feasibility study including

7/28/2019 Feasibility Study Including

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Feasibility study including:

OverviewProducts.LegalityProject costCost of processing officeOperation costMarketing planIncome


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World ecommerce in Numbers.European e-commerce is booming. This is apparent from the new European B2CEcommerce Report published by Ecommerce Europe, the European umbrella organisationfor online retailers. European online revenue of goods and services grew by 19% to reach

311.6 billion in 2012. The EU28 (including Croatia, joining the EU as of 1 July 2013)reached 276.5 billion, or 88.7% of total European e -sales, a growth of 18.1%. EcommerceEurope figures are compiled in cooperation with various e-commerce associations aroundEurope and in cooperation with GfK.

The European e- commerce industry is clearly dominated by three leading countries: the UK (96billion), German y (50 billion) and France (45 billion). The total of 191 billion of these threecountries together represents 61% of the total European B2C e-commerce sector and 69% of the

EU28.

Impact of the Internet (including e-commerce) on the European Economy The total Gross Domestic Product (GDP) of Europe in 2012 is estimated to have reached 16trillion, of which the GDP of the EU28 was just over 80 per cent. Ecommerce Europe estimates theshare of the European Internet economy at 3.5%, a percentage that is set to double by 2016 andto triple by 2020 given the fact that the Internet economy grows much faster that the economy ingeneral.

The number of jobs created directly and indirectly by the B2C e-commerce sector is estimated at 2million in Europe, a figure that will grow with the on-going increase and penetration of online insociety, and the projected growth of B2C e-commerce.

Ecommerce Europe estimates the number of B2C websites to have grown to 550,000 at the end of 2012, growing at a pace of 15 to 20% per year and set to grow even more given the growthforeseen in the upcoming markets in the South and the East such as Spain, Italy, Poland, Russia,Ukraine and Turkey, where B2C e-commerce is rapidly closing the gap with the more maturemarkets in North, West, and Central Europe.

Postal and private operators have reaped the fruits of the impressive growth over the past years of B2C e-commerce. Ecommerce Europe estimates the annual number of B2C parcels sent tocustomers domestically and across borders to other (European) countries at 3.5 billion, a number that will certainly continue to grow with the increase forecasted for B2C e-commerce in Europe.

European e-commerce is growing steadily every year, outpacing growth in traditional retail andservices. B2C e-commerce represents one of the major drivers of the ailing European economy.However, there are large differences in development between the mature markets in the North andthe North West, and the emerging (though rapidly catching up) countries in South, Central andEastern Europe, led by Russia, Turkey, Poland and Ukraine..

E-commerce penetration and growth differs per regionWestern Europe (including the UK, France, the Benelux countries and Ireland) is the Europeanregion with the highest B2C e-commerce turnover. This is due to the impact of two of the largest e-commerce economies in Europe: the UK and France. Western Europe represents 160.8 billion or 51.6% of the total European e-commerce market.


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The Central European region which includes Germany, Austria, Switzerland and Poland is thesecond largest e- commerce region in Europe, with 76.3 billion or 24.5% of the European e -commerce industry. Germany sets the tone in this region as the second largest e-commerce nation

of Europe.

The Southern European region surpassed the Nordic countries in 2012 and is now the third regionin Europe, with 33.2 billion turnover and a 33.6% growth rate. Its share in the total European e -commerce market is 10.7%. Eastern Europe and Southern Europe including Spain, Italy,Portugal, Greece and Turkey are the two regions with the most emerging e-commerce markets.

The Northern European region with Sweden, Denmark, Finland, Norway, Iceland and the Balticstates is now in fourth position for e-commer ce size, with 28.7 billion, a 9.2% market share.

The Eastern European region, led by Russia, has shown an impressive 37% growth, reaching aturnover of 12.6 billion and a 4% market share.

Europe is the largest B2C e-commerce market in the worldIn 2010 Europe overtook the USA, as the biggest B2C e-commerce market in the world. In 2012the total European B2C e- commerce turnover, including goods and services, reached 311.6billion, a 35.1% share of global B2C e-commerce. North America, including the USA and Canada,is currently the second largest e- commerce region, with a 294.2 billion turnover and a 33.1%share. Asia- Pacific is the third region: 227.8 billion and a 25.6% share. In 2012 Asia -Pacific hasconfirmed being the worlds fastest growing reg ion. The emerging regions are Latin America with

42.1 billion turnover (4.7% share) and the MENA countries (Middle East and North Africa) with 10.8 billion turnover (1.2% share). Ecommerce Europe estimates the total global e -commercemarket at 889 billi on.

Rapid growth to continue According to Wijnand Jongen, vice-president of Ecommerce Europe and in charge of statistics andresearch, growth in Europe can easily be explained. The Scandinavian countries, the Netherlandsand the United Kingdom in particular have a head start as far as Internet usage and mobiledevices is concerned. These mature countries are scoring very high for both e-commerce and m-commerce (sales via smart phones and tablets). In these countries 70 to 80 per cent of Internetusers are e-shoppers. Internet penetration is 90% or higher. Their growth figures are currently 10to 15 per cent. But other European countries are catching up fast. These countries currently haverelatively fewer online purchasers, but the market is growing rapidly. Ecommerce Europe expectsthe European B2C e- commerce market to double in size by the end of 2016 to reach 625bn,driven by increased confidence and a growing number of e-shoppers.

