A Feasibility Study of Exploring the Viability of Baratu Travel and Services in

Davao City

A Feasibility Study

Presented to the Faculty of College of Hospitality and Tourism –

Management Education

In Partial Fulfillment of the

Requirements in Entrepreneurship in

Tourism and Hospitality (THC 10)

BY:

Bantugan, Lizlie Jean H.

Dadula, Ma. Christina Cassandra R.

Duliente, Leslie Mae I

Gabato, Charlie Jane Z.

Ortega, Aiken Kessley D.

2023

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 APPROVAL SHEET

This feasibility study entitled A Feasibility Study of Exploring the Viability of Baratu
Travel and Services in Davao City was prepared and submitted by Lizlie Jean H.
Bantugan, Leslie Mae I. Duliente, Charlie Jane Z. Gabato, Ma. Christina Cassandra
R. Dadula, and Aiken Kessley D. Ortega in partial fulfillment of the requirements in
Entrepreneurship in Tourism and Hospitality (THC 10) has been examined and is
recommended for oral examination, acceptance, and approval.

DR. LEOMAR JAY R. OBLIANDA, LPT, CGSP

Instructor

PANEL OF EXAMINERS

Accepted and approved after the presentation of the study with a grade of ______.

GLENN ARANETA, MM
Chairperson

________________________ ________________________
Member Member

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 ACKNOWLEDGEMENT

The researchers would like to express special thanks and gratitude to the
following for their full support and encouragement that ultimately resulted in the
completion of this study. This feasibility study, which opened our minds to the
application of what we have learned to practical settings in life, was most important.

The researchers would like to express their sincere thanks for our adviser's
mindful guidance and help, Mrs. Khimberly A. Merlow. To our dear professor and
instructor, Dr. Leomar Jay R. Oblianda, for his expertise, assistance, guidance,
patience, encouragement, and understanding in guiding us in the preparation of this
study and for giving us the golden opportunity to submit this wonderful business
proposal. His guidance has helped us write this study.

To our Panel, We want to express our gratitude for the profound wisdom we had
during our research and for sharing your excellent ideas with us. Thank you so much.

To our respondents who cooperated and supported the researchers in the study
that they conducted. Amid the current situation of the pandemic, the respondents were
very helpful to the researchers.

To the researchers’ family, friends, and loved ones who are never getting tired
of understanding and helping with the needs of the researchers, to support, cheer up,
and motivate them for the successful study.

Above all, the researchers thank God for giving them the wisdom and intellect to
understand, for the guidance, and for providing the strength to finish this challenging
study despite the crisis we are facing now.

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 EXECUTIVE SUMMARY

This feasibility study explains the marketing aspects, technical aspects,

organization and management aspects, financial aspects, and socio-economic aspects
of the business, Baratu Travel and Services. Baratu Travel and Services provided
useful insights into the business's potential. The study's goal was to evaluate the
planned venture's market potential, financial feasibility, and operational factors.

The study assessed the current travel and services market and identified
important trends, customer preferences, and competitors. It emphasized the growing
need for personalized travel experiences as well as the opportunity for Baratu Travel
and Services to enter this market.

Financial projections were made in great detail, taking into consideration various
revenue streams, operating expenses, and investment requirements. The study
demonstrated the financial viability of the company, anticipating a positive return on
investment within the first three years of operation.

The operational aspects of Baratu Travel and Services were thoroughly

assessed, including staffing requirements, supplier connections, and technology
infrastructure. The study highlighted strategies for optimizing processes and increasing
customer satisfaction.

A complete marketing plan was created, combining both traditional and digital
platforms. The report stressed the relevance of harnessing social media platforms such
as Instagram and Facebook to supplement overall marketing efforts.

Based on the feasibility study findings, Baratu Travel and Services has a high
chance of success. A focused market approach, accurate financial projections, and
efficient operational procedures prepare the company for development and success.

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 TABLE OF CONTENT

Cover Page I Legal form of business

Title Page II Organizational structure
Acknowledgement III Qualification of Personnel
Executive Summary IV, Gantt chart of Activities
Table of content V CHAPTER 4
Financial Aspect
CHAPTER 1 Total Project Cost
Marketing Aspect 1 Source of Financing
Service Description 1 Financial Assumptions
Target Market 3 Projected Financial Statement
Area Coverage 4 Cash Flow Statement
Demand and Supply 5 Balance Sheet
Competitor Aspects 11 Payback Period
Itinerary 12 Break Event Point
Contract 15 Return of Investment
Pricing Structure 16 Gross Profit Ratio
Marketing Strategies 18 Net Income Ratio
Current Ratio
CHAPTER 2 Debt Total Ratio
Technical Aspect 23 Equity Total Ratio
Technical Requirement
Government Requirement (Permits) CHAPTER 5
Operation Process Socio Economic Aspect
Operation Schedule Costumer
Machinery/ Equipment Requirement Community
Plant/ Factory Location Employment
Plant Layout Environment
Waste Disposal System Government
Production Cost
Appendices
CHAPTER 3 Reference/s
Organization and Management Aspect Curriculum Vitae

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 CHAPTER 1

MARKETING ASPECT

This chapter focuses on analyzing the potential market for our product or
services and determining its viability, which consists of conducting the product
description, target market, area coverage, demand and supply analysis, competitor
analysis, pricing structure, projected sales, our own marketing program or strategies,
and marketing expenses. The marketing aspect of a feasibility study provides valuable
insights into the market potential and helps in making informed decisions about the
viability and profitability of a proposed product or service. By incorporating the
marketing aspect into the feasibility study, businesses can make informed decisions and
increase their chances of success in the competitive business landscape.

Service Description

The travel and services business in Region 11 has grown significantly in recent
years, owing to rising demand for unique and personalized travel experiences. There is
a growing demand for travel companies that can cater to consumers' preferences for
more authentic and engaging methods of visiting new destinations. This feasibility study
investigates the possible viability of Baratu Travel and Services, a new travel and
services company operating in Davao City, with a focus on market opportunity, the
competitive landscape, and key success factors. The study's findings will provide
valuable insights into the viability of launching a successful travel and services business
in this dynamic region.

Baratu Travel and Services is your go-to destination in Davao City for
inexpensive and high-quality travel services. We take pleasure in providing personalized
recommendations and outstanding customer service as a local business with extensive
knowledge of the area to ensure your trip is nothing short of extraordinary. Our objective
is to present individuals with unique and interesting experiences to explore the hidden
gems of this mesmerizing region while also helping local communities and developing
sustainable tourism practices. With our vast knowledge of the area and commitment to

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excellence, we guarantee that every journey will be nothing short of amazing. Whether
you're searching for an action-packed retreat or a tranquil break, let us take you on a
journey that will leave you with memories to last a lifetime. At Baratu Travel & Services,
we think that every traveler deserves to experience the charm of this magnificent
location, and we are dedicated to making that happen.

We have everything from budget-friendly hotels to luxurious resorts when it

comes to a place to stay for activities and excursions. We handle everything so you can
focus on what really matters: creating memories with loved ones. You may be confident
that you'll be seeing the finest of what Region 11 has to offer. From breathtaking natural
beauties to vibrant urban centers, each destination offers a unique cultural experience
that will leave visitors in awe that there is something for everyone here. But don't just
take our word for it; check out some of our latest specials and promos to see how much
you could save on your next trip. With low costs, you'll have more money left over for
souvenirs and activities.

Baratu Travel and Services focuses on understanding and catering to the unique
preferences and requirements of each traveler, offering customized packages tailored to
their tastes, preferences, and budget. Our team of experienced professionals works
closely with clients to create an exceptional travel experience, whether it's a romantic
getaway, family vacation, or adventure-filled trip. They take care of every detail, from
selecting the ideal accommodations to arranging transportation and planning activities,
ensuring a seamless and enjoyable journey. Their goal is to create memories that will
last a lifetime, and they are committed to going above and beyond to make that happen.

Overall, the market feasibility study for Baratu Travel and Services in Davao City
will give a full assessment of the product's market potential within the specified region.
The market feasibility study will provide significant insight into the potential success and
profitability of the Baratu Travel and Services product within the specified region by
assessing market demographics, consumer preferences, competitor analysis, and
economic considerations. The study will also offer tactics for positioning and marketing

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the product to optimize its attractiveness to customers while meeting business
objectives.

Target Market

In the market feasibility research for Baratu Travel and Services, identifying the
specific group of customers who are most likely to purchase the product or service is
crucial to our study. This includes understanding their needs, preferences, and buying
habits. Creating buyer personas can help define the target customers more effectively.

