Rapid strides in technology have opened vistas of new opportunities. Think of the recent perennial lack of time in our lives, people being continuously on the move, and an outline for a business plan structure for something like a hotel reservation starts taking shape in your mind.
To execute what you have in mind would need a proper business structure that will address issues like:
Your Target Customer Base
It is highly unexpected of a CEO of a company to demand a stay in anything less than a five-star hotel; likewise it is quite unlikely that a salesman on a business trip will be provided with expensive accommodation. Such circumstances demand you be clear about the segment you want to target, i.e. will your website tie up with five-star hotel chains, budget hotels, or both.
You will also want to decide beforehand whether you will tie up with a particular hotel chain or would you like to have on-board a multitude of companies catering to the hospitality industry. One factor that needs attention is your website’s infrastructure. Is the design and capacity of your website equal to the task of hosting high traffic with convenience? You would have to decide in advance whether your website only caters to accommodation or will it also provide booking facilities for marriages, conferences, business meetings, or any other such events.
Your proposal should clearly detail the sources of your revenue. How much commission would you be charging hotels whose rooms are booked through your website? How much do your competitors charge? How do you expect to provide a better deal vis a vis your competitors? How much is your budget for promotional activities and which steps will you take to ensure the message reaches the intended audience? How will you entice travelers and when do you expect to break even also needs careful detailing.
It is an expanding industry and competition will be intense. You need to take into account your closest rival, its market share, and note the way this industry is headed. With the world economy in shambles, corporates as well as individual households are tightening their purse strings. There is less traveling (both business and leisure) and restructuring is taking place in a big way. Such a situation demands that you be realistic. The right anticipation of challenges you are likely to confront would prepare you better to handle them. The focus should also be on your marketing strategy with more stress laid on external environment.
Be clear about your business concept and logically explain your company’s growth and development plans. How will you ensure that you are not sidelined by the existing competition or nudged by a new entrant? Is there a possibility of horizontal development by creating more capacity and capability? For example, you may decide, in due course of time, to open travel portals that will cover the entire gamut of activities like holiday planning, ticket arrangements, car rentals, etc. to professional guide services.