Trend: more and more consumers in Europe are always onlineIn the coming years growth of online sales will largely be determined by the rapid and spectacular penetration of mobile commerce. In the United Kingdom, m-commerce has reached 12 per cent of total online sales in 2012. This was only five per cent at the end of 2011. In Scandinavia theshare is currently 8% and in France 2%. By way of comparison: the share of m-commerce in theUnited States is estimated to have reached close to 10% almost double the size of 2011. Jongen:Here, in Europe, we see a comparable tren d. The Scandinavian countries and the UnitedKingdom are leading.. Other countries will follow soon and fast: today 47.6% of all Europeans havea smart phone. Consumers are already always connected; they can search and purchasewherever and whenever they want. A major challenge for innovative entrepreneurs who manage to

jump on the bandwagon.


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Products.

Flight ticket -Hotel reservations transfers-car rental packages-cruise- visa applications

System include

Modules in a CRS include:

Reservations

Profiles

Groups and blocks

Rate and inventory control

Administration

Reporting

Global distribution interface

PMS interface

Information commonly stored in a CRS includes

Room types

Rate plans architecture

Room rates and conditions (guarantee, deposit, customized cancellation rules,minimum length of stay, maximum length of stay, closed to arrival, arrival notallowed, departure not allowed...)


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Room inventories

Generic hotel information (address, phone number, fax number)

Distribution content (descriptions, amenities, pictures, videos, local attractions...)are stored in the CRS or in a content management system

Reservation information

Individual, group, shared, and multi-rate reservations

Add, change, and cancel bookings including multiple legs

Standard, package, negotiated, and group rates (via on screen button)

Multi-Currency rate displays

Sell messages dynamically linked to CRO office, property, rate or allotment code

Geographical and regional single or multi-property search

Property details including pictures, raster maps, rate and room type lists, nearbyattractions, and point of interest information

Links to external context databases to provide in-depth property, rate, and roomdetails

List of room types and rate codes

List of rate availability strategies and restrictions

User definable products by rate code

Waitlist capabilities

Quote rates system set up initial and secondary rates per property, per day

Query system for reservation action items

LegalityThere is no law at all for sale organizer and online marketing in Egypt, but the licensecan be made tourism services to determine the legal form of the project.


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Cost of processing officeDetails Cost

A rental office located in Nasr city or Heliopolis 2000 L.E

03 Computers 3 * 1500 L.E Average4500 L.E

Printer & scanner 1000 L.E02 phone lines (last update cost per line is 50 L.E) 100 L.EShort phone number last update Not important atmoment

20000 L.E

Office furniture average 5000 L.EPayment Getaway 3500 L.ELicense fee setup 2000 L.E

Total 18100 L.E

Operation costDetails Cost/Monthly1-Employs average we need at start 3* 1500 L.E 4500 L.E

2-For marketing cost and other fee will beaverage to.and will be as following.-Facebook ads-Google ads-Magazine ads-Burchours ads

10000 L.Emonthly

3-rest expenses average Beverage, Stationery 2000 L.E


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etc

Total 16500 L.E

Marketing plan

-mainly will market system in Egypt and Middle east as start ,in just 6month we will market it in Africa , 8 month Europe , 1 year over world .--emails bulk to around 2000000 emails-attends all events in around Egypt and outside Egypt if possible to marketsystem for all customer, corporate, travel agent (B2C & B2E & B2B )-sales call to corporate and travel agents .-face book ads-Google ads-networks erring per sales ads-daily deals offers-SEO-search engine most important one


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Income

First year Plan is to reach to 300 transaction per month

Average profit is start 10 to 30 % per person per night for hotels, transfers, cruise,packages, and tours.Flight ticket 10 to 50 USD per ticketDetails income/MonthlyHotel 300 pax * 50 USD *7 nts 800000 L.E

+Transfers & tours 150 pax * 50 USD 60000 L.E

= Total Income of hotel,transfer,tours 860000 L.E

income (10%) 86000 L.E+ Flight average 100 ticket * 20 USD 16000 L.E

=Total 102000 L.E- monthly expenses & average fee per booking

ETC 27000 L.E

Sub Total Income 75000 L.E

From Second year.Plan is to reach to 500 transaction from second year

Average profit is start 10 to 30 % per person per night for hotels, transfers, cruise,packages, and tours.Flight ticket 10 to 50 USD per ticketDetails income/MonthlyHotel 500 pax * 50 USD *7 nts 1400000 L.E+Transfers & tours 200 pax * 50 USD 80000 L.E

= Total Income of hotel,transfer,tours 1480000 L.Eincome (10%) 148000 L.E

+ Flight average 300 ticket * 20 USD 48000 L.E=Total 196000 L.E

- monthly expenses & average fee per bookingETC

35000 L.E

Sub Total Income 160000 L.E


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From third year Plan is to reach to 700 transaction from second year

Average profit is start 10 to 30 % per person per night for hotels, transfers, cruise,packages, and tours.Flight ticket 10 to 50 USD per ticket

ETC ..

Best regardsShenouda Samir

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