Baratu Travel and Services is a travel agency located in Davao City, Philippines,
specializing in group and family tours. Our team of agents is dedicated to providing
prompt responses, offering the best and most affordable deals, and delivering
exceptional service. With efficient management and industry expertise, our agency
offers high-quality travel and tourism services. As an accredited full-service travel
company, we are involved in all aspects of the tourism industry.

The objectives of Baratu Travel and Services are to meet the needs and
preferences of the target market in Davao City. By delivering travel and service offerings
that are uniquely suited to the region, Baratu hopes to improve the overall travel
experience and meet the needs of both tourists and inhabitants.

The target market may include tourists visiting Davao City for leisure or business,
as well as local residents looking for travel services in the region. Baratu Travel and
Services seeks to provide a broad variety of services, such as accommodation,
transportation, tour packages, and other related services, to meet the specific needs
and preferences of this target market.

The goal is to provide efficient, reliable, and high-quality travel and service
options that promote Davao City's distinctive attractions and offerings. By doing so,
Baratu hopes to contribute to the growth of tourism in the region while also providing
unforgettable experiences for tourists.

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Area of Coverage

A feasibility study's area coverage provides useful insights into market dynamics,
competition, resource requirements, and regulatory considerations. It assists
businesses in making educated decisions and determining the viability of a proposed
enterprise within a certain geographical location.

Baratu Travel and Services operates primarily through its online platform,
allowing customers to browse and book their travel packages from anywhere in the
world. This approach enables the company to reach a wider audience and expand its
coverage beyond regional boundaries. Currently, Baratu Travel and Services offers trips
to various destinations within Davao City. However, the company is poised to expand its
operations to other regions in the Philippines and even internationally, leveraging its
online presence and partnerships with suppliers and hotels.

One of the key advantages of Baratu Travel and Services' online platform is its
ability to reach customers who prefer to plan their trips digitally. With the rise of e-
commerce and online booking platforms, many consumers now turn to the internet for
travel arrangements rather than relying on traditional brick-and-mortar establishments.
By catering to this trend, Baratu Travel and Services can tap into a growing market
segment and increase its customer base.

Another benefit of Baratu Travel and Services' online platform is its flexibility and
scalability. Unlike physical stores that require significant investment in infrastructure and
personnel, an online platform can be easily expanded or contracted as needed. This
allows the company to quickly adapt to changing market conditions and respond to
customer demand more effectively.

In terms of area coverage, Baratu Travel and Services' online platform allows it to
operate in any location where there is an internet connection. This means that
customers from all over the world can access the company's services and explore
different destinations without geographical limitations. The platform also enables Baratu

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Travel and Services to offer personalized recommendations based on individual
customer preferences, further enhancing the overall travel experience.

Overall, Baratu Travel and Services' focus on an online platform provides

numerous benefits, including increased reach, flexibility, and scalability. As the
company continues to grow and expand its operations, its online presence will play a
critical role in shaping its area coverage and customer base.

CUSTOMER
The business analyzes its client profile to identify the traits of people who like and
satisfy their needs and are most likely to purchase the product. We have the notion to
create a marketable service that will make a lasting impression in order to attract and
entice customers to test and purchase the tour package in an effort to draw in a huge
number of customers. Our tour package is a blend of meticulous planning and creativity,
beckons customers not just to test but immerse in an extraordinary experience. Beyond
marketing, we're crafting a shared narrative, inviting customers to script unforgettable
chapters with us. Start off on a customized journey with one of our special package
options: the Joiners' Adventure, perfect for solo travelers seeking companionship, the
Exclusive Escapade, ideal for lone exploration, and the Family Fiesta, ideal for healthy
group activities. Personalized to suit different preferences and sizes of groups, every
package ensures unique experiences. Our packages guarantee that the ideal number of
people will uncover all that's wonderful of your selected experience, making every trip
unique and unforgettable, whether you're traveling alone or with your family.
Demand and Supply Analysis

Some people go into different places to find things that they really want and
make them feel content for a while. In order to travel to places possible, one must ask
for the assistance of a travel agency, which can suggest and recommend places that
are really relaxing. So those people who are in need of assistance for that matter we are
pleased to help them. They're our prospect clients and we want them to experience our
service with so much pleasure. To develop Baratu Travel and Services targeting
strategies and marketing efforts, demand analysis helps the business in order to

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measure the current demand as well as project future demand. The location of our
proposed business is at Claveria St, Poblacion, Davao City, Philippines.The
proponents conducted a survey with an estimated number of 54 respondents daily
composed of regular and some frequent travelers.

Demand Study

Figure 1

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1. There are 54 respondents.
2. 94.4% of the travel respondents say they love to travel .
3. 87% choose to travel occusionally, 11% monthly and the rest is weekly.
4. 9.3% prefer to travel by van, 29.6% by bus and 81.1% by car.
5. 50% of the respondents usually booked by online and 24.1% for the others and
the remaining is for walk in.
6. 98.1% of respondents wish to inquire with us.
7. 46.3% of the travel respondents usually prefer to stay in 3 days, 24.1% peer
week,13% in per month and the remaining is 16.7% a day.
8. 90% answered that the travel agency will offer good services.
9. 72.2% of the respondents love to travel with their family, 27.8% with friends.
10. 87% of the respondents wish to travel in davao, and the remaining is no.

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Table 1. Competitors Analysis

Competitors Advantages Disadvantages Price

Affordable, City Tour Limited Time

Inclusions : Driver
A Exclusions: Entrance fee, 550/per head
Meal

Not so Affordable, City Limited Time

Tour, Local Tour
Exclusions: Food and
Inclusions: Driver, Entrance Fee.
B 2800/per
Car, Fuel, Rate is per
head
Car not per Pax

Expensive, Limited Time

C Inclusive: Fuel, Exclusions: Entrance Fees, 3800/per

Vehicle, Driver Food. head

7 seater maximum cap.

Table 1 shows the revealing the array of strengths and weaknesses within our
competitors, we unfold a canvas of opportunities for our newly established company.
We view these distinctions as our pathway to success. At Baratu Travel and Tours in
Davao City, our mission is crystal clear: to offer more than just a tour but a genuine
experience. Our competitive pricing serves as our anchor, ensuring affordability for all
tourists while addressing the shortcomings identified in our rivals. Competitor A, though
cost-effective, falters with limited time and control, failing to meet exact schedules in
every destination. Baratu steps in not only providing cost-effectiveness but a truly
liberating experience. Competitor B, offering an affordable tour, compromises on time
and freedom, with rates per car rather than per person. Baratu strikes a harmonious

11
balance, presenting competitive prices that customers can afford, ensuring an enjoyable
time, and adopting a per-person package approach for flexibility. Competitor C, with its
expensive rates and 7-seater limitation, becomes our benchmark. Baratu emerges as
the solution for competitive pricing without hidden expenses. Our researchers curate an
experience where tourists find not only affordability but also revel in the joy of their
journey. Our strength lies in simplicity and our charm in uniqueness. Baratu Travel and
Tours is more than just a company; it's an invitation to affordable luxury, where every
tourist discovers not just a tour but a captivating tale to tell.

ITINERARY PACKAGE
Table no. 2

Day Tour Package/Per Head

Inclusion Exclusion

- Vehicle - Food
- Driver - Entrance Fee
- Fuel - Other Necessities

DAVAO CITY DAY TOUR- PACKAGE 1(580 per/head a choice of your package)
Get a chance to visit, take pictures and create memories while exploring these 10 beautiful places
located only in Davao City.

Itinerary Includes

- Philippine Eagle
- Bankerohan Fruit Stand
- Davao Crocodile Park & Zoo
- Davao Museum
- Jack’s Ridge Resort
- Poblacion Pasalubong Center
- Osmena Park
- Chinese Temple
- San Pedro Cathedral
- Malagos Garden Resort

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DAVAO CITY DAY TOUR- PACKAGE 2 (580 per/head a choice of your package)
Get a chance to visit, take pictures and create memories while exploring these 10 beautiful places
located only in Davao City.

Itinerary Includes

- Davao Museum
- Crocodile Park
- Durian Candy Factory
- Poblacion Pasalubong Center
- Japanese Tunnel
- Eden Nature Park
- Bankerohan Fruit Stand
- San Pedro Metropolitan Cathedral
- Malagos Garden Resort
- Kadayawan Village

DAVAO CITY DAY TOUR - PACKAGE 3 (580 per/head a choice of your package)
Get a chance to visit, take pictures and create memories while exploring at this 10 beautiful places
located only in Davao City.

