Business Model Design: A Case Study of the Thanakorn Travel Company in Khon Kaen Province

Abstract

The purpose of this study was twofold: 1) to examine tourists’ behavior and market factors influencing the selection of travel agents in Khon Kaen province and 2) to design a business model for the Thanakorn travel company in Khon Kaen province. Data were collected using online questionnaire and were analyzed with information from a PEST and business model analyses of the tourism industry in Khon Kaen. Results indicated that the majority of the 110 study participants were female aged between 20 and 30 years with Bachelor degrees and careers as government officers, university students, and company employees with an average monthly income greater than 20,000 baht. Most participants had traveled abroad, averaging one trip annually prior to the spread of the Covid-19 epidemics. Participants largely traveled with family or friends. In addition, the results indicated that market factors impacted tourists’ choice of travel agent.
The PESTE analysis results identified a few travel agencies in Khon Kaen province offering tours to Angkor Wat, Siem Reap. While the Covid-19
pandemics has adversely affected the tourism industry, signs of an improving business environment have emerged. Based on the analysis, the proposed business model for Thanakorn travel company is as follows. The primary target customer group should be government officers working in Khon Kaen. The company should differentiate itself by offering compelling travel option with diverse tour activities, noteworthy tourist sites, appealing itinerary, and luxurious accommodation at premium prices. Customers should be contacted via regular and online channels while customer relationship should be built based on superior service provision. The cost of investment was estimated at approximately 300,000 baht, with annual operating costs of 1,011,600 baht. It is estimated that the company would acquire 30 customers per month in the first year—with an estimated revenue of 3,924,000-baht—and a monthly increase of five customers in subsequent years.