Cultural Heritage Tours

The tourism industry in the UK is a major contributor to the growth of the UK’s economy. The United Kingdom is one of the most visited tourist destinations in the world and comes in the top 10 destinations preferred by travellers (visitbritain.com, 2024). Heritage tourism has gained much popularity in the UK since 2015 (statista.com, 2024). London has been the most favoured destination and it has been estimated to have supported a significant amount in gross value-added contribution. Tourism in one way or another has always been linked to some form of learning (Fletcher et al., 2018). Travelling around the world helps in learning about the place's culture, how people live there and the history. Cultural tourism has also experienced considerable growth all around the world. This effect can be seen in tourism in the UK as cultural tourism has gained popularity there too (Arumugam, Nakkeeran and Subramaniam, 2023).

Heritage and cultural tourism tend to attract high-spending tourists as people who visit places to explore the artistic aspects of a country tend to stay more and thus spend more. The trend of visiting culturally significant has increased and heritage tourism has been an important driver of the economy of the UK after the pandemic. In the survey done by Historic England 78% of 22840 surveyed international tourists considered heritage an important driver in selecting any international destinations (historicengland.org.uk, 2024). The business idea is to take advantage of that fact and organise special cultural heritage tours in collaboration with the administration of those places. The GREAT campaign identified heritage as one of the unique selling points of the UK as a favourite travel destination (historicengland.org.uk, 2024). Through this, the tourists visiting the sites will get to explore culturally significant places and promote the preservation of the historic places with the local traditions of that area.

The services in this tour will mainly include:

Organising tours of world heritage sites, culturally significant destinations, museum tours, sightseeing famous monuments and art gallery tours (Richards and Morrill, 2020).
Educating people about the history and the significance of that place for the local community
Providing hands-on experience to engage in cultural practices like various art projects or learning to cook multiple traditional dishes of that place
Inviting guest speakers like local artists, historians and members of cultural organisations to share their knowledge with tourists
Encouraging people to think about the challenges of preserving culturally significant places in today’s age of modernization and globalisation
Organising field trips where tourists can engage with the local population of that area
Teaching people how these sites are preserved and giving them a chance to volunteer for preservation activities.

Objectives

SMART goals refer to a guide to help in setting Specific, Measurable, Achievable, Relevant, and Time-Bound goals for an organization (ucop.edu, 2024).

Objectives	Specific	Measurable	Achievable	Relevant	Timely
Short term Objectives	To establish a proper infrastructure and define business operations	To make the business operational	Yes, by defining business objectives	Develop a well-focused business plan	2 months
Short term Objectives	To identify an appropriate customer base and make them aware of the services offered by the proposed business	Customers are booking tours provided by the company	Yes. By promoting the services provided by the company	Developing a market strategy to effectively promote the company to target customers	4 months
Medium Term Objectives	Developing strategic partnerships with major historical sites and museums	Collaborating with different historical site administrations and museums	Yes, by reaching out to culturally significant destinations	Providing guided tours with these organizations	6 to 9 months
Medium Term Objectives	Improving the quality of services offered by the company	Improved customer satisfaction	Yes, by analyzing the response of tourists taking the tours	Helps in understanding the response of customers and making changes where needed	1 year
Long term Objectives	Expand into more new geographic areas	Providing the services in countries other than the UK	Yes, by establishing the business in the home market and then expanding to other parts	Increasing the market share and customer base	2 years
Long term Objectives	Improving customer retention	Long-term customers taking our tours again and recommending them to others	Yes, by taking customer satisfaction in mind and providing them with services which they want	Maintaining a loyal long-term customer base	1.5 to 2 years

Personal SWOT Analysis

Understanding personal strengths and weaknesses is important for planning and executing goals in future. Further, this will help in analysing the opportunities for growth of the business and identifying any potential threats which can be harmful to our company.