Itinerary Includes

- Jack’s Ridge Resort/Vista View

- D’Bone Collector Museum
- Chinese Temple
- Peoples Park & City Hall of Davao
- Poblacion Pasalubong Center
- Ramon Magsaysay Park
- Malagos Garden Resort
- Davao Riverfront
- Durian Candy Factory
- Chocolate Museum

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Day Tour Package/ Itinerary of the package, the flow of tour.

Time Activity Notes

Meet up @ Roxas Avenue in

6:00- 6:30 am The vehicles are ready to pick up the
front of the Ateneo de Davao
tourists.
University

6:30 am - 7:00 am Traveling

7:00 am - 7:30 am Jack Ridge 1st Destination and Breakfast

Bankerohan Fruit Stand and

7:30 am - 9:40 am 2nd and 3rd Destination
San Pedro Cathedral

10:00 am - 12:00 nn Crocodile Park 4th Destination

Lunch @Davao Dencia's

12:00 nn - 2:45 pm Restaurant and visit in the 5th
Destination

Davao Museum and Osmena

2:45 pm - 4:30 pm 6th Destination and 7th Destination
Park

4:30 pm - 6:00 pm Pasalubong Center Last Destination

Dinner at their Request place,

6:00 pm - 8:00 pm
End of the Tour/Drop off

Table no. 3

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 CONTRACT
The Baratu Travel and Tour Agreement Contract Between the Agency and
Customer. This Contract commences on an agreement created date inclusive of the
following terms and condition between the parties as defined below.
Figure 2

(Baratu Travel and Services)

CLIENT:__________________________________________________________
ADDRESS: __________________________________________________________
CONTACT PERSON: _______________________________________________
TELEPHONE No: ___________________________________________________
NAME of TOUR: _____________________________________________________
DESTINATION: _____________________________________________________
DATE of TOUR: ________________________ No. of PERSONS: __________
COST PER PERSON: _________________
DATE OF FINAL PAYMENT: _______DATE OF DEPOSiT:___________

TERMS OF CONTRACT
1. The Baratu Travel and Tour will provide transportation, tour guide(s) and organize all travel
itineraries and tour site(s) arrangements.
2. Where applicable as outlined in the tour information and included in the cost lunch will be
provided.
3. A fifty percent (50%) deposit will be required to secure confirmation of contract.
4. Final payment has to be made (1) day prior to the actual date.
5. Cancellation by contracting party prior to tour will attract the following charges
6. If individuals cancel prior to tour they will forfeit tour fees. Consideration for a no refund can
be made in extraordinary circumstances that can be proven.
7. If for any reason the tour is canceled by the company, a full refund will be made to
the contracting party.
We the undersigned agree to the terms and conditions as stated above.

Name in Full:…………………….. Name in Full:……………………………

Signed…………………………….. Signed:……………………………………
Date………………………………… Date………………………………………..

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PRICING STRUCTURE

Table 4: Baratu Travel and Services Day Tour Package Cost

Package Cost/Per Head Total Cost

Transportation
- Vehicle (L3) with Driver 2,500
- Fuel
- Tour Guide 1,500

- Photographer 1,500
500

Total Cost 6,000 php

Mark Up (35%) 2,100 php

Inflation Rate (10%) 600 php

Package Price Php 8,700.00

Table 4 shows the cost of the package that is required, along with the overall
cost of the packages that the purchasing firm will be responsible for. The package cost
needed a total of 6000 with the markup of 35% and since this is a Day Tour Package an
inflation rate is added with 10%. Combining all the components the total cost of the
package per head is 580. We determine the price of our package so that we may make
a profit from the sale.

The list of Baratu Travel and Services to-go pricing after taking into account the
prices given by other rivals and the price that the local people are willing to pay. We, the
researchers, carefully examined the competitors' market-based prices. The researcher

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 applied market-based research techniques and found that the competitors didn't charge
huge prices for their packages.

Table 5: Projected Sales Weekly, Monthly, and Annually

PRODUCT PRICE DAILY WEEKLY MONTHLY ANNUALLY

1 vehicle 7 vehicle 30 vehicle 365 vehicle

Tour Package 8,700 8,700 60,900 261,000 3,175,500

15 pax per
vehicle

The table 5 shows the project of the product daily, per week, monthly, and
annually of Baratu Travel and Services.

Table 6: Projected Sales per Year

PRODUCT PRICE YEAR 2024 YEAR 2025 YEAR 2026

Tour Package 8,700 3,175,500 6,351,000 9,526,500

15 pax per vehicle

The table 6 shows the projected sales of the product of years 2024, 2025, 2026
of Baratu Travel and Services Standard. The assumptions of sales increase 20% per
year.

Marketing Program/Strategies

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Practices of Competitor

Competent opponents use a range of strategies to gain the upper hand. To keep
ahead of the competition, they use a variety of pricing tactics, differentiate their products
and services, spend money on marketing and advertising campaigns, provide excellent
customer service, and invest a lot in R&D. In order to benefit from one another's
advantages, increase their market share, gain access to more resources, and grow their
client bases, they also create strategic partnerships. Last but not least, they strongly
emphasize continual development in order to enhance their products, practices, and
overall business operations. These strategies help companies preserve their
competitive advantage and keep one step ahead of the opposition.

Own Marketing Strategies

Discount

Baratu Travel and Services offers exhilarating adventures and experiences in

each well-known tourist destination, exclusive of lodging, regional cuisines, and client
convenience according to their budget. Once the requisite 15 passengers are
confirmed, complimentary light snacks will be provided. As the company grows, we'll
provide enticing promotions and discounts to draw in a large market.

Pricing

In order to guarantee a profit on every sale and satisfy all market demands, a
combination of markup pricing and package strategies will be implemented in
accordance with the chosen service niche throughout peak season. In order to maintain
profitability while remaining competitive in the off-season, markdown pricing and digital
pricing strategies will be implemented in accordance with the chosen service niche.

Promotion

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 Baratu Travel & Services will reach out to its market through partners and
advertising methods when the company is starting off.

Advertising

To spread the word about its offerings and brand identity, Baratu Travel and
Services uses advertising to reach a wider audience.

Social Media Network

Photographs, videos, and reviews are common ways that travelers share their
experiences. Through social media, particularly Facebook, Instagram, and the TikTok
platform, Baratu Travel and Services will interact with the market to establish an online
presence.

Facebook

Facebook is a powerful platform for promoting travel and services businesses. It

offers targeted advertising, engaging content, customer reviews, chatbots, events, and
offers. By targeting specific demographics, interests, and behaviors, businesses can
reach potential customers who are more likely to be interested in their services.
Engaging content can be created by posting visually appealing photos and videos of
travel destinations and services, capturing the attention of the audience. Customer
reviews can build trust and credibility, while chatbots can provide immediate assistance.
Events and offers can be promoted through events, special offers, and discounts,
driving engagement and bookings. Facebook provides insights and analytics tools to
track the performance of posts and advertising campaigns, helping businesses refine
their marketing strategies. Community building can be fostered by interacting with the
audience and encouraging user-generated content. Booking integration can be enabled,
making it easier for customers to make bookings directly. Collaborations and
partnerships can be formed with other businesses in the travel industry, expanding
reach and offering complementary services. User-generated content can be highly
persuasive for potential customers. Promotions and contests can incentivize
engagement and increase reach. Video marketing is an effective way to showcase

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travel destinations and services, especially live streaming. However, successful
promotion on Facebook requires a consistent and well-thought-out strategy, staying up-
to-date with Facebook's features and advertising options.

Instagram

Instagram is a great tool for advertising services and travel-related businesses. It

provides a visual appeal, enabling companies to use images and videos to highlight
their travel locations, lodging options, and services. Another important feature of
Instagram is storytelling, where people tag businesses and share their own
experiences. Another helpful tool is hashtags; a larger audience can be reached by
using popular and niche hashtags. Another strategy for establishing credibility and trust
is user-generated content. Influencer collaborations can aid in increasing credibility and
reach. Instagram Shopping enables businesses to display and sell travel-related
products, while Instagram Ads may be used to target particular demographics and
interests. Interacting with followers can increase brand loyalty and create a feeling of
community. Tools for analytics can aid in strategy improvement.

Instagram travel guides may establish a brand's credibility in the field by offering
insightful advice and suggestions. While geotagging links articles to particular areas,
story highlights can be used to construct everlasting collections of content. You may use
Instagram Reels and IGTV to make interesting content about products or locations.
Email marketing campaigns, websites, and other social media channels can all be used
for cross-promotion of the account.

