Table of Contents

Executive Summary ........................................................................................................................ 1

1.1 Executive Summary ............................................................................................................. 1
1.2 Mission ................................................................................................................................. 2
1.3 Objectives ............................................................................................................................. 2
1.4 Keys to Success .................................................................................................................... 2
1.5 Management Structure ......................................................................................................... 3
SERVICE OFFERING (PRODUCTS) ........................................................................................... 4
2.1 Product Description .............................................................................................................. 4
1.2 FUTURE PRODUCTS ........................................................................................................ 5
MARKET AND CUSTOMER ANALYSIS .................................................................................. 6
3.1 Trends In Industry ................................................................................................................ 6
3.2 Customer Segment ............................................................................................................... 7
3.3 Method of Earning (Revenue Generation) ........................................................................... 8
3.4 Promotional Measures .......................................................................................................... 9
3.5 Features ................................................................................................................................ 9
3.6 Benefits............................................................................................................................... 10
Partners and Competitors .............................................................................................................. 10
Financial Structure ........................................................................................................................ 11
5.1 Estimated Revenue Generation .......................................................................................... 12
5.2 Estimated Annual Cost ....................................................................................................... 12
5.3 Breakeven Analysis ............................................................................................................ 14
 Executive Summary

1.1 Executive Summary

“Ghumante” is a for-profit organization which focuses on major touristic destinations and trekking
destinations and aims to provide hospitality service and budget hotel network in these places.
Beautiful yet chaotic, travelling in Nepal is like riding an emotional roller coaster, with twists and
turns around every corner. From the frozen peaks of the Himalayas to the greenery of terai, this
country contains a seemingly endless variety of landscapes. Possessing eight of the ten highest
mountains in the world, Nepal is a hotspot destination for mountaineers, rock climbers and people
seeking adventure. The Hindu and Buddhist heritage of Nepal and its cool weather are also strong
attractions.
Most travelers follow a carefully planned route. If you are short on time, you visit major attractions
like Kathmandu, Pokhara , Chitwan and if you are planning on visiting for a longer duration, you
usually go on a trek, visit various destinations. So, the main goal of the project is to provide perfect
living space to travelers and book their stay with ease based upon location in an affordable price.
The service will be provided in major touristic areas and on-route places of major trekking
destinations with collaboration of local hotels and homestays.
In case of domestic tourists, for instance, within eight year time 7,198 tourists visited Sirbubari
village. Out of this figure 5858 visitors are internal tourists. The above figures indicate that only
1340 foreign visitors have visited Sirubari till the date. Therefore, it reveals that almost 81%
visitors are internal tourists. Similar type of internal tourist flow is observed in Ghalegoan and
other remaining model villages. Each and every villages of Nepal can be valuable tourist
destinations and can attract enormous internal tourists. By promoting internal tourism the rural
people can be utilize local resources, products, human resources, share ideas and examples and
cultures with others. Such activities help them to generate employment opportunities and bring
changes in their living standard.

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1.2 Mission

To change the way people travel in Nepal.

1.3 Objectives

 To create a service-based company whose mission is exceeding customer’s expectations.

 Capturing 10% market share of the online travel space.

 To develop a sustainable, profitable business.

 To achieve a 35% return rate of customers within the first three years.

1.4 Keys to Success

1. Excellence in fulfilling the promise: We intend to offer completely enjoyable, comfortable

and informative travel excursions that will ensure that travelers are thoroughly satisfied and
appreciative at the end of their trip.

2. Timely response to customers' requests: We cannot afford to delay our clients for whatever
reason, as this will have a negative bearing on our image and reputation, including future

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 business. Hence we need to be continually communicating with the client, including hotels
and lodges so as to ensure that we are constantly available to the client meeting their
expectations.

3. Solid and fruitful strategic alliances: Considering the nature of our services and our relative
infancy on the market, we realize the importance of establishing and maintaining fruitful
strategic alliances with various stakeholders, including hotels, lodges, and travel agencies,
amongst others, so as be assured of a constant flow of customers, fulfilling their needs at every
opportunity.

4. Marketing know-how: As a relatively new company on the market there will be a need to
aggressively market our business and the services we provide so as to be continuously at the
top of our prospective clients minds. This will also act as a temporary deterrent for companies
contemplating entering our market. Advertising shall be undertaken on a regular basis.