Strengths

Vision and creativity: My vision behind this business idea and creative thinking will help in introducing more services which tourists prefer. To make the experience of learning and travelling fun together there needs to be more creative ideas so that the whole experience can be fascinating for our customers
Love for Travel: My main motivation behind this business was that I love travelling myself. I love visiting heritage sites and learning more about their history and how they have been preserved all these years. This is my strength because I want people to learn about cultural preservation while travelling and how important it is.
Passionate: While travelling all around the world I have visited many culturally significant locations. I am passionate about this business and want to make this work. This is one of my greatest strengths as this motivates me to work harder. My passion for learning while travelling and helping preserve our heritage sites has made me start this business.

Weaknesses

Time Management: One of my weaknesses is effective time management. I have a habit of taking on too much responsibility which can lead to conflict in getting things done
Less industry knowledge: Even though I am passionate about travelling and learning I lack the experience and relevant industry knowledge to establish a startup
Leadership ability: I recognise that leading larger teams and making strategic decisions are some areas where I need to improve and have more experience. To effectively manage the business and people working under me I will need to improve my leadership ability

Opportunities

My passion for travelling and knowledge about how cultural preservation is done for major heritage sites will help in formulating activities necessary for cultural preservation (Timothy, 2011).
My experience in marketing techniques and digital marketing will help in formulating effective promotional strategies for my business.
Traveling all around the world and exploring various locations in the UK has given me sufficient knowledge about various geographical locations. Through discovering various cultural heritage sites, I have gained knowledge of how they are preserved too.

Threats

Lack of industry knowledge and how these businesses work can be a potential threat. New startups are prone to many negative externalities in the market and having less industry knowledge can pose a problem in adapting to these. Existing competition in the market also poses a threat and not having the necessary knowledge of the tourism industry in the UK can make the work more difficult.
Leadership skills are very important to have for an entrepreneur. Effective leadership and people management play an important part in the overall company’s efficiency and productivity. Working with people and gaining more experience in effective management will help improve my leadership skills (Herlina, Tukiran and Anwar, 2021).
Not having efficient time management skills can be a problem in managing a business. While working there can be several tasks at the same time and without effective time management it can be difficult to complete by the deadlines. Managing a new business can be challenging and for that having effective time management skills makes the work a bit easier.

Target customers and market

Tourism is often considered a threat to the preservation of cultural heritage sites (Tracy, 2014). However, tourism is a platform through which these heritage sites can be presented to the public and preserving it with. Tourism can be a balancing mechanism which protects and preserves heritage sites. There has been a significant increase in the popularity of cultural tourism. And the proposed business idea focuses on benefiting from the increased trend of cultural tourism in millennials and solo travelers.

A World Economic Forum study shows that all of tourism globally cultural and historic travel accounts for about 40%. With 73% of millennials saying that they are more interested in cultural tourism (weforum.org, 2024). The potential customers for this business will be those who travel to explore cultural heritage sites and are interested in their preservation. The UK has a wealth of culturally significant places, customs and traditions (Belfiore, 2020). The business will aim to introduce the visitors to the history of the UK and its culture while also teaching them how to preserve it. Visitors can learn about cultural preserves by travelling and then employ them in their countries too.

Another segment the company could target is solo travelers. The number of people travelling for an immersive cultural experience has increased now. Solo travelers explore all around the world and are more interested in experiencing the cultural heritage of different places. These travelers can be good customers as they spend money for their fulfilment.

Fig. 1. Number of visitors to English Heritage staffed sites from 2011 to 2024(in millions)

Source: statista.com, 2024

The UK has always seen a large number of tourists visiting historic sites. The visitors to these historic sites have increased in 2023- 24 meaning that people prefer to visit these places more.

By focusing on the millennials more and providing them with intellectual tours which teach them about cultural heritage and how to preserve them.

Specific Needs and Wants of the customers in the market

The target customers of the company will be 20–50-year-olds who want to explore cultural places and learn more about preservation. Mainly the millennials and solo travellers will be the target customers of the business.

