to enhance balance and help control motion. There are different forms of skiing ranging from alpine skiing, nordic skiing, telemark skiing, ski jumping, and backcountry skiing which includes touring – where people go off-trail through forests to find untouched snow. All these activities fall under recreational or competitive categories.
Ski Resort Business
The resort business came into existence by catering to large numbers of tourists who come to enjoy their time in the hills during winter seasons. Ski resort businesses also cater to locals who ski recreationally or professionally at these places. These resorts have a high number of users during the ski season, so to cater to them there has been a rise in the construction of different buildings and infrastructure. A ski resort business must be planned carefully using appropriate measurement tools as the success of these places depend on how well they are managed.
In order to plan any type of business, it is important for one to first understand the current market conditions as it will help him/her gauge whether their ideas would actually work or not. In this case, you to look around at other existing ski resorts nearby and then try researching about what types of activities they offer which attracts visitors
Second, an owner needs to determine if their place can sustain its own economy based on income from ticket sales and spending by visitors alone.
Thirdly, understanding what makes people want to book tickets for these events/activities is also important because that has an impact on future sales. Keep in mind that something like having better instructors or ski resorts staff won’t increase sales unless they are able to get people excited about skiing! You’ll need to get creative with how you market yourself – think outside the box!
Finally, the most important factors in any type of business are location and pricing. A ski resort’s prime location will be near a hill station or mountain which is beautiful during the winter season.
Pricing, Budgeting, and Financial Model
Pricing needs to be kept competitive enough that they can get people to visit their place but not so low that it defeats its own purpose.
In order to perform well in any type of business, one must have a diversified revenue stream by having multiple sources instead of depending on a few specific activities. One example would be using parking lot fees, lodging fees and food & beverage sales which will provide a consistent income throughout the year while ticket sales from different events can just cover up your losses from slow months.
Some of the major things you need to consider as a business owner are having proper insurance, paying your employees, and making sure that you have proper safety measures in place before opening up your ski resort. This means getting rid of any other businesses which might be infringing on city regulations and laws and upgrading equipment as needed.
But the best way to enter this business is by utilizing a meticulously prepared financial model. The financial model for tourism industry provides accurate numbers for capital expenditures, cash flow projections and financial statements. This financial model is prepared just for your ski resort business. It has all the necessary variables, such as:
– Number of visitors who visit
– Average length of stay per visitor
– Cost of ski lift
– Food and beverage costs
– Cost of lodging for overnight visitors
– Ski gear costs
– Operating costs
2. Financial Model for Sightseeing Bus | Financial Model for Tourism Industry
Sightseeing is a big part of the tourism industry and has been for a long time. It allows tourists to get an up-close and personal view of places they may never see otherwise, like famous landmarks or popular locales, such as museums and historical sites. The evolution of Sightseeing in recent years has turned it into more than just a way to explore new places. It has become a major source of revenue for tourism-based businesses, especially in areas with lots of sightseeing spots.
Many companies specialize in Sightseeing bus services that allow tourists to choose between destination options and hop on board to take them there. Sightseeing buses provide transport while also giving their passengers the opportunity to explore the world around them. This type of Sightseeing is also referred to as “hop-on/hop-off” Sightseeing.
There are many factors one should consider before starting a Sightseeing bus service, such as what types of tours to offer and if there is enough demand for those tours in their area. There should also be enough Sightseeing spots available that are accessible to tourists, otherwise running this type of business would be pointless. Things like these should all be considered before starting a Sightseeing bus business. Now let’s take a look at the ins and outs of starting this type of enterprise.
First, one needs to decide on what types of tours they will offer.
There are all kinds of options for this, like different tours in and around the same area or day and night tours. One should try to develop a program that is both informative and exciting, while also giving tourists something they want to see. The more tours there are, the more profit one can make from their Sightseeing bus business.
Once the tours have been decided upon, one needs to decide on their pricing. This depends a lot on the area where the business will be located and what kind of tours they offer. Once this is all set up, one can start looking for potential customers. There are many ways to market a Sightseeing bus service, from word-of-mouth to advertisements to social media. Now that the inside of starting this type of business is covered, let’s take a look at its significance to tourism-based industries like local hotels and shops.
