So you’ve decided to develop a solution in the TravelTech industry; excellent. Before you dive into the long nights of development and planning, take a minute and think about creating a business plan.
TravelTech is the implementation of technological solutions into the field of tourism such as the capability of ordering vacations and flights, automation of different procedures, pricing, and identifying cheap deals, etc. In an era where more than 50% of vacation bookings are conducted online, many entrepreneurs and investors are looking for new opportunities to have an impact on the industry.
The TravelTech sector is highly competitive, therefore it is important to understand the business environment before investing time and money.
A business plan for a TravelTech product answers the following questions:
What is the product and how does it work? In many cases, the easiest way to explain the product is through a flow chart that clearly shows the process the user go through while using the product. There is no need to expose commercial information, explaining the methodology is enough.
You also need to describe the main applications of the product and which other features will be included in future versions. Functionally speaking, where will the product be in 3 years?
Which markets should we target? What is the total addressable market? Are there any trends that support our solution?
The TravelTech industry is very challenging because usually, the product must target different markets and different countries in order for it to work. It’s important to highlight which markets we are targeting and why.
Who are our direct competitors? What is their market share? How does their product different from our’s and why is it going to matter?
Without proving a significant competitive edge, you won’t convince investors that your product will be able to overcome the competition.
Who are the potential users of the product? Are we selling to private consumers or the B2B sector (airports, booking companies, hotels)? If private consumers are our target audience, what are their key characteristics?
How will we make money? How much each client worth for us? Are there any future models that we might generate revenues? How is our pricing different from competitors and why?
How are we going to reach our clients? Which channels will we use? How much does it cost us to retain a client (CLV – Customer Lifetime Value)? Should we focus on a smaller niche first and then expand?
How much money do we need and which milestones will we achieve with it? What are the profit and loss projections for the next three years? When is the next round of financing planned?
To answer these questions, a comprehensive excel is needed to depict all the expenses the company should expect to have during this period.
For all of these questions and any other relevant one, we provide an answer through a business plan. An entrepreneur who wishes to start a TravelTech startup must know the answers to all of these questions before they begin working on the development, and more importantly before they turn to an investor.
How can Targo assist?
We have accompanied a fair number of projects in the TravelTech sector. Our team has extensive knowledge in the field that has been accumulated over the years that will maximize the chances of your success. By analyzing the business environment, we will build you an optimal business plan for realizing your vision.