1.5 Management Structure

“Ghumante” will be legally registered under hotelier/hospitality/service industry. It will be

divide into following departments:

 Marketing Consultant Department

 Finance Department
 Traffic and Revenue Stream Management Department
 IT Department
 Industry Relations Department
 Analytics Department
 Technical Sourcing Department
 HR Department

Currently, Ghumante has four members:

 Nikesh Devkota (Co-Founder, CEO)

 Pukar Bhandari(Co-Founder, President)

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  Nilesh Maharjan(Co-Founder, Senior Vice President )
 Srijan Shakya(Co-Founder, Principal Software Engineer)

SERVICE OFFERING (PRODUCTS)

2.1 Product Description

“Ghumante” is a website/app designed to enable listing and booking of budget accommodation.

Dedicated travel apps are reported to bring about 130% more traffic and conversion than mobile
websites.
The mission is to change the way people travel away from home. The idea is to make small hotels,
bed-and- breakfasts and inns more accessible to travelers. The real problem for the traveler is not
lack of awareness, but lack of trust. If you are lucky, you will end up having a comfortable stay.
Otherwise, the issues could range from poor quality bed linen, dirty washrooms to even
disinterested or rude staff. “Ghumante” partners with hotels and homestays to standardize rooms
to give travelers a similar experience across major touristic destinations and trekking routes.

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1.2 FUTURE PRODUCTS

As our product grows, we foresee the need to expand to various locations around Nepal along with
providing additional feature of bus/taxi services.

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 MARKET AND CUSTOMER ANALYSIS

Tourism is the largest industry in Nepal and its largest source of foreign exchange and revenue.
The tourist industry is seen as a way to alleviate poverty and achieve greater social equity in the
country. Foreign tourists visiting Nepal in 2008 stayed in the country for an average of 11.78 days.
Tourism brings $471m a year to Nepal. Nepal once again achieved the double digit boom on
tourist arrival in the year 2017. The growth is around 29% compare to last year 2016. The total
number of tourist arrival has reached 940,218 in 2017 from 753,002 in 2016.

3.1 Trends In Industry

 Increasing growth of the online travel industry.

1. Increased access to the internet

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 2. Expanding middle class in Nepal.
3. Rapid increase of smartphones

 Shift in power from business to customers

1. Business are at the mercy of consumers
2. Social media has increased the speed,power and spread of consumer opinion.

3.2 Customer Segment

Ghumante will mainly focus on major tourist destinations like Kathmandu Valley, Pokhara,
Chitwan, Illam, where there is continuous flow of tourists throughout the year and places like
Mustang, Rolwalling Valley, Namche Bazar since there is great flow of tourist in peak season. The
company’s target customers are international tourists, high end and upper middle class Nepalese
families, University and college students and youths between the age group of 18-30.

Customer Segments
 High end and upper middle class Nepalese families

 Students

 Budget Travelers

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  City Tour Groups

 Spontaneous travelers

 Hikers/trekkers

 18-30 aged youth groups

Customer Segment

Families Budget Travellers

Hikers/Trekkers City Groups
18-30 aged goups Spontaneous

3.3 Method of Earning (Revenue Generation)

It ensures uniformity of services in return for a 15 percent commission on booking value.
Ghumante will display hotels taking into account the best interest of the user, the hotels it has
contracts with and itself. The website also earns money through advertising which is based on cost
per click. Cost per click is an internet advertising model used to direct traffic to websites, in which
an advertiser pays a publisher (typically a website owner or a network of websites) when the ad is
clicked. Such advertisements are called sponsored links or sponsored ads. Pay-per-click is

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calculated by dividing the advertising cost by the number of clicks generated by an advertisement.
The basic formula is:
Pay-per-click ($) = Advertising cost ($) / Ads clicked

The app will make money in the following ways:

 Advertising through Google Adsense and other relevant ad placement options
including click-based advertising.
 Feature other travel services and products on your site for a commission.
 Allow in-app purchases through referral marketing and other options.
 Subscription services
 Paid notification for sponsors

3.4 Promotional Measures

1. Digital ad campaigns via YouTube

2. Content marketing
3. Word of mouth:
 via social media and messaging apps
 user stories: “our users tell the stories better than we do”
 referral programs rewarding referrer and referral taker with credits
 digital influencers
4. Free media coverage based on the novelty factor
5. App stores (iOS, Android): through high ratings, ads and being featured

Since “Ghumante” is a start-up, marketing within a limited cost is necessary for its success.
Traditional marketing like media and newspapers advertisements are expensive so it will
look towards cheaper but equally effective methods as listed above.