As mentioned earlier, Sightseeing bus services are a major source of income for cities with popular tourist attractions. The reason behind this is simple: people who plan on going on tours are more likely to visit restaurants, hotels, and souvenir shops. This is why local businesses work hard to get in good with Sightseeing bus companies. For example, most Sightseeing buses allow people to hop off at certain points throughout the tour so they can explore the area around them. While they are exploring on their own, most of these people will visit local businesses like restaurants and shops, which can make their business more profitable while they are on their tour.
Now, there is one professional way to start this business.
And that is to acquire a financial model. But you need a financial model that has gone through the eyes of the industry experts. While we are letting you know all about this industry, here is the final attraction for you. We present to you a financial model for tourism industry that is specifically designed for your sightseeing bus service. This model has been designed in such a way so as to take care of all the aspects of your business. It will help you to calculate the profitability and risks of this business.
3. Financial Model for Travel Agency | Financial Model for Tourism Industry
Travel agencies, also known as travel bureaus, may be individually-owned businesses or part of a larger company. They provide vacation packages for travelers including airfare, hotel reservations and car rentals. Travel agencies are able to book international flights in most cases, but domestic flights can be difficult. This is because they must have special agreements with companies like United Airlines, American Airlines and Southwest Airlines. This process is called global distribution systems (GDS).
A little background of Travel Agencies
Travel agencies have been around for over 200 years with the first recorded business opening in 1772. Agencies often offer additional services such as cruises, tours and transportation so there are now many different types of travel agencies.
The first travel agency was set up in 1772 to arrange passage for people travelling through Europe. The business was started by Thomas Cook whose enduring motto is still seen today on many tour buses, “A smile makes the miles vanish.” As railways developed across Europe during the 19th century, Cook saw that there were opportunities for travel throughout the continent.
The Ford Motor Company is another company that grew into a large conglomerate with many different divisions selling cars, vans, trucks and buses in addition to a car financing, insurance and travel services. For example, in Europe, they have an office called European Ford which operates as a separate business from Ford of Britain. It manages and sells vehicles in Europe and also provides financing for customers.
The ever-expanding Tourism Industry
Entering the travel agency business is a big decision, but with the development of new technologies, there are opportunities to start an online business that functions with just a phone and Internet connection. Travel agencies have made it possible for people to visit different countries without having to plan every detail themselves. They are able to discover new places and interact with people from different cultures.
The travel industry continues to grow as more people take vacations each year. Whether they are looking for local attractions or want to visit faraway places, travel agencies make it easy to plan the perfect vacation. With the continuing development of technologies that function online, there is no reason why a person can’t start a successful business from the comfort of their own home.
You can run a Travel Agency Online as well
Travel agencies can be physical locations or online businesses that function by email, phone and fax. They are able to offer discounted prices because they buy in bulk from suppliers like airlines, hotels and car rental services. A large company with many branches may have one central agency that coordinates everything or there may be smaller agencies with a different responsibility. For example, an insurance company might have one agency to book travel and another to sell the hotels while a third sells rental cars.
Travel agencies are often able to offer additional services not available elsewhere because of their network of suppliers. These services along with discounted prices bring in customers. When a traveller books with a travel agency, the company’s profits come from a service fee, commissions and markups on vacation packages.
Enter the Industry like a Pro with this Financial Model
As with any business, it is always advisable to make use of a financial model template like the one offered by Oak Business Consultants. Not only will this help you plan out your budget, but it also gives you an idea about the potential earnings.
If you’re looking for some additional help in starting your own travel agency, then it would be worthwhile to make use of this financial model for tourism industry. Not only will this give you access to an Excel template that is built on real-life data. It also gives you the guidance you need to get start easily without any bothersome hiccups.
The Excel template makes it easy for you to enter your own information, but if you’re unsure about certain aspects of starting a travel agency then you can always use our guide to help make sure that your numbers are correct. We’ve done all of the hard work for you, and even made it simple to enter your own numbers and get the most out of your financial model.