Tiktok

TikTok is a potent marketing tool for travel and service companies. It provides a
venue for promoting products and travel locations via eye-catching videos, trend
involvement, user-generated content, influencer partnerships, hashtags, instructional
content, live streaming, advertising, user interaction, and analytics. Businesses can
broaden their audience and boost their visibility by taking part in travel-related
challenges and trends. By sharing their travel experiences with their services, users can

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also produce user-generated content. Influencer partnerships that focus on travel might
be established to market services to their followers. Make material discoverable by
using relevant hashtags. To demonstrate knowledge, instructional materials regarding
travel destinations, advice, and service offerings might be produced. Engaging with the
audience in real time is made possible by live streaming. You can target particular
demographics using advertising alternatives. By answering questions and interacting
with the audience, you may increase user engagement. Analytics tools can be used to
monitor the effectiveness of material and modify plans.

Flyers

Flyers are a powerful tool for promoting a travel and services business due to
their visual impact, information, targeted marketing, tangibility, brand recognition, call to
action, cost-effectiveness, personalization, local awareness, and measurable results.
They showcase destinations, accommodations, and services, providing essential details
like package details, pricing, contact information, and special offers. Flyers can be
distributed in specific locations or events, increasing the chances of reaching potential
customers. They can also serve as a tangible reminder of the business, fostering brand
recognition and trust. A clear call to action can be included, such as "Book Now" or
"Visit our website." Printing flyers is generally cost-effective, making them an effective
advertising tool. Customization allows for tailored content and design to specific
promotions or target demographics. Flyers also promote local events, attractions, and
services, making them essential for travel businesses. The effectiveness of a flyer
campaign can be measured through unique QR codes, promo codes, or website landing
pages. Overall, well-designed and strategically distributed flyers are a valuable tool for
promoting a travel and services business.

Poster and Brochures

To raise brand awareness and engagement, posters and brochures will be

employed. The market's attention and response might be easily attracted by well-
designed publication materials. Baratu Travel and Services will advertise and distribute
materials in populated areas like bus tops, terminals, and other places.

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 Baratu Travel and Services make sure that the services are provided as
promised and on time for bookings. A smooth trip experience will be ensured by the
planning of the itinerary. To entice more guests and improve their entire experience, the
firm will invest in engaging, energetic, and qualified tour guides.

Table 7: Marketing and Advertising

Marketing and Selling Expenses INITIAL BUDGET ALLOCATION

● Flyers ● Php 1,000.00

● Posters and Brochures ● Php 1,000.00

SOCIAL MEDIA ADVERTISING

● Facebook ● Php1,000.00
● Instagram ● Php1,000.00
● Tiktok ● Php1,000.00

Total Php 5,000.00

Table 7 above shows the overall marketing and selling expenses, which
comprise the printing of flyers worth Php1,000.00 and the materials used to make the
posters and brochures, which will cost Php1,000.00. For social media, there will be an
allotted amount of Php3, 000.00 that can introduce the services and easily get the
attention of the buyers. To promote the business and attract potential clients, the
corporation just needs to invest four thousand, one hundred pesos (5,000) in marketing
activities.

CHAPTER 2

TECHNICAL ASPECT

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 This chapter discussed the technical requirements for operating the business,
government requirements to legally establish the business, the process of production,
and the activities of the store. It also states the materials needed and materials to be
used in production, as well as other aspects regarding bringing the materials into the
finished product. The present-day technological resources that the company has at its
disposal are the main topic of this chapter. The specifics of a service's delivery are
covered in this chapter. This comprises the costs associated with the business's labor
needs, schedule of operations, location of the business, equipment required for
operation, goods and supplies to be used, and transportation costs.

Technical Requirements

The business "Baratu Travel and Services" is not yet registered since the
business is new and doesn't have a physical location. The business focuses on giving
the customers a very convenient experience that ensures that the services are good
and trustworthy. By prioritizing service quality, businesses can create a positive
customer experience and establish a strong foundation for long-term success. The
business operations of Baratu Travels and Services are mainly focused on providing
booking and reservation services for clients. It will also cater services to both leisure
and business travelers.

For the convenience of both the company and the consumer, Baratu Travel and
Services will offer reservations and bookings through online transactions. Time, effort,
and money are all saved during online transactions. Using the company's websites and
Facebook pages, customers may make reservations and book their excursions on
mobile devices and desktop computers. Online banking and e-wallets (such as GCash
and PayMaya) make payments convenient.

Government Requirements (Permits)

23
 Securing permits and registration is one of the procedures for starting a business
in the Philippines. Every businessman and investor must obtain a business license in
the location where he or she wants to operate. To create a business, you must register
it with the Department of Trade and Industry (DTI) for sole proprietorships, the
Securities and Exchange Commission for partnerships, and the Securities and
Exchange Commission for corporations. The Department of Trade and Industry (DTI),
Bureau of Internal Revenue (BIR), Securities and Exchange Commission (SEC),
Registration with Barangay, Mayor’s Permit, Safety Inspection Certificate, CENTRO
Certificate, and Sanitary Permits are the government agencies that a business needs to
register with.

Bureau of Internal Revenue

You can now register with the Bureau of Internal Revenue (BIR) after receiving a
DTI Certificate of Registration (COR). For taxation purposes, every business enterprise
should register with the Bureau of Internal Revenue (BIR) before the commencement of
business operations. The BIR is where it all begins. You won't be able to run your
company without a tax identification number (TIN).

Securities and Exchange Commission (SEC) Certificate

The Philippine Securities and Exchange Commission (SEC) is the national

government regulatory agency in charge of overseeing the country's corporate sector. It
is also responsible for developing policies and making recommendations on securities
market concerns, as well as providing advice to Congress and other government
agencies on all areas of the securities market. It is necessary to register your firm with
the SEC in order for it to be able to lawfully participate in business, issue receipts, trade
financial assets, and be entitled to certain rights under the country's corporate and
investment laws.

Registration with Barangay

24
 Before you may lawfully operate your business, you must first obtain business
clearance or a permit from the local government unit, beginning with the barangay. You
can begin processing in the barangay while your registration is being processed in the
BIR. Here are some steps for registering in the barangay. You must secure and fill out
an application form at the barangay where your business is located. Submit your
completed application form together with the accompanying documents: DTI Certificate
of Business Registration and two (2) genuine government identification cards, Pay the
barangay clearance fee and get your barangay certificate of business registration after
providing proof of address, such as a contract of lease (if rented) or a certificate of land
title (if owned).

Mayor's Permit

The next step after obtaining barangay clearance or permit is to obtain business
clearance or permit it from the mayor or municipal office. Every business, regardless of
its legal status, must get a mayor's permit or municipal license from the city or
municipality where it is located. Permits or licenses are required to verify that the criteria
are met and that the business conforms to the location's specific requirements. The
mayor's permit, often known as a business permit, ensures that your business conforms
with all of the city or municipality's ordinances. This is significant since each municipality
or city has its own set of rules and regulations.

The Land Transportation Office (LTO)

Its main goal is to simplify land transportation services and infrastructure while
also successfully putting numerous transportation laws, rules, and regulations into
practice. It holds that those working in the public sector must exercise greater caution in
how they contribute to the overall development of the country's leadership. As a result,
one of LTO's ongoing responsibilities is to promote land travel that is safe and
comfortable.

Domestic Tour Operator (DTO)

25
 A domestic tour operator is a company that specializes in organizing and
facilitating travel experiences within a specific country or region. They design and
coordinate various travel packages and itineraries for individuals or groups who wish to
explore and discover the attractions and destinations within their own country. Domestic
tour operators handle all aspects of the travel arrangements, including transportation,
accommodation, activities, and logistics, ensuring a seamless and enjoyable experience
for their clients. They have in-depth knowledge of the local attractions, culture, and
logistics, allowing them to provide expert guidance and personalized services to
travelers. By offering a range of tour options and catering to different interests and
budgets, domestic tour operators play a crucial role in promoting domestic tourism and
showcasing the diverse offerings of their country or region. A domestic tour operator's
expertise, knowledge of local regulations, assistance with documentation, connections,
industry reputation, and risk mitigation capabilities make them invaluable in securing a
business permit for a tourism-related venture. Their involvement can streamline the
process, increase the chances of success, and ensure compliance with all necessary
requirements.

Department of Tourism-Davao (DOT)

The Department of Tourism (DOT) Davao is a government agency in the

Philippines responsible for promoting and developing tourism in the Davao Region. The
DOT Davao office works towards enhancing the region's tourism industry, attracting
both domestic and international tourists, and showcasing the unique attractions and
experiences that Davao has to offer.