The company need to provide informational tours to make their travel more interesting.
These guides will lead groups through cultural sites and educate them about the importance of preserving—and travel arrangements for tourists commuting from one place to another.
They would be planning proper itineraries and tours covering major historical sites and providing them with knowledge of how to preserve cultural heritage sites.
Proper customer service to tourists booking with the company
Ensuring the safety of all travellers booking tours with the company

Competition

Understanding the existing competition can help in understanding what the company needs to consider regarding its competition and make decisions accordingly.

Martin Randall Travel

One of the main competitors for the proposed business in the UK is Martin Randall Travel. This company is famous for providing planned cultural tours which are led by the best guides. This is one of the main competitors for the business chosen as they are a well-established tourist agency which provides highly curated cultural tours with a focus on architecture Art, music and gastronomy (martinrandall.com, 2024). MTR differentiates itself from the competitors by providing well-planned exclusive itineraries which also grants access to some venues which are normally restricted to the public. They charge premium prices but MRT justifies it by providing a high standard of care, including all major costs and avoiding any surcharges.

To compete with MRT the company would have to focus on providing more personal service with intellectual enrichment. Providing more personalised educational tours will help in gaining a larger customer base for tourists preferring cultural tours more. Offering a more competitive package for solo travellers or other larger groups who are travelling to explore the cultural heritage of a country and are interested in preserving it also can help differentiate our brand from MRT’s well-established brand.

Evan Evans Tour

Evan Evans Tour is a key competitor in the tourism market in the UK. They are known for their immersive experience by providing sightseeing tours across iconic destinations in the UK (evanevanstours.com, 2024). This company emphasis on local expertise and engaging storytelling to enhance their customer's experience. Competing with them will require the business to follow this customer-centric approach by providing personalised experiences and strong local knowledge.

Cox and Kings

Cox and Kings is a major competitor in the UK luxury travel market. They offer highly personalised luxury tours with a focus on itineraries with exclusive experiences (coxandkings.co.uk, 2024). The company caters to tourists who are seeking an immersive experience which often includes expert guides for their tours and access to unique sites. To compete with Cox & Kings would require to provide highly tailored immersive experiences for tourists with fascinating experiences.

Marketing plans

As a new tourism company in the UK which provides immersive cultural tours with a focus on cultural preservation, leveraging digital technologies for its promotion will be key in its marketing strategies. Using digital marketing tools like social media platforms, marketing through email and utilizing data analytics to understand the target audience.

Social Media Campaigns

Using social media campaigns will be the key pillar in the online promotion of the business (Tuten, 2023). Using ads on Instagram, Facebook and YouTube can help in showcasing the unique cultural torus and target travellers with travel on cultural-focused travellers. Collaborating with influencers can help in building more credibility and trust in the agency. This can help increase brand awareness and improve customer engagement.

Partnering with Cultural Institutes

Collaboration with heritage sites and museums will help reinforce the commitment of the company towards cultural preservation and also provide co-branding opportunities for them. These kinds of partnerships can help to tap into an already well-established audience who are more interested in cultural travelling which can help in increasing the bookings.

Email Marketing and Newsletters

Using email marketing can help foster leads and retain past customers (Paulo, Miguéis and Pereira, 2022). Offering exclusive content focused on cultural knowledge, discounts on bookings and more personalized tour recommendations they can offer brand loyalty. Using newsletters helps in promoting any specific events, new preservation tours for cultural sites and partnerships with new locations.

Operations

Two key stakeholders for the business will be the local cultural institutes and the tour guides working under them. Administration of local cultural sites like museums, heritage sites and other institutes will provide unique content for tourists and building a strong partnership with them can prove to be profitable in the long term. Tour guides will be the face of the business as they will be the ones guiding tourists across various locations. So, cultural expertise and understanding are very important skills for them to have.