4. Financial Model for Hotel and Resort | Financial Model for Tourism Industry
Hotels and Resorts refer to an establishment that provides different types of accommodation and services. There are many variations in this business ranging from owning a small bed-and-breakfast type hotel to running bigger and more developed establishments like full-fledged resorts. The hotel business has slowly evolved into its modern form after the Second World War. The ever-increasing globalization in recent times, along with the technological advances have further strengthened this industry in multiple ways.
Types of Hotel and Resort Businesses
There are many different kinds of hotels and resorts ranging from small roadside accommodations to big multi-national luxury resorts. Depending on the type of business, hotels and resorts can be classified as:
– Small-sized establishments with a limited range of services.
– Medium-sized establishments that come with a variety of facilities and amenities.
– Big chain luxury hotels at world-class destinations.
The Evolution of Hotel Business
The world saw tremendous changes after World WarII. This period saw the beginning of large-scale construction of resort hotels in locations that are naturally beautiful or have historic significance. The 1950s also saw a lot of American corporations entering the hotel business with the idea of expanding their customer base. Nowadays, this industry has emerged as one of the biggest contributors to global trading and tourism by means of making both business and leisure travelers feel at home.
Employment Opportunities in Hotel and Resort Business
The hotel and resort industry is known to provide a number of employment opportunities like:
– Front Desk Agents: These individuals handle the duties that include meeting and greeting guests, keeping records, arranging hotel or travel information and also checking out guests. The work will vary depending on the type of hotel business.
– Restaurant Servers: These individuals are responsible for serving customers who come to the café or restaurant that are part of hotels or resorts according to their needs.
– Food and Beverage Managers: Their duties include managing recipe development, establishing budgets, buying ingredients, training staff and also dealing with suppliers.
– Valet Park Attendants: These individuals are responsible for parking vehicles, retrieving them when needed and also informing the guests about their vehicles whenever required.
– Maintenance Personnel: These professionals are responsible for fixing any problems related to equipment in the hotel or resort. They usually do this job on a contract basis.
Starting your own Hotel and Resort Business
Before starting a hotel or resort, it is important to make a business plan. This will entail the details of all aspects related to the business, like location, size, services offered etc. The following are some of the things that need to be considered while drawing up a business plan for this industry:
You need to consider the size of your business as it will play a significant role in determining the kind of business structure that you require. In this case, you can either opt for a sole proprietorship or form a corporation. Depending on the profitability of the enterprise, you can hire employees from time to time.
The Financial Model for your business
Determine the amount of money that you will need to raise for your business. You can do this by having projected profits and loss statements during the first three years of operation along with a break-even analysis. Now this is where a professionally prepared financial model comes in. And that is already here for you. Yes, we are talking about the financial model that is designed specifically for your Hotel and Resort business. You can expect this financial model to have all the necessary variable for this business such as:
– Details about your annual revenue and operating costs.
– Break-even analysis to know the total number of guests you need to receive at your Hotel and Resort to keep it profitable.
– Cash flow projections will help you understand when to expect money coming in and going out. Also, it will allow you to set up a cash reserve account.
– Balance sheet projection will allow you to know the financial situation of your Hotel and Resort business.
You can access this professional financial model template right now!
5. Financial Model for Recreation Center | Financial Model for Tourism Industry
A recreation center may be defined as an area that offers recreational services to people of all age groups. It can be either privately or publicly owned. The services that are offered here include playing equipment like climbing equipment, swimming pools and other recreational activities like fitness training programs. The main aim of this center is to help people stay healthy by providing them with services that are related to the rehabilitation process. This industry deals with supplying goods and services for entertainment purposes to consumers on a regular basis.
The Evolution of Recreation Centers
Recreation centers have a long history. They first came into being at a time when people visited public gardens and parks for entertainment purposes frequently. Gradually, these places became more popular as they started offering various sports activities on a full-fledged basis. People who visited such recreation centers were allowed to use their services for a price that was suitable for them. However, it was only in the latter part of the 19th century when recreation centers started emerging as separate units. It became more commercial with time and individual companies were set up to manage such services full-time. The concept gained widespread fame and soon, various public places started offering services like recreation centers.
