Revenue Model
A business revenue model ought to define how the business will make money. One key feature to consider when developing the business model is the core service of the business and the medium which the services will be provided to the customers (Schneider 2008).
If the business undertakes its services online, it is essential to come up with an online revenue model. In designing the business proposal revenue model, services can be offered to the customers directly through the services offered, and customers can be able to pay through online payment methods or directly to the tour company (Li 2006).
In the long-term, the company will expect to make revenue by selling advertising space to affiliated business enterprises such as hotels, airlines and other affiliated companies. In this regard, sales may be made through affiliate marketing, where Sherly Group receives commission from the affiliated companies by marketing their services on the company brochures and other forms of advertisements.
Operational Mode
The strategic role of Sherly group in the entire luxury market tourism industry is very important, especially in determining the niche market for the business and where to position the business in the market. If the business intends to organize and package travel holiday products, then the business is expected to fall within the category of tour operations (while the individuals will be perceived as tour operators) (FTO 2011, p. 1).
Often, the core function of such a business is to make adequate arrangements with airline companies, ground support companies and hotels to come up with a comprehensive holiday product for their customers. Travel agents are known to sell their advice to the customers.
Sometimes, travel agents can do holiday booking for individual customers or tour operators, but other times, they are seen to carry out normal tasks like car hiring, airline ticket booking (and the likes) for individual clients and companies.
A ground handler implements the travel choices made by the clients, and their services may include driving the tourists around their destinations, offering tour guides (and the likes). In the context of the submitted business proposal, the business nature of Sherly travel group describes a tour operation company.
Vague Descriptions
In writing a good business proposal, it is important to articulate every element of the business plan in detail to ensure the business plan is comprehensive enough to cover most functional areas of the business. In the context of Sherly travel group, emphasis should be made to the marketing, financial and human resource elements of the business.
In coming up with the best marketing plan for the business, the business description should outline: the target market; the primary business environment; the business goals and the required marketing strategies (designed to achieve business goals) (Hiebing 2004).
The human resource plan should include how the business expects to recruit new employees; planning and appraisal concept; succession planning strategy; job design concept; compensation and reward strategies and how the organization will foster individual or team development (Jackson 2008).
The financial elements of the business plan will include elements like: the revenue model, how the organization will obtain financing; tax plan and financial resource allocation (Care One 2010, p. 1). Observing these elements will avoid vague descriptions in the business plan.
References
Care One. (2010) Elements of Financial Planning. Web.
FTO. (2011) Tour Operators and Travel Agents. Web.
Hiebing, R. (2004) The One-Day Marketing Plan: Organizing And Completing A Plan That Works. London, McGraw-Hill Professional.
Jackson, S. (2008) Managing Human Resources. London, Cengage Learning.
Li, F. (2006) What Is E-Business?: How The Internet Transforms Organizations. London, Wiley-Blackwell.
Schneider, G. (2008) Electronic Commerce. London, Cengage Learning.