To secure a business permit from the Department of Tourism (DOT) in Davao, follow
these steps:

1. Determine the type of business: Identify the type of travel and services business you
plan to operate, such as a travel agency, tour operator, or accommodation provider.
Different types may have specific requirements and regulations.

26
2. Gather necessary documents: Prepare the required documents for the business
permit application, such as an accomplished application form, business plan, proof of
ownership or lease agreement, certificate of registration with government agencies, tax
identification number (TIN), barangay clearance, fire safety inspection certificate, and
environmental compliance certificate.

3. Submit the application. Ensure all required documents are complete and accurate.

4. Pay the necessary fees: Pay the fees for the business permit application, which may
vary depending on the type of business and services offered. Obtain an official receipt
as proof of payment.

5. Compliance inspection: The DOT may conduct an inspection of your business

premises to ensure compliance with safety, hygiene, and other relevant standards.

6. Evaluation and approval: The DOT will evaluate your application and supporting
documents, and if everything meets the requirements, they will issue the business
permit.

7. Renewal and compliance: Ensure that you comply with all regulations and
requirements set by the DOT. Business permits typically need to be renewed annually
or as specified by the DOT in Davao.

Sanitary Permits

Part of securing a business permit is the application of a health and sanitary

permit. Sanitary permits are necessary for both food and non-food businesses to ensure
that they adhere to the Philippine Sanitary Code's standards. This is to ensure that, in
addition to the safety of the individuals who will be accessing your organization, the
Health and Sanitary Office will inspect the surroundings and office spaces to verify that
they are clean. Workers at the aforementioned establishments must also obtain health
cards.

27
Table 8

Permit/License Expenses

Business Registration Php 20,365.00

Total Php 20,365.00

Legality of Operations: Registration Requirements Legal and Taxation Aspects

● The business will comply with all the necessary legal requirements with an
estimated cost of P20,365.00.
● The business will pay an income tax according to the provisions of the NIRC
(30% regular corporate income tax).
● The business is also required to pay a value-added tax of 12% on its gross
receipts and must file the return not later than the 25th day following the end of
each month or the 20th of the month following the end of each quarter.

Production/Operation Process

Table 9: Step-by-step Procedure

STEP1: Inquiring for tour package.

STEP2: Confirm important details.

STEP3: Fill-Up the agency form.

STEP4: Mode of payment.

STEP5: Booking is generating or providing an itinerary.

STEP6: Booking is generated.

Table 9 Baratu Travel and Services in Davao City has crafted a straightforward
and unique customer service journey. Starting with friendly conversations and
information inquiries in the initial stage, in the second step, where we confirm essential

28
details of the chosen tour package. Third phase, customers are provided with a
convenient Fill-Up form to share their details. To secure reservations or bookings, the
fourth step involves customers specifying their preferred mode of payment. The fifth
step sees the generation of the booking and the delivery of a tailored itinerary. Finally,
the sixth step wraps it up with the confirmation of the reservation or booking, ensuring a
seamless and enjoyable experience for our valued customers.

Table 10: Production/Business Schedule

Days Open Hours Open

Monday - Saturday 9:00 am - 8:00 pm

LUNCH BREAKS 12:00 pm - 1:00 pm

Sunday 1:00 pm - 7:00 pm

Table 10 shows Baratu Travel and Services in Davao City, extending a cordial
invitation to our customers, with our business hours. Our doors swing open at 9:00 AM,
welcoming you to a new day of dedicated service. We're at your service until 8:00 PM,
Monday through Saturday, ensuring that your travel needs are met during the
workweek. We've set aside a brief lunch break from 12:00 PM to 1:00 PM to allow our
team to recharge, we continue to provide you with top-notch service and for Sunday our
operating hours will start at 1:00 pm to 7:00 pm. At Baratu Travel and Services, we
prioritize your satisfaction, from our operating hours to the quality of service we offer.

29
Table 11: Materials and Office Equipment

Materials Quantity Unit Total

of Unit Cost Cost

Computer Set 2 20,000 40,000

Printer 2 6,800 13,600

Air conditioner 1 30,000 30,000

Fax Machine 1 11,800 11,800

Ream Bond paper A4 Size 3 480 1,440

Files Safety 2 149 298

Furniture and Fixtures

Office Table 1 5,100 5,100

Clerical Chair 2 1,600 2,100

Customers Chair 2 1,100 2,200

30
 Couch 1 12,900 12,900

Center Table 1 5,000 5,000

TOTAL 18 Php Php

80,929.00 124,438.00

Table 11 This table shows the equipment needed for service such as inquiry,
booking and reservation. It just serves to highlight the instruments that ought to be
employed when advertising our services. These resources are needed to maintain well-
organized and efficient services. By keeping the necessary tools near to hand, we can
ensure correct and timely processing of our services, which will improve customer
satisfaction and expedite business processes.

Table 12: Utility Requirements

UTILITIES Monthly Yearly

31
 Electrical Fixed 10,000 120,000

Water 1,000 12,000

Telecommunication 3799 45,588

Services

Total Php 14,799.00 Php 177,588.00

Table 12 shows the utility requirements of Baratu Travel and Services.

● Electricity - for purposes of estimating expenses, we separate this cost into a
variable component and a fixed component.
● Water Consumption - is less than 10 cubic meters per month.
● Telecommunications - PLDT Fibr Subscription Unli Plan wifi

Store Location

32
 Figure 3
The decision to choose a retail location in the downtown area is crucial for a
successful marketing strategy. The location's visibility, accessibility, and foot traffic can
significantly impact a business's success. High-traffic areas with well-chosen locations
can attract more consumers, improve brand recognition, and boost revenue. Long-term
viability also depends on proximity to rivals, target markets, and related industries, as
well as local laws and expenses.
Store Layout

Figure 4
The store layout consists of an office table with a clerical chair and two customer
chairs for the operation. It has a couch with a center table for customers that will be
waiting.
Waste Disposal
Tourism is responsible for a minor portion of the waste generated by its visitors.
Tourists may generate up to twice as much solid garbage in each tourist destination.

PRODUCTION COST

33
 The following is a list of Baratu Travel and Services for yearly costs associated
with running costs that are required for operating business.

Table 13 : Total Production per Year and Production Cost per Unit

Service Total Cost of Daily Cost Weekly Cost Monthly Cost Yearly Cost
each Unit
Description 7 days 4 weeks 12 months

Day Tour 699/15 10,485 73,395 293,580 3,522,960

Package/Per
Head

TOTAL 10,485 73,395 293,580 3,522,960

Table 13 above shows the production cost of projected sales per day, weekly,
monthly and yearly. To get the daily cost, the number of customers multiplied by the
total cost of each product equals the daily cost. The daily cost is multiplied by six days
of operation equals the weekly cost. The weekly cost is multiplied by four weeks of
operation and equals the monthly cost. Lastly, the monthly cost multiplied by 12 months
of operation equals the yearly cost. The total production cost per day is 10,485.00
pesos. The total production cost per week is 73,395.00 pesos. The total production cost
per month is 293,580.00 pesos, and the total production cost per year is 3,522,960.00
pesos.

CHAPTER 3
ORGANIZATIONAL AND MANAGEMENT ASPECT

This chapter shows the discussion about the basic considerations in forming the
organization. This part talks about the legal form of business, organizational structure,

34
qualifications for the employees, office equipment, and the Gantt chart of activities
which shows the schedule of the business. The processes of organizing, planning,
leading, and controlling resources within the organization have the overall aim of
achieving its objectives. The organizational management of a business needs to be able
to make decisions and resolve issues in order to be both effective and beneficial.

Legal Form of Business

Baratu Travel and Services, the proposed business shall be held and managed
under the partnership form of a business organization. To keep the business afloat in
this type of arrangement, each general partner must provide an equal share of capital
and investment. Partners need to provide labor in addition to money. In addition, each
partner is entitled to an equal share of the profits, losses, and liabilities because they
each contributed an equal amount. Nonetheless, a partner will still receive equal shares
as the other partners, even if they invest or give significantly more. In order to minimize
disputes, owners acting as general partners will draft a partnership agreement giving
each partner equal authority over supervision, decision-making, and partner tasks. In
the end, the partners have responsibility and rights pertaining to the relationship. To
handle every aspect of the firm, including transactions and operations, each partner will
be held responsible.
So, as stated in the signed partnership agreement, each partner will be assigned
a specific function, which they must fulfill responsibly. Partnerships can easily cope with
the needs of the business. When the business grows, it can easily expand or create
another branch. It will help increase the profit of the business and provide more
opportunities for people. Through partnerships, it builds competitiveness among the
competitors and the growth of the business.

