TECHNICAL ASPECT

I. Introduction

This aspect discusses the necessary calculations for the smooth operation of the

travel agency to be established. It also determines the necessary machinery,

equipment, and supplies needed in the operation of the business. The selection of

proper location as well as floor layout will be discussed in this aspect.

The estimation of the project cost of the business will be include and as well as

the quantity and quality of labor to be hired.

Furthermore, this aspect will help us evaluate our resources effectively. It will

enable us to maximize the use of our assets and capitals to generate the highest

possible income for the continuous capital build up to be used in rendering services.

II. Objectives of the Study

The objectives of this portion of the feasibility study are stated below:

1. To define the service offered to the public and its significance

2. To determine the estimated cost of materials, equipment, supplies, and

other pre-operating expenses

3. To show the plant location and its layout

4. To determine the exact location of the plant

5. To discuss the procedure in availing the services offered by the agency

III. Major Assumptions in the Study

Transactions will be much faster, effective, and efficient because of a software

program being used.

Even without their personal appearance, prospective clients can acquire our

services through our website wherein information and schedule of travels and

certain order forms will be included and presented.

Profit will rise when future advertisement and daily operations are followed and

done carefully.

When it comes to travelling, there are two presumptions: one would be for the

exclusive trips and other is for open bookings. Strategically, the company will

decide the date of the tour in that matter.

The proposed business will have 12 months of preparation before the start of

the operation.

Prices of certain machineries and equipment will soon increase in value.

The location of the site is clearly visible from the road and accessible for

prospective clients.

For the clients and employees health, proper waste disposal should be

observed.

IV. Service

Hermes Travel Agency & Services is a travel agency that caters tourists and

local travelers to satisfy their needs for adventure. It envisions to provide quality service

to its customers while promoting potential tourist spots in Region 11 & 12. We will
provide three packages, each package has different destinations, stops, and services

offered. To provide the travelers safe, hassle-free trips, and more locations to explore,

this agency will follow all the rules and regulations required for its operations. Hermes

Travel Agency & Services will be your guide in exploring Region 11 & 12. Hermes

Travel Agency,

The focus of our business, Hermes Travel Agency & Services, will act as a travel

agency that would provide the tourists and local travelers the satisfaction they need as

they explore Region 11 & 12. We will also provide rental services. During laxed

schedules, we will also provide transportation from Kidapawan City to Davao City and

places in between.

V. Operations

Hermes Travel Agency & Services is focused primarily as local travel agents. In

order to issue those reservations, the business must submit a letter of application to the

resorts, inns and Mt. Apo Trek Business Sectors that they are dealing with and this is

done through email. If the companies sent a letter of acceptance, the business can now

operate depending on the reservation and the quantity of customers, which can be

determined from past sales. And we will assure that every person in the trip will have an

insurance by which will be paid yearly.

Automated Reservation

In the field of automation, the agency will use a computer software system that

provides instant information of schedules, pricing in addition to seats reservation and

other services.

These software systems are commonly known as Computerized Reservation

System (CRS). A CRS enables the travel agent who is on-line or connected to the

system, to access all the information through a computer reservation terminal and

allows the agent to make reservations by filling in the correct information in the

designated format for a specific package or days without tours appearing in the menu of

the software package.

Operational Procedure

Hermes Travel Agency & Services will operate from 8 o clock (8:00 A.M.) in the

morning until 5 o clock (5:00 P.M.) in the afternoon. We will also start up an online page

for reservations and inquiries regarding the packages and services we offer. The

agencys office operates 5 days a week from Monday to Friday. Employees of the

establishment must arrive and be timed in using a biometric scanner an hour before the

agency opens.
(Financial)

A. Service Pricing for Exclusive

Package Price

1 P19,500

2 P20,800

3 P53,300

Service Pricing for Open Booking

Package Price

1 P1,500 pax

2 P1,600 pax

3 P4,100 pax

Price = XVc + Fc + Desired Profit

X=Number of person Fc=Fixed Cost

Vc=Variable Cost

The contents of each package:

Package 1

The time of departure will be at 9:00 A.M. from Hermes Travel Agency &

Services. It will cover Lake Agco(travel for 45 minutes and stay for 2 hours and 30
minutes); Lake Sebu(travel for 2 hours and 30 minutes, stays overnight and departs at

9:00 A.M.); Lake Holon(travels for 3 hours, stays overnight, and departs at 12 noon);

Kidapawan city(end of trip). This package will only accommodate for the entrance fee of

each location, cottages, tent, the transportation, and their health insurance during the

trip. The package will not accommodate their food expenses. However, we will provide

them brochures for every location covered by the package. This package will take 3

days.

Assumption: 13 passengers

Package 1: Lake Agco Entrance = P30 per head Lake Sebu Cottage = P1,350

Lake Sebu Entrance = P300 per head Lake Agco Cottage = P600

Lake Holon Entrance = P250 pax

Insurance = P50 pax

Gasoline = P750

Tent = P30 pax

Formula:

Price = 660(x) +( 2700+ 8220)/13

= 660x +840

= P1,500.00

Package 2

This package departs at 9:00 A.M. (If tourist) from Francisco Bangoy

International Airport. (If Domestic) it will start from Kidapawan City. This package covers
Crocodile Park(travel for 30 minutes and departs by 12:30 P.M.); Sibulan River(travel

for 1 hour and 30 minutes, a free whitewater tube ride for every person , and stay for 1

hour); Virgin Falls(travel for 30 minutes and stay for an hour); Marawer Hot Spring(travel

for 30 minutes and stay for 2 hours); Camp Sabros (travel for 2 hours, stay overnight,

and departs at 1 in the afternoon); Little Boracay (travel for 2 hours, stay overnight, and

departs at 1 in the afternoon); Davao (end of trip). This package includes transportation

fee, entrance fee for each location, and their health insurance. This package will last for

3 days.

Assumption: 13 passengers

Package 2: Crocodile Park Entrance = P200 pax Little Boracay Entrance = P40 pax

Sibulan River Tubing = P400 pax Little Boracay Cottage = P1,000

Camp Sabros Entrance = P25 pax Gasoline = P1,000

Camp Sabros Cottage = P500 Insurance = P50 pax

Formula:

Price = 715(x) +( 2,500+9720)/13

= 660x +840

= P1,600.00

Package 3
 This package departs at 8:00 A.M. from Hermes Travel Agency & Services office.

This package covers Mt. Apo Trek (will take 3 days and 2 nights); Lake Agco (stay

overnight and departs at 9:00 A.M.); New Israel (1 hour and 30 minutes travel and stay

for 2 hours); Eden Nature Park(travel for 3 hours and 30 minutes and stay for 2 hours);

Pearl Farm Beach Resort(travel for 2 hours, stay overnight, and departs at 1 in the

afternoon); Kidapawan city(end of the trip). This package includes transportation fee,

entrance fee for each location, tent, and their health insurance for the whole duration of

the trip. This package will last for 5 days.

Assumption: 13 passengers

Package 3: Mt. Apo Trek = P2,500 pax Gasoline = P1,300

Lake Agco Entrance = P30 pax Insurance = P50 pax

Lake Agco Cottage = P600

New Israel Zipline = P400 pax

Eden Nature Park Entrance = P220 pax

Formula:

Price = 3200(x) +(1,900+9,800)/13

= 3200x+

= P4,100
VI. Service Schedule

Time Table

Stages involved in establishing a travel agency would include project planning,

business registration, canvassing of machineries and equipment, engineering or

renovating structure and modification of the building, delivery and installation of

machineries, hiring of employees, selecting suppliers, trial run, promotion and finally the

start of the normal operation.