Types of Recreation Center Businesses
Recreation center businesses come in various forms and types depending on the kind of services they offer to customers. These range from fitness training programs to sports activities and other such entertainment ventures. Here is a list of all the major types:
Private recreation center: It is the one that a private organization or a group of people own.
Public recreation center: Public recreation centers are those that the local government builds and maintains for public use.
Health clubs: These types of businesses offer the best in class services related to sports activities and fitness programs, along with spa facilities and other such recreational services.
Outdoor activities: This type of business is more about outdoor adventure and water sports. It has a niche market and is gaining fame on a wider scale. Because people around the world are fighting stress levels brought on by tough work schedules and demanding lifestyle patterns.
Starting A Recreation Center Business On A Small Scale
Starting any business takes an immense amount of effort, hard work and planning. As it needs one to deal with the buying and selling side of things. Along with this, they have to ensure that employees are fine. Marketing strategies are in place and the financial structure is viable. There are many things you need to keep in mind when starting such a business venture. Because it involves so much more than just opening up shop and expecting customers to walk through the doors.
Factors to consider for this business
Here are some factors that you must consider before venturing into this kind of business:
A well thought out business plan is key to every successful enterprise. No matter how big or small it might be. You will have to create a workable idea on paper with all the relevant information about your proposed business. This should include its functioning, marketing strategies, hiring plans etc.. You can later present this to potential investors upon requirement.
This is one of the most important aspects you have to consider before starting a business. You will have to figure out where you want your recreation center to be located. Then you can do the mathematics involved in setting up a commercial unit. You must sell your products or services at a price that is competitive. It should be competitive enough to attract customers but does not breach the budget of those who seek them out.
Another extremely important factor for any recreational service is the menu plan. It must suit a wide range of people from different age groups and backgrounds. So as to gain widespread appeal and attract more patrons on a regular basis.
The success of any retail venture lies in the marketing strategies. The strategies that can convert potential clients into buyers. While also turning them into repeat customers over time by offering discounts, promotional offers etc.
This is another essential factor to consider before starting up a single unit of such a business. You should plan out your investments well in advance. Then you can determine the amount of money you should be spending on various other aspects. These aspects include rentals, inventory purchases etc. It will help you stay afloat without incurring huge losses.
Recreation center businesses are not just about opening an outdoor fitness training institute. They have evolved over time to become bigger than their perceived size. Now there are services ranging from indoor games to recreation programming for people of all ages. One needs to take into consideration several factors before venturing out with this type of entrance. Because it can turn into a nightmare if not done correctly from the start itself. Starting small is always advisable because large-scale recreation center management is not everyone’s cup of tea.
The Financial Model for Tourism industry that is specific for the recreation centers will help you plan out your finances. It will also make for the required provisions for all expenses. The expenses that may incur during the course of business. This will help you get a clear idea about how much money you will need to start up your venture.
Oak Business Consultant has all the Right Financial Models for you
Oak Business Consultant provides ready-made financial models for every industry. Our analysts have researched the local market, examined various costs factors, obtained company liability insurance quotes. They have even gathered information on leasing deals of all kinds, etc. These are some of the factors that make our financial models reliable and relevant.
Our experienced consultants will help you find ways to improve your business performance. They will do it with the use of models they have prepared specially for the Tourism industry. Don’t forget to ask about our model customization options. They will help you receive a ready-to-use perfect model within a short time!
The main features of Oak Business Consultant’s financial models:
– High customization options and adapting to your business specifics;
– Complete backtesting and sensitivity analyses;
– Dozens of interactive diagrams and tables section with the most recent data at hand;
If you need a new financial model or some improvements to an existing one, we guarantee you won’t be disappointed! Our service is available both as an independent solution and as part of a full consulting project.
Don’t forget: complex issues call for complex solutions!