Organizational Structure

Managing
Director
Tour
Manager
Techinical Finance Safety
35

Manager Manager Manager

 Figure 5

The Organizational structure is under the management of partnership. Therefore,

they are the owners of the business. When one of the business owners is not around,
the other owner can still manage the business correctly. The business partners will
carefully choose each employee, making sure that is a perfect fit for the position and
has relevant work experience. To guarantee that the quality assurance requirements
and measures are satisfied, the business will be under the partner’s personal
supervision. In order to increase their excellent efficiency, the staff will receive training
to offer a variety of skills and amazing capabilities. Additionally, the partner’s and staff
are in charge of keeping the entire establishment safe and clean.

Table 14: Qualifications of Officer

36
Position Qualifications Responsibility

Managing - A bachelor's, master's, or doctorate in - The role involves developing and

Director business, preferably an MBA or higher, implementing strategic plans,
with 10-20 years of experience, a maintaining stakeholder dialogue,
proven management track record, and driving organizational success,
familiarity with market changes, providing strategic advice to the
corporate law, and best practices. board, and preparing
comprehensive business plans.
Tour - A high school diploma, experience as - The role involves planning and
Manager a tour manager, ideal formal event distributing detailed itineraries,
coordination training, security- booking transportation,
conscious, professional, and accommodation, visa applications,
comfortable managing high-budget collaborating with security,
tours. marketing, and venue operations
teams, and shipping necessary
equipment.
Technical - A bachelor's degree in Information - The role involves planning and
Manager Technology, Information Systems, or booking tour itineraries, transport,
Computer Science is required. An accommodation, and services,
internship in an IT department is overseeing all aspects to ensure
required. Five years of experience, customer satisfaction, developing
moving up to Project Manager or Senior and maintaining relationships with
Engineer, is required for promotion to service providers and venue
Technical Manager. operations teams, and managing
travel documents, visas, tickets,
and seat assignments.
Finance - A bachelor's degree in finance, - The role involves managing an
Manager accounting, or economics is required, organization's financial health,
along with at least five years of creating financial reports,
experience in other business or financial developing and implementing
occupations, professional strategies, managing investments,
communication skills, analytical thinking, and analyzing fiscal data to
honesty, and integrity. maximize profits.

Safety - The individual possesses a safety - The role involves creating and
Manager management degree, prior experience, implementing health and safety
extensive knowledge of health and plans, conducting employee
safety protocols, excellent attention to training, monitoring compliance,
detail, and outstanding communication investigating accidents,
skills. 37
implementing corrective actions,
and leading the company on safety
issues and legal guidelines, while
Table 14 The table outlines the number of required employees for each job, including
job descriptions, required qualifications, and qualifications for each position. As
business partners, no wage is paid based on roles. The table includes managing
directors, tour managers, technical managers, finance managers, and safety managers

Table 15: Gantt Chart

38
 Months
J F M A M J J A S O N D

Project
Preparation

Registration of
Businesses

Canvassing

Structure of
Engineering

Machine delivery
and installation

Employee hiring
and supplier
selection

Promotion and
trial run

Table 15 shows the production schedules before the usual operation of Baratu
Travel and Services begins. The researchers believed that Baratu Travel and Services
will be fully prepared for the public in 12 months.

1. Project Preparation (January 1 to March 31)Conducting surveys, analyzing data,

locating the best company location, and selecting what things to produce

39
2. Registration of Businesses (April 1–May 31)Completion and submission of all
relevant requirements for the firm's business license and permit.
3. Canvassing will take place from June 1 to June 30.Needed machinery and
equipment are being sought.
4. Structure of Engineering (July 1–August 31)Building and renovation of the
company location
5. Machine delivery and installation, as well as furniture and fixtures (September 1–
September 30)
6. Employee hiring and supplier selection (October 1–31)
7. Promotion and trial run (November 1–December 31)
8. Beginning of Business (January 1)

40
 CHAPTER 4
FINANCIAL ASPECT
The business's financial aspect is the main focus of this chapter, which also
includes projected financial statements that include the balance sheet, income
statement, cash flow statement with changes in partner's equity, and financial analysis.
The projected costs also include sources of financing and financial assumptions.
Following this analysis, it might be able to estimate and take on the total costs and
expenses associated with the travel agency.

Total Projected Cost

The overall cost of this project includes all the incurred expenses in making this
business possible to the market. This identifies the three (2) sections: the Pre-operating
Expenditures, and the Operating Expenses. Total projected cost is the sum of all
anticipated-on site development costs that must be funded to complete the proposed
project.
Table 16. Total Projected Cost
Capital Expenditure:
Office Equipment 67,138
Furniture and Fixtures 57,300
Total Capital Expenditures Php 124,438.00
Pre-Operating Expenditures:
Marketing and Advertising 5,000
Business Registration 20,365
Total Direct Expenditures Php 25,365.00
Operating Expenditures:
Utilities Expenses (12 months) 177,588

Rental Expense (12 months) 180,000

Installment of Equipments 15,000

Total Operating Expenditures: Php 372,588.00

Total Projected Cost Annually Php 522,391.00

41
 The table 16 total cost of the business project was PHP 522,391. Each board of
directors must contribute Php 110,000, which will equal Php 550,000. The total project
cost is composed of capital expenditures and working capital requirements. The capital
expenditures consist of equipment and fixtures, and these assets are only purchased
once at the beginning of the operation, as are the direct expenditures. The project is
based on the survey assumption of the price made by the proponent.

Sources of Financing
Table 17. Source of Financing
Owners Name Contribution Amount
Bantugan, Lizlie Jean H. 110,000
Dadula, Ma. Christina Cassandra R. 110,000
Duliente, Leslie Mae I. 110,000
Gabato, Charlie Jane Z. 110,000
Ortega, Aiken Kessley D. 110,000
Total Php 550,000.00

The table 17 above shows the source of financing for the business. The primary
source of financing for Baratu Travel and Tours comes from the owners fund; this fund
comes from their own personal cash and savings. The owners agreed to invest Php
110,000 to complete the business capital of Php 550,000. The large portion of the
invested capital will be used for some emergency needs of the business, like
purchasing other machinery and equipment and other supplies.

Financial Assumption
Baratu Travel and Services assumed three years of business operations after it
initially opened doors for business. The personal savings of the five partners in the
business will serve as the primary sources of capital for the business; collectively, they
will contribute Php 110,000.00, bringing the total investment to Php 550,000.00.

42
In addition to that, its annual sales have been growing at a rate of 35% per year. Cash
will be the only form of payment accepted for all sales transactions. It is possible that
the costs of rent and salary will go up depending on the amount of inflation that occurs
over the year of operation and the adaptation of wage increases. The company's
projections for monthly sales were based on the assumption that the economy would
continue to be stable. Partners have been kept up to date with the progress of the
business plan. Cash transactions account for the entirety of the annual revenue.

Projected Financial Statement

The income statement and balance sheet of Baratu Travel and Services for the project
are shown in the projected financial statement report. This provides important
information for tracking financial information related to the firm. The owners want to
know where their money has gone, where it is now, and where it is going. Financial
statements provide important information about a company's financial health and are a
means for them to maintain track of their activities, as well as a description of their
financial health.

43
Table 18. Projected Income Statement
Baratu Travel and Services
Projected Income Statement
For the Year 1 to 3
Year 1 Year 2 Year 3
Gross Revenue 3,175,500.00 6,351,000.00 9,526,500.00
Net Revenue 3,175,500.00 6,351,000.00 9,526,500.00
Gross Profit 3,175,500.00 6,351,000.00 9,526,500.00
Operating Expense

Utilities Expense 177,588.00 177,588.00 177,588.00

Office Equipment 67,138 8,640 8,640
Furniture and Fixtures 57,300 - -
Rental Expense 180,000 180,000 180,000
Business Registration 20,365 31,755 63,510
Marketing and Advertising 5,000 5,000 5,000
Total Expenses 507,391.00 402,983.00 434,738.00
Income before Taxes 2,668,109.00 5,948,017.00 9,091,762.00
Income Tax Expense 20% 532,421.8 1,189,603.4 1,818,352.4
Net Income After Tax 2,129,687.2 4,758,413.6 7,273,409.6

The income statement presents the financial results of a business for the stated
period. It shows the profit and loss statement, which details how much profit or loss a
business made during the designated period once operating expenses are subtracted
from overall revenue. The projected income statement shows if the business has gains
and losses. It shows the financial statement for years of operation. The sales of Baratu
Travel and Services are expected to increase by 35% every year.