Initially, the company would employ the staff of 15-20 people which will include tour guides and people for support in the administration of the business. As the business grows in future the number can be increased to accommodate increased bookings. After a year hiring more tour guides and marketing professionals will be important. In the long term, the organisation will have specific teams for the administration of the company, marketing and tour managers which will ensure smooth operations and foster growth for the business in future.

In terms of laws and regulations, the company would need to comply with the safety and health regulations which include the risk assessments of the tours and a safe environment for tourists. Complying with various employment laws which include wages and working conditions will also be important. Compliance with various industry standards can help in building more trust and confidence in the agency.

Finance

The two largest expenses for the company will be on existing assets for business purposes £4000 and the total anticipated cost of sales (£3000).

Total Anticipated cost of sales (£3000)

This is the second largest expense for the business and it includes providing services promised to the customers. These services will include providing them with cultural tours designed to teach them about cultural preservation. These total anticipated costs of sales include the travel expenses for transporting tourists from one place to another. Providing them with food and drinks with a good accommodation facility.

Existing assets for business purposes (£4,000)

These expenses include all the necessary inventory which is essential for the smooth operation of the business. This equipment will include all kinds of necessary computers, printers, stationery and many more. This includes digital assets too which are necessary for designing websites for the company.

Backup Plan

If the company is unable to make its loan repayments it will focus on activating a contingency plan which will be based on restructuring the finances and making more operational adjustments. They would need to reduce their expenses by limiting their spending on marketing and reducing the number of tours offered which don’t attract many tourists. Additionally, to seek revenue the company can offer small-scale tours in the city. These tours cost less and are more revenue-generating as they don’t need tourists seeking a specific cultural experience. The backup plan would include focusing on getting back on track with revenue generation by focusing on more generic torus across London. This can help in earning decent revenue and give time to get back into the business of providing cultural tours. They can have a stable revenue stream because tourists visiting to just explore a city are more than people coming for a specific cultural experience.

Conclusion

In conclusion to this report, it can be understood that the rich cultural heritage of the country provides a promising opportunity for cultural preservation tourism in the UK. By focusing on more cultural preservation and providing special experiences for their customers this business can meet the growing demand of cultural tourism around the world. This report also highlights the clear short-, medium- and long-term objectives of the business by SMART objectives which make the business more well-positioned to establish itself as a key player in the tourism industry in the UK. Following strategic partnerships with local cultural institutes and a commitment to consumer satisfaction this business can establish itself as a profitable tourism agency. The adaptive backup plan formulated helps in proving that the company can handle any loan repayments in the future. The financial allocation of the resources proves that the business has the strength to navigate through any challenges faced in the future and has the potential to grow in the highly competitive tourism industry in the UK.

References

Arumugam, A., Nakkeeran, S. and Subramaniam, R. (2023). Exploring the factors influencing heritage tourism development: a model development. Sustainability, 15(15), p.11986.

Belfiore, E. (2020). Whose cultural value? Representation, power and creative industries. International journal of cultural policy, 26(3), pp.383-397.

coxandkings.co.uk (2024). About us. [Online] Available at: https://www.coxandkings.co.uk/about-us. [Accessed on 4 Sep 2024].

evanevanstours.com (2024). WHO WE ARE. [Online] Available at: https://evanevanstours.com/travel-guide/about-us/. [Accessed on 4 Sep 2024].

Fletcher, J., Fyall, A., Gilbert, D., Wanhill, S. (2018) Tourism: principles and practice. Harlow: Person Education.

Herlina, E., Tukiran, M. and Anwar, S. (2021). The effect of entrepreneurial leadership on organizational performance: literature review. Journal of Management, Accounting, General Finance and International Economic Issues, 1(1), pp.25-33.

historicengland.org.uk (2024). The Contribution of the Heritage Sector to the Visitor Economy. [Online] Available at https://historicengland.org.uk/research/heritage-counts/heritage-and-economy/visitor-economy/. [Accessed on 4 Sep 2024].

martinrandall.com (2024). About us. [Online] Available at: https://www.martinrandall.com/about-us. [Accessed on 4 Sep 2024].

