Business Model Development for travel agency : Case company - Goh Travel Korea

Abstract

Millions of tourists visit South Korea every year to experience the culture and a different life style. Moreover, due to economic development, the country has become popular as a study and work destination. As the tourism market is growing, there are many opportunities for travel agencies to find niches in the market. The purpose of this study is to develop a business model for Goh travel Korea – a travel agency for foreign low budget travelers around Korea, to make it more efficient and increase its market share in the future. The thesis is based on a deductive approach of research. Both primary (interview, customer survey and personal experience) and secondary data research are applied during the study. First, with a help of a PESTEL analysis, the study discovers changes and opportunities in the tourism market of South Korea. Second, the business model of Goh Travel Korea is analyzed with a Business Model Wheel concept. The result helped to develop all three components of the business model: offering, monetization and sustainability. The development of offering includes distinguishing precise target groups and creating specific marketing strategies for each of them. Cost advantages from networks and creating new revenue streams lead to positive changes in monetization. Sustainability development considers reorganization of the company in order to decrease the overreliance of the company on its owner.