Table 19. Projected Cash Flow

44
 Baratu Travel and Services
Projected Cashflow Statement
For the Year 1 to 3
Year 1 Year 2 Year 3
Working Capital 550,000 3,218,109 2,729,908
Cash inflows
Cash from Revenues 3,175,500.00 6,351,000.00 9,526,500.00
Available Cash Balance 3,725,500 9,569,109 12,256,408
Cash outflows
Operations

Utilities Expense 177,588.00 177,588.00 177,588.00

Office Equipment 67,138 8,640 8,640
Furniture and Fixtures 57,300 - -
Rental Expense 180,000 180,000 180,000
Business Registration 20,365 31,755 63,510
Marketing and Advertising 5,000 5,000 5,000
Total Operations Cash 507,391.00 402,983.00 434,738.00
Outflows
Net Increase in Cash 2,668,109 5,948,017 9,091,762
Add Cash Beginning
Balance 3,218,109.00 2,729,908.00
Ending Cash Balance 3,218,109.00 2,729,908.00 11,821,670.00

A cash flow statement is a financial statement that outlines a company's cash

inflows from ongoing operations and external investment sources. The exchange of
money over time between a firm and outside factors. Throughout the following three
years, the company's operations will have an impact on its cash flow. The exchange of
cash between a firm and outside forces over time forms the basis of cash flow, and
investors can assess whether the company can cover costs and asset acquisitions. Tax
payment will be difficult due to the tax exemption from the first to the third year.
Table 20. Projected Statement of the Financial Position

45
 Baratu Travel and Services
Projected Financial Position Statement
For the Year 1 to 3
Year 1 Year 2 Year 3
Current Assets
Cash 3,218,109.00 2,729,908.00 11,821,670.00
Non-current Assets
Operations
Office Equipment 67,138 8,640 8,640
Furniture and Fixtures 57,300 - -
Total Non-current Assets 124,438 8,640 8,640
Total Assets 3,342,547 2,738,548 11,830,310
Liabilities and Owner’s 5,000 5,000 5,000
Equity
Income Tax Payable 20,365.00 31,755.00 63,510.00
Partner’s Equity 2,129,687.2 4,758,413.6 7,273,409.6
Total Liabilities and
Partner’s Equity 2,150,052.2 4,790,168.6 7,336,919.6

The projected financial position, together with an income statement and a cash
flow statement, is one of the three primary financial statements. It is a description of a
company's financial situation that lists its assets, liabilities, and owner's equity at a
specific moment in time; in other words, the balance sheet depicts a company's financial
status. The most significant information provided by a balance sheet is your company's
net worth, or its value after subtracting liabilities from assets. The business is steady,
and it will remain stable for the duration of the contract. The current asset on our
balance sheet is the cash on hand, which will be added to the overall current asset of
the organization. Billings, costs, and the required license are the business's non-current
assets. The total asset will be calculated by adding the total current and non-current
assets. Total owner equity equals total capital contribution plus net income, and total
owner equity plus total liabilities equals total liabilities and equity.

46
Table 21. STATEMENT OF CHANGES IN EQUITY

Baratu Travel and Service

Projected Statement of Shareholder's Equity

For the year 1 - 3

YEAR 1 YEAR 2 YEAR 3

Beginning Capital
Balance 550,000.00 3,218,000.00 2,279,908.00

Add: Net Income 2,129,687.20 4,758,413.00 7,273,409.60

Ending Capital Balance 2,679,687.20 7,976,413.00 9,553,317.60

The table shows the changes in equity whether the business owner can Increase
profits or whether it must invest more money to make up for any shortfalls. The
statement explains how a company's share capital, accumulated reserves, and retained
earnings changed during the current period. Since the owner’s shares funds in total of
Php 550,000, the capital will reflect in the first year of the beginning capital balance. The
net income came from the projected income statement, amounted to Php 2,129,687.20
for the first year. The ending capital balance of the first year will be reflected on the
second year in the beginning capital balance and the same goes to the third year.
Ending capital balance amounted to Php 2,679,687.20 for first year, and Php
7,976,413.00 for second year, and Php 9,553,317.60 for last year.

FINANCIAL ANALYSIS

47
Break-Even Point

At this sales level, the break-even point of P24,160.00 indicates that the
company will not incur any net operating income or losses. This implies that the
contribution margin at this sales level is sufficient to cover the total fixed cost. To earn a
net operating income, the proposed business should have sales levels that exceed the
break-even point.

Table 22: Break Even Point

Variable Cost

Office Supplies 1,738

Taxes and licenses 20,365.00

Total 22,103.00

Fixed Cost

Rent Expense 180,000

Total 180,000

Break-Even Total Fixed 180,000

Point Cost
Contribution Margin Ratio
= Contribution = 99.3% = 181,268.88
Sales Margin Ratio 3,175,500 100%

Variable Cost - 22,103 .7%

Table 23:
3,153,397 99.3%
Payback Period

48
 Payback Investment 550,000.00
Period _______________ _______________
Net Cash flow from = = 3.16 or 3 years
507,391.00
Operating Activities and 2 months

The payback period is an indication of how long the partner’s investment costs
will be recovered. The payback period is 3.16, or 3 years and 2 months. This is the time
frame in which the partners will recoup their investments in the business. The payback
period is derived from the partner’s contribution of Php 550,000.00, which is composed
of seven (5) individuals over the net income of the business every year. The table
shows that the partner’s money contributed by the member will be back after 3.16, or 3
years and 2 months, as shown on the table. This is a good implication for investors to
invest because it takes only a year and two months to return the investment, but still,
the investor will continue to invest as long as the business continues to profit.

Profitability Ratio
Table 24: Return of Investment

Formula Year 1 Year 2 Year 3

Net Income
2,129,687.20 4,758,413.00 7,273,409.60

Initial Investment 550,000 550,000 550,000

ROI in percentage 38.7% 86.5% 13.22%

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 Baratu Travel and Services demonstrate profitability by having a positive rise in
earnings over a three year period. The return of investment has a positive result which
means that the investment is performing well in the operation of the business.

Table 24.2 Gross Profit Ratio

Formula Year 1 Year 2 Year 3

Gross Profit 3,175,500.00 6,351,000.00 9,526,500.00

Sales 3,725,500 9,569,109 12,256,408

Gross Profit in 85% 66% 78%

Percentage

The table shows the gross profit ratio of Baratu Travel and Services. The gross
profit percentage each year is increasing, which means that the business can make a
reasonable profit from its sales from the first year and the preceding years.

Table 24.3 Net Income to Sales Ratio

Formula Year 1 Year 2 Year 3

Net Income
2,129,687.20 4,758,413.00 7,273,409.60

Sales 3,725,500 9,569,109 12,256,408

Net Income to 6% 5% 6%
Sales in

50
 Percentage

The table demonstrates that the company is doing well in terms of sales, as the
profit grows year after year. The higher the proportion, the better, as it signifies that for
every more revenue generated, a greater profit is generated.

Liquidity Ratio
Table 25: Current Ratio

Formula Year 1 Year 2 Year 3

Current Assets 3,218,109 2,729,908 11,821,670

Current Liability 20,365 31,755 63,510

Total 15.80 85.96 18.14

The table shows the current ratio of the business. This indicates that the
company is performing well and has the ability to pay short-term obligations. As asset
value is greater than liability value, The business can maximize the current assets on its
balance sheet to satisfy its current debt and other payables since the current ratio
percentage is high enough to meet its obligations.

Solvency Ratio
Table 26: Debt to Asset Ratio

Formula Year 1 Year 2 Year 3

Total Liability 20,365 31,755 63,510

Total Asset 3,342,547 2,738,548 11,830,310

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 Debt to Asset 6% 12% 53%
Ratio

The net income-to-sales ratio is determined by dividing net income by net sales.
According to this table, our company's debt ratio in the first year was 6%, 12% in the
second year, and 53% in the third year. In the firm, the overall net income ratio is quite
good. There is significant growth.

Table 26.2: Equity to Asset Ratio

Formula Year 1 Year 2 Year 3

Total Equity 2,150,052.2 4,790,168.6 7,336,919.6

Total Asset 3,342,547 2,738,548 11,830,310

Equity to Asset 64.32% 17.5% 6.2%

Ratio

For year 1, 6.4% of the total assets is contributed by the owners of the
business. Additionally, years 2 and 3 show 17.4% and 6.2% of the total assets of the
said years are contributed by the owners of the business, respectively.

