Marine Cruise Ship Business Plan And Proposal

Question

Task: Are luxury products and services viable business ventures in India?

Answer

Executive Summary
The present marine cruise ship business plan will explore the viability of establishing cruise ship businesses in India. India has grown to become the second-fastest developing economy. It has resulted in many Indian, not turning their attention from only working to enjoying the fruits of their labour. It has been seen that the Indian consumers are buying many luxury vehicles, clothing, furniture and other foreign brands. But while many invest in luxury foreign brands for their homes, many are also taking out time to experience luxury tours and travel across India and the world by visiting different tourist destinations. It has resulted in the marine cruise vessel tours developing considerable popularity among the middle and upper-class Indians, which has resulted in a boom in demand for its services. Currently, less than a dozen cruise vessels are serving the Indian consumer market, and these are not able to meet the tour demands. It results in travellers needing to book their trips months beforehand resulting in severe delays and loss of interest among interested customers. The high demand for luxury tours and travel has also created an excellent opportunity for investors to invest in the industry.

Introduction
The marine cruise ship business plan will investigate the demand for luxury products and services in the Indian market. As India grows more economically stable and robust, the conservative Indian mentality is rapidly changing with many now prepared to spend their money on luxurious lifestyles. It can be seen through the luxury vehicles, branded clothing and other foreign-branded items the Indian consumer is developing a taste for. With this in mind, other sectors are also experiencing huge spikes in demand such as the tourism industry which is seeing more Indian families travelling during their summer and winter vacations to famous holiday destinations and travelling on luxury tours across the nation (Majumdar, 2010). A tour option that is growing in popularity has been luxury marine cruise tours which are growing in demand, but there are a limited number of vessels providing such services. It has resulted in overwhelming demand than the supply capacity, resulting in an attractive marine cruise ship business plan investment opportunity. The past two decades have observed various luxury brands enter the Indian market. It is a clear indication of increased per capita income and the consumer changing perception towards financial insecurity. In the past, consumers remained wary regarding spending money and were more inclined towards saving as much revenue as possible. It was due to various factors, including income insecurity, but as India’s economy expands, there is a high demand for products and service delivery. It is beneficial for all stakeholders as each one benefits financially. Businesses benefit from increasing sales, the number of companies being established is rising, which is, in turn, resulting in high demand for skilled professionals. Automatically per capita income increases, resulting in each stakeholder saving more money and triggering many to consider spending surplus income to pursue luxury items and activities. With surplus income being reported in most Asian countries, many businesses and services in developed nations expand their operation to developing countries. While profits may be lower in developing nations, the large population in the region helps make the marine cruise ship business plan a viable option for investors.

Problem Statement of Marine cruise ship business plan
With an increasing demand for luxury products and services developing in India, attractive investment opportunities are also growing alongside the market. It has resulted in investors with surplus saving which can be invested in ventures like the marine cruise ship business plan. The business plan offers attractive opportunities that promise to deliver a significant return on the investment-only due to the high demand for the products and services. With Europe and the USA experiencing financial crisis, investors with liquid funding can easily purchase luxury marine cruise vessels for very reasonable prices and begin a lucrative marine tour business in India.

Project Proposal, Initiation and Startup
Today the Indian consumer is getting attracted to foreign and luxury brands, making it essential for any investor looking to start a business to theme their business on luxury and foreign brands. Unlike two decades ago, when the Indian consumer emphasized low-cost products, they are today prepared and willing to spend their funds only on luxury and well recognized global brands and services. It has transformed the way business is set up in India where the investor requires to provide the consumer with internationally recognized brands and meet international standards to secure the required response for the product (Sinha, 2015).

As a result, previously unknown investment opportunities such as marine cruise ship business plan, projects were not in demand. The Indian consumers are now capable of affording the facilities and spending the money on such facilities. The exposure to international media has been another significant contributor to the recent increases in demand as consumers have been exposed to new ideas and destinations across the globe, which they are willing to explore and visit.