For Hermes Travel Agency & Services, the researchers assumed a 12-month

time span for the business to be fully prepared for the public. The planning of the project

will start on January and is assumed to finish on December. According to travel

agencies, November to January and April to May are their peak seasons because there

are lots of travelers who come in and out of the city during this period.
 Project Time Table

Gantt Chart

January

February

March

April

May

June

July

August

September

October

November

December
Planning

Business Registration

Canvassing

Engineering Structure

Delivery and Installation

Hiring of Employees and Selecting of
Suppliers
Trial Run and Promotion
Chart 3.1 shows the production schedule before the Hermes Travel Agency &

Services starts its normal operation.

1. Project Planning (January 1 March 31)

Conducting surveys, interpretation of data gathered, finding best site for business

and what products to produce.

2. Business Registration (April 1 May 31)

Completion and submission of all necessary requirements needed to get a

business license and permit of the firm.

3. Canvassing (June 1 June 30)

Canvassing of machineries and equipment needed.

 4. Engineering Structure (July 1 August 31)

Renovating the business location and building.

5. Delivery and Installation of Machineries, Equipment, and Furniture and

Fixtures (September 1 September 30)

6. Hiring of Employees and Selecting of Suppliers (October 1 October 31)

7. Trial Run and Promotion (November 1 December 31)

8. Start Of Operation (January 1)

VII. Office Equipment

Machinery and Equipment

Machinery and
Image Qty Unit Price Total Price
Equipment

Computer 2 P 24,500.00 P 49,000.00

Printer 1 7,299.00 7,299.00

 Telephone 1 995.00 995.00

Van 2 1,697,000.00 3,394,000.00

Television 1 11,150.00 11,150.00

Air Conditioner 2 13,798.00 27,596.00

Water
1 1,698.00 1,698.00
Dispenser

Mini Vault 1 1,499.00 1,499.00

 Emergency
2 999.95 1,999.90
Light

CCTV Camera 1 12,464.00 12,464.00

Tent 2 23,000 46,000.00

Total P 3,553,700.9

Sources: SM Appliance Cen ter, Gaisano Grand Mall of Kidapawan, EMCOR

Furniture and Fixtures

Furniture and Qty

Image Unit Price Total Price
Fixtures .

Table 2 P 2,250.00 P 4,500.00

Employees
4 789.75 3,159.00
Chair

Customers
3 899.00 2,697.00
chair

Bench 1 7,348.00 7,348.00

Filing Cabinet 2 2,998.00 5,996.00

Total P 23,700.00
Sources : SM Appliance Center, Gaisano Grand Mall of Kidapawan

Office Supplies

Supplies Quantity Price Description

Used for printing and business
Bond Paper 2 reams P 357.00
correspondents
Folder 12 46.25 Used to keep the files in order
This is a white 14x19 envelope
with the name and logo of the
Envelope 20 100.00
company printed on the upper left
corner.
Bond paper with company
Bond Paper
2 reams 450.00 letterhead used for making
with Letterhead
business letters
Used to fasten paper and other
Stapler 2 169.50
materials together
Adhesive Tape
4 280.00 Used to hold adhesive tape
Holder
Adhesive Tape 4 80.00 For sealing purposes
Paper Clips 1 box 75.00 Used for filing papers
Log Book 2 128.00 Used for recording transactions.
For writing purposes to fill up
Ballpen 8 150.00 application form, reservation slip,
signing and recording.
For writing purposes to fill up
Pencil 8 60.00 application form, reservation slip,
signing and recording

Stamp pad 2 150.00 Used for finger printing.

 For writing purposes to fill up
Marker 3 350.00 application form, reservation slip,
signing and recording
Used as an evidence of
Official Receipt 3 400.00
transaction
Where waste like papers and
Garbage Can 4 400.00
plastic are to be placed
Light Bulb 6 750 Used for lighting the place
Used for making a pleasant
Decorations 2 1500.00
working place
Total P 5235.75
Source: National Bookstore, Allans Bookstore, Gaisano Grand Mall of Kidapawan
VIII. Office Location

The proponents of the project decided to strategically place the agency Datu

Ingkal Street, Kidapawan City, Philippines. We chose this place because Kidapawan is

known for its commercial area and is the heart of our Province, North Cotabato. Region

11 and Region 12 has many tourist spots, with millions of visitors from domestic and

foreign places. We see it as an advantage that the building itself is situated within the

city where it is also identified as one of the financial and business core of the Province.