CHAPTER 5
SOCIO ECONOMIC ASPECT
This Chapter discusses the socio economic aspect of our services that will go on
business to be able to analyze its contribution to the customers, community,
employment, environment, government and the tourism industry. It shows that our
company is not just for our profits to go profit but it is also for showcasing the strengths

52
that this store's contribution to tourism industry revenues has brought to its employees,
valued customers, people of the area, the municipality, the province, and the region as
well as the society by promoting development and promoting the different destination in
Davao City.

CUSTOMER
Marketing is essential in supporting firms in attaining this aim, and it comprises
much more than just advertising, promoting, and collecting money, according to
Theodore Levitt, a well-known economist and Harvard Business School professor.
Connecting people and services as well as clients and companies, is how marketing
does it, businesses can no longer operate. Without the customer, there would be no
sales, so our company will closely monitor its customer interactions to find methods to
enhance our service and better satisfy the wants of the clientele since happy clients are
more likely to recommend businesses to others.

COMMUNITY

The firm will greatly contribute to our country. We will be able to extend our help
to our countrymen by promoting tourism within the country. We know that once we
encourage people in the country to have jobs, it will be able to help Filipinos improve
their lives.The business will also coordinate with various organizations and groups that
aim to protect our natural resources. In that way, the country will be more exciting to
visit. We will also give tasks and seminars to different places so that they will know what
to do to enhance their area to be a suitable place for traveling.

EMPLOYMENT

In the first six months of generations of Baratu Travel and Tours, the owners of
the said company worked as employees of their own businesses. After a few months of
operations, these owners will employ proponents who will take their places. In that way,
we are helping competent and qualified job seekers and unemployed individuals with

53
considerations to their ability,character, and educational attainment, as well as their
skills and knowledge, and we are providing them with a source of income themselves.

ENVIRONMENT

The business must abide by the law from an ecological point of view. Since our
services are a company of Tour agency company, the Environmental effects can be
reduced by using environmental thinking. It aids in preserving natural resources
especially when we are talking about services that go to different destinations. Correctly
separating trash and disposing of it in the appropriate manner, the company may
protect the environment in various ways. Employees feel more at ease working when
the surrounding area is taken care of because they value their business. Environmental
issues must be raised because doing so would benefit both the environment and a
business’ reputation.

GOVERNMENT
The government’s income comes from individuals and businesses that are
obliged to pay taxes as contributions for the development of the country. In order to
carry out government functions, employees and businesses like Baratu Travel and
Tours should pay taxes promptly and honestly.

The facilities and standardization, building, infrastructure expansion projects for

livelihood programs, paying off government debts, and developing the country. The
higher the taxes and revenues, the more funds will be provided to the programs or
projects of the government that really benefit the public. In order to lessen the economic
crises we are experiencing, owners and employees must know their duty to pay tax.

REFERENCES

Sra, A. (2014). SAIZEN TRAVEL AND TOURS. www.academia.edu.

https://www.academia.edu/8708598/SAIZEN_TRAVEL_AND_TOURS?
fbclid=IwAR0xiLn7bKcSF3RxBQXOnNrKvNz0slPVCwVMBaMP8XIVLFpkeVdWn9RGNcY

54
LandAir-Paradise-Travels-and-Tours_Feasibility-Study.docx. (n.d.). Scribd.
https://www.scribd.com/document/490177499/LandAir-Paradise-Travels-and-Tours-Feasibility-
Study-docx?
fbclid=IwAR1QhibPMMiFwXYDU2MU_YFemzmo3_w1jxkBxqpnnYYulQpUcQvBLBhU3q4

Differences Between Travel Agencies & Travel Services. (2016, October 26). Small Business -
Chron.com. https://smallbusiness.chron.com/differences-between-travel-agencies-travel-
services-23525.html

Glossary | DataBank. (n.d.). https://databank.worldbank.org/metadataglossary/world-

development-indicators/series/TX.VAL.TRVL.ZS.WT
Related laws and policies | DTI ECommerce. (n.d.). https://ecommerce.dti.gov.ph/related-laws-
policy-issuance/?fbclid=IwAR2yKAvN4J7hJNc8Gko3JiZU2rjAIgdhF7mw3xhGkM-
5ODG6s59LrxwUMs

Department of Trade and Industry. (2023, October 16). Business Registration and Permits |
Department of Trade and Industry Philippines. Department of Trade and Industry Philippines.
https://www.dti.gov.ph/negosyo/business-registration-and-permits/?
fbclid=IwAR2cpBv81oTrzgviAITuelVOkEdIxVMo0AdLl9jAzpNbx8r7jSKVO-ATt8Q

Administrator. (2021, October 11). Processing of business permits. City Government of Davao.
https://www.davaocity.gov.ph/services/social-services/processing-of-business-permits/?
fbclid=IwAR2nUhubLADA1FT9nZ7NPrhD2vvNWrej-dY7OO8CdflQwa1mceOtRFdczLQ

Abapo, A. S. R., CPA. (2023, March 10). Steps in business registration and securing a business
permit in Davao City. Davao Accountants.
https://www.davaoaccountants.com/2020/02/10/davao-business-permit/?
fbclid=IwAR0uplte5IK8YzK_Upwu1txwZDqqkS4FIaCFjxXcFo-6XvzRmG_GwpOzoJg

APPENDICES

A. BUSINESS LOGO

55
 This is the official symbol of the company Baratu Travel And Services. it will be
used as the trademark and displayed on their location as in addition to the Services
Offer.

B. SURVEY QUESTIONNAIRE

Baratu Travel and Tour Services Feasibility Study Survey Questionnaire

Mabuhay ug Madayaw To our respondents: We the 3rd year Tourism Students of
Holy Cross of Davao College, are conducting a feasibility study with a title:
Baratu Travel and Tour Services. With this regard, we approach you with this
questionnaire to know your preference towards our services. Your responses and
information will be kept anonymous and will not be used for any purposes. We
extend our sincere thanks for your valuable time and participation in answering
our survey questionnaire.

SURVEY QUESTIONNAIRE

Name(optional):

Age:
Gender:

56
 o Male

o Female

Occupation:

o Students

o Employed

o Unemployed

Do you love to travel?

o Yes

o No

How often do you travel?

o Weekly

o Monthly

o Occasionally

How long do you usually stay when traveling?

o 1 day

o 3 days

o Weeks

o Months

Who do you go with when you travel?

57
 o Family

o Friends

o Workmates

How do you prefer to travel

o Van

o Bus

o Car

Have you availed any traveling agency services?

o Yes

Do you have any places for round in Davao you wish to travel?

o Yes

o No

Where do you currently book for a travel services?

o Walk in

o Online

o Others:_________

Do you think we will offer a good services?

o Yes

58
 o No

Do you wish to inquire or book with us?

o Yes

o No

Suggested Places in Davao:______________________________

CURRICULUM VITAE

Personal Information

Name: Bantugan, Lizlie Jean Humbid

59
Birthday: May 20,1999

Age: 24

Hometown: Davao City

Phone Number: 09456295654

Email: lizliejean.bantugan@hcdc.edu.ph

Educational Background

Tertiary: Holy Cross of Davao College

Senior High Level: Davao Central College

Secondary: Davao Central College

Primary: Don Juan dela Cruz Central Elementary School

Personal Information

Name: Dadula, Ma. Christina Cassandra R.

60
Birthday: June 4, 2003

Age: 20

Hometown: Davao City

Phone Number: 09455438044

Email: ma.christinacassandra.dadula@hcdc.edu.ph

Educational Background

Tertiary: Holy Cross of Davao College

Senior High School: Emar Human and Environmental College

Junior High School: Daniel R. Aguinaldo National High School

Primary: Kurosawa Development School Inc.

Personal Information

Name: Duliente, Leslie Mae I.

61
Birthdate: September 22,2002

Age: 21

Hometown: Baganga Davao Oriental

Phone Number: 0961 966 9422

Email: lesliemae.duliente@hcdc.edu.ph

Educational Background

Tertiary: Holy Cross of Davao College

Senior High School: Maryknoll School of Lambajon

Junior High School: Maryknoll School of Lambajon

Primary: Lambajon Central Elementary School

Personal Information

Name: Gabato, Charlie Jane Zamora

62
Birthdate: June 17, 2003

Age: 20

Hometown: Andap, New Bataan, Davao de Oro

Phone Number: 0945 154 9165

Email: charliejane.gabato@hcdc.edu.ph

Educational Background

Tertiary: Holy Cross of Davao College

Senior High School: New Bataan Senior High School

Junior High School: New Bataan National High School

Primary: Taytayan Elementary School

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