One area which has shown considerable interest among the middle and higher-income group consumers in India is the marine cruise travel industry. The industry consists of organized cruises that take tourist on luxury marine vessels on tours around the Indian coastline and international tourism destinations close to India. The terms are usually limited to 7 days or less, which allow families to take time off from work and travel during their summer and winter vacations.

But as the demand for luxury service increases, there is still a significant deficit linked to the number of available vessels, leading to long waiting lists for travellers. It has opened up a very lucrative opportunity for an investor who has the financial resource and funding to invest in the business venture. The marine cruise ship business plan deals with luxurious transport and tourist facilities resulting in a business requiring a considerable amount of capital to acquire the marine vessels needed to set up the business. But with high standards, the business venture promises to deliver huge profits and returns to the travellers paying high package fees for the facilities resulting in increased profits.

There is also a high demand for the marine cruise ship packages with projections estimating a fleet of 5 vessels to remain fully booked for the next five years. It is due to the large number of consumers located on the Indian subcontinent. Still, it's also important to note that tourist from neighbouring countries has also shown considerable interest in the tours. The marine cruise ship business plan must also market its services in neighbouring countries the vessel will be visiting during its voyage and tap into those markets. Countries with considerable interest include Nepal, Bangladesh, Sri Lanka, Malaysia and Indonesia among several other nations in the region.

The marine cruise ship business plan tour packages would require divided into categories: offering tour packages that encircle the Indian sub-continent and visiting small islands before docking at central posts and reversing the trip with new passengers. The second would be international voyages that would see the vessels travel along the Indian coastline and visit international destinations like Sri Lanka, Malaysian, Singapore and Indonesia before returning to the home port. These would be longer voyages and mainly for travellers who want to spend an extended period at sea while visiting different international tourist destinations (Atwal & Jain, 2012).

The leading consumer identified in the Indian market has been the one who only wants to spend a few days at sea before returning to the port. They can take a flight directly back to their home city after the vacation. For the marine cruise ship business plan to meet the consumers demand the company would require to allocate 4 of its five vessels towards serving the local travellers needs with a single container to cater for the international long-distance traveller. The vessels' roles can also be reorganized at a later stage expanding on the demand from the consumer but will mainly target serving the local tourist looking to deliver a luxury cruise ship voyage at sea to their loved one.

Time Schedule required for the Marine cruise ship business plan

With the demand for the service already overloading current service providers, there is no time to order new vessel construction since this would take several years to complete. Instead, the company will search for financially constrained marine cruise ship companies in the USA and Europe and purchase their vessels. As the financial crises continue to grip the USA and many European countries like Turkey, many marine cruise liner companies are selling their vessels at very affordable prices, allowing the business to acquire the vessels quickly and begin operations within six months. The marine cruise ship business plan would see initial investment in 2 cruise ship vessels. The company would expand to buy three more vessels after gaining insight and understanding linked to the businesses' operations. Stage one would see the company's establishment and investment in two marine cruise vessels within six months of the approval of the proposal after which the proposal would move to stage two which would see investment in an additional three vessels in 12 months after the project set up. Projected income from the marine cruise ship business plan would begin immediately due to a vast consumer market prepared to pay for the travel packages.

Project Budget

Conclusion
With the demand already existing in the market, the business is set to experience rapid success and experience fast returns on its investments. With a high demand for marine travel tour packages already persistent in the Indian market, the project is expected to register high returns on investments. The borrowed funds will be repaid within five years. The marine cruise ship business plan will also be considered for the 2nd phase of expansion after the first five years.

Bibliography
Atwal, G. & Jain, S., (2012) The Luxury Market in India: Maharajas to Masses. London: Palgrave Macmillan.

Majumdar, R., (2010) Consumer Behaviour: Insights From Indian Market. Sonepat: PHI Learning, Pvt. Ltd.

Sinha, D., (2015) India Reloaded: Inside India’s Resurgent Consumer Market. Marine cruise ship business plan. 1st ed. New Delhi: Westland.