Paulo, M., Miguéis, V.L. and Pereira, I. (2022). Leveraging email marketing: Using the subject line to anticipate the open rate. Expert systems with applications, 207, p.117974.

Richards, G. and Morrill, W. (2020). Motivations of global Millennial travelers. Revista Brasileira de Pesquisa em Turismo, 14, pp.126-139.

statista.com (2024). Number of visitors to English Heritage staffed sites from 2011 to 2024. [Online] Available at: https://www.statista.com/statistics/582040/english-heritage-visitor-numbers-england-uk/ [Accessed on 4 Sep 2024].

statista.com (2024). Travel and tourism in the United Kingdom - statistics & facts [Online] Available at https://www.statista.com/topics/3269/travel-and-tourism-in-the-united-kingdom-uk/#topicOverview [Accessed on 4 Sep 2024].

Timothy, D.J. (2011). Cultural heritage and tourism: An introduction (Vol. 4). Channel View Publications.

Tracy, B. (2014). Marketing. New York: AMACOM (Brian Tracy Success Library). 10. MarketLine Industry Profile: Travel & Tourism in the United Kingdom (2023) Travel & Tourism Industry Profile: United Kingdom, pp. 1–80

Tuten, T.L. (2023). Social media marketing. Sage publications limited.

ucop.edu (2024). SMART Goals: A How to Guide. [Online] Available at: https://www.ucop.edu/local-human-resources/_files/performance-appraisal/How%20to%20write%20SMART%20Goals%20v2.pdf [Accessedon 4 Sep 2024].

visitbritain.com (2024). Welcome to Britain [Online] Available at: https://www.visitbritain.com/en. [Accessed on 4 Sep 2024].

weforum.org (2024). Turning tourism into development: Mitigating risks and leveraging heritage assets. [Online] Available at: https://www.weforum.org/agenda/2024/02/turning-tourism-into-development/ [Accessed on 4 Sep 2024].

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Appendix

Cash in-flow

Cash in-flows	Description (as required)	Values
Total anticipated sales	Providing services guided cultural tours with a focus on cultural preservation	£5,000
Value of your Start-Up Loan	The amount received from the British Business Bank with a 6% interest rate (startuploans.co.uk,2024)	£7,200
Other sources of cash or equity	From crowdfunding, government grants and from friends and family	£3,800
Existing assets for business purposes	From vehicles, trademarks, equipment and stock	£4,000
	Total cash in-flows:	£20,000

Cash out-flow

Cash out-flows	Description (as required)	Values
Total anticipated cost of sales	Amount for providing customer services.	£3000
Existing assets for business purposes	The cost required for office equipment such as inventory	£4,000
Rent or premises cost	Cost required for office space	£1,500
Business rates for your business premises	For paying business property for office space	£500
Utilities (gas, electricity, water)	To fulfil the monthly utilities	£500
Insurance	For securing company with Employers liability and public liability	£1,500
Telephone and internet	To provide proper customer support	£200
Marketing and advertising expenses	For running digital marketing campaigns and maintaining digital and traditional marketing practices	£1,000
Vehicle running costs	Power and maintenance of travelling vehicle	£500
Equipment purchases or leasing	ERP software to manage booking	£600
Postage, printing, stationery	Business cards, stamps, bill books, standees and notepads	£200
Transport and delivery	For transporting business	£700
Professional fees (legal, accounting, etc.)	For company registration and accounting-related services	£300
Your salary	Monthly owner compensation	£800
Staff costs	Salaries of all office employees	£1,200
Start-Up Loan monthly repayment – First Loan amount	For the first installation of the loan amount.	£500
	Total cash out-flows:	£15,000

Net cash flow

Total cash in-flows	Total cash out-flows	Net cash flow
£20,000	£15,000	£5,000

Business & Tourism Management: MGBBT0FYP Foundation Year Project - Cultural Heritage Tours

Table of Contents

Introduction