3.5 Features
The features of the product include:

 Geolocation
Navigation and maps are essential for a travel app. Among the tourists, this benchmark
jumps to 85%. So, a map is a base of our application, but if you want clients to use a map
in your app and not to switch to a different navigation app, the travel map apps have to
work offline. Here are a few useful tools that our travel application development
company might use: Google Maps SDK for iOS and Android provides the app with the
map itself.

 Booking Services
This way app gives its users everything they might need for a trip with a few quick clicks.
Among the apps for international travel are very popular booking services for
accommodation. A user can find the best deals and set up notifications for price changes.

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  Travel Planner
All the described tourism app features above can be used in a single app, but they have to
be presented in a structured and lean way. We give our users an opportunity to view their
trip from start to finish, from the flight to arriving at a hotel, exploring sights and going
home. So users could have an opportunity to see the whole picture of their trips.

 Payment Gateway
Allowing a user to make mobile payments within our app is really important. It will help
to decrease the number of abandoned transactions and engage customers who prefer to
make the payments through online transaction/cashless that leads to a good user
experience.

3.6 Benefits
The benefits of “Ghumante” are:

 Convenience of booking.
 Cashless transaction.
 The amount of choice and variety of types of homes and hotels.
 The proposition to experience the destination more authentically.
 Often cheaper than comparable sized hotel rooms and homestays.
 Cashless transaction.
 Rating system that allows for feedback.
 Dispute resolution process through Ghumante.
 Taking safety and trust seriously.
 Adding an increasing amount of information/recommendations on the location.

Partners and Competitors

The tourism industry is the largest industry in Nepal and is highly competitive. The list of
competitor categories are as follows:

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As we are just a service providing company, we need to have a strategic partnership with:

 Hotels and homestays in the region we are operating.

 An online payment platform (e-sewa, Khalti).
 The cost of the product can’t be handled alone, so we are looking towards any possible
investors for partnership.

Financial Structure
The financial plan depends upon important assumptions such as:

 No unforeseen changes in the industry such as changes due to natural calamities such as
earthquake.

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  Continue development of interest in using travel website/app services.
 Continued stream flow of international and domestic tourists in major touristic
destinations.

5.1 Estimated Revenue Generation

Year 1 Year 2 Year 3

Average Cost per 1200 1400 1600
room
Number of rooms 10,800 14,400 21,600
expected to be booked
annually
Expected income =11,800*1200*0.15 =1200*14,400*0.15 =1300*21600*0.15
from bookings per
annum =1944000 =3024000 =5184000
Money generated 500000 700000 1000000
from
ads/sponsorships
Total Revenue =500000+1944000 =700000+3024000 =1000000+5184000

=NRS 2444000 =NRS 3724000 =NRS 6184000

5.2 Estimated Annual Cost

Year 1 Year 2 Year 3

Website 30,000 - -
Developm
ent Cost

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App 1,50,000 - -
developm
ent Cost
App/Webs 40,000 50,000 60,000
ite
maintenan
ce Cost
Commissi =0.1*2444000 =0.1*3724000 =0.1*6184000
on to e-
sewa/Khal =244400 =372400 =618400
ti
Salary 1200000 1600000 2000000
Cost
Total Cost =1200000+244400+40000+15000 =1400000+372400+ =2000000+618400+
0+30000 50000 60000

=NRS 1664400 =NRS 2022400 =NRS 2678400

Revenue Generation

Revenue from
booking
Revenue from
ads/sponsorships

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 7000000
Revenue vs Cost
6000000

5000000

4000000

3000000

2000000

1000000

Revenue
Cost

5.3 Breakeven Analysis

From the above tables of revenue and cost, it can be estimated that within 9 months of running,
the product will cover the expenses of the whole year and then start making profit.

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