Figure 3.1 Location Map

IX. Office Layout

Hermes Travel & Tours Agency will be renting a commercial space in the city of

our target market. It will be subject to renovation to be appropriate in the management

standard operation.

The business shall occupy an area of 100 sq. meters. The project shall have only

one office unit that to be leased. The biggest area is given to the parking area where the

vans used for our operations are parked. Second, is our lobby where the customers will

stay. They must be able to sit comfortably while waiting for their turn to transact

business with us. The other area is allocated for operations accounting affairs, adjacent

to which is the managers office. There is also a pantry where meetings are held and

also a place where the employees can eat lunch and the like.
 Figure 3.3 Hermes Travel Agency and Services Floor Plan

X. Company Logo
Our company logo is made up of:

The word and image of Hermes as the logo itself represents the Greek
mythology god of travel and the messenger of the gods, it dignifies security and
assurance for the customers travels, which is the primary reason why we came
up with the companys name;
Each color represents different customers from their respective culture and tribes
it shows that the company is offering services for local and international travelers.

XI. Buildings and Facilities

Our office is located at the Aranas Building, Datu Ingkal Street, Kidapawan City.

XII. Cost Requirements (Materials, Sources of RM, Workers, Estimated OH)

Our travel agency office is equipped with electricity and machine needed for

transacting business. The Cotabato Electric Company will provide for the electricity,

PLDT for telecommunication services, and the Metro Kidapawan Water District for the

water supply.

XIII. Waste Disposal

Every employee is responsible for the cleanliness and orderliness of our office. It

is a duty incumbent upon us to be disciplined in the proper disposal of garbage.

Since one of the objectives of our business is to promote tourism, we must set an

image of cleanliness and environmental consciousness, so that our clients will believe

that Region 12 is a clean and beautiful region to visit and be in.

It will be an office policy to recycle used paper and to dispose of old newspapers,

magazines and pamphlets. Old things will be recycled, sold or disposed. Garbage shall

be collected every day before office hours.

 We will see to it that every one of our employees has a health certificate and that

our business has the necessary sanitary permits from the city government, which will

carry out a sanitary inspection of our office.

Everyone in the office must be healthy and all waste are disposed of properly.

The garbage truck passes and collects trash along Datu Ingkal Street twice a

week every Wednesday(biodegradable) and Thursday(non-biodegradable) about 8:00

in the morning. The janitor is responsible for disposing the garbage.

XIV. Labor Requirement

In an agency, a limited number of employees is needed. One of the best assets a

company must have are competent and efficient employees that will run and operate

the business. In a travel agency, it is essential to hire clerks with good personal

relations since they are the ones facing the clients. It is vital for them to be

accommodating so that the clients will patronage the company.

We will also hire on-call employees such as computer technicians, electricians,

and tour guides. There will be also an outsourced accountant who will visit twice a

month to perform his/her responsibility in the company.

Also, we will hire a janitor as our utility man. The janitor is responsible of the

cleaning the office after working hours.

Lastly, we will hire security guards to keep watch of the office and the vehicles

and we will also hire drivers to operate the vehicles.

 Employees will be given proper orientation and direction regarding the objective

of the business, the rules and regulations of the office, and for the employees to know

what should be done.

XV. Project Cost

Hermes Travel Agency & Services will incur several costs before operations can

begin. Costs to fulfill necessary requirements for its business permit; cost to purchase

office equipment and office supplies; to pay its utilities expense; to advertise the office

for publicity; to pay monthly rentals; and to pay taxes and licenses. The company should

allocate a certain sum of money for these expenditures.